Interim Results

Netcall PLC
12 February 2002

                                  NETCALL PLC

                          ('Netcall' or 'the Company')

           INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2001

Netcall sells products and services to call and contact centres. Its innovative
flagship product, QueueBusterTM, enables call centres to manage call queuing,
reduce costs and enhance customer service. Netcall announces today interim
results for the six months ended 31 December 2001.

HIGHLIGHTS


  • Turnover on continuing operations increased by 28% to £0.44m (2000:
    £0.34m)

  • Gross margins improved to 81.5% (2000: 68.4%)

  • Losses before tax reduced by 25% to £1.1m (2000: £1.4m), after charging
    £0.14m in reorganisation costs

  • Sales of QueueBuster systems, totalling in excess of £0.22m, to NPower
    Yorkshire Limited and Dwr Cymru Welsh Water

  • Eight QueueBuster trials in process with blue chip customers and 100%
    track record in converting trials into fully configured system sales

  • Exceptional customer satisfaction survey results showing delivery of real
    benefits

  • Successful first beta trials of QueueBuster service

  • Business management system registered to ISO9001:2000 in December 2001

Brian Gowers, Chairman of Netcall, said today:

'The commercial effectiveness of QueueBuster is proven in the market as
evidenced by orders from six customers and eight trials, compared with only one
customer and one trial last year. These blue chip sales provide a significant
base from which we can confidently address the £250 million market opportunity
for QueueBuster in the UK.'

                                                                12 February 2002

Enquiries:

Netcall plc      Tel:      [phone]

(www.netcall.com)

David Rothschild, CEO     E-mail: [e-mail]

Caroline Brown, CFO     E-mail: [e-mail]


                                  NETCALL PLC

                          ('Netcall' or 'the Company')

           INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2001

                              CHAIRMAN'S STATEMENT

The six months ended 31 December 2001 has seen further progress made towards
Netcall's goal of becoming a leader in intelligent telephony solutions. All of
the Company's activities are now directed towards servicing the large sales
opportunity with the 3,000 call centres in the UK.

Trading Results

During the first half, Netcall announced sales of QueueBuster systems to NPower
Yorkshire Limited and Dwr Cymru Welsh Water. These two new utility customer
orders, totalling in excess of £220,000, have quickly followed Netcall's first
sale in this sector to Thames Water Utilities in June 2001, and bring the number
of blue chip customer reference sites for QueueBuster to six.

Netcall has been able to demonstrate a compelling return on investment business
case for QueueBuster in sales, customer service and regulated environments.
Customers see the benefits immediately, in the form of reduced lost calls,
reduced talk times, reduced telephony costs and increased customer satisfaction
ratings. Eight QueueBuster trials are in process with telecommunications,
utility and professional services organisations. The Company is proud of its
continued 100% track record of converting trials into fully configured system
sales.

The sales cycle for QueueBuster has been longer than originally anticipated but
evidence of growing market acceptance, excellent customer satisfaction, plus
strong technical and quality validation are now enabling quicker sales. I now
confidently expect the established pipeline to convert into strong sales
momentum.

In the six months to 31 December 2001, turnover from continuing operations
increased by 28 per cent. to £435,000 from £341,000 during the same period in
2000. The loss before taxation was £1.07 million (2000: £1.43 million) including
some £137,000 in reorganisation costs. Cash in the bank at 31 December 2001 was
£0.7m.

Customer Satisfaction

During November 2001, The Future Foundation conducted a customer satisfaction
survey amongst 400 users of QueueBuster and 100 call center agents dealing with
QueueBuster customers. The survey found extremely high customer and agent
satisfaction ratings and improved overall perceptions of the companies offering
QueueBuster to their customers.

Some 97% of callers agreed that it would be good if more call and contact
centres offered the QueueBuster option. And 93% of agents believed that
QueueBuster reduced the levels of angry and frustrated customers. Finally, 85%
of respondents said it had improved their opinion of the companies providing the
QueueBuster option.

The Future Foundation commented, that for a new technology, these customer
satisfaction ratings were exceptionally high.

Compatibility, Resilience and Quality Systems

QueueBuster systems are compatible with all telephony switches (PBXs) and all
automatic call distribution systems (ACDs) on the market. To date, Netcall has
demonstrated this with telephony equipment from the following major
manufacturers: Alcatel, Aspect, Avaya, Ericsson, Lucent, Nortel, Rockwell and
Siemens, also with a range of DMS switches.

Netcall's core technology platform continues to be enhanced and developed to
enable the Company to continue to innovate to meet, and exceed, customer
requirements. In the first half, Netcall completed the relocation of its servers
and telephony nodes, thereby making its infrastructure fully resilient and
hosted. The Company's intelligent telephony service now runs from two Worldcom
secure data and telephony centres in London.

The scope and depth of Netcall's service has been developed to target it more
effectively at the SME market on a pay-as-you-go basis. Successful beta trials,
of QueueBuster functionality delivered as a service, and a dial-through service
for media and content owners, were undertaken in the first half. All sales of
service-based offerings are now made via the indirect channel to over 4,500
customers.

In December 2001, NetCall Telecom's business management system was registered to
ISO9001:2000 standard by Lloyd's Register Quality Assurance (LRQA). This, highly
respected third party quality registration, will significantly assist Netcall in
pursuing its chosen market of enterprise solutions sales to blue chip corporate
customers.

Board Changes

There have been a number of changes in the Board in the first half, reflecting
the Company's focus on sales into the enterprise systems and telecommunications
markets.

