Interim Results

Yoomedia PLC
18 September 2003

                           YooMedia plc ('YooMedia')

              Interim report for the Six Months Ended 30 June 2003

YooMedia, the digital tv and wireless entertainment group, today announces its
interim results for the six months to 30 June 2003.

Highlights:

  • First significant interactive revenues of £0.4 million in the six months
    to 30 June 2003
  • Cost base has been contained within anticipated levels
  • Acquisition of 33% of MIETV and launched the first ever games channel on
    Freeview
  • Agreement with ntl:Home to distribute all YooMedia products including
    Cartoon Network and Dateline
  • Concluded deal with Sky to launch Dateline
  • Agreement with Turner Broadcasting to trial Trigger TV
  • Appointment of David Docherty to the Executive Board and as CEO of
    YooPublica to focus on e-government opportunities
  • Board was further strengthened by the appointment of Leo Noe as a
    non-executive director.

Commenting on the results, Dr Michael Sinclair, executive chairman, said:

'We have delivered encouraging revenue growth in the first six months of 2003.
The cost base has been contained within anticipated levels without prejudicing
our ability to pursue a number of new business opportunities. We have won
additional significant and ground-breaking contracts and have continued to
deliver and launch products onto digital television and mobile telephone
networks. I believe that the prospects for the Group are excellent and that
revenues will continue to grow in line with expectations.'

Set out below are YooMedia's interim results for the six months to 30 June 2003,
a copy of which will be despatched to shareholders in due course. Further copies
are available from today and for the following month, free of charge, from the
Company's registered office Northumberland House, 155-157 Great Portland Street,
London, W1W 6QP.

Further enquiries:

YooMedia plc
Andrew Fearon, Chief Operating Officer                    020 7462 0870
[e-mail]

Public Relations
John Murray                                               020 7553 6559
[e-mail]


'Chairman's review

These results demonstrate the excellent progress the Group has made in the first
half of 2003.

We have delivered encouraging revenue growth in the first six months of 2003.
The cost base has been contained within anticipated levels without prejudicing
our ability to pursue a number of new business opportunities.  Revenues in the
first six months of 2003 were £367,999 (year ended 31 December 2002: £38,901).
We are predicting a continued growth in revenues for the second half of 2003.

During the year David Docherty became a full time executive director of the
Company in order to coordinate our drive into the public sector.  David was
appointed CEO of YooPublica Limited, a wholly owned subsidiary of the Company
and we hope to be in a position to announce further developments in this area in
the near future.  I believe that there are significant opportunities for the
Group to provide user interface and technology solutions covering interactive
tv, the mobile and the internet to Local Authorities, NHS, NHS Direct and
Central Government.

The board was further strengthened by the appointment of Leo Noe as a
non-executive director.  Leo is a partner in REIT Asset Management, a specialist
investment finance and asset management organisation.

Commercially we have won additional significant and ground-breaking contracts
and have continued to deliver and launch products onto digital television and
mobile telephone networks as follows:

-         We have invested in and launched the first ever games channel on
Freeview called Free2Play and have secured the right to run pay to play games on
the platform.  The strategic value of this deployment cannot be underestimated
as we believe that Freeview will rapidly become a significant alternative to
BSkyB.  The distribution deal concluded between MieTV Limited (a company that we
invested in earlier this year) and Crown Castle is for in excess of 6 years from
the date of launch.  The channel launched on 23 May 2003.

-         We concluded a deal with ntl to take all of our products including
Cartoon Network games, YooMedia games and chat and Dateline.  The first of these
products is in testing and will launch shortly.  This demonstrates our ability
to launch products and services on different platforms within a relatively short
space of time.

-         Agreement has been reached with Turner Broadcasting to trial a unique
and ground-breaking technology developed off the back of the patent that we
acquired the exclusive world-wide rights to in April 2002.  This takes
interactivity to a new level and removes a broadcasters dependence on digital
television and different proprietary technologies to deliver interactivity to
consumers.  This trial will be concluded in the next two weeks.

