Nextnation Signs MOU with Tawasul Telecom

KUALA LUMPUR, 3 October 2006 – Nextnation Communication Berhad (“Nextnation”) (MY: Mesdaq:NEXTNAT), a leading mobile multimedia Application Services Provider (“ASP”) today announced that it has signed a memorandum of understanding (MoU) agreement with Tawasul Telecom Co. LLC.(“Tawasul Telecom”), a company registered in Kingdom of Saudi Arabia (“Saudi”) and involved in provision of telecommunication, Internet and mobile valued-added services in the Middle East countries such as Saudi, Iraq, Kuwait, Palestine, Jordan and Lebanon.

Propelled by strong demand for wireless value-added services from customers, Nextnation and Tawasul Telecom will join forces in research and development and provision of Internet and wireless technologies and wireless value-added services in countries where they are currently operating their business. The agreement was made on the principals of equality and mutual benefits. Tawasul Telecom currently has market presence in the Middle East while Nextnation has established business connectivity across the Asia Pacific region, Australia, Europe and America.

Tey Por Yee, Nextnation’s managing director and chief executive officer, states, “We are very excited to be expanding our business to the Middle East market through this partnership. There are many opportunities in the Middle East wireless and mobile market, as it is blooming due to the significant government policy shift and economic growth”.

Market expansion in Middle East is one of Nextnation’s strategic initiatives for the year. Nextnation intend to continue to acquire business and form strategic alliances to enhance its product portfolio, proprietary application, distribution channels and technology. Tey Por Yee, added, “I am confident that our partnership with Tawasul Telecom will pave the way for us to make a strong presence in the Middle East and accelerate our geographical coverage”.

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.

About Tawasul Telecom Co. LLC

Tawasul Telecom, a registered company in Saudi, is involved in provision of telecommunication, Internet and mobile value-added services in the Middle East countries including but not limited to Saudi, Iraq, Kuwait, Palestine, Jordan and Lebanon. Additional news and information about the company is available at www.tawsulcom.com.