09:04     RICHE M-MEDIA<00764> - Results Announcement (3)                     

                                                                              
    5.      (LOSS) EARNINGS PER SHARE                                         
                                                                              
    The calculation of the basic and diluted (loss) earnings per share is     
    based on the following data:                                              
                                                            2004    2003      
                                                            HK$'000 HK$'000   
            (Loss) earnings for the purposes of                               
            basic (loss) earnings per share - net (loss)                      
            profit for the year                             (268,390) 117,129 
            Effect of dilutive potential ordinary shares:                     
              Interest on convertible notes payable         -       338       
                                                            _______ __________
            (Loss) earnings for the purposes of                               
             diluted (loss) earnings per share              (268,390)  117,467
                                                            _______ __________
                                                                              
                                                            '000    '000      
            Weighted average number of ordinary                               
            shares for the purposes of basic (loss) earnings                  
            per share                                      4,752,000 4,752,000
            Effect of dilutive potential ordinary shares:                     
              Share options                                 -       29,717    
              Convertible notes payable                     -       84,500    
                                                            _______ __________
                                                                              
            Weighted average number of ordinary                               
            share for the purposes of diluted (loss) earnings                 
            per share                                      4,752,000 4,866,217
                                                            _______ __________
                                                                              
    Subsequent to the balance sheet date, the Company's issued and            
    unissued shares of HK$0.10 each was subdivided into 10 new shares of      
    HK$0.01 each.  The share subdivision took effect on 17th January, 2005.   
    The weighted average number of ordinary shares for both years for the     
    purposes of basic and diluted (loss) earnings per share have been adjusted
    accordingly.                                                              
                                                                              
    The computation of diluted loss per share for the year ended 31st         
    December, 2004 did not assume the exercise of the Company's warrants,     
    convertible notes payable and share options because the effect of         
    exercising a warrant, a convertible note payable and an option to         
    subscribe for an additional share in the Company would result in a        
    decrease of net loss per share.                                           
                                                                              
    The computation of diluted earning per share for the year ended 31st      
    December, 2003 did not assume the exercise of the Company's warrants as   
    the exercise price of these warrants was higher than the average market   
    price for shares.