TERMINATION OF ACQUISITION OF SHARES IN PT ALAM HIJAU RAYA (formerly known as PT GALAXI PUBLISHINDO)

Reference No CS-090827-BD6F6

Company Name	:	NEXTNATION COMMUNICATION BERHAD (ACE Market)
Stock Name	:	NEXTNAT
Date Announced	:	27/08/2009

Type

Announcement

Subject

NEXTNATION COMMUNICATION BERHAD ("NEXTNATION" or "the Company")
-TERMINATION OF ACQUISITION OF SHARES IN PT ALAM HIJAU RAYA (formerly known as PT GALAXI PUBLISHINDO)

Contents

1. Introduction

We refer to the previous announcement made by the Company on 30 January 2008 that Godynamic Investments Limited ("GIL"), a subsidiary of the Company, had on 30 January 2008 entered into Share Sale Agreements to acquire 95,000 ordinary shares of Indonesian Rupiah (“IDR”) 1,000 each from Hamdan Busyairi and Syaeful Huda, representing 95% of the total issued and paid-up share capital of PT Alam Hijau Raya (formerly known as PT Galaksi Publishindo) (“PTAHA”) in the Republic of Indonesia, for a total cash consideration of IDR95,000,000 or equivalent to approximately RM32,870 (assuming exchange rate of IDR100: RM0.0346).

The Board of Directors of Nextnation wishes to announce that GIL, Hamdan Busyairi and Syaeful Huda had on 18 June 2009 applied to the Ministry of Law, Indonesia to terminate the Share Sale Agreements on the proposed acquisition of shares in PTAHA.

The validation letter from the Ministry of Law, Indonesia which was duly certified by the Notary Public in Jakarta was received by Nextnation on 26 August 2009 on the approval to terminate the Share Sale Agreements.

2. Reasons for Termination

The reasons for termination of the Share Sale Agreements on the Proposed Acquisition of Shares in PTAHA are as follows:-

a. Current global economic crisis has resulted in the proposed business venture not viable due to low demand; and
b. The Group intends to focus on their core businesses and not diversifying into other areas of business.

3. Claim and Damages

Both parties have mutually agreed to terminate the Share Sale Agreements without any claim and damages instituted by either party.

4. Financial Effects

The acquisition of shares in PTAHA had not been completed. Therefore, they would not have any financial effect on the Nextnation Group. The termination of the Share Sale Agreements would not have any material effects on the issued and paid up share capital, earnings per share nor net asset of the Nextnation Group.

5. Directors’ and Major Shareholders’ Interest

None of the directors, major shareholders or person connected to them has any interest, direct or indirect, in the Share Sale Agreements.

6. Approvals required

The Company has obtained the approval from the Ministry of Law Indonesia for the Termination of the Share Sale Agreements. Other than the said approval, there are no other relevant approvals required.

7. Statement by Directors

The Board of Directors of Nextnation, having considered all aspects, is of the opinion that the Termination of the Share Sale Agreements for the acquisition of shares in PTAHA is in the best interest of the Company.

This announcement is dated 27 August 2009.