Interim Results

Forbidden Technologies PLC
18 September 2001



                           FORBIDDEN TECHNOLOGIES PLC

            Interim Results for the six months ended 30 June 2001


Forbidden Technologies plc, which listed on AIM in February 2000 and was
established to develop technology for video distribution over the internet,
announces its interim results for the period ended 30 June 2001.


HIGHLIGHTS


*   Significant progress made - new products launched

*   Business Development Director appointed

*   Tight cost controls maintained - Loss before tax, £87,386 (2000 H1: £
    92,909)

*   Significant cash balances - £3.2 million

*   Picture quality continues to improve - new codec to be launched
    shortly

*   Problems surrounding 3G and Broadband offer increasing opportunities


Vic Steel, Chairman commented:


'Technology and telecoms stocks have been hit by a severely adverse investment
climate.  However, unlike many companies who are suffering from the
disappointing pace of development of broadband links, Forbidden Technologies
stands to benefit significantly.  Our market opportunity and positioning
becomes even more attractive.

'At the end of June we had a positive bank balance of £3,248,047.  With this
healthy cash position we can expand resources to commercialise our development
with the confidence that we are financially secure.

'The combination of our focus on narrowband, a multi-device approach and
flexible delivery will make us more responsive to the changing growth
opportunities in the market.  We now have a balance of effort between the
continuous and rapid development of our compression technology and the
advancing commercialisation process.  We are increasingly in partnership with
prospective customers so that we can develop end-to-end video communication
solutions appropriate to each opportunity.  We expect some of these
opportunities to crystallise over the next few months.'

                                                            18 September 2001

ENQUIRIES:

College Hill                                                      020 7457 2020
Michael Padley
Nicholas Nelson



                             Chairman's Statement



In the six months to the end of June 2001 the company has incurred a loss of £
87,386 (last year £92,909).  This reflects the continuing cost consciousness
and tight focus on development by the management.  At the end of June we had a
positive bank balance of £3,248,047.  With this healthy cash position we can
expand resources to commercialise our development with the confidence that we
are financially secure.


The Market Place

Technology and telecoms stocks have been hit by a severely adverse investment
climate and Forbidden Technologies' share price has reflected this.  However,
unlike many companies who are suffering from the disappointing pace of
development of broadband links, with narrowband still dominating the market
beyond 2005, Forbidden Technologies stands to benefit significantly.  Its
products provide narrowband playback without the installation of a player and
support large pictures at full frame rate and high resolutions. Thus our
market opportunity and positioning becomes even more attractive.

As microprocessors continue to improve, mobile computing becomes more
accessible. This creates market opportunities for Forbidden to introduce
product for GPRS and 3G phones and PDAs (personal digital assistants).  As
with broadband, the well publicised problems surrounding the technical
development of 3G is to Forbidden Technologies' advantage.  We are working on
a native ARM version of our codec and expect to have a first demonstration
available, on the popular Compaq iPAQ, in the near future.  We are also
working with the Symbian operating system on the new Nokia 9210 mobile phone
and we are now one of the developer community for both Symbian and Nokia.


Technology Progress

Our first Forbidden codec (Mark I), concentrated on delivering full frame rate
and large pictures over modems on typical (500Mhz) PCs.  We have continuously
improved this product by reducing the data rate and improving the picture
quality.  This codec, targeted at 'talking heads' videos is demonstrated on
our website at http://www.forbidden.co.uk.

We are now in the exciting process of developing a new (Mark II) codec using
our valuable experiences of Mark I and the useful feedback from our
shareholder participants.  This entirely new codec will have higher picture
quality, variable picture sizes and will support a much wider range of
content.  We expect our starting version to be available in a few months time.
Our technology will be suitable for a large range of applications due to its
superior reach, quality and the flexibility of the software that we are
building.  These features include:


*   Usability across multiple devices

*   Flexible delivery, e.g. built into web pages, pop-ups, and e-mails

*   Automatic upgrades without requiring downloads

*   Flexible picture sizes to support multiple devices and features such
    as banner ads


Strategic Development

We entered this year as a video compression technology developer.  In the
following six months we have seen significant change in our business.  We have
increased our management resources, particularly with the appointment of Greg
Hirst as our Business Development Director.  Greg has led an extensive
internal project which has mapped and prioritised the many market sector
opportunities available to Forbidden.  This has resulted in the identification
of priority sectors upon which we will focus over the next period.  The
combination of our focus on narrowband, a multi-device approach and flexible
delivery will make us more responsive to the changing growth opportunities in
the market.

