You are here: Home > Corporate Info > News Room >

• Group incurs operating loss of US$1.2m due to intense competition and escalating termination cost for one of its major destinations
• Call traffic during first half of 2007 decreases by 11.7% to 519 million minutes
• Moving forward, Group will still focus on strategy to defend and grow existing markets

SINGAPORE – 13 August 2007 – Mainboard-listed MediaRing Ltd, the leader of VoIP telephony service providers in Asia, remains focused on its strategy to defend and grow its existing markets as well as expand into new markets.

For the six months ended 30 June 2007 (“1H”), MediaRing registered revenue of US$51.3 million and net profit of US$2.2 million. Compared to the corresponding period last year, revenue decreased by 3.8% from US$53.3 million and net profit decreased by 35.3% from US$3.4 million.

MediaRing attributed the decline in revenue and profitability to intense competition in one of its major regions and the escalating termination costs for one of its major destinations. Commission and other selling expenses declined in tandem with call volume by US$2.7 million (15.4%) to US$14.8 million. Apart from direct service fees and commission and other selling expenses, total operating expenditure increased by 11.5% due to the consolidation of two of our subsidiaries which were acquired in April 2006 (PT. Atlasat Solusindo) and July 2006 (NetPlus Communications Pte Ltd).

Share of results of associates registered an increase of US$0.68 million due to the acquisition of Pacific Internet Limited (“PacNet”) as an associate in July 2006. Our investment in PacNet was subsequently disposed of in June 2007, resulting in a net gain of US$4.6 million and an improvement in the cash position of the Group.

Based on the latest 1H results, earnings per share fell to 0.21 US cents from 0.36 US cents although net asset value per share improved by 0.25 US cents to 7.24 US cents as at 30 June 2007 compared to 6.99 US cents as at 31 December 2006.

Despite the setback, MediaRing remains focused on its strategy to defend and grow its existing markets as well as expand into new market through partnerships, acquisitions and alliances with quality product offerings. The Group is committed to its goal of achieving sustainable growth for its Voice and Data businesses and to build value for our shares through both organic and inorganic means.

The Group will continue to be diligent of the changing regulations of the countries that use our services.

“To this end, our blueprint for growth continues to include ongoing expansion of our distribution network, continuous market and product development, strategic alliances and investment in other synergistic businesses,” said Mr Khaw, CEO of MediaRing Limited.

About MediaRing
With offices in Singapore, Malaysia, Shanghai, Beijing, Hong Kong, Taiwan, Japan, Indonesia, Cambodia 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 85 per cent of its revenue from outside Singapore.

Media Contacts:

Singapore: August Consulting
Tel: 6733 8873 Fax: 6733 9913
Lynn LI – lynn@august.com.sg
Silvia HENG – silvia@august.com.sg