1. Introduction

On behalf of the Board of Directors of Nextnation, Public Merchant Bank Berhad wishes to announce that the Company had on 21 March 2006, entered into a Memorandum of Understanding (“MOU”) with Beijing Himo Tech Co., Ltd (“Beijing Himo”), a company established in the People’s Republic of China (“PRC”), and Jumpstart Investments Limited, a company incorporated in the British Virgin Islands, for the purpose of collaborating in relation to the research, development and the provision of Internet and wireless technologies and wireless value added services and related software and business ancillary thereto (the “Subject Activities”) in the PRC.

2. Salient terms of the MOU

The salient terms of the MOU are, inter-alia, as follows:

(i) The parties shall continue discussion on the detailed provisions of the terms of the collaboration and to set out the detailed obligations and responsibilities of each party in relation to the collaboration for the Subject Activities in the PRC and the timeline for the implementation of the collaboration for the Subject Activities.

(ii) The parties further agreed that all other agreements for the implementation of the collaboration in relation to the Subject Activities shall be executed within three (3) months from the signing of the MOU.

(iii) Beijing Himo shall be responsible to procure all necessary approvals and consents required from the relevant authorities in the PRC in relation to the parties’ collaboration in the Subject Activities in the PRC.

3. Financial Effects

The MOU will not have any material effect on the share capital, earnings and net assets of the Company for the financial year ending 30 April 2006.

4. Directors and Major Shareholders’ Interests

None of the Directors and major shareholders of Nextnation and persons connected to them has any interests, direct or indirect, in the MOU.

This announcement is dated 22 March 2006.