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• 2H net profit of S$0.4m as against 1H loss of S$1.1m
• Full Year Revenue surged 67.6% to S$87.8 million
• Full Year Volume up by 57% to 665.4 million minutes

Singapore, Feburary 28, 2005 - Mainboard-listed MediaRing Limited (“MediaRing”), the leader of pure-play VoIP telephony service providers in Asia, today reported a profitable 2H on record turnover. 2H Turnover surged by 53 % and the company achieved profitability for the first time.

Indeed, before foreign exchange loss, the Group achieved a 2H profit of S$1.6 million on sales of S$48.3 million compared to 1H loss of S$1.3 million on sales of S$39.5 million.

Financial highlights for the full year 2004 include:

• 67.6% increase in group revenue to S$87.8 million, from S$52.4 million in FY2003;
• 89.4% reduction in net loss to only S$0.7 million against net loss of S$6.7 million in FY2003;

“We are greatly encouraged by our performance in the second half of the financial year where we managed to achieve a profit for the first time. We definitely see light at the end of the tunnel now,” said Mr Khaw Kheng Joo, Chief Executive Officer of MediaRing.

During the year, revenue was significantly boosted by its VoIP operations consisting of PC-to-Phone retail services and Carrier Operations. MediaRing also continued to expand its marketing and distribution network and now has more than 1,100 resellers and partners in more than 100 countries.

In number terms, call traffic volume rose 57% to 665.4 million minutes generating more than 60 million minutes of traffic a month from October 2004. VoIP call traffic accounted for more than 90%.

Results for FY2004 included foreign exchange loss of S$1.0 million, up 46% from S$0.7 million in FY2003 due to a weakening in the US dollar in the second half of 2004. Before the foreign exchange loss of S$1.0 million (FY2003 : S$0.7 million), the Group achieved a net profit of S$0.3 million in FY2004 as compared to a loss of S$6.0 million in FY2003.

Outlook
With the rising acceptance of this technology by leaders in the telecommunications industry, global VoIP traffic is expected to continue to show significant growth.

“We are confident that with our focus on providing VoIP services, we will be able to ride on this growth momentum,” said Mr Khaw.

Barring any unforeseen circumstances, the Group believes it will be able to continue to grow existing revenue streams and further improve financial performance in 2005.

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.

MediaRing recently announced that it has entered into a placement agreement worth US$24.1m with Venture One Finance Limited. Venture One Finance Limited subscribed up to an aggregate of 150.33million new shares which represented approximately 20% of the capital of MediaRing. Venture One is a company incorporated in the British Virgin Islands.

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