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• Revenue declines marginally by 4.7%.
• Acquisitions of NetPlus and Cavu pay off as this segment, Data & Infrastructure, contributes to 15.5% of the revenue.
• One time non-cash impairment losses affect Net Profit After Tax (“NPAT”) by US$3.8 million.

SINGAPORE, 28 February 2008 – Mainboard-listed MediaRing Ltd, the leader of VoIP telephony service providers in Asia, pulled through a tough year.

For the financial year ended 31 December 2007, MediaRing revenue declined marginally by 4.7% to US$111.4 million while NPAT fell 73.6% to US$2.2 million.

MediaRing attributed the decline in revenue and profitability to the voice segment where competition caused Voice revenue to decline by 17.1% to US$94.2 million and call traffic volume to fall by 14.3% to 1.1 billion minutes.

However the acquisitions of NetPlus Communications Pte Ltd in July 06 and Cavu Corp Pte Ltd in October 07 paid off, as the revenue contribution by these two businesses, collectively classified as Data & Infrastructure, helped to cushion off the shortfall in Voice segment. Data & Infrastructure segment now contributed US$17.2 million or 15.5% of MediaRing total revenue.

MediaRing NPAT for the year was affected significantly by one time non-cash impairment losses following the assessment of impairment of a subsidiary. The net impact of these losses on the NPAT was US$3.8 million. If not for these impairment losses, our NPAT would have been US$6.0 million.

Commenting on the FY2007 results, Mr. Khaw Kheng Joo, MediaRing’s Chief Executive Officer, said, “FY2007 was a challenging year for our Voice segment. We have taken steps to diversify our risks by expanding into the Data and Infrastructure services.”

Based on the latest results, while earnings per share (“EPS”) based on the weighted average number of ordinary shares declined by 73.4% to 0.21 US cents per share, the net asset backing per share based on the issued and fully paid up share capital has increased by 8.4% to 7.58 US cents.

Outlook

Despite the results of FY2007, Mr Khaw said, “MediaRing will continue to focus on its strategy to defend and grow its existing markets and expand into new ones. The Group will continue to look for opportunities to expand its operations in Asia, Africa and South America and will, at the same time, be diligent of the changing regulations in the countries that use our services.”

On the Data & Infrastructure services, MediaRing intends to focus its resources on this segment. Through Cavu, MediaRing has acquired an unique needs-based system for computing power, known as Cavu Utility On-Demand model. This model presents a number of benefits to its customers by freeing the customers from huge upfront capital investment in technology and eliminating risks of technology obsolescence.

Mr Khaw said, “Highly complementary to MediaRing’s existing Data services, Cavu’s utility computing can be neatly packaged together, both hardware and software; storage and hosting, 24/7 service and support, and eventually delivered to customers at cost effective rates. This will be one key area which MediaRing will explore and focus on.”

“We remain strongly committed to establishing a strong position as a full-fledged IP communications provider in the Asia Pacific region via organic and inorganic means. We believe that this is the route to building a sustainable business growth model.” says Mr Khaw.

Note:

In FY 2007, reflecting on the business nature of its new subsidiaries, MediaRing re-classified its business segments into Voice Services, which includes PC-to-Phone, MediaRing Talk and Enterprise Solutions segments; and Data and Infrastructure services.

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 95 per cent of its voice revenue from outside Singapore.

Contact Information:

Singapore: August Consulting
Tel: 6733 8873 Fax: 6733 9913
Silvia HENG – silvia@august.com.sg
Alan LEE – alanlee@august.com.sg