( Hong Kong, 15 December 2006) – Synergis Holdings Limited ("Synergis" / the "Group") (stock code: 02340) announces its interim results for the six months ended 30 September 2006.

During the review period, the Group reported a consolidated turnover of HK$167.7 million, a decrease of 16.7% when compared with the corresponding period last year. Gross profit declined by HK$5.9 million to HK$35.6 million, representing a decrease of 14.3% from the last corresponding period. Profit attributable to shareholders of the Company for the period was HK$11.1 million, a decrease of 28.4% as compared to the HK$15.5 million recorded for the corresponding period last year. Earnings per share decreased from 4.7 HK cents in the last corresponding period to 3.4 HK cents for the period under review. The board of directors of Synergis is pleased to declare the payment of an interim dividend of 2.3 HK cents per share (2005: 2.5 HK cents per share).

While the Group is starting to see success in establishing its presence and brand recognition in the Mainland of China, Hong Kong nevertheless remains the Group's primary source of income. The Group's financial performance is a reflection of the mature property and facility management market in Hong Kong which is strongly influenced by both government and quasi-government outsourcing initiatives and yet saturated with small to medium sized service providers focused on aggressive pricing strategies. Despite the Group maintaining a contract renewal rate in excess of 95% in the private residential segment; securing another large PSC contract from the HKHA; and successfully expanding its facility management business, all of these were insufficient to offset the loss of business from the expired Government Property Agency ("GPA") contract GPA/HK2 and PSC Batch 7/2003. The continual pressure exerted from legislation on minimum wages and maximum working hours for frontline staff has led both government and quasi-governmental entities to largely focus on these significant cost components in their tender evaluations. That, together with the improving overall employment market, has exerted significant pressure on our costs and consequently on our profit margins.

Nevertheless, the Group continued to focus on diversifying our customer base and providing customized solutions to address the operational needs of such customers. The Group was awarded a number of management service and consulting contracts from new corporate clients during the period despite the crowded market and difficult operating conditions. These include the management contracts for 21 shopping centres and over 10,000 car park spaces from The Link Management Limited ("The Link"); The Chinese University of Hong Kong – Tung Wah Group of Hospitals Community College; the HKU SPACE (HKU School of Professional and Continuing Education) Kowloon East Campus; the residential portfolio of the English Schools Foundation; the Headquarters Building of the Electrical and Mechanical Services Department; and the Hong Kong International Airport Tower (HKIA Tower) and Airport World Trade Centre. Equally important, we successfully renewed contracts with the Hong Kong Jockey Club and Asia Airfreight Terminal, for both the original and newly built logistics terminals, with an expanded service scope and increase in coverage to approximately 174,000 square meters.

Management believes that the Group has a strong track record and demonstrated capability to capture the opportunities brought about by outsourcing programs of government and quasi-government entities, as well as large private enterprises, as shown by its broad client base. T he Hong Kong market will remain as the Group' s major source of revenue in the near term .

The growth of the Group lies in the many business opportunities offered by the robust economic growth in the Mainland of China. After two years of operation, our equity joint ventures with Shui On Holdings Limited in Shanghai (the "Shui On JV") and Beijing Financial Street Property Management Co. Ltd. in Beijing, both made positive contributions to the Group. Our strategy is to become the major and dominant trusted long-term partner of reputable local and foreign real estate developers in China. Following the success in Shanghai, the Synergis Shui On JV has extended its geographical coverage to include Wuhan, where Shui On Land Limited is building another flagship project – Wuhan Tiandi. We will also continue to strengthen our relationships with other large-scale developers in the Mainland of China through our existing joint ventures and target those developers that understand and value quality property management services which protects and adds value to their significant capital invested in real estate.

Mr. C. H. Fan, Managing Director of Synergis commented, "The coming years will witness significant growth for commercial and retail projects in the Mainland of China. Management believes that the ability to offer an "one-stop-shop" service is essential to developing long-term relationships with both real estate developers and financial property investors. Synergis' strategic business priority is to further advance our service offerings by providing other real estate related professional services, such as feasibility studies, sales and leasing and lease management – all of which will be integrated into our expert property and facility management services business. The Group will actively identify management talent and look at suitable acquisition targets and strategic partners, in these new business areas. At the same time, we will continue our investment in information technology infrastructure and systems to constantly upgrade the processes, technology and resources necessary to manage our clients' assets effectively and efficiently."

" The Hong Kong market will undoubtedly remain highly competitive and therefore continue to exert considerable pressure on both revenue and profitability of the Group. Our focus would be to continue to expand our customer base and grow with our customers by providing more value-added services to maintain our market position."

"To reduce our reliance on the Hong Kong market, it is critical for the Group to continue developing the operations outside Hong Kong and the asset management services to achieve long-term sustainable growth. Management believes the key success factors in implementing this strategy are identification and retention of suitable talent as well as deepening our relationship with business partners. We will constantly review the effectiveness of our current initiatives and explore other strategic options to capture the opportunities in the Mainland of China." Mr. Fan added.

"Nevertheless, given our very strong financial position and our confidence in maintaining our leadership position in the Hong Kong market, the Group envisages maintaining a stable dividend policy." Mr. Fan concluded.