Press Statement in Response to Article in The Edge Daily and The Sun

Kuala Lumpur, 14th March 2007 – Following an article in The Edge Daily and in The Sun, “MCMC acts on 11 mobile content firms” Nextnation Communication Berhad (Nextnation) would like to respond and clarify several details that were highlighted in the news report.

The report failed to highlight that not all the mobile content services providers mentioned were suspended due to spamming. The regulatory infringement that led to the brief suspension of certain short codes of Nextnation’s subsidiaries, was only the failure to terminate processes and in one instance, due to a transfer of subscribers between short codes. These suspensions have since been lifted. Nextnation as a mobile application services provider strictly prohibits our partner content providers from any form of spamming activity.

The corporate strategy and R&D plans for Nextnation include an ongoing extensive migration from a local platform onto a global platform. Our transition in becoming a leading regional player is demonstrated by the fact that overseas subsidiaries account for about 50% of overall revenue for the last financial quarter.

In this process, technical glitches occasionally arise from this periodic upgrade of systems, a process Nextnation invests in to provide a better service and experience for our customers and content users. Each complaint was immediately rectified with user logs being provided to Malaysian Communications and Multimedia Commission (MCMC) for further clarification.

As a reputable and long-term industry player, Nextnation strongly believes in the protection of consumer interests, particularly in developing a healthy and dynamic content industry. While we welcome the strong stand the MCMC takes in regulating the content industry, we believe that there are areas for improvement to ensure we are successful in establishing Malaysia as a major global centre and hub for communications, multimedia information and content services.

The current practice to immediately suspend short codes for non-processing of termination requests without the provision of any remedial period, is not in the best interest of the business and of the consumers - as the suspension affects other customers who have subscribed to the service. A timely review of the mobile content and services guidelines will better enable a balanced representation of the relevant sectors of the industry.

The brief suspension of these short codes, which has since been lifted, did not result in material financial or operational impact for Nextnation.

About Nextnation

Nextnation is a mobile application service provider that 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 and is able to offer a broad range of services from content distribution to mobile m-commerce. This places the company at the forefront of this rapidly growing messaging market. Additional news and information about the company is available at www.nextnationnet.com.