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enterpriseAsia (EPA)

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Thursday 27 September, 2001

enterpriseAsia

Interim Results

enterpriseAsia.com PLC
27 September 2001

27 September, 2001

                            ENTERPRISEASIA.COM PLC

                             2001 INTERIM REPORT



CHAIRMAN'S STATEMENT

I am pleased to present to you the 2001 interim business and financial report
from your Board of Directors, covering the 6-month period ended 30 June, 2001
(the 'Period').

Results

For the Period, your company and its subsidiaries recorded an unaudited
consolidated loss of £283,811, in contrast to a loss of £27,528 in the period
from 11 January, 2000 (date of incorporation) to 30 June, 2000 (the 'Previous
Period'). The larger loss this year was mainly due to the following reasons:


  * Reduced interest income as a significant amount of funds have been
    invested;

  * A larger scale of operations to manage our investment portfolio;

  * The Previous Period only had approximately 4 months in operation.

Your company and its subsidiaries received total income of £83,767 in the
Period (Previous Period: £216,918). The breakdown of this income is as
follows:

Interest receivable                                                     £77,788
Rental and administration fee income                                    £ 5,979

As at 30 June, 2001, your company's unaudited net asset value per share was
4.45p, and its cash balance per share was 0.81p.



For further information, please contact:

Phill Brown, Corporate Relations Director, enterpriseAsia.com plc

Tel: 01274 623 478

Benjamin Ng, Chief Executive Officer, enterpriseAsia.com plc

Tel: 00 852 2116 5900

Garry Levin, Director, Altium Capital Limited

Tel: 020 7484 4040

Shane Dolan/James Benjamin, Biddicks

Tel: 020 7448 1000



Dividends

Your Directors are not recommending the payment of a dividend for the Period.

Business Strategy

During the Period your company continued its business strategy of investing in
start-up and early stage companies related to information technology ('IT'),
with a focus upon projects arising from the Far East. Our investments aim at
returns over a medium to long term time frame, typically 3 to 5 years.

As a general rule, your company does not take up a controlling interest in any
investee project, but board representation is mandatory as far as practicable.
Therefore, in addition to funding, your company also provides strategic and
management expertise to the investee projects.

Implementation of strategy

During the Period our business efforts were gradually shifted from the
solicitation and evaluation of investment opportunities, to managing the
launch and growth of existing projects in our portfolio. However, a steady
inflow of new business prospects was still maintained in order to sustain a
reasonable market profile for the company as a whole, and to explore
synergistic opportunities for our investee projects.

Your management team works from their operating office based in the Hong Kong
Special Administrative Region ('Hong Kong'), to benefit from the city's
strategic location in our projects' key markets, and its stable legal and
financial environment as well as efficient telecommunications and
transportation infrastructure. The team has grown from an initial head count
of two at the time of your company's flotation on the Alternative Investment
Market of the London Stock Exchange, to a team of five who collectively offer
extensive experiences covering corporate finance, IT, marketing, sales, retail
and administration. Such expertise represents essential elements to the future
success of early-stage business ventures.

The investment portfolio

Your company's portfolio consisted of 7 projects at the beginning of the
Period. A new project, Topsky Corporation Limited, was added to the portfolio
in June, 2001.
                       Month         Original investment      % of equity held
                    investment     (approximate amount in      as on June 30,
                     was made                £s)                    2001

Cybermax Network       Sept 2000                 1,379,000                  49%
Technology Limited

UFO Solutions          Sept 2000                 1,280,000               49.87%
Limited

Topsky Corporation     June 2001                 1,260,000                  49%
Limited

Net Fun Limited        Sept 2000                 1,223,000                   8%

CFN (UK) Limited       July 2000                 1,200,000                  44%

ecAgent.com             Aug 2000                 1,170,000                  33%
Limited

P & S                  June 2000                   856,000                 2.2%
International
Limited

iBASE Holdings         June 2000                   257,000                  49%
Limited
                        Jan 2001                   129,000                 Loan



A description of the business nature and progress of these projects can be
found under 'Your Investment Portfolio' after this Statement.

