(15 April, 2005 –Hong Kong) –Comba Telecom Systems Holdings Limited (‘Comba' or the ‘Group'; stock code: 2342), China's No.1 integrated wireless solutions and sub-system provider, is pleased to announce its annual results for the year ended 31 December, 2004.

Financial Review
For the year under review, the Group's turnover reached HK$1,092,761,000, representing an increase of 35.5% from the corresponding period last year. Gross profit for the year was HK$469,449,000, representing an increase of 25.4% over 2003. Net Profit for the year was HK$255,105,000, representing an increase of 20.8% over 2003. Basic Earnings per Share reached HK 30.71 cents compared to HK 29.91 cents last year, showing an increase of 2.7%.
 
The Board of Directors recommended the payment of a final dividend of HK 5 cents per share for the year ended 31 December 2004 (2003: HK 5 cents). Together with the interim dividend of HK 4 cents, the total distribution for 2004 will amount to HK 9 cents per share (2003: HK 5 cents).
 
Similar to the previous years, the improvement was mainly attributable to an overall increase in wireless coverage capital expenditure by PRC mobile operators to improve the quality of their mobile networks for providing better services to the mobile subscribers. In addition, the respective increases of 8.8% and *% in revenue from China Mobile and China Unicom also contributed immensely to the Group's turnover growth.
 
The sale of base station sub-systems, including tower top solutions and base station antennas to mobile operators, accounted for 3.1% of the Group's turnover. Wireless coverage equipment for PHS network, the Group's new business, accounted for 4.8% of the Group's turnover. In addition, revenue from maintenance contracts accounted for 0.9% of the Group's turnover.
 
In the PRC, over 80.0% of the Group's revenue was generated from the coastal regions. Geographically, Southern China (covering mainly Guangdong) remained the major contributor by accounting for 38.5% of total revenue. The Northern region (covering mainly Beijing, Tianjin, Shangdong), the Eastern region (covering mainly Shanghai, Jiangsu and Zhejiang) and the Northeast region (covering mainly Liaoning, Jilin and Heilongjiang) together accounted for 19.6%, 19.5% and 11.2% of the Group's total revenue. Export sales delivered an increase of 120.1% over 2003 and accounted for 2.8% of the Group's turnover.
 
Business Review
The encouraging 2004 annual results reflected the Group's commitment to capturing potential opportunities in both the domestic and international markets. Mr. Fok Tung Ling, Chairman and Managing Director of the Group, commented on the reasons for growth and said, "We continued to implement all round growth strategies in products, solutions, customers and markets. We installed multi-brand, multi-protocol distribution system in multiple large scale projects including the Shenzhen subway system, which can handle both 2G and 3G servicing. Furthermore, our expansion into PHS coverage serves as a good foundation to build strong business relationships with fixed line operators, who are strong candidates for being granted 3G licenses in the foreseeable future within the PRC."

At the end of 2004, the Group had over 30 offices within the PRC and maintained business relations with 58 provincial level mobile operators, an increase of 11 as compared to 2003. The Group has been expanding steadily to strengthen its leading position in the PRC. It currently has regional offices each in Hong Kong, Singapore, Sweden and Thailand. The Asia markets are covered by Hong Kong, Singapore and Thailand and the EMEA markets are covered from Sweden. The Group has established a strong international team with seasoned personnel in the wireless market.

"With export markets witnessing strong growth, our revenue more than doubled in 2004. During 2004, we increased our activities in the international markets including establishment of new offices and participating in key regional and global trade events. We are confident the growth momentum in the past few years in export markets will continue in 2005."

In anticipation of the expected growth in its business in the next few years, the Group commenced the construction of its new headquarters in the PRC. By early 2005, the Group expects to relocate its R&D functions to its new headquarters, providing more space for production.

Future Prospects
With the mobile market in the PRC growing rapidly, and the number of subscribers exceeding 330 million by the end of 2004, mobile phone subscribers are demanding increasingly improved services from the operators. This resulted in enhanced capital expenditure on wireless coverage, capacity enhancement and network optimization by the operators to enhance quality of mobile phone networks. This is one of the main reasons for the Group's continued growth within the wireless market. The Group is confident in the need for wireless coverage solutions to remain very strong in 2005 and beyond.

Mr. Fok Tung Ling further commented, "We are excited about the business opportunity brought forth for Comba by the granting of 3G licences in the PRC. Leveraging on our leading position within the 2G market, we expect to benefit significantly from the launch of 3G services in the PRC. Having developed our export markets for around two years, we are set to reap the rewards during 2005. Furthermore, our diversification into the OEM vendor market has broadened our customer base and created new revenue channels for the Group. We will continue to bring value to our customers and endeavor to deliver another year of growth and maximize shareholders' value."