e-KONG Announces 2003 Interim Results

HONG KONG, September 3, 2003 -- e-KONG Group Limited (HKSE: 524) ("e-KONG" or the "Company", and together with its subsidiaries, the "Group"), today announced its interim results for the period ended June 30, 2003.

During the period under review, the Group recorded a healthy business growth and strong operating performance despite the economic uncertainties that dominated the first half of 2003. The Group’s total turnover was HK$201.2 million, a 43.1% increase compared to HK$140.6 million for the same period in 2002. The Group also achieved an important milestone of attaining positive EBITDA (earnings before interest, taxation, depreciation and amortisation) of HK$14.3 million for the six months ended 30 June 2003. Consolidated net loss attributable to shareholders for the period decreased substantially to HK$8.3 million compared to HK$115.3 for the prior period.

The ZONE telecommunications business of the Group continues to perform well with increased turnover and improvement in the operating results. Revenue for this period from the ZONE operations in the United States (“ZONE US? increased by 69.9%, from HK$76.3 million for the prior period to HK$129.7 million. This is particularly good performance given the competitive business environment and continuing economic uncertainty in the US. ZONE US achieved a steady revenue growth and a positive EBITDA for the first half of 2003 mainly due to increase in its sales efforts, continuous improvement in its operating efficiencies and better gross margin.

ZONE Hong Kong and ZONE Singapore (collectively “ZONE Asia? achieved net profit during this period even though both countries were severely affected by the SARS outbreak in the second quarter of 2003. Profitability was achieved mainly through increasing its turnover while maximising its operating margin. The Group’s continuing efforts in technological developments and business process improvements of the ZONE model are providing significant operating leverage for its ZONE telecommunications business, enabling it to remain competitive in the current difficult market conditions.

In a challenging environment, the Group has delivered on its operating and financial targets for the first half of 2003. Looking ahead, for the next period, the Group is expected to continue to improve on its operating performance and financial position and to deliver on its goal to achieve positive EBITDA for the year of 2003.

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Note: The full text of the Group’s 2003 Interim Results announcement can be access through the Corporate web-site at: www.e-kong.com/investors/announcements.htm

About e-KONG Group Limited

e-KONG Group Limited is listed on the main board of the Hong Kong Stock Exchange (HKSE:524) and its principal operating subsidiaries are in the business of providing innovative telecommunications services. The Company's key business ZONE provides a unique telecommunications service offering for the International Direct Dialling (IDD) and Domestic Long Distance (DLD) related markets. ZONE's patented web-enabled technology allows customers access to an unrivalled choice of telecom service providers while empowering them with tools to effectively and efficiently manage their telecommunications needs.

For further information on e-KONG Group, please visit: http://www.e-kong.com/

Note: The correct form for the Company name is as follows: e-KONG (Lower-case "e" followed by a hyphen and upper-case KONG.)

For more details contact:

Mr. S.G. Lim

Tel: 852 3101 3047

Fax: 852 3101 0194

e-mail: invrel@e-kong.net

Web site addresses : -

e-KONG : http://www.e-kong.com/

ZONE US : http://www.zoneld.com/ / www.ZoneCMS.com
ZONE Hong Kong : http://www.zone1511.com/
ZONE Singapore : http://www.zone1511.com.sg/