Final Results

Focus Solutions Group PLC
5 June 2001


5 June 2001

                  Focus Solutions reports strong performance

             Preliminary results for the year ended 31 March 2001

                                  Highlights

  * Revenue up over 300%
  * 6 new customers in the UK life and pensions industry
  * First international partnership in place for North America
  * Strategic partnership increased and extended with Norwich Union Life
    (CGNU)
  * Investment in new products accelerated
  * New server version of goal:technology launched
  * Strong cash position at £7.7m to support investment plans
  * Licensing agreement concluded with Spotlight Interactive for South
    African market, subject of a separate announcement today

John Streets, chief executive, said:

'This has been a highly successful year for Focus. We have established a
leading position in the life and pensions market and we are well placed to
move into other financial services. We have taken our first significant step
into the North American market with the signing of a licensing agreement with
MPO Group Inc. There is considerable demand for our products and expertise,
and so the Board has decided to accelerate investment in product and market
development in this financial year to take advantage of these opportunities.
The strong revenue growth experienced last year is expected to continue and
whilst the increased investment will have an impact on the move to
profitability, this will be comfortably funded by existing cash. The Board
firmly believes that this allocation of resources is in the best interests of
building shareholder value.'

Enquiries
Focus Solutions Group plc                                         01926 468 300
John Streets
Claire Forrest

Citigate Dewe Rogerson                                            020 7638 9571
Chris Barrie
Sara Batchelor



Chairman's statement

I am pleased to report that the Group has delivered an excellent set of
financial results. We have made substantial progress in all areas of our
business, including significant product development, and have not experienced
any slowdown in demand or opportunity, against a backdrop of one of the most
turbulent years for technology markets

We have delivered on our promises. Revenue growth has been significant with
turnover tripling to £2.3m compared with £0.7m in the year ending March 2000.
The loss before tax and after NI on share options was £2.4m (£1.0m 31st March
2000), which reflected on-going product development costs. The cash balance at
the year-end was £7.7m, compared with £9.9m in the same period last year. Loss
per share increased to 9.7p from 5.6p the previous year. In view of the
trading losses the Directors will not be recommending payment of a dividend.

As a newly fledged AIM company, we recognise that success lies in building
strong relationships with our customers so that we can expand and build upon
our business model both in the UK and internationally. To do so means
investing the money raised at flotation wisely in the early years to give
strong sustainable profit later on. We have seized the opportunity to improve
and capitalise on our first mover advantage and develop multi-platform
versions of goal: technology. This will facilitate our expansion into other
sectors and geographical markets ensuring we are well placed to take full
advantage of growing opportunities. The Board has therefore significantly
increased the budget for product and market development in this financial
year. The strong revenue growth experienced last year is expected to continue
and whilst the increased investment will have an impact on the move to
profitability, this will be comfortably funded by existing cash. The Board
firmly believes that this allocation of resources is in the best interests of
building shareholder value.

Business development

The main focus for the year has been the life and pensions market. In the UK,
new customers have been signed from amongst the leading companies in the
industry, including both life companies and national independent financial
adviser (IFA) organisations. New partnerships have been signed, both with
service providers that operate internet portals for IFAs and leading systems
integrators.

Overseas, the Group put in place its first international licensing agreement
to cover North America. MPO Group Inc will be launching a new internet-based
product based on goal:technology, our XML-based data capture toolkit.

People

We continue to develop our management and expertise to ensure we are well
equipped to respond to the challenges of such rapid growth. To allow John
Streets, Chief Executive, to develop the international strategy, Mark Thelwell
has been promoted to Managing Director focusing on expanding the UK business,
supported by two additional experienced senior managers in the key roles of
operations and marketing. Sue Hele was appointed to the Board as Finance
Director on 1st April 2001, taking over from Robert Hull. Robert continues as
a non-executive director. I would like to thank him for his significant
contribution to the Group during his time as Finance Director.



