1st Quarter Results

InterX PLC
13 November 2001

EMBARGOED UNTIL 07:00 13 NOVEMBER 2001



                                  INTERX PLC

                         First Quarter ('Q1') Results

                     Three months ended 30 September 2001




HIGHLIGHTS

  * Production version of InterX's new product, Net2020, released on
    schedule - 19 September 2001

  * Turnover for Q1 Financial Year 2002 was £0.5m (Q1 2001: £2.0m)

  * Gross profit for Q1 was £0.12m (Q1 2001: £0.07m)

  * Operating loss, before amortisation of goodwill, for Q1 was £3.7m (Q1
    2001: £5.4m)

  * Amortisation of goodwill for Q1 was £10.2m (Q1 2001: £10.2m)

  * Share of associates' operating losses for Q1 was £1.4m (Q1 2001: £1.0m)

  * Profit on part disposal of associate interest of £0.5m

  * Loss for Q1 was £14.4m (Q1 2001: £14.2m)

  * Loss per share, before exceptional items and amortisation of goodwill,
    for Q1 was 14.76p (Q1 2001: 16.72p)

  * Loss per share for Q1 was 45.91p (Q1 2001: 40.75p)

  * Cash at 30 September 2001 was £10.1m (30 June 2001: £17.0m)



Simon Barker, Chief Executive, commented:

'I have always been convinced of the commercial value of our technology.


Our Strategic Review in March 2001 outlined what we needed to do in order to
capitalise upon this value. This work has now been completed after a huge
amount of effort from our employees.

Clearly, there are macro-economic factors beyond our control and we are
continually assessing their potential impact upon the sales process and
decision-making time-scales. However, the quality of the sales prospect list,
enhanced by the level of international recognition for the product already
received, leads me to believe that it is now a matter of when, not if, we will
begin to generate significant licence sales.'

For further information, please contact:

InterX plc                                        020 8817 4000

Simon Barker, Chief Executive

Simon Miesegaes, Finance Director


                                  INTERX PLC

                   ('InterX', the 'Company' or the 'Group')


                                  Q1 Results

                     Three months ended 30 September 2001




                             Chairman's Statement

The Board today announces the Group's results for the three months ended 30
September 2001, the first quarter of our 2002 financial year.


On 19 September 2001 we released, on schedule, the full customer ship version
of our new product, InterX Net2020. Our focus is now on maximising the
significant sales opportunities for Net2020, evidenced by our current direct
and partner sales pipelines.


We are continuing to keep operating costs firmly under control. We will ensure
that such costs are appropriate for each stage of our Group's future
development.


Results


Turnover and gross profit for the three month period ended 30 September 2001
were £0.5m (Q1 2001: £2.0m) and £0.12m (Q1 2001: £0.07m) respectively. The
operating loss before amortisation of goodwill for Q1 was £3.7m (Q1 2001: £
5.4m) and the loss for Q1 was £14.4m (Q1 2001: £14.2m). Loss per share was
45.91p (Q1 2001: 40.75p). Cash at 30 September 2001 was £10.1m (30 June 2001:
£17.0m).


Prospects


Net2020 is unique in its capacity and capability to deliver significant and
prompt return on investment to our customers. We have a product that is
entirely relevant to today's market.


Notwithstanding the fact that the full production version of the product was
only released on 19 September 2001, we are already seeing significant interest
from a number of potential customers, especially global financial services
companies, and certain major international technology and professional
services companies to whose propositions Net2020 can add significant value.


I reiterate what I said in August 2001: I am increasingly confident that
confirmation of our business proposition and significant licence revenue
growth awaits us in this financial year.




Richard Jewson                                   13 November 2001




Chief Executive's Review




Operating Review


InterX Net2020


The first production version of our new Single View Portal product, InterX
Net2020, was released on schedule, on 19 September 2001.


