e-KONG Announces 2003 Final Results

HONG KONG, 05 April 2004 -- e-KONG Group Limited (“the Company” or “e-KONG”) on 02 April 2003 announced its final results of the Company and its subsidiaries (“the Group”) for the year ended 31 December 2003.

The Group’s operations collectively enjoyed a successful year in 2003. Concentrating resources on the core ZONE telecommunications business has proven to be a rewarding strategy, with the Group recording increased turnover and further improvement in the operating results. The Group delivered on its promise to achieve positive Earnings before Interest, Taxation, Depreciation and Amortisation (EBITDA) for the year, despite the challenging market conditions.

The Group’s turnover increased by 27.1% to HK$402.5 million compared to HK$316.7 million for the prior year. EBITDA improved by HK$132.9 million from negative HK$109.1 million for the previous year to positive HK$23.8 million for 2003. Net loss declined to HK$19.8 million from HK$186.3 million for the previous year. The increase in turnover and improved operating results were due mainly to the strong full-year contribution from the core telecommunications business. Revenue from the ZONE telecommunications business increased by 33.4% to HK$398.1 million in 2003, compared to HK$298.5 million in 2002.

Turnover from ZONE US increased by 49.3% from HK$177.5 million in 2002 to HK$265.0 million in 2003. ZONE US achieved positive EBITDA for the year despite increasing competition, particularly in the residential segment of the market. Healthy growth in the corporate segment and continuing enhancements in operating efficiencies were key factors contributing to the positive EBITDA for ZONE US. ZONE US accounted for 65.8% of the total Group turnover in 2003 compared to 56.0% for the previous year.

ZONE Hong Kong and ZONE Singapore both achieved net profit for the year and collectively recorded a 9.9% increase in the turnover from HK$121.1 million for the previous year to HK$133.1 million for 2003.

ZONE Hong Kong remains competitive despite the difficult market environment. ZONE has managed to establish itself as one of the key providers of IDD services to corporate customers. ZONE Hong Kong has also implemented a number of initiatives to capitalise on opportunities made available via new IP-based technologies. These technologies will enable ZONE Hong Kong to introduce new and innovative services at reduced network costs. Growth for the coming year is likely to come from serving Hong Kong corporate customers with presences in the Mainland China. ZONE Hong Kong is confident that it can provide such customers with attractive IP-centric alternatives built around value-added and cost-saving incentives.

ZONE Singapore recorded another year of consistent revenue growth. It enjoys a growing reputation for providing reliable quality, unique web-enabled features and dependable customer service. ZONE Singapore has been successful in signing up sizable corporate customers including those from the logistics, hospitality, IT and service-related industries. In 2004, ZONE Singapore will be increasing its sales efforts and also upgrading its technology platform to provide for projected growth.

Having established sustainable businesses in the US, Hong Kong and Singapore, the Group is well positioned to take advantage of growth opportunities. The respective operations have built and deployed robust technology platforms and established steady customer bases, hence each operation is in a strong position to expand within and beyond its current geographical location.

In 2003, the ZONE operations have all achieved positive EBITDA and positive net cash inflow while continuing to steadily increase their respective market shares. Looking ahead to 2004, e-KONG will continue to grow its existing businesses while maintaining financial and operational vigilance. The Group will explore opportunities where it can utilise new technologies and capitalise on present technology platforms and existing customer bases to expand into other complementary telecommunication services including IP-centric, wireless and data-related services.

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Note: The full text of the Group’s 2003 Final 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 (SEHK:524) and maintains a Level 1 ADR programme through the Bank of New York (Ticker Symbol:EKONY). The Company's ZONE telecommunications business provides innovative services using its patented web-enabled technology which allows customers’ access to an unrivalled choice of telecom services from multiple providers while empowering them with tools to effectively and efficiently manage their telecommunications needs.

For further information on e-KONG Group, please visit: 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:

Web site addresses : -

e-KONG                        :                       www.e-kong.com
ZONE US                     :                       www.ZoneCMS.com/www.ZoneLD.com
ZONE Hong Kong       :                       www.zone1511.com
ZONE Singapore         :                       www.zone1511.com.sg