PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEM...

The Board  of Billam  Plc ("Billam"  or "the  Company"), the  company
specialising in  technology  for  the  future,  today  announces  its
preliminary results for the year to 31 December 2005.

Key Points:


  * New emphasis on investing in businesses that is expected to
    generate revenue, cash flow and growth in value of Billam's
    assets;
  * Strategic review planned to establish the prospects for
    realistically creating value from existing investments;
  * Board realignment: appointment of Nishith Malde as a director and
    departure of Angus Forrest and Juliet Hoskins. Victor Beamish to
    step down as Chairman at AGM on 14 July 2006;
  * Administrative costs reduced from £622,000 to £436,000;
  * Net Asset Value per share 19.1p (2004: 34.7p): and
  * Free share-dealing scheme for small shareholders to be offered.


Commenting on the results Victor Beamish, Chairman of Billam, said:

"The Company is in the  process of reviewing the existing  investment
portfolio and does not intend to implement any fundamental  immediate
change.  Opportunities will  be considered over time  with a view  to
maximising the realisation proceeds.  However, this will not preclude
the prompt disposal of any investments which the Board believes to be
likely to fall in value.

"The Board will consider future  investments in the Life Science  and
Information Technology  sectors  alongside  others  with  a  view  to
improving both investment returns and portfolio diversity."



                              --ENDS--


Bishopsgate Communications                              020 7430 1600
Maxine Barnes
Fran Read

                             Billam Plc

    Preliminary Announcement for the year ended 31 December 2005


CHAIRMAN'S STATEMENT

Background

Many investment companies  were launched  during the  period 1998  to
2000  whose  objective  was  principally  to  invest  in   technology
companies.  Most of these companies have ceased investment activity.
Billam has invested in 17 companies that are broadly in the  biotech,
telematics and  technology  sectors of  which  four were  sold,  four
ceased trading and  of the remaining  nine, six are  quoted; five  of
which are on the AIM market of the London Stock Exchange.

The difficulties affecting these  sectors have adversely impacted  on
investor confidence for smaller  investment companies such as  Billam
and generally, the valuation of  small research based and  technology
businesses included within  our portfolio.   These factors have  held
back Billam's  share  price  and market  capitalisation.    Whilst  I
believe that  the decision  to invest  in these  sectors was  soundly
based, following the recent Extraordinary General Meeting, the  Board
will place  more  emphasis  on  investing  in  businesses  that  will
generate revenue,  cash flow  and growth  in value  of the  Company's
assets by considering businesses that are less unpredictable in their
respective areas of operation.

2005

The Board is disappointed to note that the company's net assets  fell
to £2.2m (2004:  £7.1m) during the  course of 2005  and as  explained
elsewhere in  this statement  it is  taking appropriate  measures  to
improve the position.
During  2005  there  has  been  a  drive  to  improve  efficiency.
Administrative costs  have been  reduced  from £622,000  to  £436,000
(after  adjusting  for  an  exceptional  cost  of  £171,000  relating
primarily to  the  share  consolidation and  subdivision  and  office
move).  The Board has agreed to move the offices again and to  reduce
the support staff in order to save more costs.

Company

The company was recently requested  to hold an Extraordinary  General
Meeting which was held on 24  March 2006 to consider certain  changes
to the  Board.   Following  this meeting  the Board  comprises  Simon
Bennett, Nishith Malde  and myself.   Simon was  a senior  investment
banker prior to joining Billam and Nishith is a chartered  accountant
and was group  finance director  of fully listed  company, Country  &
Metropolitan PLC,  until  it was  taken  over in  April  2005.  Angus
Forrest and Juliet Hoskins  are no longer on  the Board and I  should
like to express my thanks to them for their contribution to the Board
over the last few years.  I do not intend to stand for re-election at
the next Annual General Meeting.

Shareholders

The  free  share-dealing  scheme  for  small  shareholders  will   be
offered.  This  year eligible  shareholders, those  with holdings  of
1,000 or  less Ordinary  20  pence shares,  will receive  a  personal
letter and details of the scheme allowing them to sell or buy  shares
at no transaction cost until 31 July 2006.

