09:10     TOWN HEALTH<08138> - Quarterly Results Announcement (2)             

                                                                              
    (2) Loss per share                                                        
                                                                              
    The calculation of basic loss per share for the nine months ended         
    31st December 2004 is based on the unaudited net loss of                  
    HK$6,422,000 (2003 - HK$61,525,000) and the weighted average              
    number of 1,249,182,000 shares (2003 - 933,387,000 shares) in             
    issue during the period.                                                  
                                                                              
    The calculation of diluted loss per share for the nine months             
    ended 31st December 2004 is based on the unaudited net loss of            
    HK$6,392,000 (2003 - HK$61,525,000) and 1,266,087,000 shares              
    (2003 - 940,455,000 shares), being the weighted average number            
    of shares outstanding during the period, adjusted for the effects         
    of all potential dilutive shares.                                         
                                                                              
    (3) Dividends                                                             
                                                                              
    The Directors do not recommend the payment of an interim dividend         
    for the nine months ended 31st December 2004 (2003 - Nil).