Interim Results

Netcall PLC
31 January 2005


31 JANUARY 2005
                                  NETCALL PLC
                          ('Netcall' or 'the Company')

              Interim Results for 6 months ended 31 December 2004

Netcall provides telephony solutions, including its innovative flagship product
QueueBuster TM, which enables call centres to manage call queuing, reduce costs
and enhance customer service.

HIGHLIGHTS

Financial

   •Sales of £1.46 million (H1 2004: £0.67 million), representing
    year-on-year growth of 118%

   •Gross profit of £1.20 million (H1 2004: £0.53 million), an increase of
    126%.

   •Gross margin improved 3% to 82% (H1 2004: 79%).

   •First H1 operating profit of £0.05 million (H1 2004: loss of £0.73
    million).

   •Contracted future revenues of £1.63 million as at 31 December 2004.

   •Cash position of £1.1 million (H1 2004: £0.2 million).

   •Operating expenses of £1.15 million reduced by 25% compared with H2 2004.


Operational


   •Hosted Services and maintenance portfolio experiencing continued strong
    growth.

   •Increased sales coming through the emerging distribution channel network,
    which include the first sales following the signing of the BT Global
    Services agreement.

   •Gaining traction in the international market.

   •New QueueBuster product customers signed in the period included RCI,
    Prudential, with repeat orders from Vertex, R&SA and BT.

   •New hosted services customers signed in the period include Bourne
    Leisure, Barclays Bank, Carillion and Freedom Finance.


Ron Elder, Chairman of Netcall, commented:

'The first half of this year has seen NetCall continue to execute the new
opportunities and initiatives identified last year. The new distribution
channels continue to strengthen, as evidenced by the sales generated through the
distribution agreement signed with BT Global Services. The hosted services
business is generating a strong, consistent and increasing stream of sales,
whilst our primary product, QueueBuster, was selected by one of the UK's largest
financial institutions. These factors, combined with our continued improvement
in operating margins, give us confidence in achieving a successful outcome for
the year as a whole.'


ENQUIRIES

Netcall plc (www.netcall.com)               Tel. [phone]
Ron Elder, Chairman
Henrik Bang, Chief Executive

ICIS                                        Tel. [phone]
Archie Berens
Caroline Evans-Jones


Results

The first half of the current financial year has seen both an improved financial
performance and encouraging developments in the continued roll out of Netcall's
QueueBuster product and service offering.

Turnover for the 6 months ended 31 December 2004 was £1.46 million, compared to
£0.67 million in the corresponding period in 2003, an increase of 118 per cent.
This is the result of a significant increase in sales of our key QueueBuster
product. Importantly, an increasing proportion of those sales were
international, which underlines the global potential of the product. We also saw
an increased level of activity through our channel partners, which accounted for
27% of product revenue for the period. Additionally, there was a greater level
of sales of the hosted Services products. There was also an improvement in
revenues earned from the provision of maintenance services as a result of our
expanded product base.

Gross margins improved from 79 per cent. last year to 82 per cent. Accordingly,
gross profits increased to £1.20 million, compared to £0.53 million in the
equivalent period last year.

One of the main focuses of the period was to improve cost controls and we have
made a considerable reduction to overall fixed costs compared to the previous
six months. In addition, we have maintained tight controls on discretionary
spend. We therefore reduced operating expenses by 8 per cent. year-on-year and
by 25 per cent. compared with the previous 6 months ended 30 June 2004.

This has allowed us to report an operating profit of £47,914 (2003: operating
loss of £0.73 million), ahead of expectations and a reflection of the improving
overall health of the business. Profit before taxation was £50,626 (2003: loss
before tax of £726,712) and earnings per share were 0.1p (2003: loss per share
of 1.3p).

Our cash position remains strong, with £1.1m of cash as at 31 December 2004.

Operational Review

QueueBuster

A key development in our efforts to roll out our QueueBuster product was the
introduction of the hosted QueueBuster service, which allows organisations to
route calls through Netcall's hosted service, without the need to install the
product on their own systems. This new offering has proved very attractive to a
wider span of potential customers, who are attracted by the hosted services
model with its lower investment requirements, and we are pleased to report that
revenues have been steadily rising each quarter. New customers contracting for
the service include Barclays Bank, Carillion, Freedom Finance and Bourne
Leisure, the last of which marked the first QueueBuster service sales through a
new channel partner. In addition, a number of existing customers have expanded
their use of the QueueBuster Service.

A key component of our strategy has been to develop our indirect sales channel
in order to leverage our product and service offering without incurring
commensurate increases in costs associated with the expansion of the direct
sales operation. The distribution agreement which we signed last year with BT
has now started to yield real results: we were delighted that Prudential
Assurance became a customer during the period as a result of this agreement. A
further sale was made to RCI through our partnership with Eircom.

