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• MediaRing will own 95% of Atlasat while Indon partner will have 5%
• Atlasat will generate opportunities to drive revenue growth, provide synergies and create shareholder value for the enlarged Group

SINGAPORE - 13 December 2005 - Mainboard-listed MediaRing Limited ("MediaRing"), the leader of pure-play VoIP telephony service providers in Asia, is setting up a beachhead in Indonesia.

The Company announced today that it has together with an Indonesia partner signed a sale and purchase agreement to acquire 100% of PT Atlasat Solusindo, a licenced Indonesian VoIP service provider. Under the agreement, MediaRing will acquire 95% of Atlasat for US$3.18 million.

On completion, Atlasat will become a 95%-owned subsidiary of MediaRing.

Atlasat is involved in the principal business of providing telephony services using Voice over Internet Protocol (VoIP) technology in Indonesia. It has been awarded a Principal Licence of VoIP and a Business Licence of VoIP by the Department of Transportation Directorate General Post and Telecommunications in Indonesia.

Atlasat also has a licence to access codes '17000' and '17018' from the same department and an utilisation permit access from the Department of Transportation to use access code '018' in Indonesia.

Commenting on the deal, Mr Khaw Kheng Joo, CEO of MediaRing, says "We are very excited about this acquisition. Atlasat is expected to generate opportunities to drive revenue growth in the Asia region, provide significant synergies and create shareholder value for the enlarged Group."

According to Mr Khaw, key benefits from this transaction include more opportunities for cross-marketing and cross-selling of products between the respective companies' customers base, bundling of services and brand leveraging.

On the operations side, Mr Khaw says the addition of Atlasat will further enhance MediaRing's communication network in the region to better serve businesses and corporation.

Together with MediaRing's presence in countries across Asia Pacific and USA, Indonesia represents yet another link from which MediaRing can further grow its Enterprise Solution business.

"Notably, with the acquisition, MediaRing will gain a strategic presence in Indonesia and an effective platform for its telecommunications services. We intend to use this platform to enhance our Enterprise Solutions business for our corporate clients in the region." says Mr Khaw.

MediaRing will fund its portion of the acquisition in cash. MediaRing will pay US$345,000 to the vendors as deposit while the balance will be paid on completion. The acquisition is subject to the approvals from relevant authorities in Indonesia.

The proposed acquisition is not expected to have a material impact on the earnings per share and net tangible asset per share of the Company for the financial year ending 31 December 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.

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