Interim Results

Focus Solutions Group PLC
13 November 2001


Embargo: 7am, 13 November 2001


            Focus Solutions Group announces robust interim results

           Interim results for the 6 months ended 30 September 2001


Focus Solutions Group plc ('Focus' and 'The Company'), the leading provider of
sales channel automation for the financial services industry, today announces
its interim financial results for the six months ended 30 September 2001. Key
highlights include:


Highlights

  * Revenue increased by 176% to £2.3million, equal to the turnover for the
    whole of the last financial year
  * Loss before tax of £1.4million compared to £1.2million for the same
    period last year, in line with the planned investment programme and
    expectations
  * Strong cash position of £5.8million
  * Scottish Widows contract means customer base now includes seven of the
    top ten UK life and pensions companies
  * Platform independent version of goal:technology launched
  * North American partner's solution accredited by ACORD, the international
    insurance industry standards body



John Streets, Chief Executive of Focus Solutions Group, said:

'These results demonstrate continuing strong demand for our software and
solutions. During the half year we signed a new contract with Scottish Widows,
successfully extended existing customer relationships and launched a new
platform independent version of goal:technology in the North American market.

In the UK the benefits of our technology to cut the costs of the sales process
are likely to be even more highly valued by our customers in difficult
economic times and this is reflected in a healthy prospect pipeline. The
weakening economic climate in the US will impact the timing of our revenue in
this new market. However at this stage it represents a very small proportion
of our total revenues and careful control of costs in line with revenue growth
will ensure any effect is mitigated.

As a result we remain confident that we are well positioned to exploit
opportunities at home and abroad to deliver excellent returns to
shareholders.'



For further information, please contact:
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 Focus has again delivered its promises with an
excellent set of results; the revenue generated in the last six months is
equal to the turnover for the whole of the last financial year. This is a
significant achievement, particularly against a backdrop of a general slowdown
in IT spend and economic uncertainty.

Demand for our software and solutions remained strong in the UK. During the
period, Scottish Widows signed a contract to use goal:technology, initially
for its IFA channel. Business with existing customers has also grown
positively including the roll-out of a major project for Norwich Union Life,
(part of CGNU), which is on plan and progressing extremely well. Our recently
signed international partnerships with Spotlight Interactive in South Africa
and MPO Group Inc in North America have shown good progress in the development
of their sales pipelines.

Financial Review

Turnover in the first half of the year increased by 176% to £2.3million as
compared with £0.8million for the six months ended 30th September 2000.
Operating loss before interest and tax was £1.6million compared with £
1.4million in the first half of the last financial year reflecting our planned
on-going investment in product development and additional sales and marketing
resources, as announced at the full year results 2001. The cash balance at the
end of the period was £5.8million, (30th September 2000: £8.8million) compared
with £7.7million at the 31st March 2001. Loss before tax was £1.4million,
compared with £1.2million for the six months ended 30th September 2000 and £
2.4million at the 12 months ended 31st March 2001. This resulted in a loss per
share for the period of 5.7p, compared with 4.9p for the six months ended 30th
September 2000. The Company does not propose to pay an interim dividend.

Business development

During the period we announced that we signed a contract with Scottish Widows,
which means our customer base now includes seven out of the top ten UK life
insurance companies. Towry Law, one of the UK's leading independent advisors
has integrated goal:technology with its broker administration system and has
used it to capture and validate applications electronically for £45million of
insurance bond business since March 2001. This has helped Towry Law reduce
submission errors from 40% to 9%, well on the way to its target of 1%.

We are successfully leveraging our position with existing customers who are
integrating goal:technology into their new product offerings. Scottish
Equitable have recently incorporated goal:technology into a support package
for IFAs to take them through the complex process of flexible retirement
planning.

