Comba Announces 2009 Interim Results

Revenue and Gross Profit Surged 111.5% and 112.2% Respectively
* * * Domestic Business Records Significant Growth

Financial Highlights For the six months ended 30 June Unaudited
HKD 000 2009 2008 Change
Revenue 1,767,389 835,492 +111.5%
Gross Profit 729,311 343,697 +112.2%
Profit attributable to shareholders 232,221 71,970 +222.7%
Basic earnings per share (HK cents) 24.81 7.66(restated) +223.9%
(2 September 2009 Hong Kong) Comba Telecom Systems Holdings Limited ( Comba or the Group , Hong Kong stock code: 2342), a leading wireless enhancement solutions provider, announced today its unaudited interim results for the six months ended 30 June 2009.
During the period under review, the Group achieved remarkable results attributable to the substantial growth of sales in the PRC and with core equipment manufacturers. Both revenue and gross profit surged 111.5% and 112.2% to HKD1,767 million and HKD729 million respectively.Profit attributable to shareholders was HKD232 million, 222.7% more compared with the same period last year. Basic earnings per share were 24.81 HK cents. The Board of Directors recommended payment of an interim dividend of 6 HK cents per ordinary share (2008: nil) and 1 bonus share for every 10 ordinary shares held by shareholders for the six months ended 30 June 2009 (2008: nil).

Mr. Tony TL Fok, Chairman and President of Comba, said, We are pleased to report strong financial performance with a record high in revenue for the first half of 2009. During the review period, with 3G mobile network activities growing rapidly and continuing 2G mobile network enhancements, Comba successfully seized the ample opportunities brought about by these developments in the PRC and achieved significant growth in the first half year.

With the issuance of 3G licences, the three mobile operators in the PRC increased substantially their investments for 3G network build-outs and network enhancements. During the review period, revenue generated from the China Mobile Group, China Unicom Group and China Telecom Group increased markedly by 35.7%, 349.2% and 561.4% respectively. Being the long-term partners of the mobile operators, Comba will continue to benefit from the fast growing industry and it is expected that the 3G-related business will become an important growth driver for the Group.

During the period, revenue from wireless enhancement business and antennas and subsystems business for the period surged 54.4% and 155.4%, and accounted for 29.1% and 41.5% of the Group s total revenue respectively. As for the wireless access (DMS and WLAN) business, with its increase of market share in the global market, revenue increased substantially by 831.1% and accounted for 13.1% of the Group s total revenue. Revenue from services, including network enhancement and after-sales maintenance services, also increased by a significant 51.5% and accounted for 16.3% of the Group s total revenue. The increase was mainly attributable to the increasing numbers of equipment and larger coverage areas.
As a result of the global economic downturn, access to finance became more difficult forcertain mobile operators and became more cautious on their network-related capital expenditure,hence slowed down the progress of network build-outs. International sales of the Group wastherefore slightly affected and revenue decreased to HKD77 million for the period, representing 4.4% of the Group s total revenue. With the global economy showing signs of recovery, it is
expected that the delayed expenditure on wireless infrastructure will be released in the second half of 2009 and Comba stands to benefit from the move. Furthermore, the Group has signed a number of major projects and secured a considerable amount of orders for its products and solutions from the Asia Pacific region, Central America, Europe, Middle East, etc. As an approved supplier of overseas mobile operators and core equipment vendors, the Group is confident that the international business will improve in the second half of the year and become another growth driver of the Group in future.

To cope with the Group s corporate development and expansion into the global market, Comba entered into a facility agreement for a 3-year term loan facility ( facility ) of USD85 million in July 2009. The facility was coordinated by HSBC with the participation of nine other financial institutions. Subsequent to the signing of the facility agreement, CITIC Ka Wah Bank Limited, Hang Seng Bank Limited and the Industrial Bank of Taiwan Co., Ltd. expressed interest and signed a memorandum on 2 September 2009 to accede to the facility agreement as acceding lenders, and committed to make available to Comba a total of USD15 million, thereby bringing the aggregate amount of the facility up to USD100 million. The facility offering by the 13 financial institutions reflected the confidence of the banking community in Comba s good reputation and development prospects.

Mr. Fok said, With the implementation of 3G, the industry enters a high growth period with exponential growth potential. On the other hand, the continuous enhancement of 2G mobile network and rapid development of country elecommunication networks in global emerging markets will bring ample opportunities for the Group. We expect our four major businesses to benefit from the network build-outs and continuous wireless enhancement by the mobile operators.

In order to further consolidate the Group s competitive advantages in the market, we will keep track of the evelopment of the global telecommunication industry and market demand, and continuously launch new generation innovative products, enhance product portfolio and service, and further enhance our global sales and service network. We are optimistic about the Group s future, and are well prepared for the enormous opportunities ahead. We are confident to continue to achieve high growth for the Group, and bring rewarding returns to shareholders. Mr. Fok concluded.

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