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SINGAPORE – 14 August 2006 – Mainboard-listed MediaRing Ltd (“MediaRing” or the “Group”), a leading pure-play VoIP telephony service provider in Asia, today reported robust results for the six months ended 30 June 2006 (1H FY06), making it the first publicly-listed VoIP pure-player in the world to achieve four consecutive half-years of profitability.

For the 1H FY06, MediaRing achieved a net profit of US$3.4 million, an impressive 182% increase from US$1.2 million in 1H FY05. Revenue for 1H FY06 rose 20% year-on-year to hit US$53.3 million, from US$44.4 million previously, driven by strong and consistent growth in the Group’s VoIP Retail Operations.

In addition, the Group continued to generate increasing volume of call traffic, attesting to the rising acceptance and usage of VoIP worldwide. In 1H FY06, total call traffic volume surged 24% to 588 million minutes compared to 474 million minutes in 1H FY05. Monthly call traffic has reached more than 100 million minutes since May 06. VoIP-based traffic accounted for 97% of the Group’s total traffic.

VoIP Retail Operations increased to US$48.1 million from US$39.7 million in 1H FY05 and now account for more than 90% of Group Revenue. The increase was attributable to continued healthy growth in the Group’s existing markets in the Middle East and Indochina, as well as revenue contributions from newly developed markets.

Said Mr Khaw Kheng Joo, Chief Executive Officer of MediaRing, “Since achieving profitability in 2H FY04, MediaRing has continued to widen our competitive edge over other players in the industry. We are pleased with our business performance in 1H FY06 as we were able to continue to expand our foothold in the markets which are important to us.”

In 1H 2006, all categories of expenses for the Group increased as a result of growth in revenue and the first time inclusion of expenses incurred in a new subsidiary, Indonesia’s PT Atlasat Solusindo. While direct service fees as a percentage of revenue declined from 45.4% in 1H FY05 to 40.6% in 1H FY06, commissions and other selling expenses increased almost in tandem with growth in revenue. Increase in the Group’s other operating expenses was mainly due to travel expenses and the non-recurring expenses related to the Rights Issue.

During the financial period under review, a total of 228,512,819 ordinary shares were issued to existing shareholders for each rights share at S$0.16 per share, on the basis of one rights share for every four existing ordinary shares. Proceeds of the rights share of US$22.9 million will be used to finance new acquisitions and investments in assets or businesses which are synergistic with the Group’s business.

Earnings per share was 0.36 US cents for 1H FY06 computed based on weighted average number of ordinary share of 948,512,416 ordinary shares in issue. This represents an increase of 125% compared to EPS of 0.16 US cents for 1H FY05. Net asset value per share based on 1,143,890,098 ordinary shares in issue was 6.72 US cents as of 30 June 2006 compared to 5.19 US cents as of 31 Dec 2005, an increase of 29%.

Outlook
As part of the Group’s expansion strategy, MediaRing intends to defend and grow existing markets and to expand into new markets through partnerships, acquisitions and alliances. MediaRing’s already announced ventures in Cambodia and Indonesia are part of this strategy. In Cambodia, the Group is well positioned to tap into the growth of the country’s telecommunications sector through its associated company, Cambodia Data Communication Company Ltd (“CDC”), and has rolled out WiMax Broadband technology in May 2006. In Indonesia, being one of a handful of licence holder for VoIP, the Group is well poised to increase its market share.

In addition, the Group continues to look at developing new markets such as South America, Africa and India. In July 2006, the Group entered the telecommunications market in Africa through alliances with key communications services providers on the continent.

“As we have articulated before, our goal is to achieve sustainable growth and build long term value for shareholders through both organic and inorganic means. To this end, our blueprint for growth includes ongoing expansion of our distribution network, continuous market and product development, strategic alliances, and investments in other synergistic businesses,” said Mr Khaw.

About MediaRing
Headquartered in Singapore, and with subsidiaries or rep offices in Malaysia, Shanghai, Beijing, Hong Kong, Taiwan, Japan and Silicon Valley (Sunnyvale, CA) USA, MediaRing is the leading VoIP telephony service provider in Asia and enjoys a significant share of the global VoIP market. Through its strong technological capabilities and extensive call termination 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 revenue from outside Singapore.

Media Contacts:

Singapore: August Consulting
Tel: (65) 6733 8873 Fax: (65) 6733 9913
Silvia HENG – silvia@august.com.sg
Lynn LI – lynn@august.com.sg