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Revenue surged 48% to S$52.4 million with net losses reduced by more than 40% to $6.7 million in FY2003

Improved performance boosted by strong growth in VoIP call traffic from overseas markets

Volume up by 80% to 423 million minutes

Singapore, Feburary 27, 2004:- Mainboard-listed MediaRing Limited (“MediaRing”), the leader of independent VoIP telephony service providers in Asia, today reported improved financial performance for the 12 months ended 31 December 2003.

Financial highlights for the fiscal year 2003 include:

• Revenue jumped 48% to S$52.4 million, from S$35.3 million in FY2002;
• Net loss reduced by 41% to S$6.7 million compared to net loss of S$11.3 million in FY2002;
• Operating expenses before selling expenses reduced by 10% to S$23.7 million from S$26.4 million in FY2002;
• Gross profit grew 45% to S$26.3 million from S$18.2 million in FY2002.

“Our improved performance was due to the strong increase in VoIP traffic volumes. Overseas markets contributed 88% of revenue. With stringent cost controls that have helped to reduce our operating expenses, our net losses have been drastically reduced.” said Mr Khaw Kheng Joo, Chief Executive Officer of MediaRing.

“More than 85% of our revenues came from VoIP. We have made significant gains in the global market share of VoIP telephony service in the last two years. Key to our growth has been the significant improvement in network and voice quality. We are the leader of pure-play VoIP telephony service providers in Asia. MediaRing is now a recognised brand name in the industry, and with our technological capabilities and managed IP network, we are in a strong position to ride on the growing VoIP market.” added Mr Khaw.

Outlook
With the continuing deregulation in the telecommunications industry and the growth of the internet, VoIP is fast gaining acceptance especially in countries where conventional overseas IDD calls are costly. In addition, with the advancement of packet-switch technology, the quality and speed of VoIP calls have also improved as data loss is minimized.

“VoIP has many advantages compared to traditional circuit switch technology such as lower capital costs, lower operating costs and higher network efficiency. We are confident that the VoIP growth momentum will continue as acceptance of this technology accelerates.” said Mr Khaw.

He added, “With our established brand name, global leadership position and cutting-edge VoIP technology, we are excited about the opportunities for MediaRing.”

Barring any unforeseen circumstances, the Group believes it will be able to continue to grow existing revenue streams and further improve financial performance in 2004.

About MediaRing
With offices in Singapore, Malaysia, Shanghai, Beijing, Hong Kong, Taiwan, Japan and Sunnyvale (USA), MediaRing is the leading VoIP telephony service provider in Asia and enjoys a significant share of the global pure-play VoIP market. Through its strong technological capabilities and extensive distribution network, MediaRing brings high-quality voice services to carriers, enterprises, service providers, and consumers with its wide range of service offerings. Its extensive partnerships with carriers around the world allow call terminations in more than 240 countries worldwide. As a pioneer in VoIP services with unique proprietary technology, MediaRing derives more than 90 per cent of its revenue from outside Singapore.

Public Relations Contact

For further information please contact:
August Consulting
Tel: 6733 8873 Fax: 6733 9913
Silvia HENG- silvia@august.com.sg
Lynn Ll- lynn@august.com.sg