Outlook

The Board  will now  undertake a  strategic review  to establish  the
prospects  for  realistically  creating   value  from  the   existing
investments.  On completion  of this review the  Board will take  the
appropriate action with regard to these investments.

A resolution is being proposed at the Annual General Meeting to widen
the Company's investment criteria.

In the circular to shareholders dated 18 October 2001, it was  stated
that your company intended to  make investments in the Life  Sciences
and Information  Technology  sectors.   Following  the  disappointing
performance of the investment portfolio and the relatively high  risk
associated with such investments, your board is seeking shareholders'
approval to  make investments  in other  business sectors  in the  UK
including property  companies, property  financing businesses,  other
asset-backed and cash generative investments.  The Company may play a
passive role in some  of the investments and  active on others.   The
investments will be in  sectors in which at  least one member of  the
Board has some experience to evaluate the proposal.  Where necessary,
professional help  will  be sought  to  undertake any  due  diligence
required on the proposed investments.

The Company is in  the process of  reviewing the existing  investment
portfolio and does not intend to implement any fundamental  immediate
change.  Opportunities will  be considered over time  with a view  to
maximising the realisation proceeds.  However, this will not preclude
the prompt disposal of any investments which the Board believes to be
likely to fall in value.

The Board will consider  future investments in  the Life Science  and
Information Technology  sectors  alongside  others  with  a  view  to
improving both investment returns and portfolio diversity.



Victor Beamish
Chairman



PORTFOLIO REVIEW

Quoted Portfolio


+-------------------------------------------------------------------+
| Cybit Holdings plc | Telematic Service Provider                   |
| (AIM)              |                                              |
|-------------------------------------------------------------------|
|                             | Cybit  is one of the UK's leading   |
|-----------------------------| telematics service providers.  It   |
| Equity Ownership   |    10% | introduced new products including a |
|--------------------+--------| GPRS service and Duty of Care       |
| Valuation (£'000)  |  1,018 | module.  Major identified new       |
|--------------------+--------| business wins totalling in excess   |
| Cost (£'000)       |    368 | of £2 million were announced.  At   |
|-----------------------------| the half year to 30 September 2005  |
| Valuation based on market   | and following adoption of a more    |
| value                       | conservative accounting policy in   |
|                             | 2004 sales were £4.9 million (2004  |
| Cost - Original cost net of | £2.6 million).                      |
| realisations                |                                     |
+-------------------------------------------------------------------+



+-------------------------------------------------------------------+
| EiRx Therapeutics plc | Pre-Clinical Therapeutics                 |
| (AIM)                 |                                           |
|-------------------------------------------------------------------|
|                                 | EiRx Therapeutics discovers and |
|                                 | validates genes involved in     |
|                                 | apoptosis (a regulated series   |
|---------------------------------| of events that occur in human   |
| Equity Ownership      |     <1% | cells and results in their      |
|                       |         | death) which is a major factor  |
|                       |         | in the control of many          |
|-----------------------+---------| illnesses including cancers and |
| Valuation (£'000)     |       1 | inflammatory diseases.  In      |
|                       |         | doing so, EiRx Therapeutics     |
|                       |         | creates intellectual property   |
|-----------------------+---------| that it out-licenses or         |
| Cost (£'000)          |       2 | otherwise exploits.             |
|                       |         |                                 |
|                       |         | EiRx announced the acquisition  |
|---------------------------------| of Auvation Limited which owns  |
| Valuation based on market value | various rights including a      |
| for shares held direct and      | unique library of tumour        |
| excluding those held via EiRx   | samples, a growing patent       |
| Pharma Ltd                      | estate and option to in-license |
|                                 | IPR.  Also the filing of        |
| Cost - Original cost net of     | patents for new drug candidates |
| realisations                    | and research agreement with a   |
|                                 | major pharmaceutical company.   |
|                                 |                                 |
+-------------------------------------------------------------------+