Working with other software suppliers to the financial services industry is a
key element in delivering the benefits of straight through processing, where
new business applications can be fully automated from the point of data
capture through to entry into the back office systems. Sirius Financial
Systems plc has integrated goal:technology into its SWIFT 2001 software for
financial service providers and intermediaries and we are working together to
market this solution to its customer base. It has also been integrated with
AIT Group's CRM software, and CMG's broker administration software.

The impact of changing legislation in the mortgage industry is increasing the
requirement for more sales automation and we are beginning to generate
interest in our solution for this new market sector.

Product Development

As announced at the preliminary results in March 2001 we have introduced an
accelerated programme of investment in new products that are global, scaleable
and platform independent. As a result, a Java version of goal:technology was
completed during the period ready for integration into the solution being
built for the North American market by our partner, MPO. This solution now
supports the sales process for life and pensions policies in the North
American market. The process is completed using information accessed
electronically from medical claims history databases, allowing a fully
underwritten proposal to be submitted. The international insurance industry
standards body, ACORD, has recently accredited the solution. goal:technology
has also been enhanced to provide French language capability for the Canadian
market. Focus has joined W3C, the international internet standards body, to
increase its early access to and adoption of emerging web technologies.

People

Enhancing our technical and commercial skills to ensure the rapid growth of
the business remains a key priority. Staff numbers have expanded in all areas
from 82 at the end of March 2001 to 102. In particular, we have augmented our
integration and implementation skills to respond to the increased demand from
customers for services to incorporate goal: technology into their product
offerings and distribution channels.

Strategy

Our strategy of delivering software and solutions that enable our customers to
drive down the costs of acquiring new business and increase the speed to
benefit of automating complex sales processes, remains unchanged. We believe
there is significant opportunity for us to increase our market share by
working with partners to deliver complete solutions to customers. This will
both extend the reach of goal: technology and require associated integration
and implementation services. Whilst the Financial Services market remains our
primary domain, we are looking to exploit goal: technology in other vertical
markets, expanding through partners with specific market expertise.

Outlook

Despite challenging economic circumstances, we remain confident about the
prospects for the business. With our blue chip customer base, innovative
technology, and healthy prospect pipeline, we have a sound platform from which
to continue our strong growth.

In the US, the slowdown in the economy is likely to affect our rate of
expansion. However at this stage it represents a very small proportion of our
total revenues and the Directors will ensure careful control of the cost base
in line with revenue growth to mitigate any impact on profitability. We are
certain that our strategy for the region is sound and will deliver value to
shareholders.

Our customers need to respond to an increasingly competitive environment; our
technology significantly reduces the costs of the sales process and as a
result, Focus is well positioned to take advantage of the opportunities this
environment generates.



Summarised Consolidated Profit and Loss Account

For the six months ended 30 September 2001
                                                   Half year Half year     Full
                                                                           year
                                                        2001      2000     2001
                                                       £'000     £'000    £'000

Turnover                                               2,285       828    2,273
                                                   --------- --------- --------
Operating loss before exceptional items              (1,610)  ( 1,188)  (2,857)
Exceptional item:
National insurance on share options granted               13    ( 261)     (86)
                                                   --------- --------- --------
Operating loss before interest and taxation          (1,597)   (1,449)  (2,943)
Net interest receivable                                  171       225      506
                                                   --------- --------- --------
Loss on ordinary activities before taxation          (1,426)  ( 1,224)  (2,437)
Taxation                                                   -         -        -
                                                   --------- --------- --------
Loss on ordinary activities after taxation and       (1,426)  ( 1,224)  (2,437)
loss for the period
                                                       =====     =====    =====
Loss per ordinary share (note 2)                      (5.7p)   ( 4.9p)   (9.7p)
                                                       =====     =====    =====
Diluted loss per ordinary share (note 2)              (5.7p)   ( 4.9p)   (9.7p)
                                                       =====     =====    =====



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.



