GREEN PACKET ON THE TURNAROUND WITH PROMISING Q1‘09 RESULTS

Kuala Lumpur, - Friday, May 22, 2009:
The Green Packet Group of Companies (The Group) today announced quarter one 2009 results that firmly reflect The Group’s projections of recovery in its revenue and business by year end.

The Group’s revenue has seen a dramatic increase of 85.7%, from RM22.3 mil to RM41.5 mil in Q1 2009 compared to the same corresponding period 2008. In addition to the surge in revenue, The Group also sees a substantial reduction in operational and investment related losses of 26.0%.

Speaking about the results and company performance, Mr. CC Puan, Group Managing Director and Chief Executive Officer, Green Packet Berhad said, “The Group’s performance in Q1 2009 is as per our projections putting us on track to be EBITDA positive by end 2009. The performance witnessed in Q1 is a direct result of The Group’s now proven business plan, consumer demand, winning of new contracts, subscriber base increase and also the sound management of CAPEX, OPEX and investments.”

In Q1 ’09, The Group’s Solutions pillar secured contracts with Hong Kong’s leading telecommunications provider PCCW and Taiwan’s first-mover WiMAX service provider Tatung InfoComm to provide a host of solutions and services ranging across the GSM and WiMAX spaces. Green Packet also announced a partnership with GCT Semiconductor, Inc., to develop and launch the world’s first WiFi-WiMAX seamless roaming solution on a single chipset. Green Packet’s innovation received global industry recognition in the form of the TMC Distinction Award for two of their WiMAX devices.

The Malaysian WiMAX services provider arm of Green Packet, Packet One Networks (Malaysia) Sdn Bhd or “P1” was also recently recognised with the 2008 Red Herring Asia’s Top 100 Most Innovative Private Technology Company award. P1 is reaping the harvest of its first-mover game plan and aggressive commercial deployment with an impressive 269% growth in subscriber base from Q4 ’08 to Q1 ’09 with net subscriber additions of 25,500 for Q1. The subscriber base is on target at 35,000 as at 31 March 2009.

“P1 successfully reached its targets in terms of subscriber base and network coverage in Q1 this year. Now, as the Company rolls out phase 2 which targets to reach 35% national coverage by end 2009, the subscriber base will continue to grow exponentially in line with network coverage. This translates to a significant and growing recurring monthly revenue stream for the Group. This increase also shows that the WiMAX proposition itself is sound and that there is strong consumer demand for our products and services,” said CC Puan.

The Group’s business model and current financial standing sees operating and investment funds available to implement P1’s deployment plan and activities, however, The Group’s forward planning may see them conduct fund raising activities to raise capital for future growth and expansion opportunities.

The Group announced a renounceable ‘Rights Issue’ of up to 208,320,775 new ordinary shares together with up to 208,320,775 free detachable new warrants on the basis of one Rights Share and one Warrant for every two existing ordinary shares held (1-for-2-issuance). Price per unit for the rights issue is yet to be confirmed.

Commenting on the Rights Issue, CC Puan said, “On the back of a sound Q1 performance which is on track, on plan and on target, The Group has decided that the time is right for us to build our war chest to seize market opportunities when they arise, and as a forward planning company to prepare for further growth and expansion on our now proven business.

According to CC Puan, the Rights Issue will allow existing shareholders to increase their shareholdings at the current low market level.

“The Group has maintained relatively low gearing of 0.48x, has sufficient cash available of RM199 mil and financing facilities of RM35 mil to cover CAPEX requirements of RM230 mil for Phase 1 and 2 implementation in this two years to meet 40% population coverage, Along with a proven business model and increasing consumer demand, our current share price is trading below the Group’s Net Assets per share,” CC Puan concluded.