Net2020 meets all of the product principles identified during the March 2001
strategic review:


  * Net2020 plays to the strengths of our unique BladeRunner architecture;


  * Net2020 delivers a first mover advantage;


  * Net2020 is a product that is compelling and relevant to prevailing
    market conditions;


  * Net2020 can be implemented quickly and easily, thus materially reducing
    the initial cost and timescale before a customer gains a business
    advantage;


  * Net2020 adds significant profitability to our technical and professional
    services partner communities, without the requirement for significant new
    investment on their part; and


  * Net2020 does not demand that customers throw away what they already
    have. Indeed, it enhances the capability of their legacy IT investments.


Sales and business development


Since the strategic review in March 2001, we have put the sales and business
development teams in place to deliver our proposition and product to partners
and customers. It is as a direct result of these activities that we currently
have the support of the right partners and a healthy pipeline of potential
customers.


Technical partners


We have now formed alliances with leading global technology companies with
whom we are looking to develop significant joint revenue opportunities.
Amongst these are Sun MicroSystems, BEA Systems, Oracle Corporation and RSA
Security.


Professional services organisations


Net2020 is a product that will be implemented at the customer either by the
customer itself or by certain professional services organisations. We have
introduced a formal Partner Certification Programme to coordinate and foster
these relationships. Professional services organisations with which we are
working to develop sales opportunities include CMG Admiral,
PricewaterhouseCoopers, Valtech, Integris and Cap Gemini Ernst & Young.


International credibility


For any software product to achieve success it is imperative that it wins
acceptance and validation from the international IT community. We have made
substantial progress in this area. Apart from the multinational nature of many
of our partners and prospective customers, in the last few weeks we have won
recognition on two fronts:


  * On 22 October 2001, in San Jose, California, BEA Systems, Inc.,
    announced InterX's involvement as a partner to its new global 'BEA Portal
    Star Solution Initiative'. InterX was one of only three UK companies to be
    included in the Initiative's initial global partner list; and


  * On 24 October 2001, at Gartner's Application Integration and Web
    Services Conference held in Baltimore, USA, Net2020 was identified as a
    leading example of enterprise software which unifies the customer's view
    across multiple communication channels, based upon the www.morethan.com
    website, the UK online retail offering from Royal and SunAlliance plc
    which utilises Net2020.




Financial Review


Profit and loss account


Turnover in Q1 was some £521,000, of which £150,000 related to licence
revenue. The balance represents a combination of support and maintenance
income, together with consulting work in respect of our existing customers.


The gross loss on services of £28,000 is significantly reduced when compared
to Q1 in the last financial period (Q1 2001: £629,000), reflecting the fact
that we have continued to control and reduce costs. All of our loss-making
services contracts have now been terminated.


Overheads continue to be tightly monitored, which is reflected in sales and
marketing and general and administrative costs being significantly lower in
this quarter year on year. Research and development costs have almost doubled
this quarter reflecting the significant additional investment we have made in
bringing Net2020 to commercial availability.


General and administrative costs include some £650,000 in respect of office
costs. We continue to review our costs in this area to ensure they reflect the
ongoing requirements of the business. Accordingly, the board has decided to
place the Company's current offices on the market with a view to moving to
smaller, more appropriate, premises. This should, in addition, free up the £
5.4m rent deposit on our building at 27 West, which is currently shown as the
Debtors (due after one year) figure on our balance sheet.


The average monthly burn rate of £1.2m, net of interest, is consistent with
the previous quarter, and includes the necessary uplift in research and
development expenditure prior to the September launch of the Net2020 product.


Amortisation of goodwill remains unchanged from previous quarters, reflecting
our policy of amortising it over five years.


Interest payable reflects our share of interest payable by Diligenti Limited
('Diligenti') our associated company.


On 18 September 2001 we disposed of half of our 25% holding in
ComputerWeekly.com ('CW.com'), generating a profit of £465,000, reflecting the
net write-back of our share of unrealised associated losses. CW.com was
accounted for as an associated company until the disposal of our stake;
thereafter, it is to be accounted for as a trade investment.

