Final Results

Netcall PLC
05 November 2002

                                  NETCALL PLC

                          ('Netcall' or 'the Company')



              PRELIMINARY RESULTS FOR THE YEAR ENDED 30 June 2002

Netcall specialises in software and systems that add intelligence to telephony
making it more effective and less time-consuming. Netcall today announces
preliminary results for the year ended 30 June 2002.


KEY POINTS

  • A 32% increase in turnover on continuing operations to £0.86m (2001:
    £0.65m)

  • A 61% increase in gross margin on continuing operations to £0.68m (2001:
    £0.42m)

  • A 44% decrease in adjusted loss per ordinary share to 5.14p (2001: 9.16p)

  • Significant new sales of QueueBuster to Dwr Cyru Welsh Water, Npower
    (Innogy) and Co-operative Bank during the year

  • Sales to Vertex Data Sciences, United Utilities and Linklaters since the
    year end

  • Initial order received from BT for multiple QueueBuster systems in
    November



Brian Gowers, Chairman of Netcall,said today:

'Vertex captured the power of our proposition when they told us 'We can imagine
life without QueueBuster, but would prefer not to''.

David Rothschild, CEO of Netcall, said today:

'CEO's know that call centre performance is crucial to the success of their
business and we know that QueueBuster hits all their hot buttons'.



Enquiries:

Netcall plc                                 Tel: [phone]

(www.netcall.com)
Brian Gowers, Chairman                      E-mail: [e-mail]
David Rothschild, CEO                       E-mail: [e-mail]





                                  NETCALL PLC

                          ('Netcall' or 'the Company')

                 STATEMENT ACCOMPANYING THE PRELIMINARY RESULTS

                        FOR THE YEAR ENDED 30 JUNE 2002

OPERATIONS

The strategy implemented last year to focus the company on its QueueBusterTM
product is generating significantly improving performance.

A modest increase in turnover of 32% over the prior year masks the underlying
strength of the business, as evidenced by the momentum of our sales pipeline in
out chosen market sectors of utilities, finance and telecoms. We are engaged in
the sales process with over twenty-five major companies who have recognised the
substantial benefits that QueueBuster brings to the quality of customer service
and call centre productivity.

During the year, we had success in the utility sector with orders from Dwr Cymru
(Welsh Water) and Npower Yorkshire (Innogy) and made our first sale in the
financial services sector to the Co-operative Bank. Since the year-end, we have
underpinned our position in both of these sectors with orders from Vertex Data
Sciences, United Utilities and Linklaters. Significantly, we have made further
progress into the telecoms sector with initial orders from BT.

In July, we signed a Memorandum of Understanding with Committed Capital Pty, an
Australian-based international executive capital company, specialising in the
development and execution of business strategy. This arrangement should
facilitate the securing of a global distribution partner for QueueBuster.

RESULTS AND THE BALANCE SHEET

The results for the year to 2002 show turnover on continuing activities of
£0.86m (2001: £0.65m).

Our emphasis on value creation for our customers and the impact of post-sales
recurring software licence and maintenance fees have together resulted in a
gross margin percentage on sales of 79%, compared to 65% last year.
Administration cost reduction has achieved an annual level which is 27% lower
than the prior year. The resulting adjusted net loss on ongoing activities
before exceptionals was £ 1.86m (2001: £3.04m). Adjusted loss per ordinary share
has been reduced to 5.14p (2001:9.16p).

In July 2002, the Company arranged a placing to raise £970,000 (net of
expenses). The shares were issued and funds received in August.

The directors made a decision to value any minority shareholdings in unquoted
companies at zero and accordingly, at the end of the financial year we wrote
down our investment in A114U.

PROSPECTS

I believe we now have in place all the elements to ensure the continued success
of our strategy:

  • QueueBuster, a product, which provides tangible and quantifiable benefits
    to our customers

  • A core of Blue Chip, early adopting customers

  • Global sales potential

  • An efficient, well-focused organisation with the skills and drive to
    execute the strategy

  • A sound, well-managed financial base.


I look forward with optimism.


Brain Gowers, Chairman
5th November 2002





Consolidated Profit and Loss Account
Year ended 30th June 2002
                                                             Notes                       2002                 2001
                                                                                            £                    £

Turnover - continuing operations                                                      861,231              652,888
- discontinued operations                                                                   -               23,000
                                                                                    _________            _________
                                                                 1                    861,231              675,888
Cost of sales                                                                       (181,331)            (252,546)
                                                                                    _________            _________
Gross profit                                                                          679,900              423,342
                                                                                    _________            _________
Administration expenses                                                           (2,745,779)          (3,749,551)
Other operating income                                                                      -               15,000
                                                                                    _________            _________
Operating loss - continuing operations                                            (2,065,879)         (3, 297,712)
- discontinued operations                                                                   -             (13,497)
                                                                                    _________            _________
Loss on ordinary activities before interest                                       (2,065,879)          (3,311,209)
Interest receivable                                                                    74,183               68,699
Amounts written off investments                                                     (350,000)          (4,500,000)
Interest payable                                                                        (531)             (25,677)
                                                                                    _________            _________
Loss on ordinary activities before taxation                                       (2,342,227)          (7,768,187)
Tax on loss on ordinary activities                               2                     92,110               40,699
                                                                                    _________            _________
Loss for the financial year                                                       (2,250,117)          (7,727,488)
                                                                                     ========              =======
Loss per ordinary share                                          3                    (6.20p)             (23.26p)
                                                                                     ========              =======
Diluted loss per ordinary share                                  3                    (6.20p)             (23.63p)
                                                                                     ========              =======





