Interim Results

I2S PLC
6 December 2001


                                   I2S plc


                               Interim Results

                  For the six months ended 30 September 2001



Chairman's Statement

The six month period to 30 September 2001 saw fears of an economic slowdown in
America, Europe and elsewhere become reality.  The shocking events of 11
September exacerbated what was already a precarious position.  I2S managed to
avoid the worst effects of this extreme volatility by maintaining a prudent
approach to costs and cash and made one new investment during the period.



Financial Results

Turnover for the Group for the six months to 30 September 2001 (derived from
monies on deposit) was £100,079 (30 September 2000 £128,971) resulting in a
net loss before tax for the Group of £30,659 (£48,410 profit).  Your directors
are not recommending the payment of a dividend for the period.

As at 30 September 2001, your Group's portfolio was split into 4% quoted
investments at market value, 28% in unquoted investments and 68% in cash.

The Group's net asset value per share was 76.3p as at 30 September 2001 - a
fall of 1.9% since 31 March 2001, compared with declines of 18.6% for the
NASDAQ composite and 28.4% for the Techmark All-Share indexes over the same
six month period.



New Investments

In the first half of this year your Group invested £500,000 in iX imaging Plc
(www.iximaging.com) for a 3.5% equity shareholding.  iX imaging has developed
a 'camera on a chip' capable of capturing and digitising x-ray and gamma-ray
information.  This technological development has significant potential for the
medical and dental imaging sectors as well as makers of in-line and
non-destructive testing equipment for electronic components and industrial
materials.  The most obvious benefits include reduced cost of consumables
(film, processing), lower radiation, real-time analysis of images and cheaper
storage and distribution as a digital file.  iX imaging has appointed senior
advisors to coordinate its next round of funding and is about to embark on an
institutional roadshow.  The new funds will enable iX to begin the
implementation process following a highly successful customer evaluation phase.



Portfolio Investments

Sit-up Limited's main channel, bid-up.tv, is now reporting gross sales in
excess of £100,000 per day and recently secured a deal with NTL Digital
opening its channels to an extra 1.25 million homes on top of existing
distribution via Sky Digital, Telewest and its web site (www.bid-up.tv).
Sit-up is currently giving presentations to existing and potential investors
for its next round of funding.

Your Group holds 2,000,000 shares in i-Onyx Ltd. (as at 4 December 2001), a
Hong Kong based technology and investment fund, having disposed of 1,050,000
shares since the period end for a net total of £85,360 (representing a loss of
£1,254 against original cost price). i-Onyx recently announced details of a
share repurchase plan effectively offering HK$0.98 per share for up to 83% of
the shares in issue.  This represents a premium of 15.3% to the closing market
price as at 19 November 2001 and a premium of 7.1% to I2S' original cost based
on currency rates as at 4 December 2001.

Since writing down to zero our investment in Eighteen Global in our full year
Accounts, that company failed to complete a re-financing package and
subsequently filed for Chapter 7 bankruptcy.

Your Directors were disappointed by the continued poor performance of
Getmapping.com's share price and elected to crystallise the loss already
reflected in the full year Accounts by selling 225,000 shares during the
period (reflected in the half-year results as a loss of £3,693) and 25,000
shortly after for a rounded total of £45,000.

It is your Group's policy to value unquoted investments at cost (provided
there has been no permanent diminution in value) and quoted investments at
mid-market price on the last trading day of a relevant period.


Asset            Number of Shares   Price at 30.9.01   Value at 30.9.01 (£'000)

Cash                             -                 -                      3,829
i-Onyx                   3,050,000          HK $0.85                        226
Getmapping.com              25,000             £0.20                          5
Sit-up                     248,869             £4.43                      1,102
iX imaging               2,000,000             £0.25                        500
18 Global                9,090,910                £0                         £0

Total                                                                     5,662



(Note: sale of 25,000 GMP after 30.09.01 gave net proceeds of £3,500 and sale
of 1,050,000 i-Onyx after 30.9.01 gave net proceeds of £85,360 bringing
rounded Cash to £3.917m and Total to £5.746m)



Outlook

Despite poor economic news and the events of 11 September, there has been a
rise in the share prices of many internet, technology and media companies.  If
this trend continues it will, in due course, affect values in the unquoted
technology sectors in which I2S invests.  More importantly, it will create an
environment in which we can realise our investments, at attractive prices,
either by trade sale or flotation.

As a result of events over the past two years and the collapse of many quoted
technology investment companies, I2S is one of the few vehicles offering
investors exposure to pre-IPO or trade sale opportunities in the TMT sector.
We believe this, combined with recovering values, positions us to benefit from
the opportunities available and leads us to view the future with more
confidence.


PROFIT AND LOSS ACCOUNT

(unaudited and unreviewed for the period ended 30th September 2001)

                                                    Half-year        Half-year
                                                        ended            ended
                                                  30 Sep 2001      30 Sep 2000
                                                            £                £

Interest receivable and similar items                 100,079          128,971

Administration expenses - recurring                 (101,619)         (57,389)
                                         -                  -         (23,158)
exceptional

Operating (loss)/profit                               (1,540)           48,424

Loss on revaluation of investment                    (25,426)                -
Loss on disposal of investments                       (3,693)                -

                                                     (30,659)
Interest payable                                            -             (13)


(Loss)/profit on ordinary activities before          (30,659)           48,410
taxation

Taxation                                                    -          (9,682)

(Loss)/profit for the half year                      (30,659)           38,728

(Loss)/earnings per ordinary share                    (0.41)p           0.522p

Net dividends per ordinary share                           -p               -p



Note:

Earnings per ordinary share is based on the weighted average number of shares
in issue during the period of 7,420,000.





STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES


(Loss)/profit for the financial period                      (30,659)     38,728

Unrealised (deficit)/surplus on revaluation of investments  (78,508)     17,571

Total recognised gains and losses relating to the half     (109,167)     56,299
year



GROUP BALANCE SHEET

As at 30 September 2001


                                                                      £

FIXED ASSETS
Tangible                                                                  1,656
Investments                                                           1,833,097
                                                                      1,834,753
CURRENT ASSETS
Debtors                                                                  26,300
Deposits and cash                                                     3,828,638

                                                                      3,854,938

CREDITORS: amounts falling due within one year                         (26,744)

NET CURRENT ASSETS                                                    3,828,194

TOTAL ASSETS                                                          5,662,947


CAPITAL AND RESERVES
Called up share capital                                               1,855,000
Share Premium                                                         3,827,925
Retained profit                                                        (19,978)


                                                                      5,662,947

NET ASSET VALUE PER SHARE                                                 76.3p