+-------------------------------------------------------------------+
| Intellego Holdings | e-Learning Solutions Provider                |
| plc (AIM)          |                                              |
|-------------------------------------------------------------------|
|                         | Intellego is a workforce training and   |
|                         | support services business and retailer  |
|                         | of e-learning computer software.  It    |
|-------------------------| provides solutions to facilitate        |
| Equity Ownership   | 3% | in-house clearing on IT related         |
|                    |    | projects, as well as non-IT such as     |
|                    |    | regulation, compliance, product         |
|--------------------+----| information and demonstration.          |
| Valuation (£'000)  | 70 |                                         |
|                    |    | Intellego announced sales up 86% at the |
|                    |    | full year and 80% at the half year with |
|--------------------+----| enhanced margins.  It reported          |
| Cost (£'000)       | 60 | significant business wins with          |
|                    |    | commercial organisations including DHL, |
|                    |    | Xerox, Prudential Property Services and |
|-------------------------| AMEC Group and with the public sector   |
| Valuation based on      | including the NHS.  It reported two new |
| market value            | exclusive agreements and an acquisition |
|                         | to strengthen and broaden the product   |
| Cost - Original cost    | range.                                  |
|                         |                                         |
+-------------------------------------------------------------------+




+-------------------------------------------------------------------+
| Physiomics plc (AIM)  | Computer Simulation of Cells - Systems    |
|                       | Biology                                   |
|-----------------------+-------------------------------------------|
| Equity Ownership      | 3%      | Physiomics has developed        |
|                       |         | computer software that allows   |
|                       |         | it to supply simulations        |
|                       |         | customised to proprietary       |
|-----------------------+---------| pharmaceutical development      |
| Valuation (£'000)     |      58 | projects.  This should lead to  |
|                       |         | improved productivity and       |
|                       |         | substantially reduced costs of  |
|                       |         | drug development and faster     |
|-----------------------+---------| time to market.                 |
| Cost (£'000)          |     159 | Ultimately, the use of systems  |
|                       |         | biology and simulations could   |
|                       |         | enable truly personalised       |
|                       |         | medicine.                       |
|---------------------------------|                                 |
| Valuation based on market value | Physiomics reported a further   |
| for shares held direct and      | five year agreement to          |
| excluding shares held via EiRx  | distribute Bayer Technical      |
| Pharma Ltd                      | Services GmbH PK-Simâ           |
|                                 | pharmakinetic modelling         |
| Cost - Original cost            | products and services and an    |
|                                 | option agreement to licence     |
|                                 | therapeutic products from       |
|                                 | Cronos Therapeutics.            |
+-------------------------------------------------------------------+




+-------------------------------------------------------------------+
| Sareum plc (AIM)  | Drug Discovery Service                        |
|-------------------------------------------------------------------|
|                           | Sareum has developed a fast-track     |
|                           | pre-clinical drug discovery process   |
|                           | using a combination of skills in      |
|---------------------------| biology, combination of chemistry and |
| Equity Ownership  |  1.9% | high-throughput chemical synthesis.   |
|                   |       | Also by using its expertise in the    |
|                   |       | structure-based drug discovery to     |
|-------------------+-------| develop high-value clinical           |
| Valuation (£'000) |   136 | candidates for partnering with        |
|                   |       | pharmaceutical companies.             |
|-------------------+-------|                                       |
| Cost (£'000)      |    55 | Sareum announced it had achieved a    |
|                   |       | major milestone on a collaboration    |
|---------------------------| signed in 2004, as well as five new   |
| Valuation based on market | major collaborations with             |
| value                     | pharmaceutical businesses and         |
|                           | 'Crystal Bank' for rapidly accessing  |
| Cost - Original cost      | protein structure data.               |
|                           |                                       |
+-------------------------------------------------------------------+



