Final Results

14 November 2005

                  PipeHawk Plc ('the Group' or 'the Company')                  

                              Preliminary Results                              

                       for the year ending 30 June 2005                        

CHAIRMAN'S STATEMENT

As a provider of services to the utilities, particularly the water sector, the
Company was badly affected by the delay in Ofwat's pricing recommendations for
the sector. This was finally resolved at the end of 2004 and the way is now
clear for the water utilities to begin a major capital expenditure programme
over the next five years.

In last year's Annual Report and my Interim Statement I referred to our
strategy of investing for the future, coupled with a firm handle on costs and
cash control. I am pleased to tell you that, as a result of the implementation
of these actions, the Group is able to report a record turnover of £1,477,000
(2004: £1,010,000) for the year ended 30 June 2005 and almost a breakeven
result after taxation in the second half of the year (loss after taxation: £
27,000 (2004: loss £426,000)). Hence our loss for the year has reduced to £
297,000 (2004: £717,000). We have reinforced our position as the UK leader in
underground mapping; a market, which has enormous potential, with PipeHawk as a
world leader in the technology of Ground Probing Radar. My fellow directors and
I believe we will be moving into profitability at the operating level in the
current year and I am looking forward to reporting meaningful earnings.

The Group has four major business areas

1. Adien

Adien - our high definition underground mapping and planning service. Our
strategy of broadening our sales efforts beyond the water industry is yielding
good levels of enquiries, conversions and sales. Adien continues to be the
leader in its field of reliable and accurate identification when producing
topographical surveys of the underground environment. It now also operates on
an international basis having worked in Kuwait and mainland Europe during a
year when sales increased by 51 per cent. to £1,148,000. In the current year a
further increase in sales is expected and currently Adien's order book is some
40 per cent. ahead of the same period last year. Adien has strengthened its
sales team during the year and has also recently signed an important agreement
with Leica Geosystems Limited to upgrade surveying equipment which will improve
on-site efficiencies leading to greater market penetration. Our technology
division has spent much time during the year refining and improving PipeHawk's
information gathering capacity to assist Adien in maintaining its leading
position and providing a compelling selling proposition to Adien's clients.

2. SUMO - a 40 per cent. owned joint venture, which provides an instant mark
out service.

SUMO added two new franchisees to its UK coverage during the year, and
increased by 50 per cent. its company owned capability. During the year the
Sumo franchisee turnover increased by 149 per cent. to £548,274 (2004: £
219,875) and cut losses to £54,000. Like Adien, SUMO's sales and operations
activities have continued to grow and, since the year-end Sumo has reached
break even.

The recent high profile court cases regarding health and safety issues
demonstrates that it is increasingly important in the minds of company
directors involved in ground breaking activities, to procure the services of
Adien and SUMO.

3. Handheld Pipe Detector

During the year our technology division completed the development and prototype
stage of our handheld pipe detector in association with the North East Gas
Association ('NEGAS') of America. We produced a lightweight monostatic Ground
Probing Radar capable of complying with the stringent American FCC regulations.
NEGAS is currently assessing the prototype and deciding which manufacturer they
wish to allow to participate in the licensing and distribution of the final
product.

4. Mine Detection

An outline design and specification for an operational landmine detection
vehicle has been produced and lodged with the Company's lawyers. We have
retained the services of an acknowledged expert in the field of European grants
and have submitted a detailed proposal to the European Union to develop the
detection vehicle to the point of production. We await a decision on the
application to the European Union and are advised that it is being viewed
positively. This is an extremely exciting project, as the grant will see the
fruition of over 20 years work by PipeHawk and its predecessor companies to
produce such a vehicle.

Strategy and Outlook

Our strategy is to remain at the forefront of applied GPR and non-invasive
testing technologies, delivering high quality, value adding services and
products which play a vital role in the safety and protection of people
worldwide.

The current year has started well and I am confident that it will continue the
progress achieved over the last two years.

