Interim Results

Billam PLC
18 August 2005


                                   Billam Plc
                                 Interim Report
                     For the six months ended 30 June 2005

The Board of Billam Plc ('Billam' or 'The Company'), the investment company
specialising in businesses operating in fast growing markets announces its
unaudited interim results for the six months to 30 June 2005.

The past six months have been a period of consolidation as well as a change of
emphasis for Billam as its investee companies continued to build their
businesses. In particular, I would like to identify notable achievements in the
following portfolio companies:
          
     o    Arakis announced the largest ever licensing deal achieved by a British
          biotech company when its AD237 drug was licensed to Novartis. The 
          total value of the deal could be $175 million.
     o    Cybit won several major new contracts with a sales value in excess of
          £1m. It announced its final results showing 10% growth in sales with 
          50% increase in customers.
     o    Intellego's first results since floating on AIM showed sales
          increasing by 86% and gross margins advancing to 66% from 58%.
     o    EiRx Therapeutics announced its first contract with a top 10
          pharmaceutical company, Merck.

However, Billam's asset value is increasingly dependent upon the share
performance of its investee companies, and the Company's asset value has
underperformed the indices. For example, in the case of Cybit we believe it
reflects sentiment to the telematics sector rather than the company's
performance, which has been strong. In others, in common with many smaller
quoted businesses, the market takes time to reflect true value and major
fluctuations in share prices can belie underlying progress.

Whilst this type of market fluctuation has affected Billam's quoted shares and
caused a reduction in Net Asset Value (NAV), your Board believes that the
investee companies will strengthen and develop into significant businesses with
a wider shareholder base, thereby reducing their vulnerability to such market
volatility.

Share consolidation

The share consolidation and subdivision was approved by shareholders and the new
20 pence shares were issued in April. The shares generated by these actions were
all placed at the prevailing price immediately following the transaction and it
is disappointing that the share price has not performed better. However, there
has been some recovery since mid-June. I would like to thank shareholders for
their support over this period.

Changes to the Company

Your Company has evolved over the past five years and much of its unquoted
portfolio has been converted to quoted. A total of 17 investments have been
made, four have been sold and three written off. The remaining portfolio
consists of five quoted and five unquoted businesses. The next stage is to grow
the intrinsic value of each of the companies over the medium term and thus the
value of the portfolio. We will also selectively make new investments to become
a significant shareholder in a small number of high growth businesses. It is now
appropriate to make changes to the Company as follows:

Board
Simon Bennett has been appointed as a Director. Mr Bennett has extensive
experience in the mid and small cap company sector. He has over 20 years of
investment banking experience having worked at Citigroup and Credit Lyonnais
Securities, where he was formerly the Head of the Mid and Small cap companies
team. He is a Chartered Accountant.
Juliet Hoskins who joined the Board in 2000 when the Company was launched as an
investment business, resigned today,18 August 2005 as a director. We thank her
for her contribution and wish her well for the future.

Broker
The Company now retains a sole broker - KBC Peel Hunt Limited.

Outlook

Despite the market fluctuations mentioned above, Billam's portfolio has
continued to develop, and since 30 June Arakis Limited has received an offer
from Sosei Limited, a quoted Japanese biopharmaceutical company valuing Arakis
at £106 million. This compares with a valuation of £30 million when Billam
acquired its Arakis shares in March 2004. This is a further validation of
Billam's business model.

Victor Beamish
Chairman

Consolidated statement of total return (unaudited)

               Six months to 30 June     Six months to 30 June     Year to 31 December
                         2005                      2004                      2004

               Capital  Revenue Total    Capital  Revenue Total    Capital  Revenue Total
                  £000     £000  £000       £000     £000  £000       £000     £000  £000

Realised
(losses)/gains
on investments   (347)      -     (347)    (326)      -     (326)    (192)      -     (192)
Net change in
unrealised
investments    (2,884)      -   (2,884)  (1,681)      -   (1,681)  (3,879)      -   (3,879)
Income              -      20       20        -      21       21        -      60       60

Gross Return   (3,231)     20   (3,211)  (2,007)     21   (1,986)  (4,071)     60   (4,011)

Administrative
expenses                 (270)    (270)       -    (304)    (304)       -    (622)    (622)
Interest
payable             -      (1)      (1)       -      (2)      (2)       -      (3)      (3)

Return before
taxation       (3,231)   (251)  (3,482)  (2,007)   (285)  (2,292)  (4,071)   (565)  (4,636)

Provision for
taxation            -                -      336       -      336      764    (428)     336

Return after
taxation       (3,231)   (251)  (3,482)  (1,671)   (285)  (1,956)  (3,307)   (993)  (4,300)

