Final Results

Telme.Com PLC
14 June 2000

                               
                         TELME.COM PLC
     Preliminary Results for the Year Ended 31 March 2000
                          Highlights
                               
*   Strong  organic  growth and growth by acquisition  resulted
    in  turnover and gross profit increasing by 40% and 46%  to
    £14  million and £11 million respectively.  Over  the  last
    two years turnover has grown by over 300%.

*   Growth  was  particularly strong in the  second  half  when
    losses  were  much  reduced and cash of  £0.2  million  was
    generated  from  operations.  Established  operations  were
    strongly cash generative.

*   Operating  losses for the full year before the amortisation
    of  goodwill and intangibles were £1.4 million (1999:  £3.1
    million).   The  Group remained committed to  Research  and
    Development  during  the  year  with  expenditure  of  £1.6
    million.

*   The  Group launched Telme Global Traveller (www.Telme.com),
    an  internet travel service.  This service saw gross  sales
    increase  to an annualised £5 million in May 2000  from  an
    annualised £1 million in November 1999.

*   The  Group  acquired the profitable content and  technology
    provider,   Farebase  Limited,  bringing  the   number   of
    acquisitions  over  the  last  two  years  to  four.   This
    proactive acquisition strategy will continue in the  coming
    year where synergies exist.

*   The  Customer Information and Database Management  division
    saw   particularly  strong  expansion   of   its   database
    outsourcing  business with business wins at Nestle,  London
    Electricity, WH Smith and Demon Internet.

*   Cash  balances at 31 March 2000 were £4 million  (1999:  £4
    million).  Short-term borrowings were £1.4  million  (1999:
    £1.1  million)  giving net cash balances available  to  the
    Group of £2.6 million (1999: £2.9 million).

*   The  Group  is  a  well  balanced business  with  excellent
    prospects.   It is the Group's expectation that  increasing
    performance  in  the  year ahead from its  established  and
    leading  edge  businesses will create a Group of  stability
    and strength.

For further information, please contact:

TelMe.com plc
Graham Ramsey, Chief Executive                    020 7240 2640
Richard Law, Finance Director                     0151 608 0205

Ludgate Communications
Richard Hews                                      020 7253 2252


Chairman's Statement

Overview

During the year your company has made significant progress.

The financial highlights of the year were:

*  The   Group   operating  loss  for  the  year   before   the
   amortisation  of  goodwill and other  intangibles  was  £1.4
   million (1999: £3.1 million).

*  Cash  absorbed  by  operations for the full  year  was  £0.7
   million  (1999: £1.8 million).  In the last six  months  the
   Group moved towards profitability and generated cash of £0.2
   million from operations.

*  Gross sales increased to £51.6 million (1999: £31.7 million)
   and turnover was £14 million (1999: £10 million).

*  Cash  balances  at 31 March 2000 were £4 million  (1999:  £4
   million).  Short-term borrowings were  £1.4  million  (1999:
   £1.1  million)  giving net cash balances  available  to  the
   Group of £2.6 million (1999: £2.9 million).

Group Review

The Group has three operating divisions:
  
*  Customer Information & Database Management (CIDM)
*  Online Services
*  Corporate Travel

CIDM

This  division is represented by GB Information Management  and
Datacare.  It  provides  name address & telephone  number  data
capture,  management and enhancement software and services  and
is   used  by  businesses  to  validate  names,  addresses  and
telephone  numbers.  Bureau & data analysis services  are  also
provided  which enable the analysis and creation  of  databases
for improved consumer targeting. Customer database outsourcing,
a   rapidly  growing  service,  allows  corporates  with  large
databases  to  outsource the management and  interpretation  of
their  customer databases. The division is performing well  and
profitably.

Online Services

This  division provides the operations and development for  the
electronic  commerce  activities of  the  Group.  The  division
provides  online  business information and travel  services  in
both  business-to-business  and business  to  consumer  markets
under  the  Online  brand TelMe.  It also  licenses  electronic
commerce  systems  both  in the UK  and  overseas.   Under  the
Farebase brand it distributes information and technology to the
UK travel trade.

In  August  1999 the Group launched Telme Global Traveller,  an
Internet  travel  service, which has been developed  using  the
Ticket  Window  Technology,  acquired  a  year  earlier.   This
service  has  achieved significant success.  In  November  1999
annualised  gross sales were £1million and by  May  this  year,
they  had  grown to £5million. This division is currently  loss
making   as  a  result  of  the  investment  in  research   and
development and promotional expenditure needed to establish the
new products.

