(Hong Kong, 2 December 2004) – Synergis Holdings Limited (“Synergis” / the “Group”) (stock code: 2340), a leading provider of comprehensive property and facility management services in Hong Kong, today announced its interim results for the six months ended 30 September 2004.

During the review period, the Group achieved a turnover of approximately HK$187.6 million, a decrease of 5.4% over the same period in 2003. Gross profit decreased 10.3% to approximately HK$38.8 million while profit attributable to shareholders decreased 40.5% to approximately HK$12.0 million. Basic earnings per share were 3.6 HK cents compared to 8.4 HK cents for the same period last year. The Board of Directors have recommended an interim dividend of 2 HK cents per share for the six months ended 30 September 2004.

The Group's interim results were adversely affected by the expiration of two Property Services Contracts (“PSC Contracts”) with the Hong Kong Housing Authority (“HKHA”). On a positive note, the negative impact of these two contracts was offset by the growth in the Group's business through expansion of its existing portfolio in both residential and non-residential sites and its ability to achieve 100% renewal rate, despite the relatively mature and highly competitive market.

“While PSC Contracts will still be an integral part of the Group's business, Synergis' ability to deliver comprehensive and cost effective property and facility management solutions to meet the needs of a wide range of clients is not only limited to government residential properties. Leveraging its management and technological infrastructure, Synergis successfully won a number of contracts in both property and facility management, including the HKHA Headquarters (Blocks 3 and 4), the Hong Kong Heritage Museum, the Hong Kong Jockey Club and the Society of the Prevention of Cruelty to Animals . The Group also expanded its management portfolio in the private residential market by winning a number of management contracts of luxurious properties in Hong Kong,” Mr. C. H. Fan, Managing Director of Synergis, said.

Turning to the Mainland operations, the Group has determined that, after 18 months of operations in the Mainland, its resources would be most effectively and efficiently used by focusing on its operations and business development effort on Shanghai and Beijing. For Shanghai, we are successfully managing four projects and the Taipingqiao Lake ( 太平橋公園及人工湖 ) developed by Shui On Land Limited with an aggregate floor area of approximately 528,000 square meters – namely, Corporate Avenue ( 企業天地 ), Shui On Plaza ( 瑞安廣場 ), Lakeville ( 翠湖天地 )and Rui Hong Xin Cheng ( 瑞虹新城 ). The Group's efforts and professionalism of our staff as well as our quality management systems have been well-recognized by the tenants and residents. With a solid foundation and strong team in place, Synergis has started providing pre-management services to Chuangzhi Tiandi in Yangpu District of Shanghai in March 2004, another Shui On flagship project.

With a gross floor area of approximately 1,000,000 square meters (scheduled for completion in phases commencing in May 2005), Chuangzhi Tiandi ( 創智天地 ) is a multi-function community where people live, work, study and relax. Its emphasis is on education, technology, culture, research and business incubation.

Mr Fan commented, “Looking forward, the Group expects continuous pressure from customers, particularly HKHA, both with regard to pricing and service expectations, all of which will continue to exert pressure on margins. In view of this, Synergis has embarked on re-engineering process to ensure continuing competitiveness in this dynamic market. Regarding the establishment of The Link Management Limited, we believe that in order to achieve its business and investment objectives, LINK will need to source and partner with strong and reputable business associates. While the Group's current market share of the portfolio of LINK's commercial and car park facilities is relatively small, Synergis stands ready to capture this opportunity with our leadership position in people management and service delivery as well as our established technology infrastructure.”

As already mentioned in the 2003/04 Annual Report, the Hong Kong government's proposal to amend the Building Management Ordinance to facilitate private building owners in the management and maintenance of its properties will benefit high quality independent property management companies. The proposed amendment is in progress.

With the business development opportunities provided under the Mainland and Hong Kong Closer Economic Partnership Arrangement, the Group is pleased to announce that Synergis has successfully secured the Certificate of Hong Kong Service Supplier. This certificate will give the Group an effective access to the Mainland market and much greater flexibility in capturing upcoming business opportunity through establishment of wholly-owned businesses in the Mainland.

“Moreover , robust economic growth and improving standards in both the home and work environment in the Mainland will foster demand for high-quality, professional property and facility management services, particularly from multi-national corporations, Hong Kong based developers and large local conglomerates. Synergis' solid foundation in Shanghai and Beijing is evidence of the Group's ability to transfer its management systems and, equally important, its corporate culture and core values to its operations on the Mainland. The proper implementation of this strategy will lead to operational excellence and, consequently, customer loyalty and business growth. Furthermore, the Group's investment in information technology infrastructure will enable Synergis to providing “meaningful results” to its Mainland clients. The Group stands poised to take on opportunities arising the 2008 Olympic Games and Shanghai World Expo 2010 ,” Mr Fan concluded.