Final Results

I2S PLC
29 May 2003


                                    I2S PLC

                          PRELIMINARY RESULTS FOR THE
                            YEAR ENDED 31 MARCH 2003


                              CHAIRMAN'S STATEMENT


The year to 31 March 2003 was characterised by geo-political uncertainty and
highly volatile equity markets. During the year your Directors investigated a
number of opportunities, none of which ultimately resulted in an investment, and
bought back 121,000 I2S shares under the authority given by shareholders. The
bulk of our resources continue to be held in cash.


Financial Results

Turnover for the Group for the twelve months to 31 March 2003 (derived from
monies on deposit) was £153,097 (31 March 2002: £183,571) resulting in a net
loss before tax of £307,130 (2002: £972,368 loss), attributable principally to
non-recurring costs relating to investigations into a potential investment and
provisions against the value of one of our investments.

As before, your Directors are not recommending the payment of a dividend for the
period.

As at 31 March 2003, your Group's portfolio was split as to 11% in unquoted
investments and 89% in cash.

The Group's net asset value per share was 61p as at 31 March 2003.


Portfolio Investments

Sit-up Limited traded strongly through the year and whilst the outbreak of war
in Iraq affected sales to some extent, the company anticipates that more normal
trading patterns will return now that hostilities have come to an end. During
the period the company issued a £5 million convertible loan, at a nominal
pre-money value of £25 million, to Alpine Capital Partners, a US Venture Capital
fund. This compares with the £16 million valuation ascribed to the company in
our balance sheet as at 31 March 2003. The company has now successfully
transitioned its Screenshop channel from being a direct sales business to a
seller of airtime to third party retailers. The company recently announced that
it will launch a falling price auction channel this Summer called
'price-drop.tv'. This channel will be available to almost 10 million homes via
skydigital, ntl:home and Telewest Broadband whilst 'bid-up.tv', Sit-up's main
channel, has become one of only three shopping channels on the Freeview digital
terrestrial TV platform.

IX Imaging secured £2.25 million of new funds in August 2002 and anticipated
concluding a critical larger round by December 2002. However, despite the
management's best efforts over a long period of time, the increasingly uncertain
climate severely hampered their ability to raise the additional money and the
company is now exploring a range of other funding options. Whilst the outcome of
this strategic review is still awaited, your Directors have taken the decision
to write down the value of our holding in IX Imaging from £250,000 to zero.


Corporate Action

During the year and as previously advised, a petition to the Court to approve a
reduction of the share premium account from £3.83 million to nil was approved.

Under the authority given by shareholders, your Group purchased 121,000 of its
own shares during the year for cancellation, costing an average of 36.7p per
share. This brings the total number of shares in issue of your Group to
7,299,000.


Outlook

Your Directors are disappointed that there was little sign of a long awaited
recovery during the year and that the global economic outlook for the year ahead
looks mixed at best. We continue to evaluate investment opportunities in the
unquoted sector at ever more attractive valuations, but are mindful of the
uncertainty and volatility in equity markets and how these valuations impact on
the unquoted sector. Our criteria for new investments will therefore remain
rigorous and demanding.



                                  Neville Buch
                                    Chairman
                                  29 May 2003





CONSOLIDATED PROFIT AND LOSS ACCOUNT
YEAR ENDED 31 MARCH 2003
                                                         2003             2002
                                                            £                £

INTEREST RECEIVABLE AND SIMILAR ITEMS                 153,097          183,571

Administrative expenses     - Recurring              (178,923)        (186,157)
                            - Exceptional          (281, 304)         (887,940)
                                                     ----------       ----------

OPERATING LOSS                                       (307,130)        (890,526)
Loss on disposal of investments                             -          (81,842)
                                                     ----------       ----------

LOSS ON ORDINARY ACTIVITIES
BEFORE TAXATION                                      (307,130)        (972,368)

TAXATION                                                    -            1,815
                                                     ----------       ----------

LOSS FOR THE FINANCIAL YEAR                          (307,130)        (970,553)
                                                     ==========       ==========

LOSS PER SHARE - BASIC                                    4.2p            13.1p



All amounts relate to continuing operations.