Consolidated Balance Sheet
30th June 2002
                                                      2002                                 2001
                                                     £                   £                £                   £

Fixed assets
Intangible assets                                                   19,315                               14,743
Tangible assets                                                    193,742                              263,039
Investments                                                              -                              350,000
                                                                 _________                            _________
                                                                   213,057                              627,782

Current assets
Stocks                                          50,500                                    -
Debtors                                        335,492                              503,049
Cash at bank and in hand                       149,514                            1,916,985
                                              ________                             ________
                                               535,506                            2,420,034

Creditors: amounts falling due within
one year
Bank loans and overdrafts                       34,031                              123,667
Trade creditors                                101,762                              131,337
Other creditors including
taxation and social security                   300,477                              243,901
                                              ________                             ________
                                               436,270                              498,905
                                              ________                             ________
Net current assets                                                  99,236                            1,921,129
                                                                 _________                            _________
Total assets less current
liabilities                                                        312,293                            2,548,911
Creditors: amounts falling due after
more than one year                                                   (393)                              (2,291)
                                                                 _________                            _________
                                                                   311,900                            2,546,620
                                                                   =======                              =======
Capital and reserves

Called up share capital                                          1,814,513                            1,814,513
Share premium account                                           14,516,680                           14,518,380
Special and capital reserves                                       245,055                              245,055
Profit and loss account                                       (16,264,348)                         (14,031,328)
                                                               ___________                          ___________
Equity shareholders' funds                                         311,900                            2,546,620
                                                                  ========                             ========



Preliminary Results for the year ended 30 June 2002
Notes to the Accounts


1. Analysis of Turnover

                                                                                      2002              2001
                                                                                         £                 £
Class of business:
Installed solutions                                                                432,649           348,515
Telephony services                                                                 427,018           294,034
Bespoke software development                                                             -             7,500
Commission and sundry income                                                         1,564             2,839
                                                                              ____________      ____________
                                                                                   861,231           652,888
                                                                              ____________      ____________
Corporate finance fee income *                                                           -            23,000
                                                                              ____________      ____________
                                                                                   861,231           675,888
                                                                                ==========       ===========

* Discontinued operations


Geographical analysis by destination:                                                 2002              2001
                                                                                         £                 £

United Kingdom                                                                     808,114           407,496
North America                                                                       36,290            44,400
Europe                                                                              13,959            27,451
Rest of the World                                                                    2,868           196,541
                                                                              ____________      ____________
                                                                                   861,231           675,888
                                                                               ===========        ==========



2. Tax on loss on ordinary activities

The corporation tax receivable arises from the availabilty of a tax credit on
NetCall Telecom Ltd's expenditure on research and development activities.


3. Loss per ordinary share

Basic earnings per share is calculated by dividing the earnings attributable to
ordinary shareholders by the weighted average number of ordinary shares in issue
during the year.

Diluted earnings per share is calculated by adjusting the weighted average
number of ordinary shares in issue on the assumption of conversion of all
dilutive potential ordinary shares.
                                                                                          2002                2001
                                                                                             £                   £

Loss for the financial year                                                        (2,250,117)         (7,727,488)
                                                                                ______________      ______________

Basic and diluted earnings attributable to ordinary shareholders                   (2,250,117)         (7,727,488)

                                                                                  ============        ============
Weighted average number of ordinary shares                                          36,290,267          33,222,442
Effect of dilutive share options                                                             -           (528,223)
                                                                                ______________      ______________

Adjusted weighted average number of ordinary shares                                 36,290,267          32,694,219
                                                                                  ============        ============
Loss per ordinary share                                                                (6.20p)            (23.26p)
                                                                                  ============        ============
Diluted loss per ordinary share                                                        (6.20p)            (23.63p)
                                                                                  ============        ============

Loss for the financial year                                                        (2,250,117)         (7,727,488)
Exceptional reorganisation costs                                                        35,571             186,025
Exceptional write off of investment                                                    350,000           4,500,000
                                                                                  ============        ============
Adjusted loss                                                                      (1,864,546)         (3,041,463)
Adjusted loss per ordinary share                                                       (5.14p)             (9.16p)



4. On 8th August 2002 the Company raised £970,000, net of placing expenses,
   through a placing of 20,240,000 new ordinary shares at 5p per share.


5. The Directors do not recommend payment of a dividend.


6. The financial information set out does not constitute the Company's statutory
   accounts for the years ended 30 June 2001 or 2002, but is derived from those
   accounts. Statutory accounts for 2001 have been delivered to the Registrar
   of Companies and those for 2002 will be delivered following the Company's
   annual general meeting. The auditors have reported on those accounts; their
   reports were unqualified and did not contain statements under Section 237(2)
   or (3) of the Companies Act 1985.


7. Copies of the full statutory accounts will be despatched to shareholders in
   due course. Further copies will be available from the Registered Office of
   the Company at 10 Harding Way, St Ives, Cambs PE27 3WR.


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