Final Results

Yoomedia PLC
31 March 2004


Embargoed until 7.00 a.m.

31 March 2004

                                  YooMedia plc

            Preliminary results for the year ended 31 December 2003


  • Turnover increases significantly to £743,150 (2002 - £38,901)
  • Pre-tax losses reduced to £5,378,092 (2002 - £7,037,986)
  • Fancy a Flutter acquired for £1.02 million in YooMedia shares
  • iPublic agrees relationships with Agilisys and ITNet
  • Company to raise further funds to finance growth


YooMedia plc ('YooMedia' and 'the Company') today reported financial results for
the year ended 31 December 2003. Dr Michael Sinclair, executive chairman,
commented: 'In financial terms, these results show that the Company has begun to
generate revenues as we start to move from our development period into a phase
of delivery and execution. We have consolidated our position as the leading
interactive television group in the UK market and are now the only such company
to have a presence on all four digital platforms - Sky, ntl, Telewest and
Freeview.

'Our acquisition of Fancy a Flutter announced today consolidates YooMedia's
position on the biggest interactive TV platform in the UK, Sky. As part of
YooMedia's stable of gaming products, Fancy a Flutter will benefit from
significant cross-promotion from GoPlay TV and Sky Active which will increase
its audiences and revenues.'

'Today's news that we have agreed partnership arrangements with Agilisys and
ITNet is particularly encouraging. It shows that we are making progress in
positioning iPublic to capitalise on the drive to deliver public services via
digital media.'


Chairman's Statement

2003 was a transformative year for YooMedia. We consolidated our position as one
of the leading interactive television groups in the UK, and are now the only
such company to have a presence on all four digital platforms - Sky, ntl,
Telewest and Freeview.

We have also developed important relationships with major broadcasters, such as
the BBC and Turner Broadcasting, establishing YooMedia as a trusted commercial
partner. Indeed, since the year-end, Turner has renewed our exclusive contract
for a further two years - strong evidence of our ability to service substantial
clients.

To crown the year, in December 2003, we agreed to acquire GoPlay TV from
Columbia Pictures, a Sony Pictures Entertainment Company. The transaction, which
completed on 6 January 2004, gave YooMedia a strategically vital place on the
front page of the Sky Interactive main menu and access to over 7 million homes.
Not only did the deal establish us as a significant power in the digital
television games market, Sony took a significant stake in the Company and a
Board position. The acquisition also increased the cash balance of the Group by
£1.0m through a one off working capital injection.

In November we announced a partnership with SportingBet, a leading online
gambling business, to deliver fixed odds gambling games, such as Hi-Lo, to
digital television. We have followed up this initiative since the year-end with
today's acquisition of Fancy a Flutter, the interactive TV gambling channel,
from Rank and NDS. This deal gives the Company a valuable existing customer base
and another strong position on both Sky's Interactive main menu and within Sky
Active, Sky's own interactive portal.

In September 2003 we announced that we were to take Dateline, Britain's
best-known dating agency, on to Sky Active platform, and we duly launched that
service late in January 2004.

Just as we have made significant progress on Sky, we are also moving forward
with cable, and during the year we signed a strategically significant agreement
with ntl:home to distribute our current portfolio of products on its network. We
also acquired a controlling stake in MieTV, which brought with it long-term
distribution on Freeview - the fastest growing digital platform. I am convinced
that these developments have put YooMedia in a tremendous position to capitalise
on the growing appetite for digital interactive television.

In financial terms, the results for 2003 show that the Company has begun to
generate revenues as we start to move from our development period into a phase
of delivery and execution. Nearly all the revenue generated in 2003 came from
our services on Telewest, the smallest of the digital TV platforms, with fewer
than one million homes. As a result of our activities during the year, we are
now distributed in 12 million homes. Group turnover has increased significantly
from £38,901 to £743,150. As we said in our trading statement in January, for
reasons beyond our control, a delay in launching Dateline meant the total
revenue figure was slightly lower than market forecasts. Due to close control of
our costs, this has had little impact on the bottom line, where pre-tax losses
have reduced from £7.0 million for the year ended 31 December 2002 to £5.4
million for the year ended 31 December 2003, broadly in line with market
expectations.

Strong progress has also been made in reshaping the management of the Company to
reflect our growth and to capitalise on the many opportunities opening up. Since
the year-end, David Docherty, who was appointed as a director to spearhead our
drive into the public sector market, has become Group Chief Executive. David is
a media executive of great experience and stature, having previously served in
very senior positions at the BBC and Telewest, and his strategic vision and
management skills are central to driving YooMedia forward.

