Comba Announced 2006 Interim Results

(8 September 2006 Hong Kong) Comba Telecom Systems Holdings Limited ( Comba or the Group , Hong Kong stock code: 2342), a leading wireless enhancement solutions provider, announced today that its revenue and profit attributable to shareholders for the six months ended 30 June 2006 recorded satisfactory year-on-year growth of 42.7% and 26.8% to HKD589.49 million and HKD45.561 million respectively. Basic earnings per share during the first half of 2006 were HKD5.46 cents.

Mr. Tony TL Fok, Comba s Chairman and President, said, In addition to experiencing steady growth in our core business in wireless enhancement, we are pleased to see our our various products achieving significant revenue growth during the period. Sales performances of overseas market and new products such as BTS subsystems and antennas and Digital Microwave Systems were rather prominent.

Furthermore, to prepare for coming 3G opportunities, the Group has continuously invested in R&D to enhance its product portfolio, a number of WCDMA and TD-SCDMA standard 3G products have been developed according to market needs. We are ready for 3G in all aspects, including the advent of 3G in China, and have already deployed a number of 3G solutions around the world.

During the period under review, The Group benefited from the continuous growth of the economy and development of the urban and rural areas of the PRC. Subscriber growth and the demand for wireless enhancement from the China Mobile Group enhanced capital expenditure on related products, thus revenue generated from the China Mobile Group increased remarkably by 93.7%.

Export sales nearly tripled during the period under review. Seeing strong potential for export sales, the Group has established 5 regional headquarters in major areas, effectively extending the Group s coverage to major markets. The Group will continue to strengthen its brand awareness and penetration in the international market to achieve a balanced customer portfolio.

Apart from providing turnkey solutions in wireless enhancement to mobile operators, the Group also sees subsystems and antennas for base transceiver station ( BTS ) and digital microwave systems ("DMS") as its two strategic growth areas. Revenue from subsystems and antennas more than doubled and accounted for 7.6% of the Group s revenue during the period. Revenue from DMS increased more than eightfold and accounted for 3.4% of the Group s revenue in the period.

The Group recently established its new China headquarters and R&D facilities in Guangzhou Science City, which serves to consolidate various resources of the Group, including R&D, production and logistics management in the international market, thereby enhancing the constant drive and innovation of product strategy. The existing manufacturing plant with production floor space doubled will give the Group added flexibility in meeting international customer demand in the next few years.

Mr. Fok concluded, We believe the global demand for 2G wireless enhancement products and solutions to remain strong given the increasing number of mobile communication service subscribers, infrastructure projects and efforts of extending mobile service coverage to rural areas in key markets such as PRC and internationally.

The growth momentum in Subsystems and Antennas and DMS is also expected to continue as the Group actively expands its customer base. The Group will pursue its balanced and carefully planned growth strategy to maintain a solid and healthy financial position and consolidate its market leadership, and ultimately to maximize shareholders value.

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