Balance sheet and cash flow


Debtors at 30 September 2001 increased in the quarter by £1.1 million,
reflecting an increase of £2.4 million in respect of monies advanced to
Diligenti and a decrease in trade and other debtors of £1.3 million.


In relation to the cash outflow before financing for the quarter of £6.8
million, some £2.5 million was in respect of the Diligenti loan and InterX's
capital expenditure. The operating cash outflow of £4.6m includes an adverse
working capital movement of some £1.3 million primarily associated with the
termination and settlement of the previous period's loss making contracts. The
losses were provided for in full in the last period's financial statements.


InterX Partners Limited ('IXP')


IXP is a wholly owned subsidiary of InterX and manages the Company's
investments in Diligenti, CW.com and Electronic Intelligence Limited ('EPI').


Diligenti - Diligenti, through its trading businesses, Diligenti Healthcare,
Inc. and Exemplar, Inc., has continued to win new business in the USA with
major international companies. Although the recent events in the USA have
impacted its anticipated seasonal increase in business, Diligenti has reacted
quickly through the implementation of significant cost saving measures
throughout the Diligenti group.


Additionally, negotiations continue with third parties regarding the third
round of funding which is required in the near future for operational growth
and repayment of thr InterX loan.


The Board continues to review on a regular basis the valuation of its
investment and the timing of the repayment of the loan.


CW.com - IXP completed the part disposal of InterX's interest in CW.com to
Reed Business Information ('RBI') on 18 September 2001. At the same time, the
joint venture between InterX, RBI and CW.com was terminated and staff,
computer assets and intellectual property owned by EPI were transferred to
RBI. The agreement also includes specific terms regarding the future value of
InterX's remaining shareholding in CW.com, if acquired by RBI. The result of
this part disposal is the reduction of InterX's interest in CW.com from 25.0%
to 12.5%.


EPI - EPI's loss-making joint venture obligations have been terminated. In the
future, it is expected that EPI will have no trading activities or
liabilities.


Conclusion


I have always been convinced of the commercial value of our technology.


Our Strategic Review in March 2001 outlined what we needed to do in order to
capitalise upon this value. This work has now been completed after a huge
amount of effort from our employees.

Clearly, there are macro-economic factors beyond our control and we are
continually assessing their potential impact upon the sales process and
decision-making time-scales. However, the quality of the sales prospect list,
enhanced by the level of international recognition for the product already
received, leads me to believe that it is now a matter of when, not if, we will
begin to generate significant licence sales.


Simon Barker

                                                              13 November 2001


INTERX PLC
Group Profit and Loss Account

for the three months ended 30 September 2001

(2001: three months ended 5 November 2000; eleven months ended 30 June 2001)

                       Notes   3 months ended 30   3 months ended 5   11 months
                                  September 2001      November 2000    ended 30
                                     (unaudited)        (unaudited)        June

                                                                           2001
                                                                      (audited)
                                           £'000              £'000       £'000
Turnover
Product licences                             150                700       1,163
Services                                     371              1,301       4,428
                           2                 521              2,001       5,591
Cost of sales
Product licences                               -                  -        (65)
Services                                   (399)            (1,930)     (9,015)
                                           (399)            (1,930)     (9,080)
Gross profit/(loss)
Product licences                             150                700       1,098
Services                                    (28)              (629)     (4,587)
                           2                 122                 71     (3,489)

Overheads
Distribution costs
- Sales and marketing                      (880)            (1,197)     (4,258)

Administrative
expenses
- Research and                           (1,124)              (647)     (2,834)
development
- Other general and                      (1,825)            (3,566)     (9,861)
administrative costs

Exceptional items and
amortisation of
goodwill
- InterX restructuring     3                   -                  -     (1,596)
- Gain on sale of          3                   -                  -         308
investment in own
shares
- National Insurance       3                   -               (89)           -
on share options
- Amortisation of                       (10,207)           (10,207)    (37,425)
goodwill
                                        (13,156)           (14,509)    (51,408)
                                        (14,036)           (15,706)    (55,666)

