08:57     RECRUIT<08073> - Quarterly Results Announcement (2)                 

    2.      Changes in accounting policies                                    
                                                                              
    The HKICPA has issued a number of new Hong Kong Financial Reporting       
    Standards ("HKFRS"), Hong Kong Accounting Standards ("HKASs") and         
    Interpretations, herein collectively referred to as the "new HKFRSs",     
    which are generally effective for accounting periods beginning on or      
    after 1st January, 2005. The Group has adopted these new HKFRSs for the   
    first time in the period under review.                                    
                                                                              
    The major effect of adoption of these new HKFRSs are summarized as        
    follows:                                                                  
                                                                              
    The adoption of HKFRS 2 - Share-based Payments requires all share         
    options granted to employees or other parties to be recognized in the     
    financial statements. The fair value of the share options at grant date   
    will be amortized over the relevant vesting periods to the income         
    statement. HKFRS 2 has been applied retrospectively for share options     
    granted to employees after 7th November, 2002 and not vested at 1st       
    January, 2005. Following the adoption of this accounting policy, the      
    amount of employee share-based expenses of approximately HK$134,000 and   
    approximately HK$42,000 were charged to the income statements for the     
    quarter ended 31st March, 2005 and 31st March 2004 respectively.          
    Employee share-based expense of approximately HK$466,000 was recognised   
    in the income statement for the year ended 31st December, 2004 as prior   
    year adjustment.                                                          
                                                                              
    In accordance with the provisions of HKFRS 3 - Business Combination,      
    the carrying amount of negative goodwill that arose from a business       
    combination for which the agreement date was before 1st January, 2005     
    shall be derecognized by way of a corresponding adjustment to the opening 
    balance of accumulated losses as at 1st January, 2005. HKFRS 3 has been   
    applied retrospectively. Accordingly, the carrying amount of negative     
    goodwill of HK$13,440,000 was credited to the accumulated losses at       
    1st January, 2004 and 2005.                                               
                                                                              
    3.      Turnover                                                          
                                                                              
                                  Three months ended                          
                                          31st March                          
                                      2005      2004                          
                                   HK$'000   HK$'000                          
                                                                              
    Advertising income              29,464    15,856                          
    Printing income                  1,994         -                          
    Publication sales                    3         -                          
    Service income                       -       150                          
                            ------------------------                          
                                    31,461    16,006                          
                           =========================                          
                                                                              
    4.     Profit from operations                                             
                                                                              
    Profit from operations has been arrived at after charging:                
                                                                              
                                  Three months ended                          
                                          31st March                          
                                      2005      2004                          
                                   HK$'000   HK$'000                          
                                           (restated)                         
                                                                              
    Depreciation                       654       388                          
    Staff costs                      5,952     3,471                          
    Operating leases rental                                                   
    in respect of                                                             
      Rented premises                  545       303                          
      Internet access line              21        21