STRONG DEMAND FOR MOBILE DATA AND SERVICES BOOST NEXTNATION’S PROFIT BY 35%

Kuala Lumpur, Thursday (29 June 2006): Buoyed by continued strong demand for its products and services‚ Nextnation Communication Berhad’s pre–tax profits rose 35% to RM16.873 million for the financial year ended 30 April‚ 2006.

This was achieved on a 50% increase in revenues to RM67.381 million. Profit after tax improved in line to RM16.815 million.

The surge in revenue was driven by favourable response and sustained demand for the Group’s products and services from its partners and customers‚ and the strong growth trend in mobile value-added services among subscribers in Malaysia‚ as well as the Asia Pacific region‚ Nextnation said in its announcement to Bursa Malaysia today.

Based on the full year earnings, Nextnation’s earnings per share is 6.9 sen.

In a statement released in conjunction with the financial results‚ Nextnation’s Chief Executive Officer Mr P Y Tey attributes the robust demand for its products to Nextnation’s portfolio of leading edge technology and its ability to deliver innovative products and solutions for the mobile data transmission and value-added services industry.

One example is its enhanced multimedia platform and solutions which was successfully replicated and deployed in other regional markets‚ leading to further revenue contribution in the last quarter.

He added that current year outlook for the industry would be challenging in view of the stringent rules imposed by the authority‚ competitive pricing and increased players locally and abroad. However‚ with the Group continuing to focus on its core activities and to pursue its regional expansion plan for revenue diversification‚ the Directors expect the Group’s performance to be promising.

Listed on Mesdaq last August 2005‚ Nextnation announced a series of corporate proposals and acquisitions‚ including a bonus issue and share placement exercise‚ with the objective of building up a strong market presence in the key regional markets.

They are:

Singapore: Subscription for 100% of Nextnation Qahaar Venture Ptd Ltd – a Singapore based company involved mainly in research and development, trading and marketing of communication, information technology and life sciences technology
China: Via its subsidiary Godynamic Investments Limited, entered into a subscription agreement that will give it 50% shares in Often Reach Investments Ltd (ORI). ORI will establish a wholly-owned subsidiary in China to undertake research, development and the provision of Internet and wireless technologies, wireless value-added services and related software in China.
Indonesia: Via Godynamic Investments Limited, entered into a subscription agreement that will give it an indirect 60% interest in PT Elasitas Multi Kreasi. (Elasitas). Elasitas is a technology enabler for the mobile and Internet industries which focuses on platform development and system integration, provisioning of mobile services and production of creative content and multimedia.

The proposed bonus issue of one new share for every two existing shares will be implemented via the capitalisation of the share premium account, after the proposed private placement of 10% of the existing issued capital. The private placement exercise has been approved by the Securities Commission.

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.