In December 2001, I became non-executive Chairman replacing Peter Warry who
resigned to pursue other business interests; John Burnett resigned as a
non-executive director and Jim Sutherland joined the Board as sales director.
Jim was previously director of business development at NetCall Telecom, the
Company's principal operating subsidiary, and has been instrumental in building
up the QueueBuster sales proposition. Jim joined the group in September 2000 and
has 22 years experience in the enterprise systems market place.

Current Trading and Outlook

Netcall has established a blue chip customer reference base, achieved excellent
customer satisfaction ratings, successfully undergone rigorous technical and
quality systems testing and has assembled an experienced team to develop
enterprise systems sales. We are targeting call centres in the finance, utility
and telecoms vertical market sectors. A mix of direct sales and indirect channel
sales will be used to accelerate penetration of the £250 million market
opportunity for QueueBuster in the UK. I believe Netcall is well placed to build
on the progress to date and to move to the next phase of its growth.

Brian Gowers

Chairman

12 February 2002

e-mail: [e-mail]

www.netcall.com

                                  NETCALL PLC

                      Consolidated Profit and Loss Account

                                                     Six Months to           Six Months to              Year Ended
                                                     31st Dec 2001           31st Dec 2000          30th June 2001
                                                                 £                       £                       £
TURNOVER
Continuing operations                                      435,099                 340,691                 652,888
Discontinued operations                                                             23,000                  23,000
                                                           435,099                 363,691                 675,888
Cost of Sales                                             (80,398)               (130,297)               (252,546)
GROSS PROFIT                                               354,701                 233,394                 423,342
OPERATING COSTS
Administration and other operating                       1,487,821               1,657,591               3,749,551
expenses
Other operating income                                                                                      15,000
OPERATING (LOSS)/PROFIT
Continuing operations                                  (1,133,120)             (1,369,725)             (3,297,712)
Discontinued operations                                                           (54,472)                (13,497)

(LOSS)/PROFIT BEFORE INTEREST                          (1,133,120)             (1,424,197)             (3,311,209)
Interest receivable                                         66,998                  16,077                  68,699
Amounts written off investments                                                                        (4,500,000)
Interest payable                                              (47)                (22,853)                (25,677)
(LOSS)/PROFIT BEFORE TAXATION                          (1,066,169)             (1,430,973)             (7,768,187)
Taxation                                                                                                    40,699
NET (LOSS)/PROFIT                                      (1,066,169)             (1,430,973)             (7,727,488)
Loss per ordinary share                                    (2.94p)                 (4.74p)                (23.26p)

                                  NETCALL PLC

                           Consolidated Balance Sheet

                                                                As at                    As at                     As at
                                                        31st Dec 2001            31st Dec 2000            30th June 2001
                                                                    £                        £                         £
Fixed Assets
Intangible assets                                              16,805                   11,652                    14,743
Tangible assets                                               227,080                  269,408                   263,039
Investments                                                   350,000                4,650,000                   350,000
                                                              593,885                4,931,061                   627,782
Current assets
Stock                                                          54,932
Debtors due within one year                                   438,823                  646,297                   503,049
Debtors due after more than one year                                                    34,778                         -
Cash and bank and in hand                                     746,811                3,568,654                 1,916,985
                                                            1,240,566                4,249,729                 2,420,034
Creditors: amounts falling due
Within one year
Bank loans and overdrafts                                      39,260                                            123,667
Trade creditors                                               147,271                  265,030                   131,337
Other creditors including taxation                            166,054                  263,211                   243,901
and social security
                                                              352,585                  528,240                   498,905
Net current assets                                            887,981                3,721,489                 1,921,129
Total assets less current
Liabilities                                                 1,481,866                8,652,550                 2,548,911
Creditors: amounts falling due
After one year                                                (1,415)                  (3,500)                   (2,291)
                                                            1,480,451                8,649,050                 2,546,620
Capital and Reserves
Called up share capital                                     1,814,513                1,892,638                 1,814,513
Share premium account                                      14,518,380               14,274,305                14,518,380
Special and capital reserves                                  245,055                  245,055                   245,055
Profit and Loss Account                                  (15,097,497)              (7,762,947)              (14,031,328)
                                                            1,480,451                8,649,050                 2,546,620

                                  NETCALL PLC

           INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2001

                         Notes to the Interim Statement

1.     For the purposes of Section 240 of the Companies Act 1985:


                (a)     this Interim report does not constitute a set of
                statutory accounts. The interim financial information has been
                prepared on the basis of the accounting policies which were
                applied in preparation of the annual financial statements to 30
                June 2001;

                (b)     statutory accounts in respect of the year to 30 June
                2001 have been delivered to the Registrar of Companies and those
                accounts were subject to an unqualified report by the Auditors.
                Accounts for the six months periods ended 31 December 2000 and
                31 December 2001 have not been delivered to the Registrar of
                Companies.


2. The Board has not declared an interim dividend to shareholders (2000: 0 pence
   per share).

3. The loss per ordinary share is calculated by dividing the net loss for the
   period attributable to ordinary shareholders by the weighted average number
   of 36,290,267 ordinary shares in issue during the six months ended 31
   December 2001 (31 December 2000: 30,214,549 and 30 June 2001: 33,222,442).

4. Administration and other operating expenses includes £136,536 relating to
   reorganisation costs (31 December 2000: Nil and 30 June 2001: £186,0250).

5. Copies of this interim report are being sent to all shareholders on the
   Register of Members on 12 February 2002. Further copies of the Interim
   Statement are available from the Registered Office of the Company: 10
   Harding Way, St. Ives, Cambs. PE27 3WR and from the Company's web site:
   www.netcall.com.




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