Final Results

MSW TECHNOLOGY PLC
16 September 1999


MSW TECHNOLOGY PLC

Chairman's Statement for the year ended 31 May 1999

RESULTS

1999 was a year of mixed fortunes for the Group with the first six months
showing a high level of enquiries.  However, this was not sustained during the
second half when a number of major defence and commercial contracts expected
to have been awarded within the period were not finalised.

Our US operation continued to generate many Department of Defense and
commercial prospects but was unsuccessful in closing these during the year.

As indicated in the trading statement dated 11 August, 1999, these factors
have resulted in the year showing a loss of £1.64 million, compared with a
profit of £0.5m in 1997/8.

REVIEW

In the second half of 1998/9 the Group continued to develop MAPS and made
major enhancements to the product suite.  This investment has resulted in a
substantial intellectual capital base from which to develop sales of MAPS.

Our MoD business was significantly below expectations during the year.  This
can be attributed partly to the uncertainty created by the Strategic Defence
Review carried out by the Government which is effecting economies of scale
across all three defence services.  Computer systems, such as MAPS, have been
shown to enhance this cost cutting process and there will, therefore, be
significant opportunities for MSW to sell MAPS further into the defence
market.  The MoD is also in the process of selecting three standard Human
Resource software systems for civilian use within the MoD.  MAPS is a leading
contender to be selected.  However, this initiative did result in a number of
potential MAPS sales being postponed until the selection process completes in
early 2000.

On a positive note, during the year two major defence projects have gone live.
These are Royal Fleet Auxiliary (RFA) and MoD Police (MDP).  Both of these
systems are enterprise level implementations of MAPS utilising many facets of
the product suite in business critical environments. 

The US business generated much interest over the year and created a number of
promising opportunities.  

The Professional Services division continued to add new business and traded
profitably during the year, in particular supplying services to William Mercer
Limited and Tibbett & Britten Group PLC.  The division remains non-specialised
and is able to supply both bespoke software development and strategic
infrastructure and IT consultancy.

DIRECTORS

Mr Ray Ride, formerly Sales Director, left the Board of the Company on 11
August 1999.

DIVIDEND

No final dividend is proposed for this year.

OUTLOOK

MAPS is now highly functional.  The September 1999 release of the VBA
(Microsoft Visual Basic for Applications) enabled version further transforms
the product offering as it both speeds up and simplifies the process of
customisation.  In turn, this reduces cost and increases the returns to our
customers.

Our expansion outside the defence sector continues and we have identified two
new high growth niches for MAPS.  These are within the Maritime Cruise and
Shipping and the Business Services sectors.  Both of these service-based
industries are particularly suited to the enterprise level implementation of
MAPS.

Our relationship with Calibre in the USA is now also close to showing some
tangible results with a large Defense Agency having committed to the
deployment of MAPS for strategic manpower planning.

Finally, we are very pleased to be able to add P&O Cruises to our client list.

In summary, although the year has been disappointing from a financial
perspective, the Directors remain confident about the future.

Robert Drummond
Chairman
16 September 1999

MSW TECHNOLOGY PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MAY 1999

                                 1999                      1998 
                                    £                         £

Turnover                    1,896,518                 2,909,951

Cost of sales              (2,286,751)               (1,231,738)

Gross (loss)/ profit         (390,233)                1,678,213

Administrative expenses    (1,230,666)               (1,146,861)

Operating (loss)/profit    (1,620,899)                  531,352

Interest receivable            14,015                     2,990
Interest payable              (34,638)                  (31,900)

(Loss)/profit on ordinary 
activities  before taxation(1,641,522)                  502,442

Taxation                      140,927                  (138,666)

(Loss)/profit for the financial
year after taxation        (1,500,595)                  363,776

Dividends                     (61,508)                 (166,000)

(Loss)/profit for the financial
year  transferred
(from)/to reserves         (1,562,103)                  197,776


(Loss)/earnings per share

Basic                          (21.27)p                    7.07p
Diluted                        (20.86)p                    7.05p

MSW TECHNOLOGY PLC
CONSOLIDATED BALANCE SHEET
AT 31 MAY 1999

                                   1999                    1998
                                      £                       £

Tangible fixed assets           182,930                  55,401
Fixed asset investments               -                       -
                                182,930                  55,401

Current assets

Stocks                          119,920                 128,403
Debtors                       1,322,750               1,882,318
Cash at bank and in hand         16,659                      54
                              1,459,329               2,010,775

Creditors: amounts falling due 
within one year                (548,014)             (1,339,527)

Net current assets              911,315                 671,248

Total assets less current 
liabilities                   1,094,245                 726,649

Creditors:  amounts falling due 
after more than one year        (60,839)                      -

Net assets                    1,033,406                 726,649

Capital and reserves

Called up share capital         410,050                 154,296
Share premium account         1,836,122                 136,704
Profit and loss account      (1,212,766)                435,649

