EBITDA for first half 2003 was S$140.1 million, up from S$127 million for the same period last year. EBITDA margin on service revenue increased from 40% to 44% over the corresponding period. Operating revenue for the group increased by 6% to S$361 million for first half 2003. Free cash flow remained strong at S$104 million.

M1 had a total mobile customer base of about 1.059 million as at 30 June 2003. Based on latest available statistics as at 31 May 2003, market share was 31.7%.

Commenting on the results, Neil Montefiore, Chief Executive Officer of M1, said : "Weak economic conditions in general and SARS (Severe Acute Respiratory Syndrome) in particular had unprecedented adverse impact on the consumer sector in the second quarter of 2003. Like many other industries, we did not escape unscathed. However, overall results for the first half showed that we performed moderately well, thanks to a relatively strong first quarter. Looking ahead, we expect performance to improve in the second half of the year, barring any material adverse change in economic conditions."

Based on the results, M1's Board of Directors has recommended an interim tax-exempt dividend of 3.9 cents per share for 1H2003. This represents a dividend payout ratio of 60%.

Given M1's strong cash flow and assuming no material adverse change in performance, the M1 Board will consider recommending an improved dividend pay out ratio going forward.