Interim Results

Internet Music & Media PLC
19 March 2004


                                                 To be embargoed until 1.30pm on
                                                                                
                                                                 19 March, 2004

                           INTERNET MUSIC & MEDIA PLC

                    Interim Results for the six months ended
                                 30th June 2003

Chairman's Statement

I am reporting the interim results for Internet Music & Media Plc for the six
month period ended 30th June 2003.

The results for the period under review show a loss before and after taxation of
£0.658 million. To a large extent these results have been superseded by events.

On 28th March 2003 the Company announced that it had entered into an agreement
with certain investors to provide interim financing. Following this, the
investors provided loans totalling £0.482 million during the period March to
September 2003. Notwithstanding this additional finance, the Company was unable
to stem the losses incurred by its subsidiaries Groovetech LLC, in the USA and
Groovetech Limited, in the UK and in September 2003 these subsidiaries ceased
operations. Administrative receivers were subsequently appointed to Groovetech
Limited. As a result, the Company asked the Stock Exchange to suspend trading in
its ordinary shares on AIM, pending clarification of its financial position.

The investors referred to above, have now agreed to provide a further line of
credit for the Company of £50,000 which the Directors believe will enable it to
continue to trade at least until 31st August, 2004 during which time the
Directors will investigate potential acquisitions. Should agreement be reached
on the terms of any such transaction, existing shareholders are likely to suffer
substantial dilution.

The Company has now requested that trading in its ordinary shares on AIM is
restored with immediate effect.



Nicholas Cowan
Chairman

19 March 2004



Consolidated Profit & Loss Account
For the six months ended 30th June 2003

                                   Note      6 months      6 months       12 months
                                                ended         ended           ended
                                            30th June     30th June   31st December
                                                 2003          2002            2002
                                          (Unaudited)   (Unaudited)       (Audited)
                                                £'000         £'000           £'000

Turnover                                        1,154         1,009           2,074
Cost of sales                                     929           562           1,627
                                             --------      --------        --------
Gross Profit                                      225           447             447

Administrative Expenses                           864           931           2,153
Other operating income                             (1)           (1)              -
                                             --------      --------        --------
Net Operating Loss                               (638)         (483)         (1,706)
Interest receivable                                 -             -               1
Interest payable                                  (20)          (28)            (55)
                                             --------      --------        --------
Loss on Ordinary Activities before
Taxation                                         (658)         (511)         (1,760)
Tax on loss on ordinary activities    3             -             -               -
                                             --------      --------        --------
Loss on Ordinary Activities After
Taxation                                         (658)         (511)         (1,760)
                                             --------      --------        --------
                                                Pence         Pence           Pence
Earnings per Share                    4         (1.85)        (1.44)          (4.96)
                                             --------      --------        --------

Statement of Total Recognised Gains & Losses
For the six months ended 30th June 2003
                                        6 months      6 months       12 months
                                           ended         ended           ended
                                       30th June     30th June   31st December
                                            2003          2002            2002
                                     (Unaudited)   (Unaudited)       (Audited)
                                           £'000         £'000           £'000
Loss for the financial period
attributable to the shareholders of
the parent company                          (658)         (511)         (1,760)
Currency translation differences on
foreign current net investments                3            14            (161)
                                        --------      --------        --------
Total gains and losses recognised
since the last annual report                (655)         (497)         (1,921)
                                        --------      --------        --------



Consolidated Balance Sheet
As at 30th June 2003
                                         30th June     30th June   31st December
                                              2003          2002            2002
                                       (Unaudited)   (Unaudited)       (Audited)
                                             £'000         £'000           £'000
Fixed Assets
Tangible assets                                613         1,130             848
                                          --------      --------        --------
Current Assets
Stocks                                          93           505             232
Debtors                                         96           150              71
Cash at bank and in hand                         -            27               -
                                          --------      --------        --------
                                               189           682             303

Creditors: Amounts falling due within
one year                                     2,624           856           2,320
                                          --------      --------        --------
Net current liabilities                     (2,435)         (174)         (2,017)
                                          --------      --------        --------
Total assets less current liabilities       (1,827)          956          (1,169)

