Hong Kong, 22 August 2006 – SIM Technology Group Limited (“SIM Technology” or “the Company”; SEHK: 2000), a leading mobile handset and wireless communication module solutions developer, today announced robust turnover and profit growth for the six months ended 30 June 2006.

The Group recorded a turnover of HK$1,732.7 million in the first six months of this year, representing a growth of 86.97% over the same period last year, primarily due to strong sales across all business segments of the Group. Gross profit grew by 62.56% to HK$280.3 million.

Aggressive marketing strategies were implemented to expand market share and maximize profitability, the Group managed to lower the percentage of net operating costs over turnover from 6.79% to 4.55% as a result of higher operating efficiencies. Net profit thus increased 83.99% to HK$201.53 million for the first half of 2006.

Basic earnings per share were HK13.4 cents, and diluted earnings per share were HK13.3 cents.

Cash flow of the Group remained strong with net cash generated from operations amounting to HK$258.4 million. The Company‘s Board of Directors has declared an interim dividend of HK6.8 cents per share to be paid on or about 21 September 2006.

Mr. C.T. Wong, President of SIM Technology, said, “We are delighted to deliver yet another set of favourable financial results, attributable to the rapid and healthy growth of mobile and wireless communications market in China. The Company is also grateful to have been selected as a constituent of the MSCI Hong Kong Small Cap Index Series, shortly after the Company’s Hong Kong listing in June 2005.”

“On the R&D front, we have formed a number of strategic technology collaborations to further strengthen our market position. We partner with DaTang and LG to drive the release of TD-SCDMA/GSM dual mode mobile handset solution in October 2006.To step up our international market development efforts, we also collaborate with Kineto Wireless to develop UMA-enabled mobile handset which will conform to the 3GPP standard UMA specification to allow for seamless mobility between WiFi and GSM networks.”

“The strong business momentum is expected to sustain. In addition, leveraging our expertise in developing mobile handsets technologies, we are well positioned to capture the high growth potential offered by the wireless communications platforms for other industrial applications. The Group has therefore decided to establish a dedicated team with about 100 engineering staff to focus on the non-mobile handset related markets.”