+-------------------------------------------------------------------+
| Sosei Limited    | Biopharmaceutical Company with Operations in   |
| (Tokyo Stock     | Japan and Europe                               |
| Exchange)        |                                                |
|-------------------------------------------------------------------|
|                           | Sosei is a leading Japanese           |
|                           | biopharmaceutical company with        |
|                           | operations in Japan and the UK.  In   |
|---------------------------| August 2005 Sosei acquired Arakis for |
| Equity Ownership |    <1% | £106.5 million in cash and shares.    |
|                  |        | The enlarged group has a broad        |
|------------------+--------| mid-late stage clinical and           |
| Valuation        |    222 | pre-clinical pipeline of products     |
| (£'000)          |        | with near term revenue generation     |
|                  |        | potential, complementing product      |
|------------------+--------| discovery capabilities and strengths  |
| Cost (£'000)     |    141 | in Europe and Asia.                   |
|                  |        |                                       |
|---------------------------| The Group has established licensing   |
| Valuation based on market | agreements generating milestone       |
| value less realisations   | payments and three products in        |
|                           | clinical development.  It has net     |
| Cost - Original Cost      | cash to fund the expected expenditure |
|                           | over the next three years.            |
+-------------------------------------------------------------------+



Unquoted Portfolio


+-------------------------------------------------------------------+
| EiRx Pharma        | Holding Company                              |
| Limited            |                                              |
|-------------------------------------------------------------------|
|                             | EiRx Pharma owned 100% of EiRx      |
|                             | Therapeutics Limited and Physiomics |
|-----------------------------| Limited prior to those companies    |
| Equity Ownership   |    39% | shares being admitted to trading on |
|                    |        | AIM.  It is EiRx Pharma's intention |
|--------------------+--------| to distribute its shareholding to   |
| Valuation (£'000)  |  1,059 | its own shareholders (including     |
|                    |        | Billam Plc).                        |
|--------------------+--------|                                     |
| Cost (£'000)       |  2,700 | A description of each investee is   |
|-----------------------------| shown in the quoted portfolio       |
| Valuation based on value of | section.                            |
| underlying investments      |                                     |
+-------------------------------------------------------------------+



+-------------------------------------------------------------------+
| Inaplex Limited     | Database and Integration Tools              |
|-------------------------------------------------------------------|
|                             | Inaplex - provides data integration |
|                             | and manipulation software and       |
|                             | services for leading software       |
|-----------------------------| vendors and their resellers and     |
| Equity Ownership    |    6% | clients.  This enables data to be   |
|                     |       | transferred between databases,      |
|                     |       | manipulated and transferred again.  |
|---------------------+-------| This is not trivial.  Inaplex has   |
| Valuation (£'000)   |    28 | formed relationships with leading   |
|                     |       | CRM software houses SalesLogix,     |
|---------------------+-------| ACCPAC CRM, HEAT and GoldMine.      |
| Cost (£'000)        |    67 |                                     |
|                     |       | The business has taken longer to    |
|-----------------------------| establish its sales but following a |
| Valuation based on price of | cost reduction programme is now     |
| recent investment           | trading profitably month on month.  |
|                             |                                     |
+-------------------------------------------------------------------+



+-------------------------------------------------------------------+
| TMO Biotec        | Bio-ethanol and Bio-diesel Production         |
| Limited           | Technology                                    |
|-------------------------------------------------------------------|
|                         | TMO's key area of expertise is in       |
|                         | efficient and continuous                |
|                         | high-temperature fermentation.  The TMO |
|-------------------------| process, employing its proprietary      |
| Equity Ownership  |  2% | thermophiles, is at the core of the     |
|                   |     | conversion of non-food feedstocks to    |
|-------------------+-----| biofeuls, commodity chemicals and       |
| Valuation (£'000) | 114 | biocatalysts.  Fermentaion productivity |
|                   |     | is up to ten times higher than in       |
|-------------------+-----| competing processes while still         |
| Cost (£'000)      | 114 | enjoying the very high product purity   |
|                   |     | that biotechnology allows.  The first   |
|-------------------------| plants to use TMO's patented process    |
| Valuation based on cost | are planned to be operational in 2006.  |
|                         |                                         |
+-------------------------------------------------------------------+



