09:01     PALIBURG HOLD<00617> - Results Announcement (3)                     

    (d)                                                                       
                                                    2004           2003       
                                                   HK$'M          HK$'M       
                                                  -------        -------      
                                                                              
    Write-back of impairment of a hotel property   165.8           11.4       
                                                  -------        -------      
                                                                              
    (e)                                                                       
                                                    2004           2003       
                                                   HK$'M          HK$'M       
                                                  -------        -------      
    Loss on disposal of overseas                                              
      subsidiary companies attributable to                                    
      discontinued operation                           -           (9.7)      
                                                  -------        -------      
                                                                              
                                                                              
    5.  The calculation of basic earnings per ordinary share is based on the  
    net profit from ordinary activities attributable to ordinary shareholders 
    for the year of HK$516.8 million (2003 - HK$387.6 million) and on the     
    weighted average of 5,383.1 million (2003 - 3,270.8 million) ordinary     
    shares of the Company in issue during the year.                           
                                                                              
    The calculation of diluted earnings per ordinary share for the year ended 
    31st December, 2004 is based on the adjusted net profit from ordinary     
    activities attributable to ordinary shareholders for the year of          
    HK$492.5 million and on the adjusted weighted average of 6,440.8 million  
    ordinary shares of the Company that would have been in issue during the   
    year assuming (i) all outstanding convertible bonds (including optional   
    convertible bonds) of the Regal group were converted into, and the        
    subscription rights attaching to all outstanding warrants of Regal were   
    exercised to subscribe for, ordinary shares of Regal at the beginning of  
    the year or their respective dates of issue, whichever is later; and (ii) 
    all the 1,990.0 million convertible preference shares of the Company were 
    converted into the same number of ordinary shares of the Company at the   
    beginning of the year. The conversion of the outstanding convertible      
    preference shares of Regal is anti-dilutive for the year. In addition, the
    exercise prices of share options of the Company and Regal outstanding     
    during the year are higher than the average market prices of the          
    respective ordinary shares of the Company and Regal and, accordingly, they
    have no dilutive effect on the basic earnings per ordinary share.         
                                                                              
    The calculation of diluted earnings per ordinary share for the year ended 
    31st December, 2003 was based on the adjusted net profit from ordinary    
    activities attributable to ordinary shareholders for that year of         
    HK$337.8 million and on the adjusted weighted average of 5,791.6 million  
    ordinary shares of the Company that would have been in issue during that  
    year assuming (i) all outstanding convertible preference shares and       
    convertible bonds (including optional convertible bonds) of the Regal     
    group were converted into ordinary shares of Regal at the beginning of    
    that year; and (ii) all the 3,450.0 million convertible preference shares 
    of the Company were converted into the same number of ordinary shares of  
    the Company at the beginning of that year. The exercise prices of share   
    options of the Company and Regal outstanding during that year were higher 
    than the average market prices of the respective ordinary shares of the   
    Company and Regal and, accordingly, they had no dilutive effect on the    
    basic earnings per ordinary share.                                        
                                                                              
    For more details, please refer to the press announcement today.