08:59     CR PEOPLESPHONE<00331> - Results Announcement (2)                   

                                                                              
    3.      SEGMENT REPORTING                                                 
                                                                              
    For the year ended 31 December 2004, the Company's turnover and operating 
    profit were solely attributable to its mobile communications operations in
    the Special Administrative Region of Hong Kong. Accordingly, no analysis  
    by either business or geographical segment is included in the financial   
    statements.                                                               
                                                                              
                                                                              
    4.      BASIC AND DILUTED EARNINGS PER SHARE                              
                                                                              
    a.      Basic earnings per share                                          
                                                                              
    The calculation of basic earnings per share is based on the profit        
    attributable to shareholders of $251,605,000 (2003: $270,076,000) and the 
    weighted average number of ordinary shares outstanding during the year of 
    666,405,137 (2003:433,000,000).                                           
                                                                              
    Reconciliation:                                                           
                                                            Number of Shares  
    At 1 January 2004                                       433,000,000       
    Weighted average number of Ordinary Shares for new                        
      issued shares                                         115,804,303       
    Weighted average number of Ordinary Shares upon                           
      conversion of Preference Shares                       112,291,667       
    Weighted average number of Ordinary Shares issued                         
      pursuant to the Capitalisation issue                  5,309,167         
                                                            __________        
    At 31 December 2004                                     666,405,137       
                                                            =========         
                                                                              
    b.      Diluted earnings per share                                        
    The calculation of diluted earnings per share is based on the profit      
    attributable to Ordinary Shareholders of $251,605,000 (2003: $285,489,000)
    and the weighted average number of ordinary shares of 666,405,137 as at 31
    December 2004 (2003:587,125,000).                                         
                                                                              
                                                    2004            2003      
                                                    $000            $000      
    Profit attributable to shareholders             251,605         270,076   
    Adjusted for:                                                             
    Accrued dividend and accrued redemption                                   
      premium on convertible preference shares      -               15,413    
                                                    ____________  ____________
    Profit attributable to ordinary shareholders    251,605         285,489   
                                                    =======         ======    
                                                                              
    Number of shares (in thousands):                                          
    Weighted average number of Ordinary Shares      666,405         433,000   
    Deemed conversion of Preference Shares          -               154,125   
                                                    ___________  ____________ 
    Weighted average number of Ordinary Shares in                             
      calculating diluted earnings per share        666,405         587,125   
                                                    =======         ======    
    Diluted earnings per share (in HK$)             0.38            0.49      
                                                    =======         ======    
                                                                              
    For more details, please refer to the press announcement today.