Final Results

Feedback PLC
20 August 2004

                                  Feedback plc

              Preliminary Results for the year ended 31 March 2004

Chairman's Statement

The financial year ended 31 March 2004 has seen considerable change for the
Group. Although the overall result for the year is very disappointing, due
largely to the costs associated with restructuring and the disposal of
loss-making activities, the Board believes that there are certain factors which
provide some encouragement and optimism for the future.

The Group reported a total loss of £2.3 million on a turnover of £8.7 million,
18% down on the previous year (2002: £10.6 million). The loss on ordinary
activities for continuing operations was £1.37 million (including a SSAP 24
pension charge of £882K). The remainder is due primarily to the substantial
goodwill adjustment arising on the disposal of the Group's subsidiary TekniCAL,
which was sold in December 2003.  This resulted in the elimination of
distributable reserves and therefore no dividend was paid on the Company's
Convertible Redeemable Preference Shares for the 6 months ended 31 March 2004.

The Board recognises that many shareholders will have been disappointed with the
decision to dispose of TekniCAL, but although prospects had appeared promising
at certain times in recent years, the company never generated the sales required
to sustain profitability and latterly became an enormous drain on the Group's
resources that could no longer be tolerated.

The company moved from the Official List of  the London Stock Exchange to the
Alternative Investment Market (AIM) on 31 December 2003. This was a strategic
decision that reflected the Board's view that the profile of the Company was
more suited to a listing on AIM.  The move will not impact upon the conduct of
the Company's business or its corporate governance but will have certain
advantages in relation to its ongoing requirements with a consequential
reduction in associated costs.

Following the actuarial valuation in March 2003 which showed a very large
deficit in the funding of the Company's defined benefit pension scheme it was
decided that this scheme should be closed and that a defined contribution
pension would be offered to active members.  An application has been made to the
Occupational Pensions Regulatory Authority (Opra) to extend the period required
to address the serious shortfall in the funding of the existing scheme. A final
decision from Opra is awaited.

Feedback Data Limited

This company together with its German subsidiary produced an increase in
turnover and trading profit for the year.

Some of the newer products, introduced in recent years, for staff scheduling had
not gained the acceptance or market share that had been anticipated. The
intellectual property rights of these products were disposed of in January 2004
and the company was subsequently restructured.  This has resulted in a
significantly lower cost base and a marked improvement in focus. In addition the
Feedback Data offices were closed and the staff moved into the main facility in
Park Road, Crowborough.

The concentration on core products and markets has hastened the introduction of
key products such as the new IP Terminal. This next generation terminal for time
and attendance monitoring incorporates a number of innovative features including
internet based communication and control and has been well received by potential
customers and resellers.

There is considerable potential in the access control market for the Microtrak
product range. Enhancements to this and new features incorporating biometric
validation are very promising.

Feedback Instruments Limited

The company had a very difficult year with sales falling well below
expectations, resulting in a large loss, a situation that was exacerbated by the
significant weakening of the US dollar.

Performance in the UK was satisfactory with a number of large orders being
received from Centres of Vocational Excellence. In export territories, sales in
Latin America and Europe declined dramatically although the Middle East and Far
East produced some encouraging results. In particular, as announced on 4 March
2004, a large contract was won to provide equipment for the College of the North
Atlantic in Qatar, although protracted negotiations meant that the main impact
of  this contract will be felt during the current financial year.

A concentration of marketing efforts in the Middle East has produced some
encouraging prospects and it is hoped that there will be significant rewards in
Iraq which historically has been an important market, although this will depend
largely on a return to political and economic stability within the country and
the region as a whole.

New products, some of which are a direct result of the Qatari order, are being
introduced including a multi-process trainer for the oil and gas industry. A new
Development Manager has been appointed to coordinate these efforts.

A number of orders were received during the final weeks of the year which has
allowed the company to take a healthy order book into the new financial year.

Feedback Incorporated

Order levels during the year were in line with those for the previous year but
the marked weakening of the exchange rate between the US dollar and the pound
put significant pressure on margins and the company therefore reported a small
loss.

Some restructuring and reorganisation was performed which produced a noticeable
reduction in costs towards the end of the year. Sales through representatives
continued to increase as did sales of products from suppliers outside the Group.
It is hoped that this will continue and that new developments from Feedback
Instruments will also assist an increase in sales.