-         We concluded a deal with Sky Interactive to launch Dateline and this
product will launch shortly.  It will be the first time that a comprehensive
dating service has launched on digital television and it is particularly
significant that this launch will take place on Sky who currently have 6.8m
subscribers.

In May, the Company announced together with its preliminary results for the year
to 31 December 2002, the placing of £1.625 million of secured convertible loan
stock 2008 ('Loan Stock'). The terms of the Loan Stock, set out in the loan note
instrument approved by shareholders at the Company's EGM on 29 May 2003, allowed
a further £375,000 of Loan Stock to be issued by the Company by 31 October 2003.
The directors are pleased to inform shareholders that following the initial
placing of Loan Stock the Company has placed a further £245,000 of Loan Stock
and the directors are confident that the remaining £130,000 of Loan Stock will
be placed prior to the 31 October 2003, being the last date the Company is
permitted to issue the Loan Stock.

In addition, on 28 August 2003 the Group raised an additional £500,000 before
expenses through an issue of 6,250,000 new ordinary shares of 1p each to Artemis
Investment Management Limited ('Artemis').  The proceeds of the issue of equity
and placing of the remaining Loan Stock will be used to provide additional
working capital for the Group.  The directors believe that the issue of equity
to Artemis is especially significant because this is the first time under the
new management team that an institution has taken new shares in the Group.

I would like to take this opportunity to thank shareholders for their continued
support.  I believe that the prospects for the Group are excellent and that
revenues will continue to grow in line with expectations.


Profit and loss account for the six months to 30 June 2003
                                                                   Unaudited      Unaudited        Audited
                                                                  Six months     Six months  Year ended 31     
                                                               ended 30 June  ended 30 June       December
                                                                        2003           2002           2002

                                                                           £              £              £
                                                                                                         
Turnover                                                             367,999          9,184         38,901
Cost of sales                                                      (684,629)      (518,665)    (1,133,415)
Gross loss                                                         (316,630)      (509,481)    (1,094,514)
Administrative expenses                                          (1,954,998)    (2,564,982)    (6,131,791)
Other operating income                                                     -              -              -

Operating loss                                                   (2,271,628)    (3,074,463)    (7,226,305)
Net interest receivable                                               11,563        122,521        188,319
Loss on ordinary activities before taxation                      (2,260,065)    (2,951,942)    (7,037,986)
Tax on loss on ordinary activities                                   262,319              -              -
Loss on ordinary activities after taxation                       (1,997,746)    (2,951,942)    (7,037,986)
Minority interest                                                     41,385              -              -
Loss for the financial period                                    (1,956,361)    (2,951,942)    (7,037,986)

Loss per 10p share
- basic                                                              (2.55p)        (3.85p)        (9.17p)


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       Audited
                                                              Six months    Six months Year ended 31     
                                                           ended 30 June ended 30 June      December
                                                                    2003          2002          2002

                                                                       £             £             £
                                                                                                   
Loss for the period                                          (1,956,361)   (2,951,942)   (7,037,986)
Total losses recognised since last report                    (1,956,361)   (2,951,942)   (7,037,986)



Balance sheet as at 30 June 2003


                                                                   Unaudited      Unaudited         Audited
                                                                  Six months     Six months   Year ended 31
                                                               ended 30 June  ended 30 June        December
                                                                        2003           2002            2002
                                                                                               
                                                                           £              £               £
                                                                                                         
Fixed assets
Intangible assets                                                     56,875              -               -
Tangible assets                                                      358,292        757,431         553,544
                                                                     415,167        757,431         553,544
Current assets
Debtors                                                              864,825        741,467         570,007
Cash at bank and in hand                                           1,054,088      4,749,811       2,229,688
                                                                   1,918,913      5,491,278       2,799,695
Creditors - Amounts falling due within one year                    (977,746)      (395,948)     (1,586,522)
Net current assets                                                   941,167      5,095,330       1,213,173
Total assets less current liabilities                              1,356,334      5,852,761       1,766,717
Creditors - Amounts falling due after more than one              (1,625,100)              -               -
year
Minority interest                                                     79,122              -               -
Net (liabilities)/ assets                                          (189,644)      5,852,761       1,766,717

