Green Packet Reports 24% Revenue Growth In FY2007

Green Packet Bhd

KUALA LUMPUR, 28 February 2008 – Green Packet Berhad (Green Packet) today announced a 24% jump in revenue from the previous year to RM122.84 million for its financial year ended 31 December 2007.

However, the company posted a lower pre-tax profit of RM30.99 million as compared with RM58.56 million in FY2006. Profit after tax (PAT) and minority an interest was RM30.16 million as compared with the previous corresponding period at RM55.29 million.

According to Group Managing Director and Chief Executive Officer, Mr Puan Chan Cheong, while Green Packet has consistently registered higher earnings since its listing with its wireless solutions business being continuously profitable and gaining market share – the drop in company’s earnings towards the second half of last year was due to temporary slow down in sales to China and continued heavy investments to build the converged telecommunications business of its subsidiary, Packet One Networks (Malaysia) Sdn Bhd. It was also attributable to share of losses from non-core businesses via associated companies and higher provision for costs made in the discounted telephony subsidiaries.

On the numerous broad based reports that Green Packet’s revenues are affected by slower sales to China due to regulatory delays on award of 3G spectrum, Puan maintains that China will remain to be an important target market for Green Packet due to the sheer size and high growth potential of the China telecommunications market.

Puan said, “We see this slowdown as no more than a temporary hiccup faced due to external risk factors. However, plans have been in place since early 2006 to mitigate the risks associated with over-dependency on any single market.”

He adds, “We are pleased with our diversification strategy in terms of markets, customer base, and solution offerings. As a result, the dip in our solution business in China has been substantially off-set by strong growth in both Middle East and North Africa (MENA) and Asia Pacific.”

According to Puan, Green Packet will further rationalise its business operations to pursue telecommunication opportunities in two major growth regions i.e. the Asia Pacific and MENA.

Green Packet expects to continue investing in the near future to solidify its second key business pillar of converged telecommunications service provider. This new business unit will continue to aggressively build up its organisation and the necessary infrastructure to roll-out WiMAX broadband services by the first half of this year.

“Based on the positive outcome of some of the key strategic directions and investments we have taken over the past 2 years, I am extremely confident that Green Packet’s cumulative plans will pan out in this year,” ends Puan.

About Green Packet Berhad (Green Packet)

Green Packet is a leading developer of Next Generation Mobile Broadband Networking Solutions. The company’s mission is to provide a seamless and unified platform for the delivery of user centric multimedia communications and services regardless of the nature and availability of backbone infrastructures.

As a mobile broadband networking solutions developer, Green Packet brings forth best-of-class technologies, devices and services to simplify and enhance connectivity and communications.