Chief Executive's statement

Results

In a year when market conditions proved extremely difficult for many
organisations, I am particularly pleased to report that Focus has exceeded
expectations. Turnover is up 300% following strong demand for our products.
Matched with close control of costs, this resulted in a pre-tax loss below
expectations in a year when up to 50% of salary costs were invested in product
development, laying the foundations for the future. Careful management of cash
and debtors contributed to an excellent end of year cash position of £7.7m.

Building the community

To date, goal: technology has addressed the needs of the UK life and pensions
community to cut the cost of capturing transactions from their many routes to
market, via their direct sales forces, IFAs, call centres and extranets.

Focus has secured customers from all parts of this community and now has the
critical mass in place to deliver the cost benefits of e-commerce. Six new
life and pensions customers bought goal: technology licences during the year,
including Legal and General and Skandia. goal: technology customers now
include seven of the top ten life companies (ranked by new business premium
income in 2000). The majority of customers have already developed their first
electronic applications for insurance bonds, generating a monthly usage
revenue. This revenue stream will increase as they add new product categories,
such as term assurance and stakeholder pensions.

IFAs represent one of the industry's most important distribution channels.
There are 36,000 IFAs in the UK, up 29% on last year. Much of the
communication with the IFA community is via service providers, or internet
portals, that provide on line quotation, research and information services.
Partnerships are now in place with three leading service providers. Their
members can now complete and validate proposals electronically.

Extending the reach of goal: technology

With the support of the US life and pensions standards body, ACORD, the Group
has signed its first international partnership to cover North America. This is
a licensing agreement with MPO Group Inc, a specialist e-business solutions
company operating in the life and pensions industry. It will be delivering
goal: technology as the primary element of its innovative front office
solution, supported by Canadian systems integrator, LOGISIL. An important
requirement for the largely IBM based North American market is the development
of a server-based version of goal: technology to support IBM MQ Series and
integrate with IBM WebSphere. This investment will provide Focus with a
scaleable product and platform independence.

Throughout the year, we have been developing a new generation point of sale
software solution for Norwich Union Life. This will be used by its direct
sales force, its tied building societies and its joint venture partners. It
incorporates goal: technology as the data capture tool for proposal details
and will be fully deployed over the next 18 months, supporting over 2000
users. Agreement has been reached to extend this strategic relationship for
another two years in a multi-million pound contract.

goal: technology has recently been launched into the mortgage community.
Electronic mortgage applications will allow lenders to capture and validate
mortgage data from their many sales channels, speeding up this fragmented
process and reducing costs.

The life insurance market

The primary market for Focus during the year was UK life and pensions
organisations. This sector is undergoing a period of dramatic change driven by
competitive, legislative and technological pressures.

A recent survey by SG Equities Research concluded that the life insurance
industry could save up to 45% of the management costs of acquiring new
business through electronic trading. Six million new policies were sold in the
UK in 1999 costing the industry £3.5bn to process with volumes likely to
increase as stakeholder pensions are rolled out.

Many national IFA chains are emerging which are expanding their service
offering to high net worth individuals, supported by their own internet sites,
extranet links to the insurance companies and sophisticated back office
technology. Focus is working with the key suppliers of back office systems to
this market, providing goal: technology as an integral part of their
solutions.

The mortgage market

Increasing competition from new entrants and impending legislative changes
have meant that the mortgage industry is now looking for ways of capturing new
mortgage transactions more cost effectively. Over one million mortgages are
sold each year via a fragmented process involving a number of third parties,
complex application forms and frequent product changes.

The application of goal: technology to the mortgage process will allow lenders
to build flexible, easy to change applications for mortgages that can be used
in all their channels: agents, branches, call centres and internet sites. It
will also facilitate validation at the point of data collection and will
enable accurate data to be transmitted straight into the lenders back office
systems, speeding up the transaction cycle and reducing the number of errors.

Work has already started on building the community with lenders, partners, and
intermediaries evaluating goal: technology.

Global potential

Focus has worked closely with ACORD, the US insurance standards body and is
the first UK software vendor to be certified for implementing ACORD XMLife.
This now opens up the potential of the North American life and pensions market
(which is over four times larger than the UK) as well as other worldwide
markets that adopt ACORD standards such as South Africa and Australia.

