Interim Results

e-district.net PLC
28 September 2001

                      E-DISTRICT.NET PLC INTERIM RESULTS

                     for the half year ended 30 June 2001

*  Launch of premium telephony products to all digital TV partners

*  Launch of new interactive TV advertising initiative for 2001
   Christmas period

*  Partnership with Orange20, the on-line division of Media Campaign
   Services, to market interactive TV advertising  services to leading UK and
   multinational brands

*  Successful upgrade of IT infrastructure to support new pay services
   and advertising products

Frank Lewis, Chairman and Acting Chief Executive said:

'The first six months of this year have been a very challenging period for the
company.  However, having redefined our strategy around the provision of pay
services and advertising products through our carriage arrangements with
digital TV partners, we believe that we now have a foundation from which to
achieve growth and build revenue.'

For further information, please contact:

Graham Prince / Victoria Seaton                        020 7457 2345
Gavin Anderson & Company


Chairman's Review

Since my previous Chairman's Statement of 18 June 2001, the Company has made
significant progress in establishing its interactive TV business strategy.

The Company continues to deliver leading online interactive entertainment and
community services for digital TV, primarily in the UK.  These services
include a range of games, virtual pets, chat rooms and messaging services.

Carriage partners

The Company has developed a substantial UK user base through its carriage
arrangements with major UK digital TV network operators, including Telewest,
NTL and ITV Digital. This is an important step in ensuring that the Company's
forthcoming range of pay-per-play games, subscription chat services and
premium telephony services reach a critical mass of digital TV subscribers.


On the basis of our current carriage arrangements, the Directors estimate that
e-district premium products will be available in over 1 million digital
TV-equipped households in the UK.  The Company is advancing discussions with
key network operators in the UK and Europe and will make further announcements
when appropriate.

Product launches

Since 30 June 2001, the Company has launched a series of premium telephony
products, accessible to viewers of all its digital TV partners.  These include
mobile ring tones and logos, which will shortly be augmented by a range of
competitions, messaging and novelty products.

We expect to launch up to five new pay-per-play games by the end of 2001.  In
this connection, the Company expects to conclude a series of valuable
licensing deals later in the year.  Further announcements will be made when
appropriate.

Advertising

The Company has recently launched its new interactive TV advertising
initiative for the 2001 Christmas period.  Participating advertisers will be
able to deliver interactive TV content alongside their traditional TV
campaigns on a range of digital TV networks at relatively low cost.  The Board
announces that on 31 August 2001, the Company entered into an agency
arrangement with Orange20, the on-line division of Media Campaign Services,
the UK's 3rd largest media independent.  Under the terms of this arrangement,
Orange20 will market e-district's range of interactive TV advertising services
to a range of leading UK and multi-national brands.

IT infrastructure

To ensure the technical quality and robustness of the pay services and
advertising products, and to provide strong systems of control over technology
data and information, the Company has successfully upgraded its IT
infrastructure in the period, spending £307,654 to redesign the platform, and
£181,875 to upgrade platform hardware. In addition to these external costs,
our management and technical personnel have spent substantial time on these
infrastructure and systems developments, ensuring that we have a stronger
foundation on which to launch our new products.

Legal proceedings

Shareholders will recall that the Company has been notified of an
investigation by solicitors, being undertaken on behalf of certain specified
shareholders, concerning the possibility of claims being made in relation to
the events as set out in page 1 of the Chairman's statement of the annual
report and accounts for the year ended 31 December 2000.  The extent of any
claims, which might arise and be successful, is unknown.

Financial irregularities were discovered in February 2001.  A detailed account
of the sequence of events that occurred and their impact is given in the
annual report and accounts for the year ended 31 December 2000. Civil
proceedings by the Company against former Chief Executive Officer, Mr Steven
Laitman continue.  Additionally, the Fraud Squad of the Metropolitan Police is
continuing its investigations into the alleged involvement of Mr Laitman and
others in these financial irregularities.