Creditors

Amounts falling after more than a year           -          (700)              -
                                          --------      --------        --------
                                            (1,827)          256          (1,169)
                                          --------      --------        --------
Capital and Reserves
Called up share capital                      3,561         3,561           3,561
Share premium account                       13,451        13,451          13,451
Profit & loss account                      (18,834)      (16,756)        (18,181)
                                          --------      --------        --------
                                            (1,822)          256          (1,169)
Deficiency:                               --------      --------        --------
Equity interest                             (5,028)       (2,950)         (4,375)
Non-equity interest                          3,206         3,206           3,206
                                          --------      --------        --------
                                            (1,822)          256          (1,169)
                                          --------      --------        --------





Consolidated Cash Flow Statement
For the six months ended 30th June 2003

                                 Note      6 months      6 months       12 months
                                              ended         ended           ended
                                          30th June     30th June   31st December
                                               2003          2002            2002
                                        (Unaudited)   (Unaudited)       (Audited)
                                              £'000         £'000           £'000

Net cash inflow/(outflow) from
operating activities                5           734           (24)             21
                                           --------      --------        --------
Return on investments and
servicing of finance
Interest received                                 -             -               1
Interest paid                                   (20)          (28)            (55)
                                           --------      --------        --------
Net cash outflow from returns on
investments and servicing of
finance                                         (20)          (28)            (54)
                                           --------      --------        --------
Capital Expenditure
Payments to acquire fixed assets                 (8)           (2)             (3)
                                           --------      --------        --------
Net cash outflow from capital
expenditure                                      (8)           (2)             (3)
                                           --------      --------        --------
Cash inflow/(outflow) before
financing                                       706           (54)            (36)
                                           --------      --------        --------
Financing
Repayment of bank loans                        (724)            -              24
                                           --------      --------        --------

Net cash (outflow)/inflow from
financing                                      (724)            -              24
                                           --------      --------        --------

Decrease in cash                                (18)          (54)            (12)
                                           --------      --------        --------

Notes to the Interim Results

1.    Basis of Preparation

The results for the six months ended 30th June 2003 are unaudited and have not
been reviewed by the auditors. They have been prepared on accounting bases and
policies that are consistent with those used in the preparation of the financial
statements of the company for the period ended 31st December 2002.

The financial statements contained in this report do not constitute statutory
accounts within the meaning of Section 240 of the Companies Act 1985. The
results for the year ended 31st December 2002 were reported on by the auditors
and received an unqualified audit report. Full accounts for the period ended
31st December 2002 have been delivered to the Registrar of Companies.

2.    Dividends

No dividend is proposed for the period ended 30th June 2003.

3.    Taxation

No taxation is expected to arise on the results for the period.

4.    Loss per Share

The loss per share for the six months ended 30th June 2003 has been calculated
on the basis of the loss after taxation for the period of £0.658 million (2002:
£0.511 million)and the weighted average number of shares in issue during the
period of 35,464,800 (2002: 35,464,800).

5. Net cash outflow from operating activities

                                6 months ended  6 months ended         Period
                                    30th June       30th June           ended
                                         2003            2002   31st December
                                  (Unaudited)     (Unaudited)            2002
                                        £'000           £'000       (Audited)
                                                                        £'000

Operating loss                           (638)           (483)         (1,706)
Depreciation                              248             365             531
Decrease/(Increase) in stocks             139            (207)             66
(Increase)/decrease in debtors            (24)            (18)             60
Increase in creditors                   1,009             305           1,114
Gain on foreign currency
retranslation                               -              14             (44)
on debt
                                     --------        --------        --------
Net cash inflow/(outflow) from
operating                                 734             (24)             21
activities
                                     ========        ========        ========


6. Reconciliation of net cash flow to movement in net debt

                                 1st January        Cash flow        30th June
                                        2003         Movement             2003
                                       £'000            £'000            £'000
Net cash:
Overdraft                                (22)             (19)             (41)

Debt:
Debts due within one year               (724)             724                -
                                    --------         --------         --------
Net Debt                                (746)             705              (41)
                                    ========         ========         ========

7. Copies of the Interim results will be available to members of the public from
the Company's new registered office, 53 Stewarts Grove, London SW3 6PH.




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