Operating loss before                    (3,707)            (5,428)    (21,730)
amortisation of
goodwill
- Amortisation of                       (10,207)           (10,207)    (37,425)
goodwill

Operating loss             2            (13,914)           (15,635)    (59,155)

Share of associates'                     (1,440)              (984)     (4,987)
operating losses

Profit on sale of          4                   -              1,905       1,905
fixed assets

Profit on part             4                 465                  -           -
disposal of associate

Loss on ordinary                        (14,889)           (14,714)    (62,237)
activities before
interest and taxation

Interest receivable                          506                485       2,123
Interest payable                           (161)                (1)       (464)

Loss on ordinary                        (14,544)           (14,230)    (60,578)
activities before
taxation

Tax on loss on             5                   -                  -           -
ordinary activities

Loss on ordinary                        (14,544)           (14,230)    (60,578)
activities after
taxation

Share of associates'                         186                  -         506
minority interests

Loss for the financial     7            (14,358)           (14,230)    (60,072)
period


Turnover, gross profit/(loss) and operating loss for this period and the
comparative periods arose from continuing operations.


INTERX PLC
Group Profit and Loss Account (continued)

for the three months ended 30 September 2001

(2001: three months ended 5 November 2000; eleven months ended 30 June 2001)

                         Note     3 months ended   3 months ended 5   11 months
                                    30 September      November 2000    ended 30
                                2001 (unaudited)        (unaudited)        June

                                                                           2001
                                                                      (audited)

Basic and diluted loss      6           (45.91p)           (40.75p)   (189.90p)
per share

Less : exceptional items
and amortisation of
goodwill

- InterX restructuring                         -                  -       5.05p
- Gain on sale of                              -                  -     (0.97p)
investment in own shares
- National Insurance on                        -              0.25p           -
share options
- Amortisation of                         32.64p             29.23p     118.31p
goodwill
- Profit on sale of                            -            (5.45p)     (6.02p)
fixed assets
- Profit on part                         (1.49p)                  -           -
disposal of associate

Loss per share before
exceptional items and                   (14.76p)           (16.72p)    (73.53p)
amortisation of goodwill



Group Statement of Total Recognised Gains and Losses

for the three months ended 30 September 2001

(2001: three months ended 5 November 2000; eleven months ended 30 June 2001)
                                           £'000             £'000        £'000
Loss for the financial
period
Group                                   (12,947)          (13,246)     (55,203)
Share of associates                      (1,411)             (984)      (4,869)
                                        (14,358)          (14,230)     (60,072)

Deemed disposal of part of
interest in associates
Group                                          -                 -        3,422
Share of associate                             -                 -         (25)
                                               -                 -        3,397

Loss on foreign currency
translation
Share of associate                            17                 -        (390)
                                              17                 -        3,007

Total recognised gains and
losses relating to the period           (14,341)          (14,230)     (57,065)




INTERX PLC
Group Balance Sheet
at 30 September 2001

(2001: at 30 June 2001)

                                                    At 30 September       At 30
                                                               2001
                                                                           June

                                                                           2001
                                            Note        (unaudited)   (audited)
                                                              £'000       £'000
Fixed assets
Goodwill                                                    142,894     153,101
Intangible assets                                               377         349
Tangible assets                                               4,474       5,060
Investments                                                   2,081       3,319
                                                            149,826     161,829

Current assets
Debtors
- due within one year                                        19,140      18,016
- due after one year                                          5,423       5,423
Cash at bank, in hand and term deposits                      10,117      16,975
                                                             34,680      40,414

Creditors: amounts falling due within one                   (8,604)    (11,214)
year

Net current assets                                           26,076      29,200

Total assets less current liabilities                       175,902     191,029

Creditors: amounts falling due after more                      (26)        (35)
than one year

Provisions for liabilities and charges                        (108)       (885)