Corporate Travel

Corporate  Travel is represented by Seaforth's  Travel  Limited
which  is one of the top 15 business travel agents in  the  UK.
The   division's   performance  earlier   in   the   year   was
disappointing  but in recent months we have seen a  significant
improvement  and  the  division  has  now  moved  into  profit.
Seaforth's  plays  a  vital  role in  the  booking  fulfillment
process and in providing content for Telme Global Traveller.

Acquisitions

In  November  1999  the  Group acquired  Farebase  Limited,  an
information provider to the travel industry.  The company  also
sells software to travel agents and is an important element  in
our plans to become a leading Internet travel service provider.
The  Farebase  data  was combined with  that  of  Telme  Global
Traveller in mid May to create a one-stop leisure and  business
travel service.  Farebase is profitable and growing.

Our  strategy  for  the coming year will  be  to  make  further
acquisitions  of profitable businesses where these  have  clear
synergies with our existing businesses.

Change of Name

In  February  the  Group changed its name from  PhoneLink  plc,
which  has  ceased to be meaningful in the context of  its  new
activities.   The  new  name, TelMe.com plc  is  also  the  Web
address of the Group's Internet trading platform.

Board Appointment

In  April 2000 the company announced the appointment, as a Non-
Executive  Director, of John Walker-Haworth.  John  had  worked
with  the  Group as an advisor over a number of years  at  S.G.
Warburg.   He  is  also Deputy Chairman of the Takeover  Panel.
His  experience  and  knowledge will be a great  asset  to  the
business moving forward.

Prospects

TelMe.com  is  now  a  well-balanced  business  with  excellent
prospects.  The volatility in the market of Internet stocks has
affected  the  public perception of the company,  however,  our
Internet   interests   are   growing  impressively,   operating
alongside  our  other profitable interests.  It is  our  strong
expectation  that our improving performance in the  year  ahead
will create a Group of stability and strength.  We are grateful
to   Graham  Ramsey  and  his  colleagues  for  their   ongoing
dedication and contribution.


Sir Gordon Brunton
Chairman



Financial and Operating Review

As  explained  in the Chairman's statement, the  Group  further
consolidated its position in existing markets during  the  year
and expanded its activities through acquisition.

The  Group's  gross  sales  and  turnover  continued  to  grow.
Turnover  reached £14 million compared to £10 million  in  1999
and £3.2 million in 1998, representing an increase of 335% over
two years.

Gross  profitability  improved during the  year  and  operating
expenses   grew  less  quickly  than  turnover  despite   heavy
marketing costs for TelMe Global Traveller towards the year end
to  yield an operating loss before the amortisation of goodwill
and  other  intangibles of £1.4 million (1999:  £3.1  million).
The  retained  loss for the year was £2.1 million  (1999:  £3.4
million).  The second half of the year saw performance continue
to improve compared to the first half.  Turnover was 20% higher
than  the first half, losses were much reduced and the  Group's
operations  generated  cash of £0.2 million  compared  to  cash
absorbed of £0.9 million in the first half.

The  Group's  cash position and liquidity remained  encouraging
with  cash  balances of £4.0 million (1999: £4.0  million)  and
short  term  borrowing  of £1.4 million  (1999:  £1.1  million)
giving  net  cash balances available to the Group at  31  March
2000 of £2.6 million (1999: £2.9 million).

Gross Sales

Gross  sales represent the value of goods and services invoiced
to customers for which the Group is responsible.  This includes
the  value  of  amounts invoiced for bought  in  services  from
airlines  and other operators which are charged on to customers
by  the  Corporate  Travel  division and  the  Online  Services
division.  The Group earns commissions and fees as a result  of
generating gross sales.  These are disclosed under turnover for
the Group.

Turnover

Turnover increased during the year by 40% to £14 million (1999:
£10  million).  This was attributable to organic growth  within
existing  businesses, the inclusion of full  year  results  for
acquisitions made part way through the previous year and to the
acquisition  of Farebase Limited which took place  in  November
1999.

The components of turnover during the year were as follows:

Customer Information and Database Management (CIDM)

This  division  comprises  the  activities  of  GB  Information
Management  ('GB') and DataCare, both of which operate  in  the
Customer  Relationship Management (CRM)  and  direct  marketing
sectors.   The  DataCare business which was part of  the  Group
before the acquisition of GB was formally merged with GB during
the  year.   Synergies  arising from the  merger  assisted  the
seasonal  upturn  in  the latter part  of  the  year  to  yield
particularly strong growth in the second half with turnover  up
23% compared to the first half.

