Interim Results

Thomson Intermedia PLC
18 October 2005


Thomson Intermedia plc


Thomson Intermedia, a leading provider of media intelligence, today announces
its interim results for the six months ended 31 July 2005

• Turnover increased by 26% to £3.46m (2004: £2.74m)

• Total sales contracts increased by 26% to £3.91m (2004: £3.11m)

• Deferred income up 33% to £3.6m (2004:£2.7m)

• Renewal rate improved to 88% (2004: 83%)

• Gross margin continues to rise 72% (2004: 68%)

• Underlying profit* before tax increased to £638,000 (2004: £248,000)

• Underlying eps** increased to 2.22p (2004: 0.86p)

• Exclusive long-term deals signed with three out of four regional
  media: Northcliffe, Johnston Press and Newsquest

• Germany: 23 subscription clients secured as well as adhoc analysis for
  64 advertisers

• Acquisition of Billetts, the UK market leader in media and marketing
  performance consultancy, in August 2005 - integration progressing well

*pre-amortisation and share incentives
** pre amortisation, share incentives and deferred tax

Sarah Jane Thomson, Joint Chief Executive Officer of Thomson Intermedia, said:

'During the first half we have continued to see strong organic growth of our
core products and client base, which has resulted in a 26% increase in total
sales contracts - our key measure. With our high operational gearing, this has
resulted in more than doubling our profits.

'The acquisition of Billetts, coupled with the marketing industry's drive
towards increased accountability, is providing the catalyst for our increased
penetration into the UK market as well as the international markets.

'The introduction of Billetts media expertise to our technology significantly
enhances Thomson Intermedia's offering. As our unique combination of data and
technology rapidly becomes the industry standard, we look forward to the
exciting additional opportunities that this presents to us.'
                                                                 18 October 2005

Enquiries:

Thomson Intermedia
   Sarah Jane Thomson, Joint Chief Executive        Today 020 7457 2020
   David Trendle, Finance Director             Thereafter 020 8466 2906

College Hill
   Adrian Duffield/Clare Warren                      020 7457 2815/2055


Strategic overview

Thomson Intermedia's aim is to become the leading UK provider of advertising and
media transparency and intelligence. The earnings enhancing acquisition of
Billetts in August was an important step and considerably accelerated the
Group's development.

The addition of Billetts to Thomson Intermedia enables the Group to marry its
data and technology with Billetts' media consulting skills and to move the
enlarged Company into a unique and powerful position in both the UK and the
global market place. The Board anticipates as the integration process progresses
further, synergies across the companies will be achieved.
The enlarged Group is now providing a complete, one-stop suite of advertising,
media and marketing accountability products (vouching, competitive monitoring,
media performance management and ROI analysis) delivered directly to the desktop
and in person by media experts.

The strategy going forward is to combine areas of performance management to the
existing Thomson Intermedia interfaces to provide an end to end picture of the
impact and performance of advertisers' entire marketing spend. This combined
suite of fundamental tools will then be targeted to the top 5,000 UK
advertisers.

Financial Results

Turnover increased by 26% to £3.46m (2004: £2.74m) with total sales increasing
26% to £3.91m (2004: £3.11m) and including fees of £200,000 (2004: £200,000)
from the Group's German investment. New business growth continued at a strong
pace, up 31%, with £1.66m (2004: £1.27m) new contracts secured.

Gross margins continue to improve, up from 68% to 72%, with direct costs
increasing by 4.4% compared to the average half yearly cost in 2004/05.

Operating margins, before long term incentives, increased sharply to 17.6%
(2004: 8.3%) as a consequence of the Group's high operational gearing. This
improvement was achieved despite a 13.7% increase in overheads, as the Group
invested in technology and increased its client facing staff numbers.

Underlying pretax profit increased to £638,000 (2004: £248,000) and pretax
profit was £517,000 (2004: £189,000). Underlying EPS increased to 2.22p from
0.86p. Adjusted fully diluted earnings per share improved to 2.11p from 0.84p.

The Group has a tax credit of £248,000 due to the recognition of an increase in
the deferred tax asset, which has been provided to the extent that trade losses
will be recoverable against future profits in the foreseeable future.

The Board is not paying an interim dividend.

The Group's cash flow is marginally seasonal with higher net inflows weighted to
the second half of the financial year. The Group's net cash position at 31 July
2005 was £1.46m compared to £1.60m at the financial year ended 31 January 2005.

On 23 August 2005 the Group completed its acquisition of Billetts, with an
initial purchase price of £7.5m and maximum potential deferred consideration of
£5.6m, payable in loan notes dependent on performance between 1 May 2005 and 30
April 2007. This was funded through consideration shares, a vendor placing,
existing cash and new banking facilities.