Net assets                                                  175,768     190,109

Capital and reserves
Called up share capital                                       1,750       1,750
Share premium account                                        55,799      55,799
Capital redemption reserve                                       31          31
Other reserves                                              201,917     201,917
Profit and loss account                                    (83,729)    (69,388)

Equity shareholders' funds                     7            175,768     190,109




INTERX PLC
Group Cash Flow Statement

for the three months ended 30 September 2001

(2001: three months ended 5 November 2000: eleven months ended 30 June 2001)

                                   3 months ended    3 months ended   11 months
                                     30 September   5 November 2000    ended 30
                                             2001       (unaudited)        June
                                      (unaudited)
                                                                           2001
                                                                      (audited)

                          Notes
                                            £'000             £'000       £'000

Net cash outflow from         8           (4,660)           (5,467)    (16,854)
operating activities

Returns on investments
and servicing of finance
Interest received                             356               474       1,151
Interest paid                                 (4)               (1)         (8)
Net cash inflow from
returns on investments                        352               473       1,143
and servicing of finance

Taxation                                        -                 -          41

Capital expenditure and
financial investment
Purchase of intangible                       (92)                 -       (248)
fixed assets
Purchase of tangible                         (72)           (1,551)     (4,414)
fixed assets
Sale of tangible fixed                          -            16,000      16,246
assets
Loan to associate                         (2,377)           (9,856)    (13,640)
Net cash (outflow)/inflow
for capital expenditure                   (2,541)             4,593     (2,056)
and financial investment

Acquisitions and
disposals
Acquisition of subsidiary                       -                 -       (200)
undertaking
Disposal of subsidiary                          -                 -           8
undertaking
Net cash outflow from                           -                 -       (192)
acquisitions and
disposals

Net cash outflow before
management of liquid                      (6,849)             (401)    (17,918)
resources and financing

Management of liquid
resources
Cash placed on term                       (8,654)                 -    (73,758)
deposits
Term deposits matured                      23,904                 -      58,508
Net cash inflow/(outflow)
from management of liquid                  15,250                 -    (15,250)
resources

Financing
Issue of ordinary share                         -               300         422
capital
Capital element of                            (9)               (5)        (33)
finance lease rental
payments
Net cash (outflow)/inflow                     (9)               295         389
from financing

Increase/(decrease) in                      8,392             (106)    (32,779)
cash in the period


Reconciliation of net cash flow
to movement in net funds

Increase/(decrease) in                      8,392             (106)    (32,779)
cash in the period

Net cash outflow from                           9                 5          33
decrease in debt

Net cash (inflow)/outflow
from (decrease)/increase                 (15,250)                 -      15,250
in liquid resources

Change in net funds                       (6,849)             (101)    (17,496)
resulting from cash flows

Net funds at start of         9            16,905            34,401      34,401
period

Net funds at end of           9            10,056            34,300      16,905
period




INTERX PLC
Notes to the Financial Statements

for the three months ended 30 September 2001

(2001: three months ended 5 November 2000; eleven months ended 30 June 2001)

1. Basis of
   preparation

   The comparative figures for the period ended 30 June 2001 have been
   extracted from the Group's statutory accounts to that date; these received
   an unqualified audit report, did not contain a statement under section 237
   (2) or 237(3) of the Companies Act 1985 and have been filed with the
   Registrar of Companies. This interim statement, which is unaudited and does
   not constitute statutory accounts, has been prepared on the basis of the
   accounting policies laid down in those statutory accounts. The accounting
   policies adopted in respect of the period are consistent with those of the
   previous period.

2  Segmental
   information

   During the period the Group operated only in one business segment, namely
   technology. Turnover, gross profit/(loss) and operating losses for the
   periods related entirely to operations in the UK.

3. Exceptional items reported before operating loss

   The InterX restructuring costs in the previous period arose from redundancy
   programmes which were implemented.

   The gain on sale of investment in own shares in the previous period resulted
   from the sale of shares under option in the InterX Technology Employee
   Benefit Trust.

