NEXTNATION Proposed Acquisition of a Subsidiary for Business Expansion in the People's Republic of China

NEXTNATION Proposed Acquisition of a Subsidiary for Business Expansion in the People's Republic of China

April 14, 2006

    KUALA LUMPUR, April 14 /Xinhua-PRNewswire/ --
Nextnation Communication Berhad ("Nextnation")
had on 12 April 2006 entered into a Heads of Agreement with
Beijing Himo Tech Co., Ltd, and Jumpstart Investments
Limited to acquire Often Reach Investments Limited in
respect of the company's investment in relation to the
research, development and the provision of mobile
communication, wireless technologies, wireless value added
services, Internet and related software and business
ancillary thereto ("Subject Activities") in the
People's Republic of China (PRC).

    Nextnation and its subsidiaries has a 50% shareholding
in the enlarged issued and paid-up ordinary share capital
of Often Reach and the Board of Directors of Often Reach
will comprise of four (4) representatives of Nextnation (or
its affiliate) and three (3) representatives of Jumpstart,
where Nextnation will control the board.

    Often Reach will establish a wholly-owned foreign
entity ("WOFE") in the PRC to undertake the
Subject Activities.  The Board of Directors of WOFE will
consist of four (4) representatives of Nextnation (or its
affiliate) and three (3) representatives of Jumpstart,
where Nextnation will control the board. 

    Upon the establishment of WOFE, WOFE and Beijing Himo
shall execute agreements which include Exclusive Business
Cooperation and Operating Agreement in relation to
research, development and provision of mobile platform,
contents and applications; Exclusive Technical Consulting
Service Agreement whereby WOFE will be the exclusive
technical and consulting service provider in relation to
network and web development, maintenance, research and
development and consulting services on sales, marketing,
customer services, human resources, corporate exercises,
market research and public relations. WOFE shall be the
sole owner of all the copyrights of the software developed
by WOFE and/or jointly by WOFE and Beijing Himo.  In
consideration for the services provided by WOFE, Beijing
Himo shall pay WOFE a fee of USD1,000,000 (equivalent to
approximately RM3,700,000 based on the exchange rate of
USD1.00 : RM3.70) per annum; and such other agreements to
be agreed between WOFE and Beijing Himo to enable WOFE to
have a substantial influence on Beijing Himo's daily
operations and financial affairs.

    As of April 2006, Nextnation messaging platform covers
30 mobile operators worldwide across Asia, Europe and North
American.  South East Asian operators includes Singtel,
MobileOne and StarHub in Singapore; Maxis, Celcom and DiGi
in Malaysia; Telkomsel, IM3, Satelindo and Excelcom in
Indonesia and AIS, DTAC in Thailand.

    Impact on Nextnation

    The acquisition will enable Nextnation to penetrate the
fast-growing wireless value-added services market and the
related industry in China, and this is in line with the
Nextnation overseas market expansion strategies to
diversify and grow its revenue base.  The Board of
Nextnation believes the Chinese market offers Nextnation
significant expansion potential.

    Market for advanced entertainment content services is
expected to be the largest growth segment, increasing from
$291 million in 2005 to over $450 million and $650 million
in 2006 and 2007 respectively.  Recent estimates suggest
that less than 25% of mobile handsets in China can access
premium content.  However, this is set to grow rapidly as
such phones now account for the majority of handset sales
in China.  Nextnation be well placed to build upon its
leading position in the market. 

    "Beijing Himo is one of the most talented,
technically-advanced and successful nationwide service
provided (SP) in China.  We are very pleased to have them
on our team." said P.Y Tey, CEO of Nextnation. 
"China is the world's largest mobile
telecommunications market with approximately 400 million
mobile phone users.  The number of users is expected to
increase to 570 million in 2008.  The revenue generated by
wireless value added content providers is forecast to
increase to $1.9 billion by 2008.  As a global leader in
wireless value added service provider, Nextnation is
ideally positioned to capitalize upon this growth
trend."

    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(TM) Platform is a mobile
multimedia communication platform, facilitating and
enabling mobile data transmission worldwide using WAP, MMS,
SMS and Java technologies.

    MINDCEP(TM) 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
http://www.nextnationnet.com .
  
    About Beijing Himo

    Beijing Himo is a company established in the PRC and is
involved in the provision of telecommunication and wireless
value added services in the PRC.  Beijing Himo provides its
services via telecommunication companies in the PRC
("PRC Telcos") such as China Mobile Communication
Corporation, China Unicom Ltd, China Telecom Corporation
Limited and China Netcom Communication Group Corporation.

    Beijing Himo is one of the few service providers in the
PRC which was granted the national operation permit to
operate mobile value added services, and has been granted
three (3) years of tax exemption and subsequent three (3)
years of fifty percent (50%) tax exemption.  

    For more information, please contact:
 
     Nextnation Communication
     Ms. Sally Peh 
     Tel:   [phone]
     Fax:   [phone]
     Email: [e-mail] 

SOURCE  Nextnation