Conclusion

As a result of all of this, the Company has incurred substantial costs in the
year to date in relation to investigation, legal action and consequent
restructuring in connection with the matters noted.  Your Board is striving to
limit these costs, whilst protecting the interests of shareholders.  Cash
outflows in relation to operating activities remain within budget and the
Company expects to minimise those net outflows as pay services in development,
such as pay-per-play games, are launched in the last quarter of the year.


Frank Lewis
Chairman
28 September 2001

Profit and loss account for the half year to 30 June 2001

                                              Unaudited   Unaudited
                                             Six months  Six months     Audited
                                               ended 30    ended 30
                                              June 2001   June 2000  Year ended
                                                                    31 December
                                      Notes              (restated)        2000
                                                      £           £

Turnover                                          2,183      32,159      39,703

Cost of sales                                 (242,866)    (54,394)   (252,979)

Gross loss                                    (240,683)    (22,235)   (213,276)

Sales and marketing expenses                  (262,308)    (44,917)   (368,557)

Platform and development costs                (592,980)   (139,307)   (391,167)

Other administrative expenses before        (1,203,949)   (708,324) (1,615,462)
exceptional expenses, provision for
NIC and UITF 17 charge

Exceptional expenses                      2   (786,529)           -           -

Reversal of provision/ (Provision)               94,016    (34,551)    (94,016)
for NIC on share options

UITF 17 charge                            1    (42,798)    (71,331)   (156,928)

Total administrative expenses               (2,532,240)   (953,513) (2,257,573)

Total operating expenses                    (2,794,548)   (998,430) (2,626,130)

Operating loss                              (3,035,231) (1,020,665) (2,839,406)

Net interest receivable                         316,701     262,453     646,553

Loss on ordinary activities before          (2,718,530)   (758,212) (2,192,853)
taxation

Tax on loss on ordinary activities                    -           -           -

Loss for the financial period               (2,718,530)   (758,212) (2,192,853)

Loss per 10p share
- basic and diluted                       3      (3.5p)      (1.0p)      (2.9p)

The results for the periods above are derived entirely from continuing
operations.

There is no difference between the loss on ordinary activities before taxation
and the loss for the periods stated above, and their historical cost
equivalents.

Statement of total recognised gains and losses


                                   Unaudited         Unaudited
                            Six months ended  Six months ended          Audited
                                30 June 2001      30 June 2000
                                                                  Year ended 31
                                                    (restated)    December 2000
                                           £                 £                £

Loss for the period              (2,718,530)         (758,212)      (2,192,853)

Total recognised loss            (2,718,530)         (758,212)      (2,192,853)
for the period

Prior year adjustments                     -         (444,656)        (444,656)

Total losses recognised          (2,718,530)       (1,202,868)      (2,637,509)
since last report

Balance sheet as at 30 June 2001


                                                      Unaudited
                                      Unaudited      Six months
                                                  ended 30 June
                                     Six months            2000        Audited
                                  ended 30 June
                                           2001      (restated)  Year ended 31
                                                                 December 2000
                                               £             £               £
                           Note               
                                              
Fixed assets

Intangible assets                        19,335          48,324         33,829

Tangible assets                         896,416         618,560        828,472

                                        915,751         666,884        862,301
Current assets

Debtors                                 641,382         409,348        440,713

Cash at bank and in hand      4       9,961,654      13,820,792     12,598,041

                                     10,603,036      14,230,140     13,038,754

Creditors - Amounts                 (1,449,733)       (768,643)    (1,062,253)
falling due within one
year

Net current assets                    9,153,303      13,461,497     11,976,501

Total assets less current            10,069,054      14,128,381     12,838,802
liabilities

Provisions for liabilities                    -        (34,551)       (94,016)
and charges

Net assets                           10,069,054      14,093,830     12,744,786

Capital and reserves

Called-up share capital               7,675,807       7,675,807      7,675,807

Share premium account                 7,033,171       7,033,171      7,033,171

Capital redemption reserve              455,331         455,331        455,331

Profit and loss account             (5,095,255)     (1,070,479)    (2,419,523)
(deficit)

