2002 Interim Results 30 June 2002 September 2002

June 2002 June 2001 $HKm Total Revenue Operating Costs (before dep) EBITDA Depreciation (39.5) (44.1) Exceptionals 11.2 (90.6) Other Revenue Finance Cost - (0.5) Operating Profit Net Profit EPS 4.96 cents 5.34 cents EBITDA Margin 19.0% 28.6% Results Summary

June 2002 June 2001 $HKm $HKm Newspapers & Other Publishers Retail Investment Properties Video & Film Post-Production Entertainment Recreation & Education Total ===== Revenue

% $HKm $HKm Change Staff Cost Cost of Sales Rental & Utilities Advertising & Promotion Other Operating Expenses Operating Cost (before dep) Depreciation Total Operating Costs & Expenses

Staff costs – costs 19.2% – disposal of Recreation Club and Education businesses – suspension of Capital Artists and several magazine titles – overall headcount reduction Jun 2001Dec 2001Jun 2002 Newspaper & Internet : 54% Retail : 26 % Magazine & Other Publications : 9% Video Film : 4 % Management & Corp. Services : 7% Head Count Operating Costs & Expenses

Cost of sales 14.5% – newsprint cost down 20.1%, US$545 pmt vs. US$675 last year – newsprint usage 22.1% Rental costs 27.4% – disposal of the club and education businesses Advertising promotion 29.6% Other operating expenses 3.8% Operating Costs & Expenses

June 2002 June 2001 $HKm Total Revenue EBITDA Operating Profit EBITDA Margin 21.8% 35.7% Newspaper & Other Publications

Jan - June July - Dec *Unaudited Newspaper Circulation * * 2002 WeekdaysSunday Circulation revenue 3.9% 1H2002 Weekdays 5.5%, Sunday 1.6% – lower hotel/airline sales following September 11 – lower street sales from depressed economy

Display Advertising Revenue 22.8%, volume 4.3% and lower yield Growing potential of Mainland advertisers – increase in corporate announcements from Mainland companies – more focus on Mainland related special reports, 6 reports in 1H2002 vs 2 reports year-on-year. Since July 2002, 3 reports on Energy, Pearl River Delta and Shanghai Property Newspaper

Classified Advertising Revenue 47.7%, volume 41.6% and lower yield Saturday Classified pages averaged 45 pages in 1st Half 2002 compared with 86 pages year-on-year (51 pages in July - Dec 2001) Growing traction of Classifiedpost.com – over 7 million monthly page views – over 200,000 unique visitors – 37% growth in revenue 1H2002 vs 2H 2001 – 42% pure online jobs, print plus revenue continues to grow

Jul 01 AugSepOctNovDecJan 02 FebMarAprMayJun Jul Page Views '000 6,786,000 7,571, ,000 1,622,000

June 2002 June 2001 $HKm RetailRevenue EBITDA Operating Profit (0.5)(1.1) InvestmentRevenue PropertiesEBITDA Operating Profit37.6 (6.7) Video & Film PostRevenue ProductionEBITDA (0.4) 2.6 Operating Profit (2.2) 1.2 Entertainment,Revenue Recreation &EBITDA EducationOperating Profit Other Businesses

Retailing Revenue3.8% from additional Daily Stop outlets, though per shop sales is lower 75 Daily Stop outlets from 72 in December Health Plus shops from 27 in December 2001, continue to close unprofitable shops Property holding Revenue 7.8% due to expiry of a lease Other Businesses

Video & film Production Revenue 44.8% Decrease in documentary tape income Lower profit margins due to keen competition Entertainment, Recreation and Education Entertainment and recreation businesses discontinued in 2001 Education business sold in March 2002, gain on sale of HK$11.2m Other Businesses

Capital Expenditure System hardware & software Other businesses Colour press Replacement 2nd Half 2002 : HK$68m HK$8m HK$49m HK$7m HK$4m 1st Half 2002 : HK$35m HK$4m HK$19m HK$4m HK$8m

Looking forward..  Advertising remains weak, overall difficult to see an improvement in business environment in 2nd Half 2002 Some stability seen in recruitment advertising Jiu Jik in MTR stations from 5 July  180,000 copies distributed on MTR (120,000 on Friday, 60,000 on Tuesday)  pick up rate at MTR stations over 95%  additional distribution at 24 Daily Stop outlets and 21 education centres  Significant increase in revenue post MTR distribution

Looking forward.. Launch separate sale of Classified Post on 3 August  12,000 copies distributed through Daily Stop, 7-Eleven, newstands  targeted at job seekers who are not regular readers of the newspaper Growth potential from mainland advertisers through Special Reports (albeit from a low base) New colour presses in operation - greater flexibility and choice, higher revenue with improved advertising market

Looking forward.. Continue to upgrade  restructuring of Editorial team to better define and deploy resources  ensure more accountability and improvement to quality and focus of our products Challenging but stable