Operational Review

Thomson Intermedia delivers complete advertising data across Press, TV, Radio,
Direct Mail, Door Drops, Internet, Outdoor and Cinema markets, making it the
most comprehensive and timely information available to advertisers in the UK
marketplace. The Group's systems capture data on the entire UK advertising
market incorporating over 20,000 advertisers and capturing more than 20,000
advertisements per day.

Thomson Intermedia introduced new branding as well as a whole host of front-end
improvements to meet clients developing needs. The Group has developed further
autoreporting to extract and analyse data in a powerful and user friendly
format. Thomson Intermedia also continued to strengthen its breadth of data by
adding Directory information, Agency attribution and ambient media to continue
to provide the most accurate and powerful database of Advertising.

A total of 60 contracts were secured in the first half, 36 from new clients and
24 existing clients buying additional products. The Group continues to focus on
organic growth and penetration of the UK market in terms of gaining new clients
and increasing average revenue per client. The average value of subscription
contracts secured with new clients increased to £28,000 (2004: £22,000).

Over 28% of the Group's total new sales were secured, through retrospective
vouching, with fees based on a percentage of error value identified. The Group
continues to focus on delivering the essential tools to meet the needs of its
clients, the success of this strategy is evident from a renewal rate of 88%
across all clients. Excluding agency clients from this list increases the
corporate renewal rate above 90%.

Client Vouching
During the first half Thomson Intermedia has continued to develop a client
facing audit system proving correct placement of press advertising. The Group
provides both a retrospective analysis of clients press advertising as well as a
system which provides ongoing verification.

The retrospective system is proving successful for clients in recovering value
for lost advertising. The process involves a number of parties and a significant
amount of reconciliation once the automatic report is generated. Thomson
Intermedia takes a percentage of the findings and has made good initial progress
in this area with a growing number of the UK's largest advertisers now in the
process.

Industry Vouching - Thomson Intermedia e-vouch
Thomson Intermedia secured exclusive long term contracts with three of the four
largest regional press owners to develop bespoke technology for an e-vouch
solution. The initiative led by the Newspaper Society will use the Group's
technology to integrate hundreds of live newspapers and advertising placement
data in an online system, which will be provided to every media agency in the
UK.

The Group has exclusive rights to the use of the 'PDFs' within its products and
services which provides them with the most comprehensive press advertising
database in the UK and will reduce costs of capture and delivery of this data.



ROI Tools
ROI tools are an essential part of the Group's strategy. The expertise and
ability in this area has been significantly enhanced by the addition of the
Billetts Marketing Services, see below, which comprises 14 experienced media
consultants and proven IP in modelling and econometrics. The integrated Group
strategy will combine Thomson Intermedia's technology with Billetts' modelling
skills and experience, in order to identify the opportunities and datasets
required to develop new products.

Germany
The joint venture in Germany has secured 23 ongoing clients in the first eight
months this year, with further revenue from ad hoc work with 64 advertisers. The
German database incorporates nearly a year's data, which combined with
increasing sales resources is driving strong and increasing penetration into the
German market.

Billetts

The acquisition of Billetts was completed on 23 August 2005. This is the Group's
first major acquisition and presents exciting opportunities for the enlarged
business. Billetts is the UK's leading media and marketing performance
consultancy with revenues for the year ended 30 April 2005 of £7.6m and an
underlying EBITDA of £1m.

Billetts consists of two core divisions; Billetts Media Consulting and Billetts
Marketing Sciences. Billets Media Consulting provides benchmarking services to
major advertisers assessing price and quality metrics against a pool of
comparable companies. These metrics feed into 'The Rack' which has become the
industry standard value for money benchmarking tool. This division accounts for
80% of total revenue and has a market leading position in the UK with a 40%
share of the top 100 advertisers.

Billetts Marketing Sciences provides a consultancy service to measure and
improve clients' ROI from their advertising. This division accounts for 16% of
total revenue and has delivered considerable savings through optimisation of
marketing strategy for both above and below the line activity.

The Group can develop this area with the introduction of technology to provide a
scalable and portable solution which will be economical to a wider client base.
The combination of technology and media consultancy expertise will provide an
unparalleled independent service to Advertisers enabling them access to real
time, impartial and transparent media intelligence. This places the Group in a
unique and powerful position in both the UK and the global market place.

Much of the recent growth in Billetts business is due to the globalisation of
its products and services. International business represents 20% of the revenues
of Billetts Media Consultancy in addition to the 4% provided by its subsidiary
in the United States (Media Performance Management America ('MPMA'), which was
set up in September 2003.

