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With reference to the Circular to Shareholders dated 26 September 2006 in relation to the Proposed Bonus Issue wherein it was stated that an application will be made to Bursa Malaysia Securities Berhad (“Bursa Securities”) to seek a waiver/modification of Rule 6.25(3) of the Listing Requirements for the MESDAQ Market whereby the available reserves for the capitalisation for the Proposed Bonus Issue must be confirmed by the external auditors of Nextnation to be adequate to cover the entire Proposed Bonus Issue based on Nextnation’s latest audited financial statements as well as its latest quarterly report.

On behalf of the Board of Directors of Nextnation, Public Merchant Bank Berhad wishes to announce that Bursa Securities had, vide its letter dated 31 October 2006, approved the abovementioned application as Nextnation will have sufficient share premium for the Proposed Bonus Issue after the proposed private placement of up to 10% of the existing issued and paid-up share capital of Nextnation which was announced on 14 March 2006.

This announcement is dated 3 November 2006.