Equity shareholders' funds    5      10,069,054      14,093,830     12,744,786


Cash flow statement for the half year ended 30 June 2001

                                      Unaudited    Unaudited          Audited
                               Six months ended   Six months    Year ended 31
                                   30 June 2001     ended 30    December 2000
                                                   June 2000
                                                  (restated)
                                              £            £                £
                         Note                             

Continuing activities

Operating loss                      (3,035,231)  (1,020,665)      (2,839,406)

UITF 17 charge                           42,798       71,331          156,928

UITF 25 provision for                  (94,016)       34,551           94,016
National Insurance on
share options

Depreciation charge                     166,004       42,764          180,884

Amortisation of goodwill                 14,495       14,495           28,989

Increase in debtors                   (208,965)    (358,012)        (341,672)

Increase in creditors                   387,478      556,630          851,996

Net cash outflow from               (2,727,437)    (658,906)      (1,868,265)
operating activities

Returns on investments
and servicing of finance

Interest received                       325,113      262,571          618,159

Interest paid                             (116)        (118)            (385)

Net cash inflow from                    324,997      262,453          617,774
returns on investments
and servicing of finance                             

Taxation                                      -            -         (20,682)

Capital expenditure and
financial investments

Purchase of tangible                  (233,947)    (566,409)        (914,440)
fixed assets

Net cash outflow for                  (233,947)    (566,409)        (914,440)
capital expenditure and
financial investment

Net cash outflow before             (2,636,387)    (962,862)      (2,185,613)
management of liquid
resources and financing

Management of liquid
resources

Decrease/ (Increase) in     4         2,604,783 (13,764,411)     (12,474,309)
short term deposits with
banks

Financing

Issue of ordinary share                       -   16,446,547       16,446,547
capital

Expenses of share issue                       -  (1,738,733)      (1,738,733)

Repayment of loan                             -     (14,044)         (14,044)

Net cash inflow from                          -   14,693,770       14,693,770
financing

(Decrease)/increase in      4          (31,604)     (33,503)           33,848
net cash


Cash flow statement for the half year ended 30 June 2001 (continued)


                                                   Unaudited
                                Unaudited   Six months ended
                                                 30 June 2000
                         Six months ended                              Audited
                             30 June 2001         (restated)
                                                                  Year ended 31
                                                                  December 2000

Reconciliation to 
net funds                               £                  £                   £

(Decrease)/increase  in           (31,604)           (33,503)            33,848
net cash

Movement in deposits           (2,604,783)         13,764,411        12,474,309

Borrowings                               -             14,044            14,044

Movement in net funds          (2,636,387)         13,744,952        12,522,201
for the period

Net funds at                    12,598,041             75,840            75,840
commencement of period

Net funds at end of             9,961,654         13,820,792        12,598,041
period


Notes to the financial information for the half year to 30 June 2001

1.                 Basis of preparation


Unless stated otherwise, the interim financial information has been prepared
on the basis of the accounting policies set out in the Company's financial
statements for the year ended 31 December 2000.

The Company operates a scheme whereby certain employees obtain unconditional
share options. In accordance with UITF 17 (Employee Share Schemes), the
Company recognises a charge in the profit and loss account in respect of this
share option scheme. The charge is the difference between the directors'
estimate of the market value of the shares at the date of issue and the option
price. The charge of £42,798 is notional in that there is no underlying
cashflow or other financial liability associated with the charge, nor does it
give rise to a reduction in assets or shareholders' funds.

As indicated in the Chairman's statement, and for the reasons described more
fully in the annual report and accounts for the year ending 31 December 2000,
the financial information for the six months to 30 June 2000 has been
restated.