Our senior management team has been further strengthened by the appointment of
Jonathan Apps as Chief Financial Officer. Jonathan comes with a fine track
record as a former Chief Financial Officer of two publicly quoted companies in
the media and technology sectors.

We also welcomed Leo Noe to the Board as a non-executive director. Leo's wide
business experience will greatly benefit the Company. Since the year-end, Nizar
Allibhoy, has joined the Board to represent Sony's interest in the Company,
adding a deep understanding of the US interactive and mobile marketplace to our
company.

During the year, our entertainment division developed a technology that allows
for synchronous interaction between television and radio programmes and mobile
phones. This patent-protected approach to SMS is marketed under the brand name
Trigger. We ran a successful trial for TriggerTV on Cartoon Network in
September, and since the year-end BBC Radio Five Live has agreed to pilot
TriggerRadio on their popular 606 phone-in programme. We are exploring next
generation mobile technology, such as Java-enabled handsets, to complement this
product.

2003 was also the year in which we set up our public sector arm, iPublic, to
respond to the Government's drive to deliver national and local public services
through digital media. We have already made significant progress. In the second
half of the year, we signed an agreement with Agilisys, which is the preferred
bidder for one of the largest local government IT contracts ever awarded, to
secure interactive TV services as part of that contract. Since the year-end we
have agreed broad-based partnerships with BT and ITNet to develop next
generation interactive government services. We continue to work with the Office
of the Deputy Prime Minister to deliver secure voting in local and regional
elections via interactive television.

To ensure that we are able to continue to develop our business and exploit the
opportunities that we have identified, your Board, after consultation with our
brokers Durlacher, has decided to seek further equity funding. We will update
shareholders when we have finalised the details of the fundraising in due
course.

In summary, I believe we have made remarkable progress in establishing YooMedia
as a leading player in interactive television entertainment, and in developing
innovative mobile and government services. The critical mass we have achieved
and the quality and range of our commercial partners mean we now hold a strong
position in our marketplace. Our task now is to convert that position into the
solid and sustained revenue growth that would make us an increasingly profitable
and valuable business. We have already demonstrated that we can execute and I am
confident that, thanks to the quality and dedication of our extraordinarily
talented and creative team, we can take this business to the next level.


Michael Sinclair
Executive Chairman
30 March 2004


Group profit and loss account for the year ended 31 December 2003

                                                                                 
                                                             Acquisition
                                        Note          2003          2003         Total          2002
                                                         £             £             £             £

Turnover                                           614,616       128,534       743,150        38,901

Cost of sales                                  (1,120,988)     (272,713)   (1,393,701)   (1,133,415)

Gross loss                                       (506,372)     (144,179)     (650,551)   (1,094,514)

Administrative expenses                        (4,428,804)     (279,523)   (4,708,327)   (6,131,791)

Operating loss                                 (4,935,176)     (423,702)   (5,358,878)   (7,226,305)

Interest receivable and similar                                                 40,709       188,319
income

Interest payable and similar                                                  (59,923)             -
charges

Loss on ordinary activities                                                (5,378,092)   (7,037,986)
before taxation

Tax recoverable on ordinary                4                                   528,785             -
activities

Loss on ordinary activities                                                (4,849,307)   (7,037,986)
after taxation

Equity minority interests                                                      227,445             -

Loss for the financial year                                                (4,621,862)   (7,037,986)

Loss per share
- basic and diluted                        5                                   (5.56p)       (9.17p)





Group Balance Sheet as at 31 December 2003

                                               Note                          2003               2002

                                                                                £                  £
Fixed assets

Intangible assets                                                         246,056                  -

Tangible assets                                                           336,136            553,544

                                                                          582,192            553,544
Current assets

Debtors                                                                   700,905            570,007

Cash at bank and in hand                                      6         1,720,349          2,229,688

                                                                        2,421,254          2,799,695

Creditors - amounts falling due within one                            (1,010,616)        (1,586,522)
year

Net current assets                                                      1,410,638          1,213,173

Total assets less current liabilities                                   1,992,830          1,766,717

Provisions for liabilities and charges                                  (154,546)                  -

Minority interests

Equity                                                                     76,301                  -

Net assets                                                              1,914,585          1,766,717

Capital and reserves

Called up share capital                                       7         8,035,007          7,675,807

Share premium account                                         7        11,440,701          7,033,171

Capital redemption reserve                                    7           455,331            455,331

Profit and loss account                                       7      (18,016,454)       (13,397,592)

Equity shareholders' funds                                              1,914,585          1,766,717



Group cash flow statement for the year ended 31 December 2003

                                                            Note            2003               2002
                                                                                £                  £

