08:50     M TEL<08266> - Quarterly Results Announcement (2)                   

                                                                              
    Fees for development of customised software         -         136         
                                                                              
    Fees for provision of mobile messaging              -          71         
    service                                                                   
                                                                              
                                                   16,043       6,656         
                                                                              
                                                                              
    3.      Taxation                                                          
                                                                              
    No provision for Hong Kong profit tax has been made in the accounts,      
    as the Group had no assessable profits arising in or derived from         
    Hong Kong during the nine months ended 31 December 2004 and               
    31 December 2003.                                                         
                                                                              
    No provision for overseas(the PRC, Singapore, Taiwan and the USA)         
    income taxes has been made as the Group operating in these countries      
    were operating at a loss during the nine months end 31 December 2004      
    and 31 December 2003.                                                     
                                                                              
    Taxation in the unaudited condensed consolidated profit and loss account  
    represents the withholding taxes which have been calculated at the rates  
    of tax prevailing in the areas in which the Group operates, based on      
    existing legislation, interpretation and practices in respect thereof.    
                                                                              
    No provision for deferred taxation has been made as the Group did not     
    have any significant unprovided deferred tax in respect of the periods.   
                                                                              
                                                                              
    4.     Dividend                                                           
                                                                              
    The Directors do not recommend the payment of a dividend for the          
    nine months ended 31 December 2004 (nine months ended 31 December 2003:   
    Nil).                                                                     
                                                                              
                                                                              
    5.      Loss per share                                                    
                                                                              
    The calculation of basic loss per share is based on the unaudited         
    net loss attributable to shareholders for the nine months ended 31        
    December 2004 of approximately HK$3,072,000 (nine months ended 31         
    December 2003: HK$6,483,000), and on the weighted average number          
    of approximately 441,017,354 shares in issue for the nine months          
    ended 31 December 2004 (nine months ended 31 December 2003: 424,800,000)  
                                                                              
    No diluted loss per share is presented as there was no dilutive           
    potential ordinary shares during the periods.