   The National Insurance on share options in the three month period ended 5
   November 2000 related to a provision required to cover National Insurance on
   the excess of the market value over the exercise price of share options
   granted. This provision was reversed in the following quarter as it was no
   longer required.

4. Exceptional items reported after operating loss

   The profit on sale of fixed assets relates to the disposal, in October 2000,
   to the new owners of Ideal, of two properties occupied by Ideal.

   The profit on the part disposal of the stake in an associate relates to the
   disposal of 12.5% in ComputerWeekly.com Limited during September 2001.

5. Taxation

   There is no taxation charge or credit for the period.

6. Loss per share

   The loss per share is calculated by reference to the following losses and
   numbers of shares:
                               3 months ended 30 3 months ended 5   11 months
                                  September 2001    November 2000    ended 30
                                     (unaudited)      (unaudited)        June

                                                                         2001
                                                                    (audited)
                                           £'000            £'000       £'000
   Loss for the
   financial period

   After exceptional items and          (14,358)         (14,230)    (60,072)
   amortisation of goodwill
   Exceptional items and
   amortisation of goodwill -              9,742            8,391      36,808
   gross amount

   (no taxation impact)
   Before exceptional items              (4,616)          (5,839)    (23,264)
   and amortisation of
   goodwill

                                   No. of shares    No. of shares      No. of
                                                                       shares
   Weighted average number of
   shares

   Weighted average ordinary          34,999,181       34,924,226  34,977,215
   shares in issue during
   period
   Weighted average ordinary
   shares held by Group's            (3,726,737)                - (3,344,487)
   employee benefit trusts
   For basic and diluted loss         31,272,444       34,924,226  31,632,728
   per share



INTERX PLC
Notes to the Financial Statements (continued)

for the three months ended 30 September 2001

(2001: three months ended 5 November 2000: eleven months ended 30 June 2001)

7. Share capital and
   reserves

   Movements in share capital and reserves were as
   follows:
                                           Capital            Profit
                          Share   Share redemption    Other and loss
                        capital premium    reserve reserves  account
                                                                        Total
                          £'000   £'000      £'000    £'000    £'000    £'000

   At 1 July 2001         1,750  55,799         31  201,917 (69,388)  190,109

   Loss for the period        -       -          -        - (14,358) (14,358)
   Other recognised           -       -          -        -       17       17
   gains and losses

   At 30 September 2001   1,750  55,799         31  201,917 (83,729)  175,768


8. Reconciliation of operating loss to net cash flow from operating
   activities

                                             3 months    3 months   11 months
                                             ended 30     ended 5    ended 30
                                            September    November        June
                                                 2001        2000
                                          (unaudited) (unaudited)        2001
                                                                    (audited)
                                                £'000       £'000       £'000

   Operating loss                            (13,914)    (15,635)    (59,155)
   Depreciation charges                           325         420       1,105
   Amortisation of                             10,207      10,207      37,425
   goodwill
   Amortisation of intangible fixed                44          29         112
   assets
   Write down of investment in own shares          17           -           -
   Elimination of share of sale to                  -           -         102
   associated undertaking
   (Profit)/loss on disposal of                   (5)           -          70
   fixed assets
                                              (3,326)     (4,979)    (20,341)
   Decrease/(increase)                          1,326     (2,450)       (835)
   in debtors
   (Decrease)/increase                        (2,660)       1,962       4,322
   in creditors
   Net cash outflow from operating            (4,660)     (5,467)    (16,854)
   activities


9. Analysis of net
   funds

                                                 At 1                   At 30
                                                                    September
                                                 July                    2001
                                                                  (unaudited)
                                                 2001
                                            (audited)   Cash flow
                                                £'000       £'000       £'000

   Cash at bank and in                          1,725       8,392      10,117
   hand
   Term deposits                               15,250    (15,250)           -
                                               16,975     (6,858)      10,117

   Finance leases                                (70)           9        (61)

   Total net funds                             16,905     (6,849)      10,056

   This report will be available on the Company's website at www.interx.com.