Notwithstanding the use of fundamental judgements in investment decisions, it
is inevitable that certain projects may not perform as planned. Through their
close supervision of each project's progress, your executive team continuously
assesses the status and prospect of all the investments, and where appropriate
they may recommend a viable early exit on any project. The exit may either
bring a modest profit or result in a loss that is contained, as cash drain can
be halted in a timely manner. On the other hand, when approached for an early
exit on certain more promising projects, your executive team will also
endeavour to optimize your company's potential return from such opportunities.

Market

Most of your company's investee projects are based in Hong Kong, with a target
market in Greater China (Mainland China, Taiwan, Hong Kong and the Macau
Special Administrative Region). While the economic growth in this whole region
has been impressive by world standards, the business climate in Mainland China
has recently become particularly favourable due to breakthrough talks
confirming its entry to the World Trade Organization, and the Beijing Olympics
in 2008. A buoyant investment and consumer market is expected in the years to
come.

Although our long term view of the Greater China market remains positive, your
Directors are aware of the difficulties in the worldwide capital markets faced
by any IT-related companies, good or bad. General market sentiments may also
fluctuate and be adversely affected as a result of recent political and
military incidents. Therefore, it will be vitally important that both your
company and its investee projects are able to survive and grow in a relatively
unfavourable global market atmosphere.

The future

Your Directors and the executive team will continue to manage the progress of
your company's investee projects, optimizing their potential return to you
both at the project level and from a portfolio perspective. The latter will
imply, where appropriate, the restructuring or early exit on certain
components of the portfolio, and the addition of new investment projects, to
pave the way for enhanced performance in the future.

Peter So

Chairman



 YOUR INVESTMENT PORTFOLIO



Cybermax Network Technology Limited ('Cybermax')

Cybermax operates websites displaying recruitment advertising for part-time,
temporary and second jobs, and owns the domain name 'Part-time.com'. This is a
fast growing market in Greater China, with escalating demand from both
employers and jobseekers.

Following a major promotional campaign created by the leading international
advertising agency, Ogilvy and Mather, during the Period, Part-time.com has
successfully built a high profile in the Hong Kong recruitment advertising
market. As at the end of August, 2001, it had over 160,000 registered
jobseekers and over 11,000 registered recruiters. According to the latest
reports available from NetValue, an independent Internet usage research
authority, Part-time.com has been Hong Kong's top traffic recruitment
advertising website for 3 consecutive months.

Cybermax is now planning for expansion to Japan, Mainland China, Taiwan and
Macau.



UFO Solutions Limited ('UFO Solutions')

UFO Solutions is engaged in the business of developing and providing software
solutions to assist stock brokers and financial institutions in the trading,
fund management and custodianship of Hong Kong and overseas securities.

During the Period, UFO Solutions began discussions with CFN Hongkong Limited
('CFN HK'), a company engaged in providing online real time financial
information and online trading systems to financial institutions principally
in Asia, regarding possible merger of the operations of UFO Solutions and CFN
HK in order to amalgamate their respective expertise in IT development and
market networking. Valuations on both operations were based on their
respective audited net asset values without premium. The merger was approved
by the Securities and Futures Commission of Hong Kong ('SFC') on 10 September,
2001, and is expected to be completed by the relevant parties before 9
October, 2001. Subsequent to the completion, UFO Solutions will own
approximately 47.78% of CFN HK, and your company's beneficial interest in CFN
HK will be approximately 23.82%.

Existing and prospective shareholders of CFN HK, including UFO Solutions, have
also entered into a conditional agreement with iAsia Technology Limited
('iAsia'), a company listed on the Growth Enterprise Market of the Hong Kong
Stock Exchange (the 'HK Stock Exchange'), for iAsia to acquire 35% of CFN HK
at a total consideration of HK$22,050,000 (approximately £1,940,000) in the
form of iAsia shares. iAsia is engaged in the provision of comprehensive real
time online trading and related systems to securities brokers and other
financial institutions in the Pan-Asian region. It is currently recognized as
one of the leaders and occupies a significant share in this market sector. The
transaction is pending approval by the SFC and HK Stock Exchange. When
completed, it is planned that those iAsia shares receivable by UFO Solutions
will be distributed directly to your company according to its shareholding
proportion in UFO Solutions. As a result, your company is expected to hold
approximately 1.53% of the enlarged share capital of iAsia, in addition to the
remaining interest in UFO Solutions. Your Directors believe that the addition
of iAsia to CFN HK's shareholder base will greatly strengthen the latter's
credibility and acceptance in the relevant markets, thus speeding up its
product development and marketing activities and ultimately benefiting UFO
Solutions.