Total shareholders' funds     1,033,406                 726,649
(including non equity interests)

MSW TECHNOLOGY PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MAY 1999

                                   1999                            1998
                                      £                               £


Net cash outflow from operating 
Activities                     (951,324)                       (493,050)

Returns on investments and
servicing of finance

Interest received                14,015                           2,990
Interest paid                   (28,750)                        (26,919)
                                (14,735)                        (23,929)

Taxation

UK corporation tax paid         (41,500)                        (70,236)

Capital expenditure and 
financial investment

Payments to acquire 
tangible fixed assets          (189,235)                        (15,041)

Acquisitions   

Payments to acquire investments
in subsidiary undertakings            -                          (5,331)

Equity dividends paid          (227,508)                              -

Cash outflow before 
financing                    (1,424,302)                       (607,587)

Financing

Issue of ordinary shares      2,510,996                           3,296
Expenses of share issue        (542,136)                              -
(Redemption)/issue of 
preference shares              (100,000)                        100,000
Share premium                         -                         136,704
                              1,868,860                         240,000

Increase/(decrease) in cash in 
the year                        444,558                        (367,587)


MSW TECHNOLOGY PLC
NOTES


1         Financial Information

The financial information set out above does not constitute full accounts of
the Group.

The 1998 figures have been extracted from the statutory accounts of the Group
for the year ended 31 May 1998 which have been filed with the Registrar of
Companies and on which the auditors issued an unqualified report.  The 1999
figures have been extracted from the statutory accounts of the Group for the
year ended 31 May 1999 on which the auditors have issued an unqualified
report, and which will be filed with the Registrar of Companies following the
Annual General Meeting.  The same accounting policies as the previous periods
have been used.


2 Reconciliation of operating profit to net 
cash flow from Operating activities           1999                     1998
                                                 £                        £

Operating (loss)/profit                 (1,620,899)                 531,352
Depreciation and amortisation charges       40,344                   17,484
Fixed asset investment written down            -                      5,331
Decrease/(increase) in debtors             585,579               (1,250,414)
Decrease/(increase)in work in progress       8,483                 (128,403)
(Decrease)/increase in creditors            35,169                  331,600

Net cash outflow from operating 
activities                                (951,324)                (493,050)


3 Reconciliation of net cash flow to 
Movement in net (debt)/funds

Increase/(decrease) in cash in the year    550,893                 (367,587)

Cash outflow from decrease in debt and         
finance leases                                   -                        -

Change in net debt resulting from cash 
Flows                                      550,893                 (367,587)
New finance leases                        (106,335)                       -

Movement in net funds/(debt) in the year   444,558                 (367,587)
Net (debt)/funds at beginning of the year (544,164)                (176,577)

Net funds/(debt) at end of year             99,606                 (544,164)

MSW TECHNOLOGY PLC
NOTES



4       Analysis of change in net (debt)/funds
                                      At                                   At
                             1 June 1998       Cash flows         31 May 1999 
                                       £                £                   £

Cash at bank and in hand              54           16,605              16,659
Bank overdraft                  (544,218)         534,288              (9,930)
Finance leases                         -         (106,335)           (106,335)

Total                           (544,164)         444,558             (99,606)



5       Turnover

Turnover represents the invoiced amount of goods and services provided during
the year stated net of value added tax.  The turnover and pre-tax loss is
wholly attributable to the principal activity and all originates in the United
Kingdom.  There is no material difference between the origin and destination
of turnover.



6       Dividends proposed and paid  
                                                     1999                1998
                                                        £                   £

An equity dividend of 0.75p per ordinary share 
was paid in the year(1998:  £3.057 paid) on 
8,201,000 shares (1998: 54,296 shares).  No
further dividend is proposed for the year ended 
31 May 1999.                                       61,508             166,000



7       Earnings per share

The calculation of earnings per share are based on the following profits and
numbers of shares:
                                         Basic                   Diluted
                               1999           1998        1999       1998
                                  £              £           £          £

(Loss)/profit for the 
financial year           (1,500,595)       363,776  (1,500,595)    363,776

Weighted average number of shares      
                                                   1999             1998
                                                 Number           Number
                                              of shares        of shares

Basic                                         7,054,053        5,145,407

Diluted                                       7,192,800        5,162,323

MSW TECHNOLOGY PLC
NOTES



8       Copies of the report and accounts will be posted to shareholders in
due course.

9       The Annual General Meeting will be held at 20 Bloomsbury Square,
London WC1A 2NA on 28 October 1999 at 11:00 am.

10       Copies of this announcement are available from the Company at 33
Bedford Place, London WC1B 5JH.  For all further enquiries please contact Ross
McBeath or Simon Thorne on 0171 462 3300.