The  move  towards generating a higher proportion of  turnover,
from  providing  outsourcing services  for  the  management  of
customer  databases  continued with significant  business  wins
during  the  year.   These arrangements with  clients  such  as
Nestle,  London Electricity, W H Smith and Demon  Internet  are
typically  long  term and high value and have  had  a  positive
impact  on  the  structure and quality of  the  CIDM  divisions
income.

Online Services Division

This  division  comprises the Group's Internet  and  Technology
businesses which have been brought together during the year.

Turnover is derived principally from commission on the sale  of
Internet   travel  services  through  TelMe  Global   Traveller
(www.Telme.com),  the provision of online business  information
through the TelMe business information product and the sale  of
software and Internet booking engine licences for TelMe  Ticket
Window.

Turnover  in  the year was £1.3 million (1999:  £1.2  million),
including £0.3 million from Farebase.  Turnover associated with
the  TelMe business information product reduced during the year
by  around  35%.  This product, which makes use of  proprietary
technology, retains a loyal following of customers  but  is  no
longer actively sold as a core product within the Group.  Sales
of  all  other products and services within the Online Services
division experienced organic growth during the period.

Corporate Travel

The  Corporate Travel division saw recovery during the year  in
its  core markets.  Progress was also made into new and growing
markets including computer services and financial services.   A
presence  in Covent Garden in Central London also assisted  the
sales recovery and sales growth continued in the second half of
the  year.   This was despite an expected down turn because  of
the  seasonally slow Christmas period and fears  of  travelling
around  the time of the millennium.  Turnover for the year  was
£3.5 million (1999: £2.4 million).

Gross Profit and Cost of Sales

Gross  profit for the year increased from £7.5 million  to  £11
million.   The increase was as a result of both higher turnover
and a richer sales mix resulting from quicker growth within our
higher  margin  businesses.   Expressed  as  a  percentage   of
turnover, gross margin for the Group increased during the  year
from 75% to 79%.

In terms of distribution, seasonal factors together with strong
performances from all divisions in later months meant that £6.3
million  of the £11 million gross profit was generated  in  the
second half.

Other Operating Expenses

Other  operating expenses excluding goodwill were £12.5 million
(1999:  £10.7  million).  On a like for like  basis,  excluding
exceptional costs, other operating expenses increased  year  on
year  by  30%.   This  growth  in operating  expenses  compares
favourably with the increase in turnover of 40% and increase in
gross  profit  of 46%.  The Group maintained a  high  level  of
commitment  to  Research and Development during the  year  with
expenditure  of  £1.6  million  (1999:  £1.5  million)  on  the
development  of  new products and services, and improvement  of
existing products and services.

Goodwill Amortisation

The  Group  has  followed Financial Reporting Standard  10  and
consequently  purchased goodwill arising  on  consolidation  in
respect   of   the  acquisition  during  the  year   has   been
capitalised.  This goodwill is amortised to nil by equal annual
instalments over its useful economic life.  For the acquisition
made  during  the  year  the  Board has  estimated  the  useful
economic  life of the purchased goodwill to be ten years.   The
goodwill amortisation charge for the year ending 31 March  2000
in respect of acquisitions made during the year and in previous
years was £0.6 million (1999: £0.4 million).

Operating Loss

The net operating loss for the year before the amortisation  of
goodwill  and  other intangibles was £1.4 million  (1999:  £3.1
million).   After  the  amortisation  of  goodwill  and   other
intangibles,   the  operating  loss  was  £2.1  million.    The
components of this balance were as follows:

Customer Information and Database Management

This  division  generated  operating profits  of  £1.2  million
before  goodwill  amortisation (1999: £0.7  million)  and  £0.7
million after goodwill amortisation (1999: £0.4 million).

This  business traditionally performs better in the second half
than the first half because of seasonality.  This was magnified
in  the current year as a result of particularly strong organic
growth  in the second half of the year.  Operating profits  for
the  second half were £1.0 million compared with a loss of £0.3
million in the first half.

