Interim Results

MediaZest plc
29 September 2006




                              MediaZest Plc

          Interim results for the six months ended 30 June 2006


                         CHAIRMAN'S STATEMENT


Introduction

The results for MediaZest Plc ('MediaZest', the 'Company', and collectively with
the Subsidiary Companies, the 'Group') reflect the six-month period to 30 June
2006. They incorporate the results of its subsidiaries, all of which are wholly
owned.


Results for the Period

Turnover for the period was £1,325,000 (2005 - £30,000) and the Group made a
loss for the period, after taxation, of £520,000 (2005 - £305,000) after paying
interest of £2,000 (2005 - net interest received £23,000) and having paid
administrative expenses of £1,028,000 (2005 - £334,000). Administrative expenses
included £56,000 of exceptional restructuring costs. The basic and fully diluted
loss per share was 2 pence (2005 - 3 pence). The Group had net cash balances of
£800,000 (2005 - £1,105,000) at the period end.


Overview

The Group has made progress in both operational subsidiaries, MediaZest Ventures
Limited ('MediaZest Ventures') and Touch Vision Limited ('Touch Vision'),
although the first half of the year resulted in a loss. An element of this was
expected due to traditional seasonality within the business, and in the case of
MediaZest Ventures, difficult trading conditions in the retail sector. At the
start of 2006, we implemented a programme of cost containment measures including
a restructuring of the Board of Directors in order to give the business a more
appropriate cost base going forward.


MediaZest Ventures

During the first half of 2006, MediaZest Ventures has continued to build on its
relationships with both media agencies and brand owners. Our work with existing
customers such as Motorola and Chivas continues and we have had success with new
clients such as Candy & Candy, Boots, Nokia, Edeus, Luminar, Sony Ericsson,
Proctor & Gamble, O2, Adidas, and Shell providing innovative displays for their
stores and promotions.

We had an enthusiastic response to our stand at the In-Store Show in Earls Court
during June 2006 displaying a substantial range of our innovative products to a
wide variety of retailers, brand owners and agency creative personnel. As a
result of this and increasing acceptance of creative digital media as part of
the marketing mix, we are experiencing greater levels of business referrals from
the media agencies. We believe this is indicative of a growth in this exciting
new market, although the pace of that growth is slower than previously
anticipated.

The company is in continuing discussions with several major UK retailers and
brand owners regarding long term projects across their retail estates on the
basis of the success of earlier work. We are working with several of our
customers regarding the supply of our products for the Christmas 2006 sales
campaigns and beyond.


Touch Vision

Progress at Touch Vision has been better. Year on year profitability and
turnover have both improved as we head into what will be the busiest period of
the year. After a loss in 2005, we would anticipate that 2006 will show
improvement, and an encouraging turnaround in performance in the first year of
our ownership.

Having won the tender of a three-year framework agreement for the provision of
sales, installation, and maintenance of audiovisual equipment to London South
Bank University and London Metropolitan University in the second quarter of the
year, the Education Division has shown noticeably stronger results in 2006. The
July to September quarter is traditionally our busiest in this market, and 2006
has been no different.

As the Christmas period approaches, orders across our retail clients such as HMV
and the Co-Operative Group have increased. In the Corporate sector, the Company
has been awarded two significant orders commencing in the second half of the
financial year to December 2006 - providing audiovisual solutions for the new UK
headquarters of both Electronic Arts, a major international computer games
manufacturer and Dunnhumby, a leading database manager and analytical services
provider.


Licences and agreements

We continue to add new, exclusive agreements to our portfolio, providing us with
a competitive advantage. Of particular note are Interactive Floor Media,
Shelf-Edge TV, and EPOP Display Systems, which have generated interest amongst
our customers since we introduced them into our offering  at the In-Store Show
in June.


Outlook

Although the results for this period have been disappointing, we believe the
actions we have taken to position the business going forward in terms of cost
base, and the pipeline of well developed opportunities that currently exist,
leave the business with a more positive outlook for the remainder of 2006.


Sean Reel
Chairman
29th September 2006


CONSOLIDATED PROFIT AND LOSS ACCOUNT
                                                                                Unaudited      Unaudited        Audited
                                                                                Half Year      Half Year     Year Ended
                                                                Notes           30-Jun-06      30-Jun-05      31-Dec-05
                                                                                    £'000          £'000          £'000

Turnover                                                                            1,325             30            877

Cost of sales                                                                       (815)           (24)          (486)

Gross profit                                                                          510              6            391

Administrative expenses (including                                                (1,028)          (334)        (1,234)
exceptional item of £56,000 for half year
ended 30 June 2006)

Operating Loss                                                                      (518)          (328)          (843)

Net interest (payable)/receivable                                                     (2)             23            (4)

Loss on ordinary activities before taxation                                         (520)          (305)          (847)

Tax on loss on ordinary activities                                                      -              -              -

Retained loss on ordinary activities after                                          (520)          (305)          (847)
taxation

Loss per ordinary 10p share
          Basic                                                   3                 £0.02          £0.03          £0.06
          Diluted                                                 3                 £0.02          £0.03          £0.06


There are no recognized gains or losses during the current and preceding periods
other than the loss for the periods.


