Interim Results

Embargoed until 7.00 am

                                                               8thNovember 2004

                  Eurolink Managed Services PLC ("the Group)                   

                   Interim Results for the six months ended                    

                              30th September 2004                              

Chairman's Statement

Introduction and results

I am pleased to report the results for the six months ended 30 September 2004.
Turnover for the period was £4.23 million (2003: £3.83 million) resulting in a
profit before tax of £227,000 (2003: loss of £165,000). Earnings per share for
the period are 1.41p (2003: loss per share of 1.13p). Your Board is proposing
the payment of a maiden interim dividend of 0.5 pence per share, payable on
13th December 2004, to those shareholders on the register at the close of
business on 19th November 2004. The shares will be declared "ex dividend" on
17th November 2004.

Business review

As indicated in my last statement, issued in May 2004, the long term contracts,
which were negotiated during the last financial year, have enabled the Group to
optimise staffing levels and reduce overheads. This has resulted in increased
margins and profits for the half year. Growth in business with existing clients
has remained strong in both new technology and legacy areas, which has allowed
us to focus on new sales initiatives, from which the company is already
beginning to benefit.

oUTLOOK

Your Directors are confident that the Group is well positioned to take
advantage of improving market conditions, without the need to increase
infrastructure costs. Arrangements have been made to ensure that an adequate
cost-effective supply of skilled resources is available to meet the demands of
our existing and future clients. Increased investment in sales activities is
beginning to have a positive effect, with a number of promising opportunities
currently under discussion. Retained client business is set to maintain or
increase levels over the next 6 months. Therefore, subject to unforeseen
circumstances, your Directors are confident that the second half of the year
should produce a further satisfactory outcome.

George Kynoch

Chairman

8th November 2004

Group profit and loss account for the six months ended 30th September 2004

                                             Unaudited six months       Audited
                                              to 30th September          twelve
                                                                      months to
                                                                     31st March
                                                                               
                                                  2004        2003         2004
                                                                               
                                                 £'000       £'000        £'000
                                                                               
Turnover                                         4,227       3,827        7,365
                                                                               
Cost of sales                                  (3,210)     (3,013)      (5,833)
                                                                               
Gross Profit                                     1,017         814        1,532
                                                                               
Operating expenses                                                             
                                                                               
Administrative before exceptional                (778)       (891)      (1,625)
                                                                               
Exceptional (note 2)                                 -        (69)         (69)
                                                                               
                                                 (778)       (960)      (1,694)
                                                                               
Operating profit/(loss)                            239       (146)        (162)
                                                                               
Net interest payable                              (12)        (19)         (34)
                                                                               
Profit/(loss) on ordinary activities before        227       (165)        (196)
taxation                                                                       
                                                                               
Taxation on profit from ordinary activities       (80)          47           54
(note 3)                                                                       
                                                                               
Profit/(loss) for the financial period             147       (118)        (142)
                                                                               
Dividends proposed                                  52           -            -
                                                                               
Retained profit/(loss)                              95       (118)        (142)
                                                                               
Earnings/(loss) per share (note 4)                                             
                                                                               
Basic                                            1.41p     (1.13)p      (1.36)p
                                                                               
Diluted                                          1.40p     (1.13)p      (1.36)p
                                                                               

All disclosures relate only to continuing operations.

There are no recognised gains or losses other than the profit for the period.

Group balance sheet at 30th September 2004

                                                   Unaudited            Audited
                                                                               
                                                30th September       31st March
                                                                               
                                                  2004         2003        2004
                                                                               
                                                 £'000        £'000       £'000
                                                                               
Fixed assets                                                                   
                                                                               
Tangible assets                                    187          233         208
                                                                               
Current assets                                                                 
                                                                               
Debtors                                          1,685        1,851       1,717
                                                                               
Cash at bank and in hand                           209            3           -
                                                                               
                                                 1,894        1,854       1,717
                                                                               
Creditors: amounts falling due within one      (1,094)      (1,170)     (1,032)
year                                                                           
                                                                               
Net current assets                                 800          684         685
                                                                               
Total assets less current liabilities              987          917         893
                                                                               
Provisions for liabilities and charges                                         
                                                                               
Deferred tax                                      (18)         (19)        (19)
                                                                               
                                                   969          898         874
                                                                               
Capital and reserves                                                           
                                                                               
Called up share capital                            208          208         208
                                                                               
Share premium account                              103          103         103
                                                                               
Profit and loss account                            658          587         563
                                                                               
Equity shareholders' funds                         969          898         874
                                                                               

Group cash flow statement for the six months ended 30th September 2004

                                            Unaudited six months        Audited
                                              to 30th September   twelve months
                                                                             to
                                                                               