Dividend

Your Board is not recommending that a dividend be paid on the ordinary shares
(2003 - nil).  As detailed earlier, the Company was not in a position to pay the
dividend on the Company's Convertible Redeemable Preference Shares for the 6
months ended 31 March 2004 as a result of the elimination of distributable
reserves associated with the disposal of TekniCAL.  The Board expects that this
situation will prevail until the Company returns to significant profitability.

Directors and Staff

We owe our thanks to all the Directors and Staff for their great efforts and
loyalty during this difficult year.

David Sawyer, during his first full year as Group Managing Director, has become
very conversant with the Group's activities and has been decisive in
recommending and implementing restructuring where appropriate.  It has been
decided to change his title to that of Chief Executive as a better indication of
his responsibilities.

Tom Charlton has also completed his first full year as a non-executive Director.
His advice and perspective have been very helpful to us and we are most
appreciative of the assistance given by making the unsecured loan of $1 million
to which I referred in the Interim Statement.

Our company secretary Gerard Bushell has worked hard and effectively over the
difficult recent past. He has today been appointed to the Board as an executive
director and shareholders will be asked to confirm this appointment at the
forthcoming AGM.  There is no other information required to be disclosed under
Schedule 2, paragraph (f) of the AIM Rules.

Andrew Whiteley, who has been a director of the company and the managing
director of Feedback Instruments for a number of years, has resigned with
immediate effect. We appreciate his efforts over the years and wish him every
success in the future.

Current Trading and Future Prospects

In the current year to date the Group has made a small operating profit but
following the application of the SSAP 24 pension provision incurred a small
loss.

The pattern of trade and profitability at Feedback Instruments is becoming
increasingly dependent on obtaining substantial contract business overseas. It
has also become clear that the management costs are too high in relation to the
current level of trading.

A strategic review is to be carried out of all the activities of the Group in
order to encourage the generation of more consistent profits. This review will
be far reaching and include the product range, staffing and management, the
suitability of the company's premises and future funding requirements.

The restructuring changes made at Feedback Data and Feedback Incorporated are
producing satisfactory results and it is anticipated that similar benefits will
be obtained from the review described above.

DH Harding

Chairman

20 August 2004


Consolidated Profit
and Loss Account
Year ended 31 March
2004


                       Notes    Continuing            Discontinued              Total        Total
                                   operations           operations               2004         2003

                                         £000               £000                 £000     £000
TURNOVER                              8,145.0                543.8            8,688.8     10,557.7
Cost of Sales                       (5,119.1)                (8.0)          (5,127.1)    (5,111.6)

Gross profit                          3,025.9                535.8            3,561.7      5,446.1
Other Operating                     ( 4,395.0)           (1,014.1)          (5,409.1)    (5,231.2)
Expenses

Operating (loss) /
profit before
additional
       SSAP 24                        (487.1)              (478.3)            (965.4)        214.9
pension charge

Additional SSAP 24                    (882.0)                    -            (882.0)
pension charge

Operating (loss)/                   (1,369.1)              (478.3)          (1,874.4)        214.9
profit, after
exceptional costs

Loss on sale of trade                                                         (365.5)          0.0

Net interest payable                                                           (24.3)       (36.4)

(LOSS)/PROFIT ON                                                            (2,237.2)        178.5
ORDINARY
ACTIVITIES BEFORE
TAXATION
Tax on (loss)/profit                                                             28.7       (39.7)
on ordinary
activities

(LOSS)/PROFIT ON                                                            (2,208.5)        138.8
ORDINARY
ACTIVITIES AFTER
TAXATION

Dividends                                                                     (100.2)       (98.6)
(non-equity)

RETAINED (LOSS)/                                                            (2,308.7)         40.2
PROFIT



(LOSS)/EARNINGS PER   1
SHARE (pence)
Basic                                                                (19.27)          0.34
Diluted                                                              (19.27)          0.34




Consolidated Balance Sheet
at 31 March 2004

                                                         2004                   2003
                                                         £000     £000          £000       £000
Fixed assets
Intangible assets                                                    -         656.7
Tangible assets                                                  598.9         619.5

