Nextnation wishes to announce that Nextnation Interactive Sdn. Bhd., an indirect wholly-owned subsidiary of the Company, has incorporated a 80%-owned subsidiary in Indonesia, namely PT Nextnation Prisma (“Nextnation Prisma”), together with PT Prisma Dinamika Selaras, a company incorporated in Indonesia.

Nextnation Prisma has an authorised capital of IDR3,524,000,000 (or USD400,000) comprising 400,000 ordinary shares of IDR8,810 (or USD1.00) each and to have issued capital of IDR881,000,000 (or USD100,000) comprising 100,000 ordinary shares of IDR8,810 (or USD1.00) each.

The principal activitiy of Nextnation Prisma is provision of voice and data related telecommunication solutions.

This announcement is dated 5 July 2006.