Results to 30 June 2000

                                                   As originally    As restated
                                                       disclosed
                                                               £              £

Turnover                                               1,038,069         32,159

Cost of sales                                          (349,850)       (54,394)

Gross profit/ (loss)                                     688,219       (22,235)

Provision for NIC on share options                      (41,041)       (34,551)

UITF 17 charge                                          (84,729)       (71,331)

Tax credit on loss on ordinary activities                 20,970              -

Loss for the financial period                           (46,676)      (758,212)

Debtors                                                1,181,076        409,348

Creditors (excluding exceptional receipts)               399,707        347,191

Exceptional receipts                                           -        421,452

The financial information contained in this interim report is unaudited. It
does not constitute statutory accounts as defined in section 240 of the
Companies Act 1985. The restated financial information for the half year to 30
June 2000 is unaudited.  Statutory accounts for the year to 31 December 2000
have been filed with the Registrar of Companies.

Further copies of this report are available from our registered office:
Hillgate House, 26 Old Bailey, London, EC4M 7HW.

Exceptional receipts


A substantial proportion of the monies received by the company' s bankers and
recorded in the company' s records as being from sales agencies was in fact
received from bank accounts linked to Mr S Laitman.  These receipts have been
recorded as exceptional receipts pending the outcome of any related legal
action. Included in creditors at 30 June 2001 was an exceptional receipt of 
£980,615, (30 June 2000: £421,452, 31 December 2000: £558,226)

Going Concern

The Company has been notified of an investigation by solicitors, being
undertaken on behalf of certain specified shareholders, concerning the
possibility of claims being made in relation to the events as set out in page
1 of the Chairman's statement in the annual report and accounts for the year
ending 31 December 2000.  The extent of any claims, which might arise and be
successful, is unknown.  The interim financial information has been prepared
on a going concern basis the validity of which depends on the lack of any
significant, and successful, litigation against the Company which might arise
in respect of the matters referred to above, the outcome of which remains
uncertain.

2                   Exceptional expenses

A full investigation was launched in February 2001 into the financial
irregularities that had been discovered.  Subsequently, proceedings were
launched against Mr S Laitman for damages.  The cost of the investigation,
primarily representing legal costs have resulted in an exceptional expense of
£786,529.

3                   Loss per share

The basic loss per share has been calculated by dividing the net loss for the
period by the weighted average number of 76,758,071 shares in issue during the
six months ended 30 June 2001 (six months ended 30 June 2000:  75,342,969,
year ended 31 December 2000: 76,056,035). The company had no dilutive
potential ordinary shares in any of the periods, and therefore there is no
difference between the loss per ordinary share and the diluted loss per
ordinary share.

4                   Cash and Short Term Deposits

                              Unaudited         Unaudited
                       Six months ended  Six months ended    Audited Year ended
                           30 June 2001      30 June 2000      31 December 2000
                                               (restated)
                                      £                 £                     £

Cash                             92,129            56,381               123,732

Short Term Deposits           9,869,525        13,764,411            12,474,309

Total Cash and Short          9,961,654        13,820,792            12,598,041
Term Deposits

At 30 June 2001, 31 December 2000 and 30 June 2000 the Short Term Deposits
were placed with banks for periods of up to 2 weeks.

5                   Reconciliation of movement in shareholders' funds

                                  Unaudited       Unaudited
                                 Six months      Six months  Audited Year ended
                              ended 30 June   ended 30 June    31 December 2000
                                       2001            2000
                                                 (restated)
                                                                              
                                          £               £                   £

Loss for the period             (2,718,530)       (758,212)         (2,192,853)

New share capital issued                  -      16,446,547          16,446,547

Expenses of share issue                   -     (1,738,733)         (1,738,733)

UITF 17 charge                       42,798          71,331             156,928

Repurchase of deferred                    -             (1)                 (1)
shares

Net (reduction in)/             (2,675,732)      14,020,932          12,671,888
addition to shareholders
funds

Opening shareholders' funds      12,744,786          72,898              72,898

Closing shareholders' funds      10,069,054      14,093,830          12,744,786