Net cash outflow from operating activities                    3a      (5,608,981)        (5,659,843)

Returns on investments and servicing of finance

Interest received                                                          35,697            205,964

Interest paid                                                            (59,923)                  -

Net cash (outflow)/inflow from returns on                                (24,226)            205,964
investments and servicing of finance
                                                                                            
Taxation                                                                  528,785             20,682

Capital expenditure and financial investment

Purchase of tangible fixed assets                                       (133,576)          (368,891)

Acquisitions and disposals

Purchase of subsidiary undertaking                                       (44,180)                  -

Net cash received with subsidiary undertaking                               6,109                  -

Net cash outflow from capital expenditure and                           (171,647)          (368,891)
financial investment
                                                                                           
Net cash outflow before management of liquid                          (5,276,069)        (5,802,088)
resources and financing
                                                                                        


Management of liquid resources
(Increase)/Decrease in short-term deposits with               3b      (1,521,018)          7,952,302
banks

Financing

Issue of ordinary share capital                                         2,766,730                  -

Issue of convertible loan notes                                         2,000,000                  -

Net cash inflow from financing                                          4,766,730                  -

(Decrease)/Increase in cash in the year                       3b      (2,030,357)          2,150,214




1) Basis of preparation

The above financial information does not constitute statutory accounts as
defined in section 240 of the Companies Act 1985.  The comparative financial
information is based on the audited statutory accounts for the financial year
ended 31 December 2002.

The directors consider that in preparing the financial information they have
taken into account all information that could reasonably be expected to be
available.

The preliminary announcement was approved by the Board of Directors on 30 March
2004.

The Group financial statements consolidate the financial statements of YooMedia
plc and its subsidiary undertaking drawn up to 31 December each year.

During the year the Company acquired 75% of the issued share capital of MieTV
Limited. MieTV Limited was acquired to extend the number of platforms on which
YooMedia's interactive TV services can be offered. The further acquisition,
after the year-end, of GoPlay TV Limited extended this range enabling the
Company to offer its interactive TV services on all the four main digital TV
platforms within the UK. The agreement to purchase Fancy a Flutter in March 2004
consolidated the Company's position on the Sky platform.

MieTV Limited has been included within the Group financial statements using the
acquisition method of accounting. Accordingly the Group profit and loss account
and statement of cash flows includes the results and cash flows of MieTV Limited
for the 9 month period from its acquisition on 1 April 2003.


2) Going concern

The directors are actively seeking additional funds to finance the continued
development of the Group and its investment in current and future services.  The
additional funds are required to ensure the Group can continue its operations
and to ensure it can continue as a going concern for the foreseeable future.

The directors recognise that there is a fundamental uncertainty related to the
raising of sufficient additional funds and, if necessary, obtaining the
requisite shareholder approval, but are confident of securing sufficient
additional funds to enable the Group to continue trading for the foreseeable
future.  For this reason, the directors have adopted the going concern basis in
the preparation of the financial information.

Consequently, the financial information does not reflect any adjustments that
would be required if sufficient additional funds are not secured by the Group
and the going concern basis of preparation were therefore inappropriate.

The auditors anticipate that their audit report on the 31 December 2003
financial statements will be modified to reflect the fundamental uncertainty
related to the raising of sufficient additional funds, and obtaining, if
necessary, the requisite shareholder approval, but they anticipate that their
opinion will not be qualified in this respect.


3a) Net cash outflow from operating activities

Reconciliation of operating loss to net cash outflow from operating activities:

                                                                    Year ended 31      Year ended 31
                                                                    December 2003      December 2002
Continuing operations                                                           £                  £

Operating loss                                                        (5,358,878)        (7,226,305)

Depreciation charge                                                       350,874            545,243

Amortisation of goodwill                                                    4,620              4,840

UITF 25 provision for National Insurance on share options                 154,546                  -

Loss on disposal of fixed assets                                            3,465              3,424

Increase in debtors                                                     (121,483)          (135,185)

(Decrease)/Increase in creditors                                        (642,125)          1,148,140

Net cash outflow from continuing operations                           (5,608,981)        (5,659,843)



3b) Reconciliation of net cash flow to movement in net funds

                                                                    Year ended 31     Year ended 31
                                                                    December 2003     December 2002
                                                                                £                 £

(Decrease)/Increase in cash in the year                               (2,030,357)         2,150,214

Movement in deposits                                                    1,521,018       (7,952,302)

Movement in net funds in the year                                       (509,339)       (5,802,088)

Net funds at beginning of the year                                      2,229,688         8,031,776

Net funds at end of the year                                            1,720,349         2,229,688



4) Tax on loss on ordinary activities


There was a tax refund of £528,785 (2002 - £nil) in the year relating to the
Research and Development tax credit.