Online Services

The Online Services division incurred an operating loss of £1.8
million  (1999: £2.9 million).  During the year,  new  products
were  developed  and  launched, such  as  the  Internet  travel
service  TelMe  Global Traveller, and the scope of  our  online
travel  activities were expanded by the acquisition of Farebase
Limited.  The Ticket Window software product acquired last year
was  further  developed and adapted to be  sold  to  small  and
medium  sized  travel agents internationally  in  the  form  of
internet booking engines.  This enables these agents to provide
their  clients  with cost effective internet  access  to  their
services.   With  a  significant number of potential  customers
worldwide  and with sales success already achieved,  the  early
signs for this business are promising.

Of  the  £1.8 million operating loss for the year, £1.3 million
was  incurred in the second half.  The increase in second  half
losses  was principally as a result of the marketing and  staff
resource  directed  towards the launch and  market  testing  of
TelMe Global Traveller.  These have reduced since the year  end
as  the  product  has  settled into its post  launch  marketing
cycle.

Corporate Travel

The  Corporate  Travel  division  continued  to  perform  below
expectations particularly in the first half of the year because
of  the ongoing impact of the low oil price on its oil services
industry   customers.   The  underlying  performance   improved
significantly in the second half despite the seasonal  downturn
at  Christmas which was more marked than previously because  of
fears of travelling at the time of the millennium.  Of the loss
for  the  year  of £246,000, £202,000 was attributable  to  the
first half and £44,000 was attributed to the second half year.

Central Costs

Central costs incorporate the costs of the Group's Head  Office
and  Board,  and  the  costs of certain central  functions  and
services not allocated to the Group's divisions.



Interest receivable less payable

Interest  is  earned  on cash balances which  are  invested  in
accordance  with  the  Group's Treasury Policy.   Net  interest
receivable  during the year reduced from £219,000  to  £39,000.
This  was as a result of lower average cash balances and  lower
prevailing interest rates throughout the year.

Taxation

The  Group  did  not incur a taxation charge  in  the  year  in
respect  of  its  ongoing businesses or its  acquired  Farebase
business.  At 31 March 2000, the Group had losses available for
offset  against  the future trading profits of certain  of  its
business activities of £19.3 million (1999: £18.8 million).

Amounts transferred from reserves

The  amount  transferred from reserves to cover trading  losses
was £2.1 million down from £3.4 million in the previous year.

Financial Instruments

The  Group's  principal  financial  instruments  comprise  bank
loans,  finance  leases and hire purchase contracts,  cash  and
short  term  deposits.   The main purpose  of  these  financial
instruments  is to finance the Group's operations.   The  Group
has other financial instruments such as trade debtors and trade
creditors, that arise directly from its operations.

Balance sheet and liquidity

Explanations of the most significant movements in  the  balance
sheet during the year are as follows:

Intangible assets

The  carrying value of intangible assets at 31 March  2000  was
£11.8   million  (1999:  £12.4  million).   During   the   year
additional  goodwill  arose  on  the  acquisition  of  Farebase
Limited  resulting in an increase in the value of  goodwill  of
£0.4  million.  A provision for goodwill which arose last  year
in  respect  of  earn out arrangements for the  acquisition  of
Seaforths  of  £0.2  million  was reversed  which  reduced  the
accrued cost of the acquisition and therefore goodwill by  £0.2
million  in the Group's books.  The carrying value of  goodwill
on acquisitions and other intangible assets was further reduced
by  amortisation  in  accordance with  the  Group's  accounting
policies by £0.6 million and £0.2 million respectively.

The  accrual for goodwill arising on the acquisition of  GB  in
relation  to the earn out arrangements remains in the  accounts
at £3.4 million representing the estimate of earn out which may
be  due at the end of the earn out period in August 2000.  This
estimate is based on the actual performance of GB to the end of
March 2000 in conjunction with the forecast performance to  the
end  of the earn out period.  The amount of actual earn out due
at the end of August 2000 will be paid as follows:

*  The  first  35% of any earn out amount due will be  paid  by
   the  issue  of  new  ordinary shares at the  average  market
   price  over  the 28 dealing days preceding the  end  of  the
   earn out period.

*  The  balance of 65% of any earn out amount due will be  paid
   either by the issue of new ordinary shares, the price  being
   determined  in the same way as above, or by the  payment  of
   cash.

The  method  of  payment adopted will be at the option  of  the
board  and  will  be influenced by factors such as  alternative
uses for Group cash.

In  accordance with Financial Reporting Standard (FRS)  7,  the
balance sheet at 31 March 2000 shows that the total amount  due
under  the  earn out will be paid by the issue of new  ordinary
shares.  In order to be consistent this treatment has also been
adopted  for the comparative figures for the year to  31  March
1999.