There were no recognised gains or losses for the year other than those included
in the profit and loss account.

There was no material difference between the reported result and the result
calculated on an unmodified historical cost basis.





CONSOLIDATED BALANCE SHEET
31 MARCH 2003

                       Notes                     2003                     2002
                                                    £                        £

FIXED ASSETS

Tangible                                          763                    1,321
Investments                                   464,000                  714,000
                                              --------                 --------
                                              464,763                  715,321
CURRENT ASSETS

Debtors                           36,806                    7,833
Cash at bank and in            3,961,060                4,096,459
hand                             --------                 --------
                               3,997,866                4,104,292
                                 --------                 --------
CREDITORS: amounts
falling due within one
year                             (12,658)                 (18,052)
                                 --------                 --------

NET CURRENT ASSETS                          3,985,208                4,086,240
                                              --------                 --------

TOTAL ASSETS LESS CURRENT                   4,449,971                4,801,561
LIABILITIES                                   ========                 ========

CAPITAL AND RESERVES
Called up share                             1,824,750                1,855,000
capital
Share premium                                       -                3,827,925
account
Capital redemption                             30,250                        -
reserve
Profit and loss                             2,594,971                 (881,364)
account                                       --------                 --------

SHAREHOLDERS' FUNDS                         4,449,971                4,801,561
                                              ========                 ========





CONSOLIDATED CASH FLOW STATEMENT
YEAR ENDED 31 MARCH 2003
                                                              2003        2002
                                                                 £           £
Reconciliation of operating loss to net cash outflow
from operating activities
Operating loss                                            (307,130)   (890,526)
Depreciation of tangible fixed assets                          558         570
(Increase)/decrease in debtors                             (11,997)      1,126
Decrease in creditors                                       (5,394)     (6,301)
Provision against value of fixed asset investment          250,000     887,940
Interest receivable                                       (153,097)   (183,571)
                                                          ----------  ----------

Net cash outflow from operating activities                (227,060)   (190,762)
                                                          ==========  ==========

CASH FLOW STATEMENT
Net cash outflow from operating activities                (227,060)   (190,762)
Returns on investments and servicing of finance            136,121     199,906
Taxation                                                         -      (3,185)
Capital expenditure                                              -    (201,751)
                                                          ----------  ----------
                                                           (90,939)   (195,792)
Financing                                                  (44,460)          -
                                                          ----------  ----------
Decrease in cash                                          (135,399)   (195,792)
                                                          ==========  ==========

Reconciliation of cash flow to movement in net funds
Decrease in cash in the year                            (135, 399)    (195,792)
Net funds at 1 April 2002                                4,096,459   4,292,251
                                                          ----------  ----------

Net funds at 31 March 2003                               3,961,060   4,096,459
                                                          ==========  ==========



Notes


1. Financial information set out above does not constitute full
accounts within the meaning of Section 254 of the Companies Act 1985. The
statutory accounts for the period ended 31 March 2002 have been delivered to the
Registrar of Companies and have received an audit report which was unqualified
and did not contain statements under s237(2) or (3) of the Companies Act 1985.


2. The Report and Accounts will be posted to all shareholders on the
register by the end of June 2003 and copies will be available from that date at
the company's registered office:

7th Floor
39 St James's Street
LONDON
W1A 1JD


3. The calculations of loss per share are based on the weighted average
of the issued ordinary shares in the period of 7,386,583 (2002 - 7,420,000)
shares and a loss for the financial year of £307,130 (2002: £970,553).


4. The figures for the period ended 31 March 2003 have been extracted
from the full accounts for the period on which the auditors expect to give an
unqualified report . The full accounts for the year ended 31 March 2003 have not
been delivered to the Registrar of Companies.



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