Nextnation Reports First Quarter 2006 Financial Results

Kuala Lumpur, Malaysia, August 24 2005 - Nextnation Communication Berhad ("Nextnation"), a leading mobile multimedia Application Services Provider ("ASP") en route to listing on the MESDAQ Market of Bursa Malaysia Securities Berhad, has reported a better performance to achieve a net profit of RM3.8 million on the back of revenue of RM15.2 million in its first quarter of the financial period ended 31 July 2005. Nextnation Group, a leading mobile multimedia application service provider which was listed on 26 August 2005 on the MESDAQ Market of Bursa Malaysia Securities Berhad, today declared its first interim tax exempt dividend of 20 percent for the financial year ending 30 April 2006.

The solid performance was mainly attributed to the sustained demand for the Group's products and services, as well as the uptrend for mobile data services amongst mobile subscribers in Malaysia.

Elaborating on the results, Tey Por Yee (or PY Tey), Chief Executive Officer / Managing Director of Nextnation said: "The first quarter results are positive indications of our target partners/customers' continued favorable response to our products and services, following our exceptional growth trend achieved last year. We at Nextnation make it a point to continue to work closely with our partners/customers so as to continue to develop applications to suit their needs."

"Barring any unforeseen circumstances, we anticipate our performance for the current financial year to be promising and to achieve good earning growth," he added.

For the financial year ended 30 April 2005, Nextnation recorded a strong revenue and net profit growth of 1,458% and 896% to RM45.1 million and RM12.5 million respectively. The quantum leap was mainly due to the full commercialization of and encouraging response received for its proprietary platform MINDCEP, as well as the application developer modules SMSJET, SOHOMOBILE and mCommerce-Suit in 2004.

The Group is embarking on overseas expansion to continue charting its growth path in the near future. It intends to expand its market share in Indonesia, Singapore, Thailand and further expand into China. Further down the pipeline, it intends to make inroads into Europe, Vietnam and USA. On the Group's prospects, PY Tey said: "We are at present putting in place the various strategies to replicate our proven business model in the region. We hope to see positive returns and continue to create shareholders' value from our overseas expansion activities soon."

The listing of Nextnation on Friday, 26 August 2005, entails the issuance of 32.0 million new ordinary shares of RM0.10 each at the issue price of RM0.78. The Company had also implemented a 1-for-1 bonus issue, resulting in a theoretical ex-bonus price of RM0.39 per share. The Company is raising RM24.96 million from the IPO exercise for market expansion, R&D and marketing activities. The public tranche received very strong demand from the public investors with more than 33 times oversubscribed even with its short offer period of only about a week.

Nextnation is associated with the growing list of more than 1,000 business partners worldwide including more than 400 service providers and 500 reseller organizations worldwide. It is tapping on the growing trend of the mobile subscriber base and the numerous business opportunities from the 3G technologies for mobile phones.

About Nextnation

Nextnation, a mobile application service provider, enables businesses and individuals to access, connect, and transact across today's complex global mobile networks. Its core product MINDCEP Platform is a mobile multimedia communication platform, facilitating and enabling mobile data transmission worldwide using WAP, MMS, SMS and Java technologies. MINDCEP is connected to some of the largest premium messaging networks in the world in order to offer a broad range of services from content distribution to mobile m-commerce and place the company at the forefront of this rapidly growing messaging market. Additional news and information about the company is available at www.nextnationnet.com.