Debtors

Debtors  at  the year end were £6.8 million (1999: £6  million)
comprising  £6  million of trade debtors and  £0.8  million  of
other debtors.  The level of trade debtors is a function of the
value  of  gross sales for travel services within the Corporate
Travel and Online Services divisions.  The full value of  gross
sales is reflected in trade debtors.

Cash and short term deposits and liquidity

At  31 March 2000 the Group had cash and short term deposits of
£4  million  (1999: £4 million).  The Group also had overdrafts
of  £1.4  million (1999: £1.1 million) giving net cash balances
available  to  the Group of £2.6 million (1999: £2.9  million).
During the year the Group raised £1 million net of costs by way
of  placing to fund the marketing of its TelMe Global Traveller
product.   The principle uses of cash during the year were  the
investment in Group fixed assets of £0.5 million, the repayment
of the capital element of loans of £0.1 million and the payment
of  corporation  tax  in  relation  to  a  pre-acquisition  tax
liability   of  GB  of  £0.1  million.   Operating  activities,
including  the  marketing of TelMe Global  Traveller,  absorbed
£0.9  million  of  cash  in the first  half  of  the  year  but
generated £0.2 million of cash in the second half of  the  year
giving  net  cash consumed by operations for the year  of  £0.7
million.



Richard Law
Group Finance Director


Group profit and loss account
Year ended 31 March 2000


                           Continuing  Acquisitions                 
                     Note  Operations                               
                                2000          2000    2000     1999
                               £'000         £'000   £'000    £'000
Gross Sales                                                        
Customer Information                                               
and Database                                                       
Management                     9,181             -   9,181    6,398
On-line Services               2,197           301   2,498    1,238
Corporate Travel              39,917             -  39,917   24,079
                             -------       ------- -------  -------      
                              51,295           301  51,596   31,715
Turnover                                                           
Customer Information                                               
and Database Management        9,181             -   9,181    6,398
On-line Services               1,005           301   1,306    1,238
Corporate Travel               3,487             -   3,487    2,378
                             -------       ------- -------  -------     
                              13,673           301  13,974   10,014
                                                                   
Cost of sales                 (2,950)          (15) (2,965)  (2,492)
                             -------       ------- -------  -------
                                                                   
Gross profit                  10,723           286  11,009    7,522
                                                                   
Other operating                                                    
expenses (excluding                                                
goodwill amortisation)       (12,303)         (237)(12,540) (10,708)
Goodwill amortisation           (596)          (17)   (613)    (411)
                             -------       ------- -------  -------    
                                                                   
Operating (loss) / profit
Customer Information                                               
and Database Management          745             -     745      383
On-line Services              (1,850)           32  (1,818)  (2,896)
Corporate Travel                (246)            -    (246)    (310)
Central Costs                   (825)            -    (825)    (774)
                             -------       ------- -------  -------
                              (2,176)           32  (2,144)  (3,597)
                                                                   
Loss from interest in                                              
associated undertakings                                  -       (3)
                                                                   
Interest receivable                                                
less payable                                            39      219
                                                   -------  -------
                                                                   
Loss on ordinary                                                   
activities before taxation                          (2,105)  (3,381)
                                                                   
Taxation                                                 -        -
                                                   -------  -------
                                                                   
Loss on ordinary                                                   
activities after taxation                           (2,105)  (3,381)
                                                                   
Dividend                                                 -        -
                                                   -------  -------
                                                                   
Amount transferred                                                 
from reserves                                       (2,105)  (3,381)
                                                   -------  -------
                                                                   
Loss per 2.5p ordinary                                           
share (pence)           2                             (3.0)p   (5.4)p
                                                   -------  -------           
                                                                   
Loss per 2.5p ordinary                                             
share (pence) - diluted                               (3.0)p   (5.4)p
                                                   -------  -------           
    
Adjusted loss per 2.5p                                             
ordinary share (pence) -                                           
before goodwill                                                    
amortisation and                                                   
exceptional items                                     (2.1)p   (3.0)p
                                                   -------  -------

Group balance sheet
As at 31 March 2000

                                                2000       1999
                                               £'000      £'000
                                                               
Fixed assets                                                   
                                                               
Intangible assets                             11,838     12,388
                                                               
Tangible assets                                2,178      2,273
                                             -------    -------              
                                                               
                                              14,016     14,661
                                             -------    -------
                                                               
