NEXTNATION ACQUIRES 5.9 ACRES OF PRIME COMMERCIAL LAND FOR RM18.52M WITH A POTENTIAL GDV OF UP TO RM500M

Part of Group’s plans to build cloud and cache business capacities to serve the Asian markets

KUALA LUMPUR, 28 March 2012 – ACE-market listed mobile applications and platform provider Nextnation Communication Berhad ("Nextnation") announces that it has today signed a Letter of Offer with Cyberview Sdn Bhd, a Federal Government owned company and landowner of Cyberjaya, to purchase a vacant enterprise lot in Cyberjaya from the latter, known as Lot P58, held under H.S.(D)7817 PT42830 measuring approximately 5.906 acres located at Mukim Dengkil, Daerah Sepang, Negeri Selangor Darul Ehsan for a cost of RM18.52 million (hereinafter referred to as "the Acquisition").

Nextnation's spokesperson, Mr. Augustone Cheong comments that the acquisition is consistent with the group's business expansion plan which includes the recently secured outsourcing sales contract ("Outsourcing Agreement") from an international client, PT Inovisi Infracom, Tbk.

"The Acquisition is in line with the expansion plan of the core business activities of Nextnation and its subsidiaries ("Nextnation Group”). The management is planning for the next 5 years of internal consumption, which includes development of office space and facilities, such as a data center, R&D labs and incubation campus on the land for internal use. We are also looking to provide commercial investment opportunities for MSC companies and multinational corporations to invest in this project. Based on initial studies by our consultants, we are targeting a gross development value of between RM400m-RM500m. Some of our multinational
corporate clients have shown interest in our facilities." says Cheong.

Cheong is not naming the clients yet as the discussions are still preliminary at this stage. "All we can say is that the demand is promising, and the move is part of the group's 5 year Greater Asia Mirror Interchange (GAMI) Project, which is to build the cloud and cache business capacities to serve the Asian markets.”

The Acquisition has no immediate financial impact over the next 12-18 months, but it is expected to contribute to the medium and long term profitability and growth of the Nextnation Group, in parallel with its core business growth.

We will need to deliver our current contracts and grow our capacity accordingly, before expanding this project to include external tenants or joint venture partners. Although we have been discussing with experienced property developers and project management companies, property development is not intended to be our core business, at least for the near term", adds Cheong.

Financing for the said acquisition shall be from the proceeds of a proposed private placement with free warrants exercise ("Proposed Private Placement"), internally generated funds and/or bank borrowings. Nextnation is still in the initial stage of exploring various solutions to fund the development of the land, including the possibility of such development being financed in phases by off-taker/tenants or with a combination of internal funds and/or borrowings.

According to MSC Malaysia's website, Cyberjaya is home to 30 multinational corporations and 457 MSC companies. The recent shift of population and business activities towards Cyberjaya has encouraged more companies to set up their operations in this area. According to the SmartData Collective website, major growth in Internet service demands and companies to expand or build new data centers around the world. The diagram below depicts data center expansion investment plans by IT giants such as Microsoft, Google, Facebook and IBM:For example, Google is targeting to invest over US$900 million in energy-efficient cloud computing data centres, while Microsoft's planned investment is US$850 million and even Facebook is investing US$450 million into their first data centre.

Nextnation's extensive investment internet technologies has recently put the company in the forefront of technological evolution. The shift of mobile services to mobile Internet, in particular, the social networking boom (Facebook and Twitter) and the proliferation of mobile apps on Apple's IPhone/IPad and the various Android devices is providing large economic impetus for a mobile platform and utility player such as Nextnation.