The enlarged Group will develop the network of international partners to
strengthen its global position and expand the reach of Thomson Intermedia's
technology. MPMA has gained traction in the developing US marketplace securing
contracts with three of the top 10 advertisers which are now in their second
year. MPMA continues to win new business in the US as well as forming part of
international contract wins.

The enlarged Group has the platform to provide the essential work flow tools
which meet the fundamental need of advertisers throughout the marketing cycle.
Through a powerful combination of technology and consultancy the Group will be
able to extend these services to not only the elite advertisers but to a wider
base of the top 5,000 advertisers. The barriers to entry are significant with at
least five years trend data across all media, an unparalleled benchmarking
database, an independent and impartial position and significant proprietary
Intellectual Property.

Current trading and outlook

Thomson Intermedia now has relationships with more than 70 of the top 100
advertisers in the UK providing a platform for growth as well as significant
cross selling opportunities. Both Thomson Intermedia's original products and
services and Billetts' have strong new business pipelines including a growing
number of joint opportunities.

Thomson Intermedia has significantly strengthened its strategic position through
the acquisition of Billetts and the Board remains confident that the enlarged
Group will continue to grow.

Profit and Loss Account

                                    Unaudited        Unaudited          Audited
                                   Six months Six months ended       Year ended
                                        ended     31 July 2004  31 January 2005
                                 31 July 2005
                       Notes    £'000   £'000            £'000            £'000

Turnover                                3,457            2,741            5,924

Cost of sales                           (976)            (868)          (1,870)

Gross Profit                            2,481            1,873            4,054

Overheads                     (1,871)          (1,646)         (3,475)

Long Term Incentives            (115)             (53)           (258)

Administrative Expense                (1,986)          (1,699)          (3,733)

Operating Profit                          495              174              321

Interest receivable                        22               15               39

Profit on ordinary                        517              189              360
activities before
taxation

Taxation                 2                248                -              588

Profit on ordinary                        765              189              948
activities after
taxation

Dividends                3                  -                -                -

Retained Profit                           765              189              948
transferred to
reserves

Earnings per share,      4
pence
                                         
- basic                                  2.66             0.66             3.29
- adjusted basic                         2.22             0.86             2.56
- adjusted diluted                       2.11             0.84             2.45

All amounts relate to continuing activities.

No separate statement of Total recognised Gains & Losses has been presented as
all such gains and losses have been dealt with in the profit and loss account.

Balance Sheet

                                   Unaudited     Unaudited         Audited
                                       As at         As at           As at
                                31 July 2005  31 July 2004 31 January 2005

                                       £'000         £'000           £'000

Fixed assets
Intangible fixed assets                   25            37              31
Investment in Associate                   36             -               -
Undertaking
Tangible fixed assets                    616           560             518

Total Fixed Assets                       677           597             549

Current assets
Debtors (note 5)                       3,477         1,735           2,292
Deferred tax (note 2)                    728             -             480
Cash at bank and in hand               1,455         1,030           1,598

                                       5,660         2,765           4,370

Creditors: Amounts falling             (657)         (603)           (848)
due within one year

Net Current Assets                     5,003         2,162           3,522

Total assets less current              5,680         2,759           4,071
liabilities

Accruals & deferred Income           (4,379)       (3,240)         (3,535)
(note 6)

Net Assets/Liabilities                 1,301         (481)             536

Capital and Reserves
Share capital                          7,186         7,186           7,186
Share premium                          5,064         5,064           5,064
Merger reserve                       (5,250)       (5,250)         (5,250)
Profit and loss                      (5,699)       (7,481)         (6,464)

Equity shareholders' funds             1,301         (481)             536

Cash Flow Statement
                                    Unaudited       Unaudited       Audited
                                   Six months      Six months    Year ended
                                        ended           ended    31 January
                                 31 July 2005    31 July 2004          2005

                                        £'000           £'000         £'000

Cash inflow / (outflow) from               52           (129)           381
operating activities

Returns on investments and
servicing of finance
Interest received                          22              15            32

Taxation
Research & development tax                  -             136           251
credit received

Capital expenditure
Purchase of tangible fixed              (217)           (221)         (295)
assets

Net cash inflow / (outflow)
before management of liquid             (143)           (199)           369
resources and financing

Management of liquid
resources
Increase in short term                  (317)           (173)          (91)
deposits

(Decrease) / increase in cash           (460)           (372)           278

Notes to the Cash Flow Statement

(a) Reconciliation of               Unaudited       Unaudited       Audited
operating profit to operating      Six months      Six months    Year ended
cash flow:                              ended           ended    31 January
                                 31 July 2005    31 July 2004          2005

