Interim Results

Lo-Q PLC
21 May 2004


                                    Lo-Q Plc

                                Interim Results

                              Chairman's Statement


I am pleased to report that the company had a turnover of £197,239 during the
six months to 31st March 2004. This period is the 'closed season' when most of
the parks are open for only very limited periods. The attached report shows a
good increase on the comparative amount for last year.

During the winter the company undertook some rationalisation in staff numbers.
The reductions were made in finance, installation and research and development
departments so that the company can now operate positively on a lower level of
income. The effects of this reduction in head count can be seen in the reduction
of the operating loss compared with last year.

We have therefore opened the 2004 park season more tightly focused but better
able to support the parks, both from our Atlanta office and remotely from Henley
as a result of software developments made in the autumn and winter. The research
and development team meets our current business needs.

The enhanced operating software, installed before the season started, is able to
handle larger volumes of message traffic more quickly while adding new
facilities.  The Q-bot cases are now stronger and more water resistant, and the
system has been further upgraded to bring operating cost savings.

Prior to the start of the 2004 season, the Six Flags Corporation announced the
sale of its European Parks to a management buy-out, and the sale of the Ohio
based 'Worlds of Adventure' to the Cedar Fair park operator.  The Ohio park was
our poorest performer so we do not expect its removal to have a significant
negative effect on our revenue this year.

The 2004 season has started with some positive signs of higher park attendance
levels in theme parks across the United States.  Weather plays a large role in
determining customer numbers at this time of the year, making full season
forecasting difficult for the industry.  We have been pleased to see an
encouraging demand for our Q-bots in the first few weekends of the season.

Staffs of both Lo-Q and Six Flags Corporation are working as a more closely
integrated team this season, and we expect this will enable us to better
capitalise on the busy summer trading level.

Supported by Six Flags, we are promoting our proximity marketing (location
specific advertising) facility to attraction franchisees as a means of
increasing their sales.   The proximity marketing activity is absolutely new to
all involved, so we will evaluate the benefits of the advertising to guests,
franchisees, the Park and ourselves.

We continue to talk to a number of other organisations in the theme park
industry regarding installations and believe that the upturn in park attendances
will enhance our prospects.

Our theme park industry knowledge and experience enables us to establish
relationships with other companies. The first of these partnering arrangements
involves installing intelligent screen advertising in the Atlanta Park.  This
exploits our fibre backbone asset to distribute and control the information and
advertising on TV screens spread about the park.

After the end of the period for which we are financially reporting, we arranged
a sale and lease back of the Georgia system and this has given the company
improved liquidity.

This season will see the one-millionth customer use a Q-bot, which will be a
major milestone and will allow us to talk about the system to potential users
backed by high volume experience.


Jeff McManus
20 May 2004





LO-Q PLC
Consolidated profit and loss account
                                                    Six months to 31       Six months to 31          Year to 30
                                                       March 2004             March 2003           September 2003
                                                           £                      £                      £

Turnover
             Q-Bot income                                    171,137                 51,531              1,023,715
             Sale and leaseback                                                     998,432                998,432
             Operational Expenditure recovery                 26,102                144,272                292,996
                                                          __________             __________             __________
Total Turnover                                               197,239              1,194,235              2,315,143

Cost of Sales                                                 98,783                922,093              1,892,565
                                                          __________             __________             __________

Gross profit/(loss)                                           98,456                272,142                422,578

Administrative expenses                                      639,884                995,397              1,832,564
                                                          __________             __________             __________

Operating loss                                             (541,428)              (723,255)            (1,409,986)

Interest receivable                                              200                  1,215                  1,488

Interest payable and similar charges                           (265)                      0                  (465)
                                                          __________             __________             __________

Loss on ordinary activities before taxation                (541,493)              (722,040)            (1,408,963)

Taxation on loss on ordinary activities                            0               (64,000)               (97,881)
                                                          __________             __________             __________

Loss on ordinary activities after taxation                 (541,493)              (658,040)            (1,311,082)


