09:21     EVI EDUCATION<08090> - Yearly Results Announcement (2)              

    The adoption of the aforementioned new/revised SSAPs has no material      
    effect on the Group's accounts, other than as required by SSAP 26 -       
    Segment reporting: Segment information of the Group has been disclosed    
    in note 2                                                                 
                                                                              
    In addition to the adoption of the above standards, the Group has         
    adopted the consequential changes made to SSAP 17 "Property, plant and    
    equipment" and SSAP 18 "Revenue".  The Directors consider that the        
    consequential changes made to these SSAPs do not have a material impact   
    on the accounts of the Group.                                             
                                                                              
    (2) Loss before taxation                                                  
                                                                              
    (a) During the year, the Group reviewed and performed an assessment to    
    evaluate the recoverability of the carrying value of the licensing        
    rights acquired during the year (refer to note (b) below for details of   
    settlement of the acquisition).  The assessment was based on value        
    in use of the assets, as determined based on the present value            
    of estimated future cash flows of the relevant cash generating unit       
    As a result of this assessment, the Group determined to provide for an    
    impairment loss of approximately HK$3,159,000, in addition to the         
    amortisation already charged, reducing the carrying value of these        
    rights to HK$nil as at 30th September 2002.                               
                                                                              
    (b) During the year, the Group acquired certain licensing rights from a   
    third party ("the Vendor") to sell a software technology in Hong Kong     
    Special Administrative Region of the People's Republic of China for       
    approximately HK$6,318,000, based on the determined fair value of         
    the licensing rights acquired as at the date of acquisition.  The         
    consideration for such acquisition was settled by disposal to the         
    Vendor of a 25% equity interest in System New International Limited, a    
    subsidiary company incorporated in the British Virgin Islands, and which  
    was intended to exploit certain internet education technologies           
    acquired.  As a result of such disposal, the Group recognised a gain on   
    disposal of interest in a subsidiary of approximately HK$6,318,000.       
                                                                              
    (3) Loss per Share                                                        
                                                                              
    The calculation of basic loss per share is based on the consolidated      
    loss attributable to shareholders of approximately HK$17,877,000.         
    (2001: HK$17,895,000) and on the weighted average number of               
    approximately 4,000,000,000 shares (2001: 3,619,935,000 shares) in issue  
    during the year.                                                          
                                                                              
    Diluted loss per share is not presented because the effect is             
    anti-dilutive.