Gordon Watt

Chairman

14 November 2005

Consolidated Profit and Loss Account

For the year ended 30th June 2005

                                                             2005         2004
                                                                              
                                                            £'000        £'000
                                                                              
Turnover                                                                      
                                                                              
Group and share of joint venture                            1,477        1,010
                                                                              
Less: share of joint venture turnover                       (102)         (67)
                                                                              
Group Turnover - total                                      1,375          943
                                                                              
Group operating costs                                     (1,689)      (1,715)
                                                                              
Group operating loss                                        (314)        (772)
                                                                              
Share of operating loss in joint venture                     (25)         (69)
                                                                              
Loss on ordinary activities before interest and             (339)        (841)
taxation                                                                      
                                                                              
Group interest receivable and similar income                    -            1
                                                                              
Group interest payable and similar charges                   (55)         (52)
                                                                              
Loss on ordinary activities before taxation                 (394)        (892)
                                                                              
Tax on profit on ordinary activities                           97          175
                                                                              
Transfer from reserves                                      (297)        (717)
                                                                              
                                                             2005         2004
                                                                              
                                                                p            p
                                                                              
Loss per share                                                                
                                                                              
Basic and diluted                                           (1.3)        (3.3)
                                                                              

There are no recognised gains or losses other than those reported above.

Consolidated Balance Sheet

As at 30th June 2005

                                                             2005          2004
                                                                               
                                                            £'000         £'000
                                                                               
Fixed assets                                                                   
                                                                               
Intangible assets                                             241           255
                                                                               
Tangible assets                                               239           365
                                                                               
Investment in joint venture:                                                   
                                                                               
Share of gross assets                                          39            45
                                                                               
Share of gross liabilities                                   (43)         (211)
                                                                               
                                                              (4)         (166)
                                                                               
Goodwill                                                        -            39
                                                                               
Loan to Joint Venture                                           -           148
                                                                               
                                                              (4)            21
                                                                               
                                                              476           641
                                                                               
Current assets                                                                 
                                                                               
Stocks                                                        263           281
                                                                               
Debtors                                                       469           285
                                                                               
                                                              732           566
                                                                               
Creditors: amounts falling due within one year            (1,260)         (720)
                                                                               
Net Current liabilities                                     (543)         (154)
                                                                               
Total assets less current liabilities                        (52)           487
                                                                               
Creditors: amounts falling due after more than one          (111)         (353)
year                                                                           
                                                                               
Provisions for liabilities and charges                          -             -
                                                                               
Net (liabilities)/assets                                    (163)           134
                                                                               
Capital and reserves                                                           
                                                                               
Called up equity share capital                                232           232
                                                                               
Share premium account                                       4,081         4,081
                                                                               
Profit and loss account                                   (4,476)       (4,179)
                                                                               
Equity shareholders' (deficit)/funds                        (163)           134

Consolidated Cash Flow Statement

For the year ended 30th June 2005

                                                               2005        2004
                                                                               
                                                              £'000       £'000
                                                                               
Net cash flow from operating activities                       (126)       (586)
                                                                               
Returns on investments and servicing of                                        
finance                                                                        
                                                                               
Interest received                                                 -           1
                                                                               
Interest element of finance lease rentals                       (3)        (16)
and hire purchase payments                                                     
                                                                               
Interest paid                                                  (52)        (36)
                                                                               
                                                               (55)        (51)
                                                                               
Corporation tax received                                         96         105
                                                                               
Capital expenditure and financial                                              
investment                                                                     
                                                                               
Payments for tangible fixed assets                             (43)       (153)
                                                                               
Loan to joint venture                                             -        (68)
                                                                               
Receipts from sale of current asset                               -          95
investment                                                                     
                                                                               
Receipts from sale of tangible fixed                              -           4
assets                                                                         
                                                                               
                                                               (43)       (122)
                                                                               
Cash outflow before use of liquid                             (128)       (654)
resources and financing                                                        
                                                                               
Financing                                                                      
                                                                               
New loans                                                       216           -
                                                                               
Repayment of loans                                             (15)        (51)
                                                                               
Capital element of finance lease and hire                      (26)        (28)
purchase payments                                                              
                                                                               
Issue of ordinary shares                                          -         682
                                                                               
                                                                175         603
                                                                               
Increase/(Decrease) in cash                                      47        (51)

Notes to the Cash Flow Statement

A. Reconciliation of Operating Loss to Net Cash Outflow from Operating
Activities

                                                             2005         2004
                                                                              
                                                            £'000        £'000
                                                                              
Operating loss                                              (314)        (772)
                                                                              
