09:06     EFORCE HOLDINGS<00943> - Results Announcement (4)                   

                                                                              
    *       Research and development costs include staff costs of HK$2,938,000
    (2003: HK$3,126,000) which amount is also included in staff costs         
    disclosed separately above.                                               
                                                                              
    V       LOSS PER SHARE                                                    
                                                                              
    (a)     Basic loss per share                                              
                                                                              
    The calculation of basic loss per share is based on the loss attributable 
    to shareholders of HK$21,415,000 (2003: HK$89,199,000) and the weighted   
    average number of ordinary shares of 1,937,430,068 (2003: 1,896,254,734)  
    in issue during the year.                                                 
                                                                              
    (b)     Diluted loss per share                                            
                                                                              
    No diluted loss per share is presented as the inclusion of the effects of 
    all potential dilutive ordinary shares would have an anti-dilutive effect 
    on the basic loss per share for both the current and prior years.         
                                                                              
    VI      EXTRACT OF SIGNIFICANT ACCOUNTING POLICIES                        
                                                                              
    Basis of preparation of financial statements                              
                                                                              
    The measurement basis used in the preparation of the financial statements 
    is                                                                        
    historical cost modified by the revaluation of land and buildings.        
                                                                              
    Notwithstanding that the Company and the Group sustained recurrent losses 
    and had net current liabilities and capital deficiency at 31 December     
    2004,                                                                     
    including unsecured other loans of approximately HK$6.5 million which are 
    overdue and remain outstanding as at the date of authorisation for issue  
    of the financial statements, these financial statements have been prepared
    on a going concern basis as the directors of the Company are of the       
    opinion                                                                   
    that the Company and the Group are able to continue as a going concern and
    to meet their obligations as and when they fall due having regard to      
    the following:                                                            
                                                                              
    (i)     the Group is able to attain profitable and cash positive operation
    in the longer term;                                                       
                                                                              
    (ii)    HK$30 million made available to the Company from financial        
    institutions up to 31 March 2006 which the financial institutions reserve 
    the right to terminate the facilities at any time by notice to the Company
    in writing; and                                                           
                                                                              
    (iii)   continuing financial support received from a substantial          
    shareholder.                                                              
                                                                              
    The directors believe that the Group will have sufficient cash resources  
    to satisfy its future working capital and other financing requirements.   
    Accordingly, these financial statements have been prepared on a going     
    concern basis and do not include any adjustments that would be required   
    should the Company and the Group fail to continue as a going concern.     
                                                                              
    The auditors have referred to this matter as a limitation of scope and    
    fundamental uncertainty in their audit report, and their opinion is       
    qualified in this respect.                                                
                                                                              
    For more details, please refer to the press announcement today.