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                                         (15,353,953)    (9,311,548)    (13,397,592)
Equity shareholders' funds                                         (189,644)      5,852,761       1,766,717



Cash flow statement for the six months ended 30 June 2003
                                                               Unaudited     Unaudited       Audited
                                                              Six months    Six months Year ended 31
                                                           ended 30 June ended 30 June December 2002
                                                                    2003          2002

                                                                                                   £
                                                    Notes              £             £
Continuing activities
Operating loss                                               (2,271,628)   (3,074,463)   (7,226,305)
Depreciation charge                                              219,078       206,340       545,243
Amortisation of goodwill                                           2,993         4,840         4,840
Loss on disposal of fixed assets                                       -             -         3,424

Increase in debtors                                            (288,879)     (300,938)     (135,185)
(Decrease)/ increase in creditors                              (678,897)      (42,433)     1,148,140
Net cash outflow from operating activities                   (3,017,333)   (3,206,654)   (5,659,843)

Returns on investments and servicing of finance
Interest received                                                 10,026       134,457       205,964
Net cash inflow from returns on investments and                   10,026       134,457       205,964
servicing of finance
Taxation                                                         262,319        20,683        20,682
Capital expenditure and financial investments
Purchase of tangible fixed assets                               (20,818)     (230,451)     (368,891)
Net cash outflow for capital expenditure and                    (20,818)     (230,451)     (368,891)
financial investment

Acquisitions                                                    (28,896)             -             -

Net overdraft acquired with subsidiary undertaking               (5,998)             -             -

Purchase of assets and trade
Net cash outflow for acquisitions                               (34,894)             -             -
Net cash outflow before management of liquid                 (2,800,700)   (3,281,965)   (5,802,088)
resources and financing

Management of liquid resources
(Increase)/ Decrease in short term deposits with               (966,500)     4,252,302     7,952,302
banks

Financing                                                      1,625,100             -             -

Issue of convertible loan
Net cash inflow from financing                                 1,625,100             -             -
(Decrease) / Increase in net cash                            (2,142,100)       970,337     2,150,214

Reconciliation to net funds

(Decrease)/ Increase in net cash                             (2,142,100)       970,337     2,150,214
Movement in deposits                                             966,500   (4,252,302)   (7,952,302)
Movement in net funds for the period                         (1,175,600)   (3,281,965)   (5,802,088)
Net funds at commencement of period                            2,229,688     8,031,776     8,031,776
 Net funds at end of period                                    1,054,088     4,749,811     2,229,688



Notes to the financial information for the six months to 30 June 2003

Basis of Preparation

Unless stated otherwise, the interim financial information has been prepared on
the basis of the accounting policies set out in the Group's financial statements
for the year ended 31 December 2002.

The Group acquired a 33% shareholding in MieTV Limited on 1 April 2003.  The
Group has the option to increase this shareholding to 100% at any time.  The
directors are of the opinion that the Group exercised effective control over
MieTV from the date of acquisition, and hence the Group have consolidated the
results of MieTV from date of acquisition to 30 June 2003.

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. Statutory accounts for the year to 31 December 2002 have been filed with
the Registrar of Companies.

Going Concern

After taking into account the additional funding that has recently been raised,
the ability of the Group to raise additional funding if required, and projected
revenues from existing and planned interactive digital television services, the
directors consider that the Group has adequate resources to continue in
operational existence for the foreseeable future.  As a result, the directors
believe it is appropriate to prepare the interim financial information on a
going concern basis.'


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