Transfer to
reserves       (3,231)   (251)  (3,482)  (1,671)   (285)  (1,956)  (3,307)   (993)  (4,300)

Return per
ordinary share
(p) (note 4)    (32.1)   (2.5)   (34.6)   (20.6)   (3.6)   (24.2)   (36.8)  (11.1)   (47.9)


Consolidated balance sheet as at 30 June 2005 (unaudited)

                                               30 June   30 June   31 December
                                                  2005      2004          2004
                                                 £'000     £'000         £'000
Fixed assets
Investments                                      4,916     9,694         7,864
                                               --------- ---------     ---------
                                                 4,916     9,694         7,864
                                               --------- ---------     ---------

Current assets
Debtors                                            155       196           201
Cash at bank and in hand                            39       165            47
                                               --------- ---------     ---------
                                                   194       361           248

Creditors: amounts falling due within one
year                                              (150)     (513)          (57)
                                               --------- ---------     ---------

Net current assets / (liabilities)                  44      (152)          191
                                               --------- ---------     ---------

Total assets less current liabilities            4,960     9,542         8,055
Creditors: amounts falling due after more
than one year                                     (953)     (783)         (912)

Total net assets                                 4,007     8,759         7,143
                                               ========= =========     =========

Financed by:
Called up share capital                          2,170     1,775         2,170
Share premium account                            5,389     5,056         5,389
Capital reserve realised                        (1,304)   (1,198)         (957)
Capital reserve unrealised                        (924)    3,491         1,614
Merger reserve                                   1,736     1,736         1,736
Revenue account                                 (3,060)   (2,101)       (2,809)
                                               --------- ---------     ---------

Shareholders' funds                              4,007     8,759         7,143
                                               --------- ---------     ---------

Total shareholders' funds are attributable to:

Equity interests - ordinary shareholders'
funds                                            3,849     8,601         6,985
Non equity interests                               158       158           158
                                               --------- ---------     ---------

                                                 4,007     8,759         7,143
                                               ========= =========     =========

Net asset value pence per share (note 7)
Ordinary shares                                   38.3     106.4          69.4
Deferred shares                                    0.1       0.1           0.1

                                   Six months to   Six months to    Year ended
                                    30 June 2005    30 June 2004   31 December
                                            £000            £000          2004
                                                                          £000

Net cash outflow from operating
activities                                   (70)            (88)         (699)
Net cash outflow from returns on
servicing finance                             (1)             (2)           (3)
Net cash outflow from investment             (16)           (356)         (929)
Net cash inflow from sale of
investments                                   79             453           792
New cash inflow from financing                 -               -           728
                                         ---------       ---------     ---------
Decrease/increase in cash for the
period                                        (8)              7          (111)
                                         =========       =========     =========


Consolidated cash flow statement (unaudited)










Notes:

1. Basis of preparation
The unaudited interim results have been prepared on the basis of the accounting
policies set out in the statutory accounts of the Company for the year ended 31
December 2004.

2. Comparatives
Comparatives are shown for the six months to 30 June 2004 and year to 31
December 2004.

Following the share consolidation and subdivision carried out on 8 April 2005,
par value of the Ordinary shares became 20p. In notes 4 and 7 the comparatives
have been restated to 20 pence share equivalents.

3. Results for the year ended 31 December 2004
The results for the year ended 31 December 2004 are a non-statutory version of
the full report and accounts for that year, which have been filed with the
Registrar of Companies on which the auditors reported under Section 235 of the
Companies Act 1985. The report contained no qualifications, in respect of the
year ended 31 December 2004, or any statement under Section 237(2) or (3) of the
said Act.

4. Returns
Returns per Ordinary Share are based on the weighted average number of ordinary
shares in issue during the period 10,060,000 Ordinary and 157,950,000 deferred
shares in issue (year to 31 December 2004 restated 8,972,962 Ordinary and
157,950,000 deferred shares/period to 30 June 2004 restated 8,086,156 Ordinary
and 157,950,000 deferred shares).

5. Taxation
No tax provision was considered necessary on the unrealised loss.

6. Dividends
The Directors do not recommend the payment of an interim dividend.

7. Net asset value per share
Net asset value per Ordinary Share is based on the net assets attributable to
Ordinary shareholders at the period end and 10,060,000 Ordinary and 157,950,000
deferred shares in issue at the period end (at 31 December 2004: 10,059,840
Ordinary and 157,950,000 deferred shares/at 30 June 2004: restated 8,086,156
Ordinary and 157,950,000 deferred shares).

Copies of this announcement will be available for collection, free of charge,
from Billam's offices, 32 Clerkenwell Green, London EC1R 0DU for a period of one
month from the date of this announcement




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