Final Results

Lo-Q PLC
14 February 2003

                                    Lo-Q plc


            PRELIMINARY RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2002


Lo-Q plc ('Lo-Q' or the 'Company'), the virtual queuing design and operation
company, has announced its preliminary audited results for the year ended 30
September 2002.

Key points:

  • Revenue has increased 184 per cent year on year

  • Company signed the Multipark Agreement with Six Flags for a potential 10
    extra parks

  • Completed installation of a further five parks, bringing the total to six
    parks

  • Company is successfully listed on AIM and raised £3.5m

  • Nick Gordon has joined the Board as Finance Director and the Company
    announce today the appointment of Andrew Schild as Development Director

Jeff McManus, Chairman of Lo-Q, stated:

'Lo-Q believes that despite a difficult year for the Theme Park industry, it has
been able to successfully demonstrate the operation of the system across
multiple sites, with over 250,000 satisfied users in the year.

Revenue however fell short of plan due to fewer and later installations than we
hoped for the year and at the same time significantly lower attendance levels
than forecast, but we have responded with strict cost control so that overhead
costs were only 70 per cent. of plan.  Since the year end we have taken further
steps to reduce the cost base through both reductions in the emoluments of the
directors and by making a number of redundancies.  It is estimated that this
will generate savings of £300,000.'


Enquiries:

Jeff McManus, Non-Executive Chairman      Lo-Q plc                  01491 577210
Nick Gordon, Finance Director

Justin Lewis                              Corporate Synergy PLC    020 7626 2244



Chairman's Statement

Lo-Q believes that despite a difficult year for the Theme Park industry, it has
been able to successfully demonstrate the operation of the system across
multiple sites, with over 250,000 very satisfied users in the year.  The group
has pushed ahead with the deployment of its Virtual Queuing System and continues
to develop the system, made possible by the flotation on AIM. Undoubtedly market
conditions for our client base have been difficult, although the trend to
Virtual Queuing continues apace, albeit under greater cash control and faster
payback requirements than most industry observers have anticipated.

Lo-Q has made progress in creating name and brand awareness, and we have
consolidated and expanded existing and new client relationships. This year has
also seen a major investment of time and resource in a successful fundraising
and admission to AIM to support Lo-Q and in particular to provide the working
capital to support the Six Flags contract.

After the year end we concluded the financing arrangements for the five parks
installed during the year and although the arrangements have provided sufficient
working capital to meet the existing needs of the group it was necessary to
leave about US$1.5m invested in the Six Flags installations.  In supporting the
financing deal Six Flags has demonstrated its continuing commitment to the
project and we are confident that after a successful 2003 season will consider
rolling out the Lo-Q system to further Six Flags parks.

From a strategic point of view, the deal with Six Flags represented an important
development for Lo-Q. Whereas the company was founded as primarily a development
business, the need to develop system deployment, operation and marketing skills
has become increasingly important.

During this year it has become clear that with the downturn in Theme Park
attendances and nervousness over the general state of the global economy that
there was a reluctance to commit to long term projects involving significant
capital expenditure.  We have quickly responded and are developing a new
smaller, cost effective product, which will enable us to target smaller Theme
Parks, deploy the system with less impact upon the physical infrastructure of
the parks and to reduce the overall funding requirement.  We will however need
to secure further working capital in order to take advantage of the
opportunities the new product will present.

The group grew its revenues by 184 per cent in the year ended 30 September 2002.
This produced a loss before tax of £1,704,972 (2001 loss  - £869,594). Revenue
however fell short of plan due to fewer and later installations than we hoped
for the year and at the same time significantly lower attendance levels than
forecast, but we have responded with strict cost control so that overhead costs
were only 70 per cent. of plan.  Since the year end we have taken further steps
to reduce the cost base through both reductions in the emoluments of the
directors and by making a number of redundancies.  It is estimated that this
will generate savings of £300,000.


Chairman's Statement (cont'd)

In light of the losses, the early stage nature of the company and the ongoing
need for investment to grow, the Board does not recommend the payment of a
dividend for the year.

During the next year the company will be concentrating on working with Six Flags
to maximise the revenue out of the existing installations, obtaining orders from
new customers and positioning itself to expand through the marketing, sales and
installation of the new product.

Jeff McManus
Chairman
14 February 2003


CONSOLIDATED PROFIT AND LOSS ACCOUNT                                   
Year ended 30 September 2002                                           
                                                      2002         2001
                                                             (restated)
                                                         £            £

TURNOVER                                           886,484      311,225

Cost of sales                                      704,706      311,849

Gross profit                                       181,778        (624)

Administrative expenses                          1,914,285      922,423


OPERATING (LOSS)                               (1,732,507)    (923,047)

Interest receivable and similar income              30,022       54,462
Interest payable and similar charges               (2,487)      (1,009)


LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION    (1,704,972)    (869,594)
Tax on loss on ordinary activities               (110,000)     (54,584)


LOSS FOR THE FINANCIAL YEAR                    (1,594,972)    (815,010)


Loss per ordinary share (pence)                     (0.13)       (0.08)
(basic and diluted)                                                    


All activities derive from continuing operations.

