13:45     SONAVOX INT'L<08226> - Quarterly Reusults Announcement (2)          

    For the year ending 31st December 2005, the Group has adopted all         
    HKFRSs pertinent to its operations. The changes to the Group's            
    accounting policies and the effect of adopting these new policies         
    are set out below.                                                        
                                                                              
    HKAS 1 Presentation of Financial Statements                               
    HKAS 2 Inventories                                                        
    HKAS 7 Cash Flow Statements                                               
    HKAS 8 Accounting Policies, Changes in Accounting Estimates and Errors    
    HKAS 10 Events after Balance Sheet Date                                   
    HKAS 12 Income Taxes                                                      
    HKAS 14 Segment Reporting                                                 
    HKAS 16 Property, Plant and Equipment                                     
    HKAS 17 Leases                                                            
    HKAS 18 Revenue                                                           
    HKAS 19 Employee Benefits                                                 
    HKAS 21 The Effects of Changes in Foreign Exchange Rates                  
    HKAS 24 Related Party Disclosures                                         
    HKAS 27 Consolidated and Separate Financial Statements                    
    HKAS 32 Financial Instruments: Disclosure and Presentation                
    HKAS 33 Earnings Per Share                                                
    HKAS 36 Impairment of Assets                                              
    HKAS 37 Provisions, Contingent Liabilities and Contingent Assets          
    HKAS 38 Intangible Assets                                                 
    HKAS 39 Financial Instruments: Recognition and Measurement                
                                                                              
    The adoption of HKAS 17 "Leases" represents a change in accounting        
    policy, which has been applied retrospectively so that the comparative    
    figures presented have been restated to confor m to the changed policy.   
    In accordance with the provisions of HKAS 17 "Leases", leasehold land     
    and buildings should be split into the land and the buildings elements    
    in proportion to the relative fair values of the leasehold interests in   
    the land element and the buildings element of the lease at the inception  
    of the lease. The lease premium for land is stated at cost and amortised  
    over the period of the lease. However, the adoption of HKAS17 "Leases"    
    has no significant ef fect on the Group's results for the three months    
    ended 31st March 2004 and 2005.                                           
                                                                              
    The adoption of other new HKFRSs does not result in substantial changes   
    to the Group's accounting policies except that certain presentation and   
    disclosures of the accounts would be affected on the interim report for   
    the six-month period ending 30th June 2005 and annual report for the      
    year ending 31st December 2005.                                           
                                                                              
                                                                              
    INTERIM DIVIDEND                                                          
                                                                              
    The Directors do not recommend the payment of any interim dividend for    
    the three months ended 31st March 2005 (2004: Nil) so as to retain        
    resources for future expansion.                                           
                                                                              
                                                                              
    EARNINGS PER SHARE                                                        
                                                                              
    The calculation of the basic earnings per share for the three months      
    ended 31st March 2005 were based on the unaudited profit attributable     
    to shareholders of approximately HK$1,271,000 (2004: HK$1,446,000)        
    and on the weighted average number of approximately 320,000,000 shares    
    ordinary shares during each of the thr ee-month periods ended             
    31st March 2004 and 2005.