Summarised Consolidated Balance Sheet

30 September 2001


                                                  September September     March

                                                       2001      2000      2001
                                                      £'000     £'000     £'000
Fixed assets
Tangible assets                                         467       500       519
                                                  --------- ---------  --------
Current assets
Debtors                                               1,335       630       534
Cash at bank and in hand                              5,783     8,842     7,670
                                                  --------- ---------  --------
                                                      7,118     9,472     8,204
                                                  --------- ---------  --------
Creditors: Amounts falling due within one year        1,421       964     1,120
                                                  --------- ---------  --------
Net current assets                                    5,697     8,508     7,084
                                                      
                                                  --------- ---------  --------
Total assets less current liabilities                 6,164     9,008     7,603
Creditors: Amounts falling due in more than one          73       278        86
year
                                                  --------- ---------  --------
Net assets                                            6,091     8,730     7,517
                                                      =====     =====     =====
Capital and reserves                                  6,091     8,730     7,517
                                                      =====     =====     =====



Summarised Consolidated Cash Flow Statement

For the six months ended 30 September 2001
                                                   Half year Half year     Full
                                                                           year
                                                        2001      2000     2001
                                                       £'000     £'000    £'000

Net cash outflow from operating activities           (1,940)     (884)  (2,072)
Returns on investments and servicing of finance          166       232      491
Taxation                                                   -         -        -
Capital expenditure and financial investment           (103)     (410)    (575)
                                                   --------- --------- --------
Cash flow before management of liquid resources &    (1,877)   (1,062)  (2,156)
financing
Management of liquid resources                         2,012     1,162    2,596
Financing                                               (10)      (14)     (91)
                                                   --------- --------- --------
Increase in cash in the year                             125        86      349
                                                       =====     =====    =====



Change in net debt resulting from cash flows
                                                Half year  Half year  Full year
                                                     2001       2000       2001
                                                    £'000      £'000      £'000

Increase in cash in the period                        125         86        349
Change in net funds resulting from cash flows          10         14         25
New finance leases                                      -          -          -
Cash outflow from decrease in liquid resources    (2,012)    (1,162)    (2,596)
                                                ---------  ---------   --------
Movement in net funds in the period               (1,877)    (1,062)    (2,222)
Net funds at start of year                          7,643      9,865      9,865
                                                ---------  ---------   --------
Net funds at end of period                          5,766      8,803      7,643
                                                    =====      =====      =====



Notes to the Interim Financial Statements

1. Basis of preparation

The summarised half year financial information is unaudited and does not
constitute statutory accounts for the purposes of section 240 of the Companies
Act 1985. The statutory accounts for the year ended 31 March 2001, which
received an unqualified audit report, have been delivered to the Registrar of
Companies.

The unaudited financial information has been prepared on the basis of the
accounting policies set out in the group's 31 March 2001 audited statutory
accounts, with the exception of adopting the recommendations set out in FRS
18, Accounting Policies and FRS 19, Deferred Tax. There is no profit effect on
the current or prior periods from such an adoption.

National Insurance provision on share option gains

The group continues to adopt UITF 25 and makes a provision for its National
Insurance liability on unapproved share options based on the market price at
the period end, spread over the vesting period.




2. Loss per ordinary share
                                                        30         30  
                                                 September  September  31 March
                                                      2001       2000      2001
Earnings attributable to ordinary shareholders       £'000      £'000     £'000

Loss for the financial period                      (1,426)    (1,224)   (2,437)
                                                     =====      =====     =====
Weighted average number of ordinary shares
issued during
the year (000's)                                    25,084     25,084    25,084
Dilutive effect of share options                         -          -         -
                                                 ---------  ---------  --------
Adjusted weighted average number of ordinary
shares
in issue during the year (000's)                    25,084     25,084    25,084

Basic earnings per share                            (5.7p)     (4.9p)    (9.7p)
                                                     =====      =====     =====
Diluted earnings per share                          (5.7p)     (4.9p)    (9.7p)
                                                     =====      =====     =====



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.