                                                                                                           
CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES                                  
Year ended 30 September 2002                                                                 
                                                                            2002         2001
                                                                                   (restated)
                                                                               £            £

LOSS FOR THE FINANCIAL YEAR                                          (1,594,972)    (815,010)

Prior year adjustment                                                  (375,093)            -

TOTAL GAINS AND LOSSES RECOGNISED SINCE LAST FINANCIAL STATEMENTS    (1,970,065)    (815,010)
                                                                                                 


CONSOLIDATED BALANCE SHEET                                                 
30 September 2002                                                          
                                                         2002          2001
                                                                 (restated)
                                                            £             £

FIXED ASSETS                                          336,876       330,354
Tangible assets                                                            
                                                      336,878       337,655
CURRENT ASSETS                                                             
Stocks                                              1,826,758        54,168
Debtors                                               657,684       144,145
Cash at bank and in hand                              160,060       586,146
                                                    2,644,502       784,459
CREDITORS: amounts falling due within one year        554,332       148,678

NET CURRENT ASSETS                                  2,090,170       635,781

TOTAL ASSETS LESS CURRENT LIABILITIES               2,427,046       966,135


CAPITAL AND RESERVES                                                       
Called up share capital                               143,478       106,818
Share premium account                               4,971,617     1,952,394
Capital redemption reserve                             12,473        12,473
Profit and loss account                           (2,700,522)   (1,105,550)


EQUITY SHAREHOLDERS' FUNDS                          2,427,046       966,135
                                                                                                  


CONSOLIDATED CASH FLOW STATEMENT                                            
Year ended 30 September 2002                                                
                                                          2002          2001
                                                                  (restated)
                                                             £             £

Net cash outflow from operating activities         (3,363,186)   (1,055,227)

Returns on investments and servicing of finance         27,535        53,453

Taxation                                                 (757)             -

Capital expenditure and financial investment         (145,561)     (372,198)

Net cash outflow before financing                  (3,481,969)   (1,373,972)

Financing                                            3,055,883     1,974,093

(Decrease)/increase in cash in the year              (426,086)       600,121



NOTES TO THE ACCOUNTS
Year ended 30 September 2002


     1.   BASIS OF PREPARATION
          
     The consolidated balance sheet and consolidated cash flow statement for the 
     year ended 30 September 2001 have been restated to reflect a prior year 
     adjustment.

     2.   SEGMENTAL ANALYSIS


Turnover by destination is as follows:
                                                           2002             2001
                                                              £                £

United States of America                                886,484          311,225


All turnover is from the group's principal activity.



     3.   LOSS PER ORDINARY SHARE
          
     The calculation of basic and diluted loss per ordinary share are based on a 
     loss of £(1,594,972) (2001 - £815,010) and on 12,245,799 (2001 - 
     10,586,716) ordinary shares being the weighted average number of ordinary 
     shares in issue during the year.

     Potentially dilutive issuable shares are only included in the calculation 
     of diluted earnings per share if their issue would increase net loss per 
     share.

     4.   PRIOR YEAR ADJUSTMENT
          
     During the year the group has changed its accounting policy so that 
     development costs are charged to the profit and loss account in the year of 
     expenditure as the directors believe this results in a more true and fair 
     view in relation to the uncertainty of the timing of future cash flows.

     The effects of this change have been to increase the loss before tax for 
     the year by £348,720 (2001 - £202,398), the loss after tax by £238,720 
     (2001 - £144,398) and generate a total prior year adjustment of £375,093.

     5.   POST BALANCE SHEET EVENTS
          
     On 31 January 2003, the company sold 5 installations (held as stock) to a
     leasing company for US$3.3 million with half the funds receivable 
     immediately and the balance over the next 3 to 4 years depending upon the 
     performance of the system.

     6.   FINANCIAL INFORMATION
          
     The financial information contained in this preliminary announcement of 
     audited results does not constitute the group's statutory accounts for the 
     years ended 30 September 2002 or 30 September 2001.  The financial 
     information has been prepared using consistent financial policies.  The 
     accounts for the year ended 30 September 2001 have been delivered to the 
     Registrar of Companies and those for 2002 will be delivered following the 
     company's annual general meeting.

     The statutory accounts for the years ended 30 September 2002 and 30 
     September 2001 have been reported on by the company's auditors; the reports 
     on these accounts were unqualified and they did not contain a statement 
     under section 237 (2) or (3) of the Companies Act 1985.

     Copies of the full statutory accounts will be despatched to shareholders in 
     due course.  Copies of this announcement and the full statutory accounts 
     will be available, free of charge, from the registered office of the 
     company at New Close, Greenlands, Henley-On-Thames, Oxfordshire, RG9 3AL, 
     and from the offices of the company's nominated adviser, Corporate Synergy 
     PLC at 12 Nicholas Lane, London EC4N 7BN.


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