Amortisation of intangible assets                              14           17
                                                                              
Depreciation of tangible fixed assets                         169          146
                                                                              
Loss on sale of investments                                     -            4
                                                                              
Working capital movements                                                     
                                                                              
Stock and work in progress                                     17           59
                                                                              
Debtors                                                     (182)           65
                                                                              
Creditors                                                     170        (105)
                                                                              
Net cash outflow from operating activities                  (126)        (586)

B. Reconciliation of Net Cash Flow to Movement of Net Debt

                                                             2005         2004
                                                                              
                                                            £'000        £'000
                                                                              
Increase/(Decrease) in cash                                    47         (51)
                                                                              
Cash (outflow)/inflow from increase in debt and hire        (175)           79
purchase finance                                                              
                                                                              
Decrease/(Increase) in net debt from cash flows             (128)           28
                                                                              
(Increase)/Reduction in net debt                            (128)           28
                                                                              
Opening net debt                                            (598)        (626)
                                                                              
Closing net debt                                            (726)        (598)
                                                                              

C. Analysis of changes in net debt

                                           1 July 2004  Cash flows 30 June 2005
                                                                               
                                                 £'000       £'000        £'000
                                                                               
Cash at bank and in hand                             -           -            -
                                                                               
Bank Overdraft                                   (197)          47        (150)
                                                                               
Cash                                             (197)          47        (150)
                                                                               
Loans                                            (375)       (201)        (576)
                                                                               
Hire purchase agreements                          (26)          26            -
                                                                               
Borrowings                                       (401)       (175)        (576)
                                                                               
Net debt                                         (598)       (128)        (726)

                      Notes to the preliminary statements                      

1. Publication of non-statutory accounts

The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in Section 240 of the Companies Act
1985.

The consolidated balance sheet at 30th June, 2005, and the consolidated profit
and loss account, consolidated cash flow statement and associated notes for the
period then ended have been extracted from the Group's financial statements.
Those financial statements have not yet been delivered to the Registrar of
Companies.

2. Loss per share

The calculation of the basic loss per share is based on the loss on ordinary
activities after taxation of £297,000 (2004: loss £717,000) divided by
23,203,808 (2004: 21,798,121) ordinary shares, being the weighted average
number of shares in issue during the period.

3. Dividend

The Directors are not proposing the payment of a dividend in respect of the
period ended 30th June, 2005.

4. Taxation

                                                       2005           2004
                                                                          
                                                      £'000          £'000
                                                                          
United Kingdom Corporation Tax                                            
                                                                          
Current taxation                                       (80)           (90)
                                                                          
Adjustments in respect of prior years                  (17)           (95)
                                                                          
                                                       (97)          (185)
                                                                          
Deferred taxation                                         -              -
                                                                          
Tax on loss on ordinary activities                     (97)          (185)
                                                                          
                                                       2005           2004
                                                                          
                                                      £'000          £'000
                                                                          
Loss on ordinary activities before taxation           (391)          (892)
                                                                          
Theoretical tax at UK corporation tax rate            (117)          (268)
30%                                                                       
                                                                          
Effects of:                                                               
                                                                          
- losses brought forward                               (26)              -
                                                                          
- joint ventures' losses unrelieved                       8             21
                                                                          
- R&D tax credit adjustments                             27             20
                                                                          
- other expenditure that is not tax                       4              8
deductible                                                                
                                                                          
- adjustments in respect of prior years                (17)           (95)
                                                                          
- accelerated capital allowances                         24              5
                                                                          
- losses carried forward                                  -            134
                                                                          
Actual current taxation charge                         (97)          (175)
                                                                          

5. Report and Accounts

Copies of the Report and Accounts will be sent to shareholders in due course
and will be available from the Company's registered office.

Further Enquiries:

PipeHawk Plc                                                                   
                                                                               
Gordon Watt, Chairman                                         Tel: [phone]
                                                                               
John East & Partners Limited                                                   
                                                                               
Johnny Townsend/Simon Clements                               Tel: [phone]
                                                                               
J M Finn                                                                       
                                                                               
Sam Smith                                                    Tel: [phone]