The tax assessed on the loss on ordinary activities for the year differs from
the standard rate of tax of 19% (2002 - 20%). The differences are reconciled
below:

                                                                  Year ended 31        Year ended 31
                                                                  December 2003        December 2002
                                                                              £                    £

Loss on ordinary activities before taxation                         (5,378,092)          (7,037,986)

Loss on ordinary activities multiplied by 19% (2002 - 20%)          (1,021,837)          (1,407,597)

Effect of expenses not deductible for tax purposes                       43,650                3,066

Depreciation in excess of capital allowances                             66,008              109,733

Other timing differences                                                  1,988                    -

Adjustments in respect of previous periods                            (528,785)                    -

Losses not recognised                                                   910,191            1,294,798

Current year tax credit                                               (528,785)                    -


No deferred tax asset has been recognised on the grounds that there is
insufficient evidence at the balance sheet date that it will be recoverable. The
asset would start to become potentially recoverable if, and to the extent that,
the Group were to become profitable.


5) Loss per share

The basic loss per share has been calculated by dividing the net loss of
£4,621,862 for the year (2002 - (£7,037,986)) by the weighted average number of
83,119,331 shares in issue during the year (2002 - 76,758,071). The Company has
potentially dilutive ordinary shares being share options issued to staff.

The diluted loss per share has been calculated in accordance with Financial
Reporting Standard 14: Earnings per share, using 83,119,331 shares in issue
during the year (2002 - 76,758,071). As per Financial Reporting Standard 14:
Earnings per share, the diluted loss per share calculations is without reference
to adjustments in respect of certain share options that are considered to be
anti-dilutive.

The deferred shares are not included in the earnings per share or diluted
earnings per share. These shares have no voting rights and are non-convertible
and therefore do not form part of the ordinary share capital used for the loss
per share calculation as in accordance with Financial Reporting Standard 14:
Earnings per share.



6) Analysis of net funds


                                                        At 1 Jan          Cash flow        At 31 Dec
                                                            2003                                2003
                                                               £                  £                £

Cash at bank and in hand                               2,229,687        (2,030,357)          199,330

Liquid resources                                               1          1,521,018        1,521,019

Total                                                  2,229,688          (509,339)        1,720,349



Liquid resources comprise short-term deposits with banks.



7) Reconciliation of movements in shareholders' funds


                                                                     Year ended 31     Year ended 31
                                                                     December 2003     December 2002
                                                                                £                  £

Loss for the year                                                      (4,621,862)       (7,037,986)

New shares issued                                                        4,766,730                 -

UITF 17 credit                                                               3,000                 -

Net addition to/(reduction in) shareholders' funds                         147,868       (7,037,986)

Opening shareholders' funds                                              1,766,717         8,804,703

Closing shareholders' funds                                              1,914,585         1,766,717




8) Post balance sheet events

On the 6 January 2004 the Company acquired 100% of the share capital of GoPlay
TV Limited. This was for an initial consideration of 12,600,000 1p ordinary
shares of YooMedia plc and a deferred consideration of 5,400,000 1p ordinary
shares. This valued GoPlay TV Limited at £6.4 million. The net assets of GoPlay
TV Ltd at this time were £1.1 million. The initial consideration has given
Columbia Pictures Corporation Limited (the vendor) a 10.0% interest in the share
capital of the Company.

In addition, the Company entered into an exclusive UK licence agreement with
Sony Pictures Digital Inc for two years.  This gave the Company the right to use
certain Sony Pictures Entertainment intellectual properties for interactive
games developed by YooMedia using any interactive television platform in the UK,
for which the Company will pay a licence fee in the second year of £500,000.

On the 30 March 2004 the Company agreed terms to acquire the entire issued share
capital of Fancy a Flutter Limited. This was for a consideration of 2,500,000 1p
ordinary shares of YooMedia plc. This valued Fancy a Flutter at approximately
£1.02 million.


9) Dividends

YooMedia will not be paying a dividend in respect of the year to 31 December
2003 (2002 - £nil). The Board will continue to review the Group's dividend
policy as appropriate.


10) Annual Report

Copies of the 2003 Report and Accounts will be sent to shareholders in due
course. Further copies will be available from the registered office of YooMedia
plc, Northumberland House, 155 - 157 Great Portland Street, London, W1W 6QP.


                      This information is provided by RNS
            The company news service from the London Stock Exchange