                                                                 598.9                  1,276.2

Current assets

Stocks                                                1,692.4                1,356.6
Debtors                                               4,019.2                4,349.8
Cash at bank and in hand                                    -                  360.7

                                                      5,711.6                6,067.1

Creditors: amounts falling due within one
year

Borrowings                                            (206.7)                (132.3)
Other creditors                                     (2,916.9)              (2,879.4)

                                                    (3,123.6)              (3,011.7)          

Net current assets                                             2,588.0                  3,055.4

Total assets less current liabilities                          3,186.9                  4,331.6
Creditors: amounts falling due after more
than
one year
Borrowings                                                     (657.0)                  (249.9)

Provisions for liabilities and charges                         (882.0)                        -

                                                               1,647.9                   4081.7

CAPITAL AND RESERVES
Called up share capital                                        2,042.7                 2,055.20
Share premium account                                   379.8                  367.3
Revaluation reserve                                     369.4                  369.4
Capital reserve                                         299.9                  299.9
Profit and loss account                             (1,443.9)                  989.9
Total reserves                                                 (394.8)                 2,026.50

Shareholders' funds                                            1,647.9                   4081.7

Included within shareholders' funds is an amount of £781,915 ( 2003  -  £789,626) in respect of
non-equity interests.






Consolidated Cash Flow Statement
Year ended 31 March 2004

                                                                     2004                   2003
                                                         £000        £000          £000     £000

Net cash (outflow)/inflow from operating  1                     (1,010.4)                  412.5
activities
Returns on investments and servicing of finance
Interest received                                           -                       0.4
Interest paid                                          (24.3)                    (36.8)
Non equity dividends paid                              (42.3)                    (86.3)

Net cash outflow from returns on investments
and servicing of finance                                           (66.6)                (122.7)


Capital expenditure and financial investment

Purchase of tangible fixed assets                      (61.0)                    (83.7)
Sale of tangible fixed assets                             3.4                      10.3

Net cash outflow from capital expenditure
and financial investment                                           (57.6)                 (73.4)

Acquisitions and disposals

Net consideration from sale of trade                                334.0             -
                                                                                             

Financing

New loan from Director                                  572.7                       -
                                                                                    

Repayments of bank and other loans                    (243.0)                    (67.0)

Capital element of finance leases
and rental payments                                     (5.7)                     (9.2)

Net cash inflow/(outflow) from financing                            324.0                 (76.2)

(Decrease)/increase in cash in the year   2                       (476.6)                  140.2






Consolidated Statement of Total
Recognised Gains and Losses
Year ended 31 March 2004

Total recognised gains and losses for the year
                                                                  Group                Company
                                                          2004     2003          2004     2003

                                           Notes          £000     £000          £000     £000

(Loss)/profit for the financial year  -
parent and
subsidiaries                                         (2,208.5)    138.8     (1,387.9)      3.2

Unrealised surplus on revaluation of
land and buildings                                           -    100.5             -    100.5

Total (losses)/gains for the year before
currency adjustments                                 (2,208.5)    239.3     (1,387.9)    103.7

Currency translation differences on
foreign currency net investments                       (183.0)     67.6             -        -


Total recognised (losses)/gains for the year         (2,391.5)    306.9     (1,387.9)    103.7


NOTES:

1. Earnings per share

Basic earnings per share for the year ended 31 March 2004 is based on the Group
loss on ordinary activities after taxation and preference dividends of
£2,308,700 (2003 - profit of £40,200) attributed to 11,961,854 Ordinary Shares,
being the weighted average number of shares in issue throughout the year (2003 -
11,920,181).

The diluted earnings per share is calculated allowing for the full conversion of
the Preference Shares.  However, in accordance with Financial Reporting Standard
14, as these conversions would not have a dilutive effect, the earnings per
share figure remains the same.

2. The financial information for the year ended 31 March 2004 is extracted from
the Group's financial statements to that date which received an unqualified
auditors' report and have been filed with the registrar of companies. The
financial information for the year ended 31 March 2004 is extracted from the
Group's financial statements to that date which received an unqualified
auditors' report and will be filed with the registrar of companies.

3. The Report and Accounts will be posted to shareholders in due course and the
Annual General Meeting will be held at 11.00 am on 29 September 2004.


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