Product development

An intensive product development programme has been in place during the year
to deliver a global, scaleable, platform independent product. Focus has joined
the IBM partner programme and a new Microsoft server version of goal:
technology has been built. This allows the product to be integrated into other
distribution channels, such as the Internet and extranets. goal: technology
now supports a range of messaging standards, whether industry based, such as
Origo (the UK life and pensions industry standards body) and ACORD, or
proprietary and unique to a specific company.

Focus selected XML as a primary technology at the start of its product
development. XML is becoming the accepted mechanism for sending transactions
effectively via the Internet and is being widely adopted across many industry
sectors on a global basis. After two years of intense experience, Focus has
extended its XML expertise with its goal: technology toolkit enabling the
development of applications for business users without programming resources.

Although resources were focused on goal: technology during the year, the Group
intend to continue building a component-based point of sale solution (POS) to
support the changing needs of the life and pensions industry where new
channels to market are emerging. The IFA channel, for example, accounted for
50% of new business last year. This will incorporate goal: technology to
generate and validate the 'fact find' necessary at the beginning of the
financial planning cycle, and to capture the proposal data at the end of the
sales cycle.

Group strategy

The Group intends to continue its strategy of building trading communities to
facilitate the capture of complex electronic transactions. The insurance
industry community is now established and efforts will be concentrated on
revenue growth in this market. Priority for 2001/2002 will be to build the
mortgage community and penetrate other communities in the financial services
industry, both in the UK and internationally.

Partnerships are already being developed with systems integrators and software
suppliers that are looking to integrate goal: technology within their
products. The Group also plans to extend its product range to include
complementary software that supports the sale and distribution of other
financial products.

Markets outside the financial services market offer a significant opportunity
longer term. The Group intends to exploit these by establishing licensing
agreements for goal: technology with partners who have specific industry
expertise and a substantial customer base.

Building the team

Our success in recruiting people with key skills, particularly in the areas of
Java and XML, is particularly pleasing. Staff numbers have risen to 78 at the
year-end from 39 last year. This expansion not only includes development staff
but also account management, finance, marketing, sales and project management
skills. A customer services team has been set up and the quality assurance
team has been extended significantly.

Prospects

With many of the necessary partnerships and customers now in place, the Group
is well positioned to take advantage of the strong demand in the insurance
industry and to move into new sectors within the financial services market.
Although international partnerships are at an early stage, our global strategy
is taking shape. Carefully planned investment in the technology aligned with
expansion via partners into other markets will deliver additional
opportunities in the longer term.

The Annual General Meeting will be held on 17th July at 4.30pm at the offices
of Focus Solutions Group plc in Leamington Spa.

Focus Solutions Group plc

Consolidated Profit and Loss Account

for the year ended 31 March 2001
                                                       31 March        31 March
                                                     Year ended      Year ended
                                                           2001            2000
                                                          £'000           £'000

Turnover                                                  2,273             721

Staff costs                                             (2,541)         (1,140)
Depreciation                                              (221)            (85)
Other external charges                                  (2,454)           (555)
                                                       ________        ________
Operating loss                                          (2,943)         (1,059)

Investment income                                           513              32
                                                       ________        ________
                                                        (2,430)         (1,027)
Interest payable                                            (7)            (12)
                                                       ________        ________

Loss on ordinary activities
Before taxation                                         (2,437)        ( 1,039)

Taxation                                                      -               1
                                                       ________        ________
Loss on ordinary activities after
Taxation and sustained loss for
the year                                                (2,437)        ( 1,038)
                                                       ________        ________

Loss per ordinary share (note 2)                         (9.7p)          (5.6p)
                                                       ________        ________

Turnover and operating loss are derived from the Group's continuing
operations.