+-------------------------------------------------------------------+
| Trimex Group | Telematics - Security                              |
| Limited      |                                                    |
|-------------------------------------------------------------------|
|                      | Trimex primary service - Eurowatch is an   |
|                      | innovative multi-country service that      |
|----------------------| addresses escalating crime                 |
| Equity       | 2%    | against vehicles and freight throughout    |
| Ownership    |       | Europe. It helps drivers and               |
|              |       | owners contact the police when a crime     |
|--------------+-------| occurs at home or abroad.  Coverage        |
| Valuation    | 400   | extends today to Western, Central and      |
| (£'000)      |       | Eastern Europe and parts of the Russian    |
|--------------+-------| Federation.  It has now signed membership  |
| Cost (£'000) | 1,031 | agreements with high value cargo           |
|----------------------| manufacturers and leading insurers as well |
| Valuation based on   | as partnership agreements with telematic   |
| directors' valuation | service providers and OEM car makers.      |
+-------------------------------------------------------------------+




CONSOLIDATED STATEMENT OF TOTAL RETURN
(incorporating the revenue account)

                    2005    2005    2005    2004    2004    2004    2004
               Note £'000   £'000   £'000   £'000   £'000   £'000   £'000
                    Capital Revenue   Total Capital Revenue   Total   Group
                                                                      Total

Losses on           (4,530)                 (2,242)                 (4,071)
investments                       - (4,530)               - (2,242)

Income                    -      52      52       -      60      60      60

Gross revenue
and capital         (4,530)                 (2,242)                 (4,011)
deficit                          52 (4,478)              60 (2,182)

Administrative            -                       -                   (622)
expenses                      (607)   (607)           (626)   (626)

Net deficit
before finance      (4,530)                 (2,242)                 (4,633)
costs and
taxation                      (555) (5,085)           (566) (2,808)

Interest
payable and                                       -                     (3)
similar
charges                   -     (3)     (3)             (3)     (3)

Deficit on
ordinary            (4,530)                 (2,242)                 (4,636)
activities
before
taxation                      (558) (5,088)           (569) (2,811)

Tax on                   28                     533                     336
ordinary
activities      2              (28)       -           (269)     264

Deficit
attributable                                (1,709)                 (4,300)
to equity
shareholders        (4,502)   (586) (5,088)           (838) (2,547)

Deficit per
ordinary share
Basic and           (44.1p)                  (9.5p)                 (24.0p)
fully diluted   3            (5.7p) (49.8p)          (4.7p) (14.2p)


The return per ordinary share is based on the weighted average number
of ordinary shares in issue during the year of 10,206,154 ordinary
shares of 20 pence (2004: 17,945,924 ordinary shares of 10 pence).
The revenue column of this statement forms the basis of the profit
and loss of the Company.
All of the above results arise from continuing activities.

There are no recognised gains and losses for the year other than
those reflected in the above Statement of Total Return.

Billam Plc is no longer required to present consolidated financial
statements as all subsidiary companies are dormant.  The statement of
total return above therefore only shows the results of the company
for both 2005 and 2004.  The subsidiaries were not dormant for the
whole of the year ended 31 December 2004 and therefore the total
column for the  group for the year then ended is presented above.



CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2005


                                         2005       2004
                                         £'000      £'000
Fixed assets
Investments                                   3,106          7,864
Current assets
Debtors                                         171            201
Cash at bank and in hand                          9             47
                                                180            248

Creditors: amounts falling due                (259)           (57)
within one year

Net current (liabilities)/assets               (79)            191

Total assets less current                     3,027          8,055
liabilities

Creditors: amounts falling due after
more than one year                            (872)          (912)

                                              2,155          7,143
Capital and reserves
Called up share capital                       2,250          2,170
Share premium account                         5,409          5,389
Other reserves
Capital reserve realised                      (842)          (584)
Capital reserve unrealised                  (2,657)          1,587
Merger reserve                                1,012          1,012
Revenue account                             (3,017)        (2,431)
Shareholders' funds                           2,155          7,143

Total shareholders' funds are
attributable to:
Ordinary shareholders                         1,997          6,985
Deferred shareholders                           158            158
                                              2,155          7,143
Net asset value per share
Ordinary shares                               19.1p          34.7p
Deferred shares                                0.1p           0.1p




CONSOLIDATED CASH FLOW STATEMENT
                                         2005   2005    2004  2004
                                    Note £'000  £'000 £'000   £'000

Net cash (outflow)/inflow from                  (263)             632
operating activities                4