We now have a balance of effort between the continuous and rapid development
of our compression technology and the advancing commercialisation process.  We
are increasingly in partnership with prospective customers so that we can
develop end-to-end video communication solutions appropriate to each
opportunity.  We expect some of these opportunities to crystallise over the
next few months, particularly following the demonstration of the new codec.


The Forbidden Website

I would commend you to visit and regularly revisit our website (http://
www.forbidden.co.uk), where we have now established a news section.  This will
contain both public news announcements and market and company news.  We plan
to develop the website as a dynamic window on our business, with shareholders,
customers and partners in mind.


Outlook

The timing of the launch of Forbidden Technologies last year is proving ever
more prescient.  Timing in technology markets is important and as the 'Wide
World Waits' for a typical internet link to be available on broadband, the
continuous advance of our technology will be providing ever more impressive
video over existing narrowband connections.  This means that we have an even
bigger opportunity to fill the need that to date cannot be satisfied by
broadband and given the technical difficulties and the need for significant
infrastructure spend is unlikely to be met in the short term.  As our
commercial development begins to take shape we are confident of both financial
stability and a bright future for the business.


Profit and Loss Account
for the six months ended 30 June 2001


                                                Unaudited             Unaudited
                                             half year to          half year to
                                               30/06/2001            30/06/2000 
                                                        £                     £

Sales                                                691                     -

Administration Expenses                         (196,365)             (117,230)

Operating Loss                                  (195,674)             (117,230)

Interest Receivable                              108,288                30,299

Loss on Ordinary Activities before Taxation      (87,386)              (86,931)

Tax on loss on Ordinary Activities                     -                (5,978)

Loss for Period                                  (87,386)              (92,909)




Balance Sheet
as at 30 June 2001


                                             Unaudited                Unaudited
                                          half year to             half year to 
                                            30/06/2001               30/06/2000
                                                     £                        £

Fixed Assets
Tangible Assets                                20,383                   19,087

Current Assets
Debtors                                        95,001                   41,547
Cash at Bank                                3,248,047                3,420,033

                                            3,343,048                3,461,580

Creditors
Amounts falling due within one                (44,911)                 (29,845)
year
                                            3,298,137                3,431,735

Net Assets                                  3,318,520                3,450,822

Capital and Reserves
Called up Share Capital                       594,800                  554,800
Capital Contribution Reserve                  125,000                  125,000
Profit and Loss Account                      (297,779)                (157,873)
Share Premium Account                       2,896,499                2,928,895

                                            3,318,520                3,450,822



Cash flow Statement
for the six months ended 30 June 2001




                                                          Unaudited   Unaudited
                                                          half year   half year
                                                                 to          to
                                                         30/06/2001  30/06/2000
                                                                  £           £
Reconciliation of operating loss to net cash outflow from
operating activities

Operating Loss                                            (195,674)
Depreciation Charges                                        13,159
Loss on Sale of Fixed Assets                                      -
Decrease in Debtors                                         18,118
Reduction in Creditors                                     (39,607)


                                                          (204,004)

Cash Flow Statement

Cash flow from operating activities                       (204,004)   (120,298)
Returns on investment and servicing of finance             153,729      30,299
Capital expenditure                                        (13,516)     (4,600)
Movement in liquid resources                              (225,115)           -
Financing                                                         -   2,983,694


Decrease/Increase in cash in the six months               (288,906)   2,889,095



Copies of this statement will be available for a period of 14 days from the
Company's registered office: 2-4 St. George's Road, Wimbledon, London SW19 4DP