09:00     ESSEX BIO-TECH<08151> - Yearly Results Announcement (2)             

                                                                              
    year include their results for that period, the assets and                
    liabilities at the previous balance sheet date and the shares issued      
    by the Company as consideration as if they had always been in issue.      
                                                                              
    All significant intercompany transactions and balances within the         
    Group have been eliminated on consolidation.                              
                                                                              
    2. TAXATION                                                               
                                                                              
    No provision for Hong Kong profits tax has been made as the Group         
    had no assessable profit subject to Hong Kong profits tax.                
                                                                              
    The Group's operating subsidiaries are all established and carrying       
    on business in the Special Economic Zones of the PRC as foreign           
    investment enterprises. They are subject to enterprise income tax at      
    a concessionary rate of 15%. One of the Group's subsidiaries, which       
    is engaged in production, is entitled to seek exemption from              
    enterprise income tax for two years starting from the first year of       
    profitable operations after offsetting accumulated losses brought         
    forward, followed by a 50% reduction in enterprise income tax for the     
    next three years. No provision for PRC enterprise income tax had been     
    made as there was no net assessable income during the year.               
                                                                              
    3. EARNINGS/(LOSS) PER SHARE                                              
                                                                              
    The basic earnings/(loss) per share for the year ended 31 December        
    2004 is calculated based on the consolidated profit attributable          
    to shareholders of the Company for the year of HK$7,604,639 (2003:        
    net loss of HK$18,355,091) and 555,243,156 (2003: 555,240,000)            
    ordinary shares in issue during the year.                                 
                                                                              
    The diluted earnings per share amount for the year ended 31 December      
    2004 is calculated based on the consolidated profit attributable to       
    shareholders of the Company for the year of HK$7,604,639 and the          
    weighted average of 555,613,683 ordinary shares assumed to have           
    issued on the deemed exercise of the share options under the              
    Pre-Scheme.                                                               
                                                                              
    No diluted loss per share is presented for the year ended 31 December     
    2003 because the share options outstanding had an anti-diluted effect     
    on the basic loss per share for the year.                                 
                                                                              
    4. DIVIDENDS                                                              
                                                                              
    The directors do not recommend the payment of any dividends in respect    
    of the year.