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

Focus Solutions Group plc

Group Balance Sheet

31 March 2001
                                                               2001        2000
                                                              £'000       £'000

Fixed assets
Tangible assets                                                 519         165
                                                          _________    ________

Current assets
Debtors                                                         534         312
Cash at bank and in hand                                      7,670       9,917
                                                           ________    ________

                                                              8,204      10,229
                                                           ________    ________

Creditors: Amounts falling due within one year                1,120         412
                                                           ________    ________

Net current assets                                            7,084       9,817
                                                           ________    ________

Total assets less current liabilities                         7,603       9,982

Creditors: Amounts falling due in more than
one year                                                         86          28
                                                           ________    ________

Net assets                                                    7,517       9,954
                                                           ________    ________


Capital and reserves
Called up share capital                                       2,508       2,508
Share premium                                                 9,426       9,426
Profit and loss account                                     (4,417)     (1,980)
                                                           ________    ________

Shareholders' funds - equity interests                        7,517       9,954
                                                           ________    ________




Focus Solutions Group plc

Consolidated Cash Flow Statement

for the year ended 31 March 2001


                                                        Year ended   Year ended
                                                          31 March     31 March
                                                              2001         2000
                                                             £'000        £'000

Net cash outflow from operating activities (note 3)        (2,072)      (1,022)

Returns on investments and servicing of finance                491           20

Taxation                                                         -            1

Capital expenditure and financial investment                 (575)         (92)
                                                          ________     ________

Cash outflow before financing                              (2,156)      (1,093)

Management of liquid resources                               2,596      (9,679)

Financing                                                     (91)       10,566
                                                          ________     ________
Increase/(decrease) in cash in the year                        349        (206)
                                                          ________     ________





Reconciliation of net cashflow to movement in net funds


                                                        Year ended   Year ended
                                                         31 March      31 March
                                                               2001        2000
                                                              £'000       £'000

Increase/(decrease) in cash in the year                         349       (206)
Change in net funds resulting from cash flows                    25          61
New finance leases                                                -        (48)
Cash (outflow)/inflow from increase in liquid resources     (2,596)       9,679
                                                           ________    ________

Movement in net funds in the year                           (2,222)       9,486

Net funds at start of year                                    9,865         379
                                                           ________    ________

Net funds at end of period                                    7,643       9,865
                                                           ________    ________




Focus Solutions Group plc

Notes to the non-statutory financial statements


    1.      The figures set out above have been reported upon by the auditors.
    The comparative figures are extracts from the non-statutory audited
    financial statements of Focus Solutions Group plc for the year ended 31
    March 2000, which have been filed with the Registrar of Companies. The
    report of the auditors for the periods ended 31 March 2001 and the year
    ended 31 March 2000 contain no qualification or statement under sections
    237(2) or (3) of the Companies Act 1985. 10. The financial information
    contained in this announcement does not constitute statutory accounts
    within the meaning of section 240 of the Companies Act 1985. The 2001
    annual report and financial statements will be filed with the Registrar of
    Companies after the Annual General Meeting.



2.     Loss per ordinary share


                                                                Year      Year
                                                               ended     ended
                                                            31 March  31 March
                                                                2001      2000
                                                               £'000     £'000

Earnings attributable to ordinary shareholders
Loss for the financial year                                  (2,437)   (1,038)
Weighted average number of ordinary shares issued during    ________  ________
the year (000's)                                              25,084    18,542

Dilutive effect of share options                                   -         -
                                                            ________  ________

Adjusted weighted average number of ordinary shares
in issue during the year (000's)                              25,084    18,542

Basic earnings per share                                      (9.7p)    (5.6p)

                                                            ________  ________
Diluted earnings per share                                    (9.7p)    (5.6p)
                                                            ________  ________



Potential share issues arising from the Group's share option schemes are not
considered to be dilutive as the basic earnings per share is a loss. This is
because potential share issues would not increase the net loss per share
reported.

3.     Reconciliation of operating loss to net cash outflow from operating
       activities
                                                              Year        Year
                                                             Ended       ended
                                                          31 March    31 March
                                                              2001        2000
                                                             £'000       £'000

Operating loss                                             (2,943)     (1,059)
Depreciation                                                   221          85
Increase in debtors                                          (207)       (244)
Increase in creditors                                          857         196
                                                          ________    ________

Net cash outflow from operating activities                 (2,072)     (1,022)
                                                          ________    ________