Interim Results

Netcall PLC
27 January 2003

                                  NETCALL PLC

                          ('Netcall' or 'the Company')



           INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2002

Netcall sells products and services to contact centres. Its innovative flagship
product, QueueBusterTM, manages call queuing, reduces costs and enhances
customer service. Netcall announces today interim results for the six months
ended 31 December 2002.

 HIGHLIGHTS


  • 89% increase in turnover to £0.83m (2001: £0.44m).

  • 83% increase in gross margin to £0.64m (2001: £0.35m).

  • 69% decrease in loss per ordinary share to 0.92p (2001: 2.94p).

  • Significant new sales of QueueBuster since the start of the year to BT,
    Royal & Sun Alliance, Cooperative Bank, Linklaters Alliance, United
    Utilities and Vertex.

 Brian Gowers, Chairman of Netcall, said today:

'The six months ended 31st December 2002 has seen real progress made towards
Netcall's goal of becoming a significant supplier of contact centre solutions.
The company has now implemented our flagship product, QueueBuster in numerous
major UK contact centre sites. Repeat business from customers and a steady
increase in the number of blue chip companies now in our prospect pipeline are
firm evidence of the impact that the product has on their customer satisfaction
and productivity.'

Operations

Following the year end June 2002, Netcall announced sales of QueueBuster to BT,
Vertex Data Sciences, United Utilities and Linklaters Alliance. Further progress
has been achieved since those announcements with sales to Royal & Sun Alliance
and a second sale to Co-operative Bank. This firmly establishes our market
position in the financial services sector. Successful implementation of all
these orders has been achieved.

We continue to focus on customers with multiple contact centres in the
Financial, Telecoms and Utilities sectors. Two trials are underway with major
financial institutions and we are at an advanced stage of negotiations for two
more trials and three purchase agreements for new and existing customers. Some
of these installations are expected to be in Europe and will underline the
international relevance of the product.

Our product development programme is now crystalising as the two sites running
beta trials of our QueueBuster Service application report positive results that
open up an opportunity to expand our market. We are also working on significant
enhancements to the core technology platform which should see further new
products emerge within six months.

Results and Balance Sheet

The results for the six months to December 2002 show turnover of £0.83m (2001:
£0.44m). This is consistent with market expectations despite a change in revenue
recognition policy. A more conservative policy has been adopted by the board,
whereby all maintenance, support and licence income is now spread over the life
of the contract. This change of policy has decreased turnover by £0.17m, and
this amount is now included in the balance sheet as deferred revenue, to be
recognised over the next twelve months.

Strong cost control has enabled administration expense to be reduced by 27% on
the prior year. The resulting net loss was reduced to £0.49m (2001: £1.07m).
Loss per ordinary share has reduced to 0.92p (2001: 2.94p).

In August 2002, the company received £0.97m following a placing announced in
July 2002.

Cash at the bank at 31st December 2002 was £0.81m.

People

As expected, the focus on QueueBuster has enabled the team at Netcall to improve
productivity radically, whilst continuing to receive very positive customer
feedback on the quality of our products and services. This is evidenced by
reducing expenses, repeat orders and ISO 9002 accreditation.

Prospects

As the number of installations has increased we have been able to substantiate
all of our claims for QueueBuster and back these up with hard data. The product
is non-invasive, integrates seamlessly with existing contact centre technology
and delivers productivity savings in the order of 10%, whilst radically
improving customer satisfaction levels and reducing agent stress.

As the evidence has accumulated it has become apparent that the company must now
start to address the international opportunities afforded to us. We believe we
can move forward on this with some assurance but inevitably additional
management emphasis will be needed to effect a satisfactory outcome. As a
consequence, following the AGM I accepted the board's invitation to become
executive chairman and look forward to developing the exciting prospects for
this company.

