For Immediate Release

e-KONG Announces 2006 Interim Results
Profit Increased by more than 100% on Record Turnover

HIGHLIGHTS FOR THE PERIOD

  • The Group recorded a profit of $22.8 million compared to $11.2 million for the prior corresponding period, representing an increase of 103.8%
  • Turnover of the Group reached HK$330.7 million, up 71.9% from the prior corresponding period
  • Acquisition in the United States completed and integration with ZONE US existing operations is underway smoothly
  • Steady progress made in expanding its VoIP business and inroad into China


HONG KONG, 14 September 2006 -- e-KONG Group Limited ("the Company" or "e-KONG"), a company listed on the main board of the Hong Kong Stock Exchange (SEHK: 524), today announced its interim results of the Company and its subsidiaries ("the Group") for the period ended 30 June 2006.

During the period under review, the Group continued the upward trend in its operating performance with robust growth in both turnover and profitability. Turnover of the Group reached HK$330.7 million, up 71.9% from the corresponding period last year. This increase was mainly driven by the considerably higher revenue contributions from ZONE telecommunication operations in the United States. Overall, the Group achieved a record net profit of HK$22.8 million, an increase of 103.8% compared to the corresponding period in 2005. The balance sheet of the Group remains healthy as the Group further expands its ZONE business.

Turnover from ZONE operations in the United States ("ZONE US") doubled to HK$276.2 million from HK$138.2 million for the corresponding period in 2005. Such increase was principally contributed from the newly-developed wholesale business of ZONE US. The organic growth of the ZONE US existing business further augmented the increase in its business performance. The acquisition of assets in connection with the provision of long distance telecommunication services in the United States ("WRLD Alliance Transaction"), as approved by shareholders of the Company in March 2006, was completed and integration of those assets with ZONE US existing operations is underway smoothly. The businesses relating to IP service offerings continue to advance, particularly in the IP-transport sector.

Turnover from ZONE Hong Kong and ZONE Singapore (collectively, "ZONE Asia") for this period totalled HK$49.6 million compared to HK$53.9 million for the corresponding period in 2005. A higher operating profit was recorded despite the slight decrease in turnover mainly due to further improvements in gross margins and continuing efforts to enhance operating efficiencies.

ZONE Asia maintained its efforts to expand beyond its current geographical locations firstly by using ZONE's Voice-over Internet Protocol ("VoIP") technology platform to extend its services outside its current locations and secondly by setting up a presence in China through its technology partner in Shenzhen. ZONE Asia has already made available for public-testing its multi-functional peer-to-peer (P2P) "softphone" under the brandname "ZoiPPE" (www.zoippe.com) which empowers its users to communicate with other ZoiPPE users and other people around the world by way of instant messaging, voice calls and SMS. In China, ZONE Asia has started to provide business process and management expertise to assist its partner to expand its current operations.

In Singapore, ZONE's focus on providing quality, service, competitive pricing and value has paid off, resulting in steady revenue growth and further improvement in its operating results during the period under review. This strategy has contributed to ZONE's large base of loyal corporate customers ranging from multi-national corporations, local publicly-listed companies to government-linked institutions. With its strong branding and established customer base, ZONE plans to introduce new voice and data service offerings that will compliment its current services as well as generate higher per customer revenue.

"I am very delighted with the record turnover and profit result achieved by the Group for this period and pleased with the progress made to date with our collective efforts to establish profitable and sustainable business operations. Looking ahead to the next period, the Group will remain focused on expanding its ZONE telecommunications business by maintaining sustainable organic growth and pursuing acquisition targets that can help strengthen its market position in the United States and Asia, rolling-out its VoIP service offerings to the market, particularly in the Asian region and expanding its presence in China through working with its current partners as well as seeking new business opportunities." said Mr. Richard Siemens, Chairman of e-KONG.

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Note:   The full text of the Group's 2006 Interim Results announcement can be accessed through e-KONG's corporate website 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 unrivalled customer service offering a wide selection of voice and data services tailored to specific market segment's needs. Its patented web-enabled technology allows customers' access to these telecommunication services from multiple providers while empowering them with tools to effectively and efficiently manage their telecommunications needs. ZONE's latest offerings include innovative Voice over Internet Protocol (VoIP) products and services.

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

ZONE website addresses:

ZONE United States www.zonetelecom.com
ZONE Hong Kong www.zone1511.com
ZONE Singapore www.zone1511.com.sg

For more details, please contact:

Investor Relations Team
Tel: 852 2296 9770
Fax: 852 2801 7238
e-mail: ir@e-kong.net