CONSOLIDATED BALANCE SHEET


                                                                                Unaudited      Unaudited        Audited
                                                                                Half Year      Half Year     Year Ended
                                                                                30-Jun-06      30-Jun-05      31-Dec-05
                                                                                    £'000          £'000          £'000
Fixed Assets

Intangible Fixed Assets                                                             2,699            115          2,772
Tangible Assets                                                                        91              8            128

Current assets

Stock                                                                                 219             89            169
Debtors                                                                               999            137            745
Cash at bank (before overdrafts)                                                      963          1,105          1,377
                                                                                    2,181          1,332          2,291

Creditors: Amounts falling due within one                                           (887)          (133)          (587)
year

Net current (liabilities)/assets                                                    1,294          1,199          1,704


Total assets less current liabilities                                               4,084          1,321          4,604

Capital and reserves
Called up share capital                                                             2,283          1,371          2,283
Share premium account                                                               3,211            299          3,211
Profit and loss account                                                           (1,410)          (348)          (890)

Equity shareholders' funds                                                          4,084          1,321          4,604



CONSOLIDATED CASH FLOW STATEMENT
                                                                                Unaudited      Unaudited        Audited
                                                                                Half Year      Half Year     Year Ended
                                                                 Note           30-Jun-06      30-Jun-05      31-Dec-05
                                                                                    £'000          £'000          £'000
Net cash outflow from operating activities                        4                 (402)          (440)        (1,368)

Returns on investments and servicing of
finance
Interest paid or received                                                             (2)             23            (4)
Net cash inflow/(outflow) from returns on                                             (2)             23            (4)
investments
investments and servicing of finance

Taxation
Corporation tax paid                                                                    -              -              -

Capital expenditure and financial
investments
Purchase of tangible fixed assets                                                    (10)            (9)           (35)

Net cash outflow from capital expenditure                                            (10)            (9)           (35)
and
financial investments

Acquisitions
Net cash acquired with subsidiary                                                       -              -            147
undertaking
Acquisition of subsidiary undertaking                                                   -              -          (970)
Net cash outflow for acquisition                                                        -              -          (823)

Financing
Issue of ordinary share capital net of costs                                            -          1,003          2,952
                                                                                        -          1,003          2,952

Increase/(decrease) in cash in the period                                           (414)            577            722




NOTES
     
1.   Basis of preparation

The interim report for the six month period to 30 June 2006 is unaudited and
does not constitute statutory accounts within the meaning of section 240 of the
Companies Act 1985.  It has been prepared under the historical cost convention
and on a basis consistent with the accounting policies for the year ended 31
December 2005.

The financial information relating to the year ended 31 December 2005 has been
extracted from the statutory accounts, which have been filed with the Registrar
of Companies. The auditors report on those financial statements were unqualified
and did not contain a statement under section 237(2) of the Companies Act 1985.
     
2.   Taxation

No charge for corporation tax for the period has been made due to the expected
tax losses available.

3.   Loss per share

Basic loss per share is calculated by dividing the loss attributed to ordinary
shareholders of £520,000 (2005 - £847,000) by the weighted average number of
shares during the period of 22,825,327 (2005 - 14,721,499). The diluted loss per
share is identical to that used for basic loss per share as the exercise of
warrants would have the effect of reducing the loss per share and therefore is
not dilutive under Financial Reporting Standard 22 'Earnings per Share'.
     
4.   Reconciliation of Operating Loss to Net Cash Outflow from Operating 
     Activities

                                                                                Unaudited      Unaudited        Audited
                                                                                Half Year      Half Year     Year Ended
                                                                                30-Jun-06      30-Jun-05      31-Dec-05
                                                                                    £'000          £'000          £'000

Operating loss                                                                      (518)          (328)          (843)
Depreciation of tangible assets                                                        47              2             32
Amortisation of goodwill                                                               73              -             42
Decrease/(increase) in stock                                                         (50)           (89)           (63)
Increase/(decrease) in creditors                                                      300             93          (311)
Decrease/(increase) in debtors                                                      (254)          (118)          (225)

Net cash outflow from operating activities                                          (402)          (440)        (1,368)



Enquiries:

Sean Reel, Chairman & CEO, MediaZest Plc                          020 7724 5680
Geoff Robertson, Group Finance Director, MediaZest Plc            020 7258 9646
Liam Murray, City Financial Associates Limited                    020 7090 7800




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