                                                                 27 January 2003

Enquiries:

Netcall plc      Tel:      [phone]

(www.netcall.com)

Brian Gowers, Chairman     E-mail: [e-mail]

David Rothschild, Chief Operating Officer  E-mail: [e-mail].



                      Consolidated Profit and Loss Account

                                                     Six Months to           Six Months to              Year Ended
                                                     31st Dec 2002           31st Dec 2001          30th June 2002
                                                                 £                       £                       £
TURNOVER                                                   829,409                 435,099                 861,231
                                                           829,409                 435,099                 861,231
Cost of Sales                                            (189,873)                (80,398)               (181,331)
GROSS PROFIT                                               639,536                 354,701                 679,900
OPERATING COSTS
Administration and other operating                       1,129,798               1,487,821               2,745,779
expenses
OPERATING LOSS                                           (490,262)             (1,133,120)             (2,065,879)

LOSS BEFORE INTEREST                                     (490,262)             (1,133,120)             (2,065,879)
Interest receivable                                          2,794                  66,998                  74,183
Amounts written off investments                                  -                       -               (350,000)
Finance costs                                              (3,422)                    (47)                   (531)
LOSS BEFORE TAXATION                                     (490,890)             (1,066,169)             (2,342,227)
Taxation                                                         -                       -                  92,110
NET LOSS                                                 (490,890)             (1,066,169)             (2,250,117)
Loss per ordinary share                                    (0.92p)                 (2.94p)                  (6.2p)




                           Consolidated Balance Sheet

                                                                As at                    As at                     As at
                                                        31st Dec 2002            31st Dec 2001            30th June 2002
                                                                    £                        £                         £
Fixed Assets
Intangible assets                                              51,968                   16,805                    19,315
Tangible assets                                               184,567                  227,080                   193,742
Investments                                                         -                  350,000                         -
                                                              236,535                  593,885                   213,057
Current assets
Stock                                                          96,260                   54,932                    50,500
Debtors due within one year                                   480,578                  438,823                   335,492
Cash and bank and in hand                                     805,775                  746,811                   149,514
                                                            1,382,613                1,240,566                   535,506
Creditors: amounts falling due
within one year
Bank loans and overdrafts                                           -                   39,260                    34,031
Trade creditors                                               251,482                  147,271                   101,762
Deferred revenue                                              271,399                   60,844                    85,155
Other creditors including taxation                            302,683                  105,210                   215,322
and social security
                                                              825,564                  352,585                   436,270
Net current assets                                            557,049                  887,981                    99,236
Total assets less current
Liabilities                                                   793,584                1,481,866                   312,293
Creditors: amounts falling due
after one year                                                      -                  (1,415)                     (393)
                                                              793,584                1,480,451                   311,900
Capital and Reserves
Called up share capital                                     2,836,514                1,814,513                 1,814,513
Share premium account                                      14,458,444               14,518,380                14,516,680
Special and capital reserves                                  245,055                  245,055                   245,055
Profit and Loss Account                                  (16,746,429)             (15,097,497)              (16,264,348)
                                                              793,584                1,480,451                   311,900



                         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 2002, with the exception of turnover. The policy is now to
                spread all turnover relating to maintenance, support and licence
                income over the period of the contract. The previous policy
                allowed for first year maintenance, support and licence income
                to be recognised on delivery of system.

                (b)     statutory accounts in respect of the year to 30 June
                2002 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 2001 and
                31 December 2002 have not been delivered to the Registrar of
                Companies.


 2. The Board has not declared an interim dividend to shareholders (2001: 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 53,323,601 ordinary shares in issue during the six months ended 31
    December 2002 (31 December 2001: 36,290,267 and 30 June 2002: 36,290,267).

 4. Administration and other operating expenses includes £106,518 relating to
    reorganisation costs (31 December 2001: £136,536 and 30 June 2002: £35,571).

 5. Copies of this interim report are being sent to all shareholders on the
    Register of Members on or before 7th. February 2003. 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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