Topsky Corporation Limited

Subsequent to our investment, the company's name was changed to innoVision
Holding Limited ('innoVision') in order to strengthen its product branding.

innoVision will market a new form of light-box capable of displaying multiple
advertising poster visuals with a pleasant 'dissolve' effect based on a
patented technology. Future IT related enhancements are also being planned for
the product. The light-box will be introduced as a new standard of outdoor
advertising medium in Mainland China, followed by Hong Kong, Taiwan and other
Asian countries.

innoVision has already established a sales office in Guangzhou in southern
China. Initial talks with media owners are in progress. A production plant for
mass production of the light boxes is also being set up in Guangzhou, and
production is expected to commence in November, 2001.



Net Fun Limited ('Net Fun')

Net Fun provides interactive entertainment and education services with
contents tailor-made to the language and culture of children and teenagers in
the Greater China region. Subsequent to the successful launch of its first 3D
game in early 2001, Net Fun is planning to introduce two more new online CD
games before the end of 2001. Distribution plans of these new games will cover
Hong Kong, Mainland China and Taiwan.

In summer 2001, Net Fun hosted an online quiz contest for all secondary school
and university students in Hong Kong. Although unplanned for, the quiz was
able to benefit from the market climax created by the popular TV show, 'The
Millionaire', during the same period. As a result, a significant database of
prospects, business partners and media connections was built for future
marketing of Net Fun's products.

A major shareholder of Net Fun is a subsidiary of Cheung Kong (Holdings)
Limited ('Cheung Kong') which has diversified interests in property,
telecommunications, port operations, retail and IT related business. It is
planned that by the end of 2001 the online edutainment services of Net Fun
will be offered to a significant number of housing estates developed and
managed by Cheung Kong.



CFN (UK) Limited ('CFN UK')

CFN UK plans to become a provider of value added services, specializing in
Asian securities, to small to medium sized brokers and financial institutions
in the UK. It is currently applying for the required licensing from the
Securities and Futures Authority of the United Kingdom. During the Period,
your company's interest in CFN UK was increased to 44% after a shareholding
restructuring in the project, which also brought in other shareholders
including CFN HK and the management team of CFN UK. The restructuring was
expected to enhance the project's effectiveness in business development.

In August, 2001, your company entered into a conditional sales agreement with
iAsia to facilitate a further shareholding restructuring in CFN UK. The
transaction is subject to approval by the HK Stock Exchange. When completed,
your company will continue to beneficially own 44% of CFN UK but, as a result
of this transaction, will additionally hold approximately 1.43% of the
enlarged share capital of iAsia. Although the transaction is expected to bring
a profit to your company, your Directors will also recommend a write-down on
the value of our current investment in CFN UK.



ecAgent.com Limited ('ecAgent')

ecAgent planned to provide virtual office services to insurance sales agents
in Greater China. During the Period, business development of the project
initially proceeded as planned, but several external and internal factors
triggered a review on its future strategy. These factors included:-


  * the emergence of a similar service provider in Mainland China;

  * a rapid decrease in the number of insurance agents in Hong Kong;

  * the departure of the project's CEO.

In September, 2001, the shareholders of ecAgent concluded that the project's
long term prospect based on its original business model might become doubtful,
and agreed to terminate the project. Your company has now acquired total
ownership of ecAgent and its residual cash of approximately HK$12 million
(approximately £1,043,000), which will be used for your company's working
capital and future investments.

A maximum loss of HK$1.5 million (approximately £130,000) is expected to be
realized by your company as a result of terminating ecAgent.



P & S International Limited ('P & S International')

P & S International is involved in the development of total system solutions,
including semiconductor chips, for facilitating the bi-directional
communications connectivity between appliances and equipment with embedded
microcontroller units and the Internet. Such connectivity will enable remote
control and monitoring of home appliances, business, industrial and medical
equipment.

While the major shareholder of P & S International is based in Wuhan in
central China, its business development is mainly coordinated from its
operating office in Phoenix, Arizona. It has filed applications for several
U.S. patents, aiming at establishing an industry standard that is hitherto
exclusive in the global market.