                                                                     31st March
                                                                               
                                                  2004       2003          2004
                                                                               
                                                 £'000      £'000         £'000
                                                                               
Net cash inflow from operating activities          417        418           283
                                                                               
Returns on investments and servicing of                                        
finance                                                                        
                                                                               
Interest paid                                     (12)       (19)          (34)
                                                                               
Net capital expenditure and financial              (5)       (24)          (29)
investment                                                                     
                                                                               
Taxation                                                                       
                                                                               
UK corporation tax                                   -       (63)          (65)
                                                                               
Net cash inflow before financing                   400        312           155
                                                                               
Financing                                                                      
                                                                               
Capital element of finance leases and hire           -       (12)          (13)
purchase contracts                                                             
                                                                               
Amount advanced against trade debtors                -          9             -
                                                                               
Net cash (outflow) from financing                    -        (3)          (13)
                                                                               
Increase in cash in the period                     400        309           142
                                                                               
Reconciliation of operating profit to net                                      
cash flow from operating activities                                            
                                                                               
Operating profit/(loss)                            239      (146)         (162)
                                                                               
Depreciation charges                                26         32            62
                                                                               
Loss on sale of tangible fixed assets                -         15            15
                                                                               
(Increase)/decrease in debtors                    (11)        553           695
                                                                               
Increase/(decrease) in creditors                   163       (36)         (327)
                                                                               
Net cash inflow from operating activities          417        418           283
                                                                               
Reconciliation of net cash flow to movement                                    
in net funds/(debt)                                                            
                                                                               
Opening net (debt)                               (191)      (575)         (346)
                                                                               
Increase in cash in period                         400        309           142
                                                                               
Cash outflow from changes in debt                    -          3            13
                                                                               
Closing net funds/(debt)                           209      (263)         (191)

Analysis of funds/(debt)

                                                 At 1st  Cash flow      At 30th
                                                  April               September
                                                                               
                                                   2004      £'000         2004
                                                                               
                                                  £'000                   £'000
                                                                               
Cash at bank and in hand                              -        209          209
                                                                               
Overdrafts                                        (191)        191            -
                                                                               
Total                                             (191)        400          209

Notes to the interim results

1. Basis of Preparation

The financial information for the six month period ended 30th September 2004 is
unaudited and does not constitute statutory accounts within the meaning of the
Companies Act 1985. The financial information contained in this statement has
been prepared using accounting policies consistent with those set out in the
Group's statutory accounts for the year ended 31 March 2004 and should be read
in conjunction therewith.

The financial information for the year ended 31 March 2004 has been extracted
from the statutory accounts of Eurolink Managed Services Plc which contained an
unqualified audit report and which did not contain a statement under section
237(2) or 237(3) of the Companies Act 1985 and which have been filed with the
Registrar of Companies.

2. Exceptional expenses

The exceptional expenses in the prior periods consisted of legal fees and
severance costs relating to the group re-organisation.

3. Tax

                                            Unaudited six months        Audited
                                              to 30th September   twelve months
                                                                             to
                                                                               
                                                                     31st March
                                                                               
                                                  2004       2003          2004
                                                                               
                                                 £'000      £'000         £'000
                                                                               
United Kingdom Corporation Tax                                                 
                                                                               
On ordinary activities                            (81)         20            47
                                                                               
On exceptional costs                                 -         20             -
                                                                               
Deferred tax movement                                1          7             7
                                                                               
                                                  (80)         47            54

The tax (charge)/credit provided at the half year is based on the estimated
effective tax rate for the Group applicable to the year ending 31 March 2005 as
applied to the pre-tax profits for the period.

4. Earnings per share

The calculation of basic earnings/(loss) per share of 1.41p (30 September 2003
(loss) 1.13p, 31 March 2004 (loss) 1.36p) is based on the profit/(loss) on
ordinary activities after taxation of £147,000 (30 September 2003: loss £
118,000), 31 March 2004: loss £142,000) and on the weighted average number of
shares in issue during the period throughout the previous year of 10,400,000.

The full diluted earnings/(loss) per share amounting to 1.40p (30 September
2003 (loss) 1.13p, 31 March 2004 (loss) 1.36p) has been calculated on the basis
of adding 106,353 (30 September 2003 nil, 31 March 2004 nil) to the weighted
average number of shares to take account of the dilutive effect of outstanding
share options to give 10,506,353 (30 September 2003 10,400,000, 31 March 2004
10,400,000) shares in issue assuming that options where the exercised price is
lower than fair value are exercised.

5. Copies of report

Copies of this report will be posted to shareholders and are available on
request from the Company Secretary, Queen Square House, 15 Queen Square,
Brighton, BN1 3FD.

Enquiries:

Eurolink Managed Services Plc

David Wood/Paul Jewell Tel: [phone]

John East & Partners Limited

Jeffrey Coburn/Simon Clements Tel: [phone]