15 January 2010

KUALA LUMPUR - Friday, 15 January 2010: Malaysia Debt Ventures Berhad (“MDV”), a wholly owned subsidiary of the Minister of Finance Inc. signed an agreement with Packet One Networks (Malaysia) Sdn Bhd (“P1”) to finance the continued rapid expansion of its P1 W1MAX 4G WiMAX service nationwide.

P1 will receive a RM50 million loan from MDV to be repaid over 48 months. The loan will go towards financing P1’s capital expenditure for the further expansion of their WiMAX network infrastructure throughout the nation, as well as P1’s related services.

As Malaysia’s innovative financier and development facilitator for Information and Communications Technology (ICT), Biotech and other high growth sectors in Malaysia, MDV is committed to providing financing solutions and nurturing initiatives to locally incorporated companies to spur growth within these sectors.

MDV’s main focus areas are broadband, outsourcing and digital content. These three areas act as a catalyst to the growth of ICT in Malaysia.

“Having identified Broadband as one of the high growth sectors in ICT, we actively support P1’s initiatives with the establishment of its infrastructure as part of the strategy to encourage economic growth in Malaysia,” said Md Zubir Ansori Yahaya, Managing Director and Chief Executive Officer of MDV.

P1’s performance has made it a strong candidate to receive funding from MDV.

As at end 2009, MDV has approved a total of more than RM4.65 billion to 358 companies since inception while its total loan portfolio stands at more than RM1.34 billion. Total financing approved for the ICT sector is more than RM4.36 billion which is extended into sub-sectors such as Application, Content and Multimedia; e-Commerce; Communication and Network; and Electronic or Semi-conductor.

“This funding from MDV will further boost our progress towards becoming the country’s leading wireless broadband provider. 2010 will be a great year for P1, where we will be expanding our 4G WiMAX service to East Malaysia, making P1 Malaysia’s only true nationwide WiMAX operator. In addition to that, we will be introducing exciting embedded devices this year to usher in the year of WiMAX where we realise a truly connected world,” said Michael Lai, Chief Executive Officer, P1.

By the end of 2009, the Packet One WiMAX network has already been deployed to over 600 sites, covering areas in Kuala Lumpur, Selangor, Penang, Kedah, Perak, Terengganu, Pahang and Johor, representing over 35% of West Malaysia’s population. P1 is on track to achieve 45% coverage of West Malaysia’s population by the end 2010, and 65% of the entire Malaysian population by the end of 2012.

“We are happy to have MDV believing in our continued quest to challenge, innovate and excite the Malaysian broadband market. Together with MDV’s support, we are another step closer to the reality of broadband being a right, and no longer a privilege,” Lai added.

“We strongly believe that with sufficient coverage Malaysia will move faster up the value chain, in line with the Government’s target of reaching 50% penetration for broadband by end of 2010. We are also proud to be part of P1’s impressive growth and progress in accelerating the Malaysian ICT industry. We believe that this new partnership will open doors to better opportunities in the future,” concluded Zubir.

P1 was awarded the 2008 winner of the Red Herring Asia Most Innovative Private Technology Company and is listed in Malaysia’s Book of Records as Malaysia’s first WiMAX telco. In 2009, P1 was awarded the MSC Malaysian APICTA Best of Startup Companies.

MDV partners and supports clients at every stage of development, providing unique value-add services that go beyond financial accessibility. Allowing clients to maintain full ownership of their business and benefit from their services, MDV exists to partner alongside clients in their journey to achieve their project objectives.

Representatives at the signing were Md Zubir Ansori Yahaya, Managing Director and Chief Executive Officer of MDV and Michael Lai, Chief Executive Officer of P1.