Nextnation Group Maintains Robust Double-Digit Growth

3Q07 Revenue rises by 60%, Net profit up by 31.6%

Kuala Lumpur, Wednesday, 28 March 2007: Nextnation Communication Berhad (MY: Mesdaq: NEXTNAT), today announced its unaudited financial results for the third quarter and nine months ended 31 January 2007. The Group’s revenue stood at RM28.2 million, up 60% from the 17.6 million posted in the nine months ended January last year. The Group posted a 32.2% increase in its Profit Before Tax (PBT) and 31.6% increase in Profit After Tax (PAT) to 5.73 million and 5.69 million respectively compared to the previous year’s corresponding quarter.

Nextnation’s Group Chief Executive Officer and Managing Director, Mr. Tey Por Yee commented, “I am pleased that the company is managing our transition to becoming a leading regional player well, without losing focus in leading the market here in Malaysia. Despite the tough competition, we have managed to achieve good financial performance but we are well aware of the challenges that lie ahead. We are focused towards strengthening our position in a highly competitive and challenging market place and are implementing additional initiatives to ensure continued good performance.”

The Group’s encouraging growth is driven by continued expansions and impressive performance of the overseas investments, with 50% of the Group’s revenue being attributed to it. Year-to-date earnings per share is at 6.3 sen (or 8.4 sen on a annualised basis) compared to the preceding year’s corresponding quarter where it stood at 5.1 sen. “We will further establish our position in regional markets where we have a strong presence, capturing the huge growth potential further enhancing the Group’s profile and profitability. We have adopted an opportunistic approach in our international expansion plans, a strategy that has reflected positively in our financial performance,” explained Mr. Tey.

The Group's performance of the current quarter against the preceding quarter (Q3 2007 on Q207)

Group revenue for the current quarter increased by 4.1% over RM27 million recorded in the preceding quarter, mainly due to continual investment in research and development and dynamic marketing campaigns. Net profit grew by 5.7% from the 5.38 million reported in the second quarter. The slightly higher growth in net profit compared to revenue is attributed to the economies of scale and the Group’s effort in cost streamlining.

Nextnation has implemented a private placement of up to 10% of the existing issued and paid-up share capital of the company comprising 25,200,000 new ordinary shares of RM0.10 each (Placement Shares). The first tranche of 10,000,000 and second tranche of 6,200,000 of the Placement Shares have been issued and listed on the MESDAQ Market and the balance of the 9,000,000 Placement Shares have yet to be placed out.

Following this, the Group will implement a bonus issue of one new share for every two existing shares which is expected soon. The approval for the listing of and quotation for the proposed bonus shares has been obtained from Bursa Malaysia Securities Berhad.

The Board of Directors remain upbeat on the future of the mobile communications industry, both locally and in overseas for the current year’s prospect. The Group will continue its commitment to deliver better quality and valued services to its customers and business partners as well as expand its market share in the mobile application services provider industry.

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.