The product methodology of P & S International was formally launched in the
Embedded Systems Conference Boston 2001 Exhibition held in Boston,
Massachusetts in September, 2001. Its management team is now actively
following up on customer enquiries generated from the launch, and exploring
other partnership opportunities with internationally recognized institutions
in the relevant industrial sector.



iBASE Holdings Limited ('iBASE')

iBASE provides IT and e-commerce solutions to companies in Greater China, with
particular strength in multi-lingual web-based email systems and technologies
associated with domain names in Asian characters. Its business growth during
the Period was only limited as its management team's efforts were concentrated
in the development of software products that would only be ready for market by
the 4th quarter of 2001.

iBASE also owns and operates Goal4u.com, a soccer-related website targeting
soccer fans in Hong Kong and Mainland China. During the Period, Goal4u.com was
not able to generate any significant revenue but its operating costs have also
been reduced. The website is now exploring strategic alliances which may
prepare it to capitalize on a soccer heatwave expected from the World Cup 2002
in Japan and South Korea.



CONSOLIDATED PROFIT AND LOSS ACCOUNT


                                                       Unaudited
                                          Unaudited  Period from    Period from
                                           6 months   11 January  11 January to
                                              ended           to
                                                                    31 December
                                       30 June 2001 30 June 2000           2000

                                                  £            £              £
Turnover
Gain on disposal of subsidiary                    -            -         23,606
investment

Administrative expenses                   (367,578)    (244,446)      (632,386)
Exceptional costs                                 -            -      (388,390)
                                       ------------ ------------   ------------
                                          (367,578)    (244,446)      (997,170)
Other operating income                        5,979            -          2,060
                                       ------------ ------------   ------------
Operating loss                            (361,599)    (244,446)      (995,110)

Interest receivable and other income         77,788      216,918        360,210
                                       ------------ ------------   ------------
Loss on ordinary activities before        (283,811)     (27,528)      (634,900)
taxation
Taxation on ordinary activities                   -            -              -
                                       ------------ ------------   ------------
Loss on ordinary activities after         (283,811)     (27,528)      (634,900)
taxation
                                       ============ ============   ============
Return per ordinary share
     -Basic                                (0.118)p     (0.015)p         (0.3)p
                                       ============ ============   ============

CONSOLIDATED BALANCE SHEET


                                                    Unaudited
                                                        As at             As at
                                                 30 June 2001  31 December 2000
                                                            £                 £
Fixed assets investments - Investment               8,750,026         7,353,691
portfolio
Tangible fixed assets                                   7,107             4,483
                                             ----------------  ----------------
                                                    8,757,133         7,358,174
                                             ----------------  ----------------
Current assets
Debtors                                                 5,320             3,579
Prepayments and deposits                               19,262            34,633
Cash at bank and in hand                            1,942,249         3,591,686
                                             ----------------  ----------------
                                                    1,966,831         3,629,898
Creditors: amounts falling due within one            (70,920)          (51,217)
year
                                             ----------------  ----------------
Net current assets                                  1,895,911         3,578,681
                                             ----------------  ----------------

Total assets less current liabilities              10,653,044        10,936,855
                                             ================  ================
Capital and reserves
Called-up share capital                             2,395,985         2,395,985
Share premium account                               9,175,770         9,175,770
Capital reserve                                             -                 -
Revenue reserve                                     (918,711)         (634,900)
                                            ----------------- -----------------
Equity shareholders' funds                         10,653,044        10,936,855
                                            ================= =================
Net asset value per Ordinary Share:
     Basic                                              4.45p             4.56p
                                                 ============      ============

CONSOLIDATED CASH FLOW STATEMENT

                                                      Unaudited
                                       Unaudited    Period from     Period from
                                  6 months ended  11 January to   11 January to
                                    30 June 2001   30 June 2000     31 December
                                                                           2000
                                               £              £               £
                                                                              
Net cash inflow from operating
activities
Operating loss                         (361,599)      (244,446)       (995,110)
Depreciation of tangible fixed             1,453            236           1,062
assets
Decrease/(Increase) in debtors            13,630       (52,588)        (38,212)
Increase in creditors                     19,703        101,580          51,217
Profit on sale of fixed asset                  -              -        (23,606)
investment
                                    ------------   ------------    ------------
Net cash inflow from operating         (326,813)      (195,218)     (1,004,649)
activities

