NEXTNATION COMMUNICATION BERHAD ("NEXTNATION" or "the Company")
- STATEMENT OF CLAIM BY USAPE NELSON WIRELESS SDN BHD, A WHOLLY-OWNED SUBSIDARY OF NEXTNATION AGAINST MACRO KIOSK BERHAD

The Board of NEXTNATION wishes to announce that Usape Nelson Wireless Sdn Bhd (“USAPE” or “Plaintiff’), a wholly owned subsidiary of NEXNATION had on 22 January 2009 served the Statement of Claim on Macro Kiosk Berhad (“MKB” or “Defendant”) for breach of agreement entered between USAPE and MKB dated 2 July 2004. The details of the Statement of Claim are as follows:-

(a) That the Defendant failed to act in accordance with Clause 2 (iii) of the Agreeement to transfer the Short Code 36767 in favour of the Plaintiff despite the Plaintiff’s written requests which were sent before the expiry of the Agreement; and

(b) That the Defendant failed to report and make payment to the Plaintiff in accordance with the provisions of the Agreement.

Announcement Details :

The reliefs and remedies sought in the Statement of Claim sought by USAPE are as follows:-

(a) the Defendant to pay the Plaintiff the sum of RM1,266,527.22 being the payment due and payable to the Plaintiff;

(b) the Defendant to issue to the Plaintiff all outstanding revenue reports for the month of November 2008 (Celcom) and December 2008 (Celcom, Maxis and Digi) and pay to the Plaintiff all outstanding sum in accordance to such reports up until 15 December 2008;

(c) the Defendant to pay the Plaintiff the sum of RM12,433,530.24 being the expected loss caused by the Defendant’s breach of Agreement, calculated at the rate of RM129,515.94 per month over the period of eight (8) years;

(d) the Defendant to pay the Plaintiff the sum of RM129,515.94 per month calculated from 15 December 2008 until the date of judgment being the compensation to the Plaintiff’s loss caused by the Defendant’s breach of trust;

(e) the Defendant to pay the Plaintiff the sum of RM6,216,765.12 being exemplary/ punitive damages which represent the loss of expected revenue for the period of 48 months which period is equivalent to the terms of the Agreement;

(f) A declaration that the Plaintiff is entitled to trace all revenue arising from the use of the Short Code 36767 collected by the Defendant from 15 December 2008 until the date of judgment against the Defendant, the Defendant’s shareholders, directors, employees and agents and all parties related to the Defendant’s shareholders, directors, employees and agents;

(g) An injunction to freeze the bank accounts of the Defendant, the Defendant’s shareholders, directors, employees and agents and all parties related to the Defendant’s shareholders, directors, employees and agents for the purpose of enforcing paragraph (f).

(h) The Defendant to pay Plaintiff interest on the claims as stated in paragraphs (a), (c) and (d) at rate of 8% per annum calculated from the date of the summons until the date of settlement thereof;

(i) The Defendant to pay Plaintiff interest on the claims as stated in paragraph (b) at rate of 8% per annum calculated from the due date until the date of settlement thereof;

(j)The Defendant to pay Plaintiff interest on the claims as stated in paragraph (e) at rate of 8% per annum calculated from the date of the judgment until the date of settlement thereof;

(k)Costs; and

(l) Such other remedies as this Honorable Court thinks fit.

Financial and operating impact on the Statement of Claim

The writ of Summons and Statement of Claim is not expected to have any material financial and operating impact on Nexnation Group.

Further development of the above matter will be announced to Bursa Malaysia Securities Berhad in due course.

This announcement is dated 23 January 2009.