                                        £'000           £'000         £'000

Operating Profit                          495             174           321
Depreciation & Amortisation               125             119           240
Investment                               (36)              --             -
Phantom share non-cash                      -               -           230
movement
Issue of share options under              115               -            28
UITF17
(Increase) in debtors                 (1,185)           (434)         (853)
Increase / (decrease) in                (191)            (34)           211
creditors
Increase in accruals and                  729              46           204
deferred income
Net cash flow from operating               52           (129)           381
activities

(b) Analysis of net funds     Opening balance       Cash flow       Closing
                              1 February 2005                       balance
                                                               31 July 2005
                                        £'000           £'000         £'000

Cash                                      748           (460)           288
Liquid resources                          850             317         1,167
Cash at bank and in hand                1,598           (143)         1,455

Net Cash                                1,598           (143)         1,455



Notes to the Accounts

1. Basis of preparation

The financial information set out above is extracted from the consolidated
financial statements of Thomson Intermedia plc and its subsidiary Thomson
Intermedia Associates Limited (together referred to as the 'Group'). The
accounts of the Group for the six months ended 31st July 2005, which are
unaudited, were approved by the Board on 17 October 2005. These accounts have
been prepared in accordance with the accounting policies set out in the Report
and Accounts of Thomson Intermedia plc for the year ended 31st January 2005.

This interim statement does not constitute the company's statutory accounts. The
financial information presented for the 6 months ended 31 July 2004 and 2005 has
not been audited. Statutory accounts for the year ended 31 January 2005 have
been delivered to the Registrar of Companies. The auditors report on those
statutory accounts was unqualified and did not contain a statement under section
237(2) or (3) of the Companies Act 1985.

The consolidated financial statements incorporate the results of Thomson
Intermedia plc and its subsidiary undertaking as at 31st July 2005 using the
merger method of accounting.

Goodwill is the difference between the cost of an acquired entity and the
aggregate of the fair value of that entity's identifiable assets and
liabilities.
Positive goodwill is capitalised, classified as an asset on the balance sheet
and amortised on a straight line basis over its useful economic life. It is
reviewed for impairment at the end of the first full financial year following
the acquisition and in other periods if events or changes in circumstances
indicate that the carrying value may not be recoverable.

Acquisitions that entail significant market positions and which are of long-term
strategic significance to the Group's operations are classified as strategic
acquisitions, with goodwill amortised over 20 years. For acquisitions of
complementary operations in markets where the Group is already established, the
amortisation period for goodwill is between 5 and 10 years.

2. Taxation on profit on ordinary activities

During the period the deferred tax asset has been increased by £248,000 to
provide for the extent that trade losses will be recoverable against future
profits in the foreseeable future.

3. Dividends

No interim dividend is being proposed.

4. Earnings per share

                                   Unaudited                        Unaudited
                               Six months ended                  Six months ended
                                 31 July 2005                      31 July 2004

                            £'000     Weighted  Earnings     £'000    Weighted Earnings /
                                       average  / (Loss)               average (Loss) per
                                     number of per share             number of      share
                                        shares     pence                shares      pence
Basic Earnings per            765   28,744,247      2.66       189  28,744,247       0.66
share
Adjustment for              (248)            -         -         -           -          -
deferred tax
Adjustment for                  6            -         -         6           -          -
amortisation
Adjustment for share          115            -         -        53           -          -
incentives
Adjusted Basic Earning        638   28,744,247      2.22       248  28,744,247       0.86
per share
Effect of options               -    1,437,212         -         -     934,966          -
Diluted Adjusted Basic        638   30,181,459      2.11       248  29,679,213       0.84
Earnings per share

5. Debtors

Debtors include £447,000 falling due after more than one year (2004: £9,000)

6. Accruals & Deferred Income

Accruals & deferred income includes £507,000 falling due after more than one
year (2004: £44,000)

7. Post balance sheet events

On 23rd August 2005 the company purchased the entire issued share capital of
'Billetts' (BCMG Ltd). Initial consideration is £7.5 million. Maximum potential
deferred consideration of £3.85 million is dependent upon performance up to 30th
April 2006 and a further £1.75m on performance up to 30th April 2007. Initial
consideration was financed by £6.65m in cash and £0.85m equity. Deferred
consideration will be financed through loan notes.

Billetts is the UK market leader in media and marketing performance consulting
with turnover of over £7 million and 80 staff operating from offices in London,
Birmingham, Dublin and New York, as well as partners in most of Europe. Billetts
services are complimentary to Thomson Intermedia's and bring us nearer to the
vision of creating a suite of essential tools and services for the advertiser to
maximise their return on investment for their marketing spend.

8. Interim report

Copies of this interim report for the six months ended 31st July 2005 will be
sent to shareholders. Further copies will be available from the Company
Secretary at the registered office.



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