Returns on investment and servicing
of finance
Interest paid                               (3)           (3)
Net cash outflow from returns on
investment and servicing of finance               (3)             (3)

Capital expenditure and financial
investment
Purchase of investments                    (27)       (2,118)
Sale of investments                         255           652
Net cash inflow/(outflow) from
capital expenditure and financial                 228         (1,466)
investment

Net cash outflow before financing                (38)           (837)

Financing
Issue of share capital                        -           728

Net cash inflow from financing                      -             728

Decrease in cash in the year        5            (38)           (109)





NOTES TO THE FINANCIAL STATEMENTS

1          BASIS OF PREPARATION


+-------------------------------------------------------------------+
| The preliminary announcement has been prepared under the          |
| historical cost convention, as modified by the revaluation of     |
| investment assets.                                                |
|                                                                   |
| The Group's accounts have been prepared in accordance with the    |
| Statement of Recommended Practice for investment trusts.          |
|                                                                   |
| The significant accounting policy of the Group is as follows;     |
|                                                                   |
+-------------------------------------------------------------------+

             INVESTMENTS

Listed investments are valued at mid market prices.  Unlisted
investments are valued at cost or with reference to available
information including market prices of similar companies, latest
dealings, accounting information and professional advice as
appropriate in accordance with the International Private Equity and
Venture Capital Valuation Guidelines.

Realised surpluses or deficits on the disposal of investments and
permanent impairments in the value of investments are taken to
capital reserve - realised, and unrealised surpluses and deficits on
the revaluation of investments are taken to capital reserve -
unrealised.

2          TAX ON ORDINARY ACTIVITIES

The tax (charge)/credit for the year is made up as follows:

             2005    2005    2005  2004    2004    2004
             £'000   £'000   £'000 £'000   £'000   £'000
             Capital Revenue Total Capital Revenue Total

Deferred tax      28    (28)     -     533   (269)   264


3          RETURN PER ORDINARY SHARE

The deficit per ordinary share is based on the weighted average
number of ordinary shares in issue during the year of  10,206,154
ordinary shares of 20 pence (2004: 17,945,924 ordinary shares of 10
pence) and the following figures:

                      2005    2005    2005    2004    2004    2004
                      £'000   £'000   £'000   £'000   £'000   £'000
                      Capital Revenue Total   Capital Revenue Total

Deficit attributable
to equity             (4,502)   (586)         (1,709)   (838)
shareholders                          (5,088)                 (2,547)

Deficit per ordinary  (44.1p)  (5.7p)          (9.5p)  (4.7p)
shares                                (49.8p)                 (14.2p)


All options outstanding during the year and at the year end were
anti-dilutive.

4          RECONCILIATION OF OPERATING deficit TO NET CASH FLOW FROM
OPERATING ACTIVITIES


                                                    2005    2004
                                                    £'000   £'000

Operating deficit                                   (5,085) (2,808)
Loss/(gain) on sale of investments                      258   (199)
Amounts written off during the year                       -     724
Unrealised decrease in investment appreciation        4,272   2,441
Decrease/(increase) in debtors                           30    (64)
Increase in creditors                                   262     538
Net cash (outflow)/inflow from operating activities   (263)     632



5         RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT


                                              2005  2004
                                              £'000 £'000

Decrease in cash in the year                   (38) (109)
Change in net funds resulting from cash flows  (38) (109)
Net debt at 1 January 2005                    (350) (241)
Net debt at 31 December 2005                  (388) (350)



6          PUBLICATION OF NON-STATUTORY ACCOUNTS

The financial information set out in this preliminary announcement
does not constitute statutory accounts as defined in section 240 of
the Companies Act 1985.

The summarised balance sheet at 31 December 2005 and the summarised
statement of total return, summarised cash flow statement and
associated notes for the year then ended have been extracted from the
Group's 2005 statutory financial statements upon which the auditors
opinion is unqualified.

Those financial statements have not yet been delivered to the
Registrar.


7          ANNUAL GENERAL MEETING

The Company's Annual General Meeting will be held at 10.00 am on 14
July 2006 at the offices of KBC Peel Hunt, 111 Old Broad Street,
London, EC2N 1PH.

---END OF MESSAGE---