Current assets                                                 
                                                               
Stocks                                             1         11
                                                               
Debtors                                        6,752      5,996
                                                               
Cash and short term deposits                   4,036      4,033
                                             -------    -------
                                                               
                                              10,789     10,040
                                                               
                                                               
                                                               
Creditors : amount falling due within                          
one year                                      (7,745)    (6,616)
                                             -------    -------               
  
Net current assets                             3,044      3,424
                                             -------    -------               
  
Total assets less current liabilities         17,060     18,085
                                                               
Creditors : amounts falling due after                          
more than one year                              (443)      (743)
                                             -------    -------
                                                               
                                              16,617     17,342
                                             -------    -------               
  
Capital and reserves                                           
                                                               
Called up share capital                        1,805      1,718
                                                               
Share premium account                         31,219     30,294
                                                               
Merger reserve                                 7,757      7,389
                                                               
Shares not yet issued                          3,400      3,400
                                                               
Profit and loss account                      (27,564)   (25,459)
                                             -------    -------               
  
Shareholders funds attributable to                             
equity interests                              16,617     17,342
                                             -------    -------


Group statement of cash flows
Year ended 31 March 2000

                                  2000     2000     1999     1999
                                 £'000    £'000    £'000    £'000
                                                                
                                                                
Net cash outflow from                      (653)           (1,793)
operating activities
                                                                
Returns on investments and                                      
servicing of finance
                                                                
Interest received                 199               390         
                                                                
Interest paid                    (154)             (157)         
                                                                
Interest element of finance                                     
lease rental payments              (6)              (14)
                              -------           -------
                                            39               219
Taxation                                                        
                                                                
Corporation tax paid                       (92)             (237)
                                                                
Capital expenditure                                             
                                                                
Payments to acquire tangible                                    
fixed assets                     (470)             (575)
                                                                
Receipts from the sale of                                       
tangible fixed assets              54               213
                              -------           -------
                                                                
                                         (416)             (362)
Acquisitions and disposals                                      
                                                                
Disposal of associated                                          
undertaking                         -                 2
                                                                
Acquisitions of subsidiary                                      
undertakings                      (42)           (2,557)
                                                                
Net cash / (overdrafts)                                         
acquired with subsidiary                               
undertakings                       29              (194)
                              -------           -------
                                                                
                                          (13)           (2,749)
                                      -------           -------
                                                                
Cash outflow before use of                                      
management of liquid                                            
resources and financing                (1,135)           (4,922)
                                                                
Management of liquid                                            
resources
                                                                
Cash withdrawn from short                                       
term deposits                           1,997             5,714
                                                                
Financing                                                       
                                                                
Proceeds from issue of                                          
ordinary shares                   990
                                                                
Share issue costs                 (10)             (250)         
                                                                
Repayment of capital element                                    
of finance leases                (100)              (60)
                                                                
Repayment of capital element                                    
of loans                          (44)                -
                              -------           -------
                                                                 
                                            836              (310)
                                        -------           -------
                                                                 
Increase in cash                          1,698               482
                                        -------           -------


Notes to the accounts:


1.   Reconciliation of net cash flow to movement in           
     net funds
                                                              
                                               2000       1999
                                               £000      £'000
                                                              
     At the beginning of the period           2,277      8,144
     Finance leases arising on acquisition      (12)      (289)
     Loans arising on acquisition                 -       (406)
     Decrease in debt                           144         60
     Increase in cash                         1,698        482
     Movement in short term deposits with                          
     banks                                   (1,997)    (5,714)
                                            -------    -------
                                                              
     At the end of period                     2,110      2,277
                                            -------    -------
                                                              


2.   Earnings per share has been calculated in accordance  with
     Financial Reporting Standard No. 14 by reference to a loss
     of  £2,105,000  (1999: £3,381,000) and a weighted  average
     number   of   shares   in  issue  of   70,080,556   (1998:
     62,768,440).

3.   The   above  financial  information  does  not  constitute
     statutory  accounts  as  defined in  Section  240  of  the
     Companies  Act  1985.  The financial information  for  the
     year  ended  31  March 2000 has been  extracted  from  the
     statutory  accounts on which an unqualified audit  opinion
     has been issued.  Statutory accounts for the year ended 31
     March  2000  will  be delivered to the  Registrar  in  due
     course.  The comparative financial information is based on
     the  statutory  accounts for the financial year  ended  31
     March  1999.   Those  accounts, upon  which  the  auditors
     issued an unqualified opinion, have been delivered to  the
     Registrar of Companies.