Returns on investments and
servicing of finance
Interest received                         77,788        216,918         360,210
Investing activities
Payment to acquire fixed assets:
-Investment portfolio                (1,396,335)    (1,112,758)     (7,605,691)
-Tangible assets                         (4,077)        (2,871)         (5,545)
Receipts from fixed assets
-Investment portfolio                          -              -         275,606
                                  -------------- --------------  --------------
Net cash outflow before financing    (1,649,437)    (1,093,929)     (7,980,069)
Financing
Proceeds from issue of share                   -     11,979,924      11,979,924
capital and share options
Cost of shares issue in period                 -      (408,169)       (408,169)
                                   -------------  ------------- ---------------
                                               -     11,571,755      11,571,755
(Decrease)/Increase in cash          (1,649,437)     10,477,826       3,591,686
balances
                                  ==============   ============  ==============
Reconciliation of net cash flow
to movement in funds
(Decrease)/Increase in cash in       (1,649,437)     10,477,826       3,591,686
the period
Closing net funds                      1,942,249     10,477,826       3,591,686
                                  ============== ==============  ==============

CONSOLIDATED INTERIM ANNOUNCEMENT - NOTES

 1. The information relating to the period ended 30 June 2001 is unaudited and
    covers a period of 6 months.
 2. The above financial information does not constitute statutory accounts
    within the meaning of Section 240 Companies Act 1985.
 3. Loss per share is based on the number of shares in issue during the period
    ended 30 June 2001 of 239,598,496.
 4. Unquoted investments have been valued at cost.
 5. The Directors' direct and beneficial interests in the Company's share
    capital at 30 June 2001 is as follows:-

    Peter So                   20,000,000
    Benjamin Ng                   400,001
    Phillip Brown              10,000,000
    Siu Fai Ng                 11,000,000

    i   StartIT.com plc ('StartIT') holds 10,000,000 enterpriseAsia .com plc
        ('enterpriseAsia') ordinary shares. Peter So, Siu Fai Ng and Phillip    
        Brown
        are directors of StartIT. Vintage Investments Limited (of which Peter So
        and Phillip Brown are both directors and shareholders) holds 5,000,000
        StartIT ordinary shares.
    ii  Clarest Holdings Limited (of which Peter So is a director and           
        shareholder) holds 10,000,000 enterpriseAsia ordinary shares and is also
        a shareholder of Vintage Investments Limited.
    iii Rich Project International Limited holds 1,000,000 enterpriseAsia       
        ordinary shares. Siu Fai Ng is a director and shareholder of Rich       
        Project International Limited which in addition holds 5,000,000 StartIT 
        ordinary shares.

 6. The Directors hold the following options over ordinary shares of 1p each in
    the Company at 30 June 2001.

Director      Option Scheme     Number of options Exercise   Exercise period
                                                  Price
Peter So      Unapproved        200,000           5p         To 7 February 2010
Benjamin Ng   Unapproved        400,000           5p         To 7 February 2010
Siu Fai Ng    Unapproved        200,000           5p         To 7 February 2010
Phillip Brown Unapproved        200,000           5p         To 7 February 2010


INDEPENDENT REVIEW REPORT

Introduction

We have been instructed by the company to review the financial information for
the six months ended 30 June 2001 set out on pages 9 to 12, and we have read
the other information contained in the interim report for any apparent
misstatements or material inconsistencies with the financial information.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The Listing
Rules of the Financial Services Authority require that the accounting policies
and presentation applied to the interim figures should be consistent with
those applied in preparing the annual accounts except where changes, and the
reason for them, are disclosed.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999
/4 issued by the Auditing Practices Board. A review consists principally of
making enquiries of management and applying analytical procedures to the
financial information and underlying financial data, and based thereon,
assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. A review excludes audit
procedures such as tests of controls and verification of assets, liabilities
and transactions. It is substantially less in scope than an audit performed in
accordance with Auditing Standards and therefore provides a lower level of
assurance than an audit. Accordingly we do not express an audit opinion on the
financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the period ended
30th June 2001.

PRIDIE BREWSTER

Carolyn House

29-31 Greville Street

London

EC1N 8RB



                                                                                
                    

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