Nextnation continues to record higher profits and stronger growth

Nextnation continues to record higher profits and stronger growth

2Q Net Profit Rises 29% to RM5.4 Million

Kuala Lumpur, Thursday, 21 December 2006: Nextnation Communication Berhad (“Nextnation” or “Company”) (MY: Mesdaq: NEXTNAT), announced today its financial results for the second quarter ended 31 October 2006 of the 2006/2007 financial year on the back of strong performance from its Malaysian and regional operations. Nextnation registered robust double digit growth with a 61.3% increase in revenue and 29% in net profit to RM27.1 million and RM5.4 million respectively, for its second quarter in comparison to the preceding year’s corresponding quarter.

Nextnation’s Chief Executive Officer and Managing Director, Mr. Tey Por Yee said that the better results reflect positively on Nextnation’s corporate strategies to focus on research and development initiatives, regional market expansion, delivering value-added products and services, and developing strong partnerships with business partners. “Nextnation’s solid financial results indicate that we are on the right track and are well positioned to capitalise on growth opportunities to further improve our financial position and performance.”

“Fuelled by a booming mobile industry and a surge in demand for mobile value-added services, our growing subscriber base will continue to add to healthy top line growth, as we continue to invest at home and abroad to provide future profit growth opportunities. I am also pleased that the Company is managing our transition to becoming a leading regional player well, demonstrated by the fact that overseas subsidiaries accounted for about 50% of overall revenue for the quarter,” added Mr. Tey.

Nextnation’s excellent prospect for growth in overseas markets also attributes to the increase in revenue by 15.5% in this quarter compared to RM23.5 million in the previous quarter. The cumulative current year-to-date revenue also recorded an impressive 58% increase to RM50.5 million from RM32 million in the preceding year’s corresponding period. Basic earnings per share for this quarter are 2 sen.

“Nextnation’s portfolio of leading-edge technology and ability to deliver innovative products and solutions for mobile data transmission and value-added services is our advantage which we will leverage on for future growth. The outlook for the industry is challenging in view of competitive pricing and increased players locally and abroad but we have been successful in replicating and deploying the MINDCEP™ platform, solutions and business model in regional markets. We will continue to focus on research and development and diversify our revenue stream in becoming a successful international mobile applications services provider,” commented Mr. Tey on the future prospects of the Company.

The Mesdaq listed Company has in recent months, announced a series of corporate proposals and acquisitions‚ including a bonus issue and share placement exercise‚ with the objective of building its strong market presence in the key regional markets. They are:

China: The subscription of 50% control in Often Reach Investments Limited. The Company also acquired 100% equity interest in Vision Phoenix Group Limited, which will be the holding company of a wholly-owned foreign entity to be incorporated in China, for the provision of the next generation mobile video streaming technology and high capacity value-added telecommunication services.

Middle East: A memorandum of understanding with Tawasul Telecom Co. LLC for collaboration in research, development, provision of Internet and wireless technologies and value-added services, related software and business ancillary.

Vietnam: The incorporation of Vinamob Venture Company Limited will allow Nextnation an entry into the world’s second-fastest growing economy in areas such as research and development of information technology, Internet and wireless Internet; design, production and provision value-added products and services for mobile and information technology.

In addition to the overseas markets as mentioned above, Nextnation has also expanded its business operations to Singapore, Thailand, Indonesia, Brunei, Australia, Europe and Americas with access to over 1.3 billion Mobile subscribers worldwide.

In rewarding its shareholders, the Company is proposing a bonus issue of one new share for every two existing shares which will be implemented upon the completion of the proposed private placement exercise. The approval for the listing of and quotation for the proposed bonus shares has been obtained from Bursa Malaysia Securities Berhad on 15 November 2006.

About Nextnation
Nextnation is a leading end-to-end mobile application service provider‚ connected to over 500 mobile networks and supporting thousands of developers and distributors, enabling businesses and individuals to access‚ connect‚ and transact across today’s complex global networks. Its core product, MINDCEP™ Platform, is a world class mobile multimedia communication platform‚ facilitating and enabling mobile data transmission worldwide using WAP‚ MMS‚ SMS and Java technologies. Nextnation provides high quality, cost effective, flexible and powerful value-added solutions specified to its clients’ needs in improving effectiveness and efficiency in the business process as well as to enhance customer satisfaction. Nextnation is a strong believer in customer focused-business and value creation using wireless technologies. Additional news and information about the company is available at www.nextnationnet.com.

For media enquiries, please contact: Ms. Jane Ong at email: pr {at} nextnationnet(.)com or tel: 603 7494 4839.