Earnings (loss) per share                                     (0.04)                 (0.05)                 (0.09)
Basic (and diluted)


All amounts relate to continuing activities

There are no recognised gains or losses other than those within the profit and loss account





LO-Q PLC
Consolidated balance sheet
                                                    Six months to 31       Six months to 31          Year to 30
                                                       March 2004             March 2003           September 2003
                                                           £                      £                      £

Fixed assets
Tangible assets                                              134,967                261,565                175,237
                                                          __________             __________             __________

Current Assets
Stocks                                                       476,555                277,220                219,790
Debtors falling due within one year                           15,698                583,775                366,305
Debtors falling after one year
                               - Prepayments &                88,044                589,980                210,875
                                 accrued income
                               - Other debtors                18,188
                               - corporation tax               3,008                 64,000
Cash at bank and in hand                                      23,880                171,804                287,033
                                                          __________             __________             __________

                                                             625,373              1,686,779              1,084,003
Creditors: amounts falling due within one
year                                                         173,713                179,338                131,120
                                                          __________             __________             __________

Net current assets/(liabilities)                             451,660              1,507,441                952,883
                                                          __________             __________             __________

Total assets less current liabilities                        586,627              1,769,006              1,128,120


Capital and Reserves
Called up share capital                                      143,478                143,478                143,478
Share premium account                                      4,971,617              4,971,617              4,971,617
Capital reserve                                               12,473                 12,473                 12,473
Profit and loss account                                  (4,540,941)            (3,358,562)            (3,999,448)
                                                          __________             __________             __________

Equity shareholders' funds                                   586,627              1,769,006              1,128,120






LO-Q PLC
Consolidated cash flow statement
                                                    Six months to 31       Six months to 31          Year to 30
                                                       March 2004             March 2003           September 2003
                                                           £                      £                      £

Net cash outflow from operating activities                         0                 67,916                 32,500
                                                          __________             __________             __________

Returns on investments and servicing of finance
Interest received                                                  0                  1,215                  1,488
Interest paid                                                      0                      0                  (465)
                                                          __________             __________             __________

Net cash inflow from returns on investments and                    0                  1,215                  1,023
servicing of finance
                                                          __________             __________             __________

Taxation
Corporation tax received/(paid)                              126,156                      0                150,117
                                                          __________             __________             __________

Capital expenditure and financial investments               (31,860)               (57,387)               (57,319)
                                                          __________             __________             __________

Cash outflow before use of liquid resources and               94,296                 11,744                126,321
financing

Financing
Net cash inflow from shares issue                                  0                      0                      0
                                                          __________             __________             __________

Increase/(decrease) in cash                                   94,296                 11,744                126,321




Copies of this statement will be available to members of the public, free of
charge, from the offices of the Company. New Close, Greenlands,
Henley-on-Thames, Oxfordshire RG9 3AL.




LO-Q PLC

Independent Financial Review
________________________________________________________________________________


Introduction

The company has instructed us to review the financial information, being the
consolidated profit and loss account, balance sheet and cash flow statement and
we have read the other information contained in the interim report and
considered whether it contains any apparent misstatements or material
inconsistencies with the financial information.


Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The Listing Rules
of the Financial Services Authority require that the accounting policies and
presentation applied to the interim figures should be consistent with those
applied in preparing the preceding annual accounts except where any changes, and
the reasons for them, are disclosed.


Review work performed

We conducted our review in accordance with the guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board. A review consists principally of
making enquiries of group management and applying analytical procedures to the
financial information and underlying financial data and, based thereon,
assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. A review excludes audit
procedures such as tests of controls and verification of assets, liabilities and
transactions. It is substantially less in scope than an audit performed in
accordance with Auditing Standards and therefore provides a lower level of
assurance than an audit. Accordingly we do not express an audit opinion on the
financial information.


Review Conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 March 2004.


Menzies
Chartered Accountants

19 May 2004


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