MediaRing Posts a Profit

SINGAPORE -- Mainboard-listed MediaRing Limited (“MediaRing” or the “Group”), the leader of pure-play VoIP telephony service providers in Asia continues its profitability trend.

For the six months ended 30 June 2005, the Group achieved a net profit of US$1.2 million driven by strong growth in revenue.

During the period under review, Group revenue surged 91% to US$44.4 million from US$23.3 million in 1H 2004, mainly due to continued strong growth in its VoIP retail operations.

Said an elated Mr Khaw Kheng Joo, Chief Executive Officer of MediaRing Limited, “Without a doubt, this continued trend of profitability is a major success to date. Our financial recovery is a resounding validation of the strength of our business model, the soundness of our growth strategies and the calibre of the people at MediaRing.”

Based on the latest results, earnings per share and net asset value per share based on the issued and fully paid up share capital of 751,302,398 ordinary shares for 1H 2005 were 0.16 US cents and 3.83 US cents respectively.

Riding on the rapid growth in the VoIP industry, the Group’s performance was boosted in 1H 2005 by its VoIP retail operations which grew 144% to US$38.3 million from US$15.7 million in the same period last year.

The Group’s call traffic rose 55% to 474 million minutes in 1H 2005 from 305 million minutes in 1H 2004. The Group generated more than 80 million minutes of call traffic a month since March 2005. Of this, VoIP call traffic accounted for 96%.

The Group further expanded its marketing and distribution network to more than 1,200 resellers and partners in over 100 countries as compared to approximately 950 and 1,100 in over 90 countries for 1H 2004 and full year 2004 respectively.

“Our VoIP retail services, which comprised 86% of the first half-year revenue continues to grow at a significant pace. We continue to do well in our key markets in the Middle East and Indochina and are starting to see our efforts in opening up of the South American market taking hold.” Mr Khaw explained.

MediaRing Ltd.