We are therefore encouraged by the early performance of the channel and have put
in place a programme designed to increase sales in this area.

Other Netcall Products

Whilst the majority of our sales are generated by our QueueBuster product and
service offerings, we are now starting to see some renewed traction in the
market for our web call back products. We are working on a number of initiatives
to continue the growth of this revenue stream.

Outlook

The last six months have been very important in improving the predictability of
the Company's revenue base. Our aim has been to increase the proportion of
recurring revenues paid to us by our customers. The development of the hosted
QueueBuster service and the levels of maintenance revenues earned from a growing
customer base have significantly contributed in this regard. With a tighter
control over our costs, we have stabilised the cost base and will selectively
start investing in the future development of the business. Our aim now is to
continue the good progress we have made in the first half of the financial year.
Through the ongoing build-up of our sales channels and by exploiting the growing
awareness of our product and its capabilities we are confident of a favourable
outcome for the current financial year.


Ron Elder
Chairman
31 January 2005


NETCALL PLC
Consolidated Profit and Loss Account

                               Six Months to   Six Months to        Year Ended
                               31st Dec 2004   31st Dec 2003    30th June 2004
                                           £               £                 £
TURNOVER
Continuing operations              1,458,820         666,268         2,414,211
                                   -----------     -----------       -----------
                                   1,458,820         666,268         2,414,211

Cost of Sales                       (259,414)       (138,487)         (471,378)
                                   -----------     -----------       -----------
GROSS PROFIT                       1,199,406         527,781         1,942,833

OPERATING COSTS
Administration and other
operating expenses                (1,151,491)     (1,255,014)       (2,786,225)

OPERATING Profit/(Loss)
Continuing operations                 47,914        (727,233)         (843,392)
                                   -----------     -----------       -----------

PROFIT/(LOSS) BEFORE INTEREST         47,914        (727,233)         (843,392)
Interest receivable                   20,843           3,000            18,853
Interest payable                     (18,131)         (2,479)           (3,392)
                                   -----------     -----------       -----------
PROFIT/(LOSS) BEFORE TAXATION         50,626        (726,712)         (827,931)
Taxation                                   -               -            32,224
                                   -----------     -----------       -----------
NET PROFIT/(LOSS)                     50,626        (726,712)         (795,707)
                                   ===========     ===========       ===========

Profit/(Loss) per ordinary
share                                    0.1p           (1.3p)            (1.3p)





NETCALL PLC
Consolidated Balance Sheet

                                        As at           As at            As at
                                31st Dec 2004   31st Dec 2003   30th June 2004
                                            £               £                £

Fixed Assets
Intangible assets                      26,311          39,139                -
Tangible assets                       108,514         146,241          153,268
Investments                                                 -                -
                                      ---------       ---------       ----------
                                      134,825         185,380          153,268

Current assets
Stock                                  96,027         121,379          130,359
Debtors due within one year         1,239,270         522,862        1,033,535
Cash and bank and in hand           1,068,543         152,936        1,256,872
                                      ---------       ---------       ----------
                                    2,403,840         797,177        2,420,766

Creditors: amounts falling
due
within one year
Trade creditors                       147,880         144,872          209,121
Deferred revenue                      663,645         523,078          726,040
Other creditors including
taxation                              387,278         150,657          334,637
and social security
                                      ---------       ---------       ----------
                                    1,198,803         818,607        1,269,798

Net current assets                  1,205,037         (21,430)       1,150,968
                                      ---------       ---------       ----------

Total assets less current
Liabilities                         1,339,862         163,950        1,304,236
Creditors: amounts falling
due
after one year                        102,500               -          117,500
                                      ---------       ---------       ----------
                                    1,237,362         163,950        1,186,736
                                      =========       =========       ==========

Capital and Reserves
Called up share capital             3,275,464       2,836,514        3,275,464
Share premium account              15,115,483      14,458,444       15,115,483
Special and capital reserves          245,055         245,055          245,055
Profit and Loss Account           (17,398,640)    (17,376,063)     (17,449,266)
                                      ---------       ---------       ----------
                                    1,237,362         163,950        1,186,736
                                      =========       =========       ==========



NETCALL PLC
Consolidated Cash Flow

                                Six Months to   Six Months to   Year Ended
                                31st Dec 2004   31st Dec 2003   30th June 2004
                                            £               £                £

Net cash outflow from
operating activities                 (158,772)        (88,984)        (221,838)

Returns on investments and
servicing of finance                    2,712             521           15,461

Capital expenditure and
financial investment                  (17,269)        (36,911)         (58,066)
                                      ---------       ---------       ----------
Cash outflow before
management of liquid
resources and financing              (173,329)       (125,374)        (264,443)

Management of liquid                        -               -                -
resources

Financing                             (15,000)              -        1,243,005
                                      ---------       ---------       ----------
Increase/ (Decrease) in cash         (188,329)       (125,374)         978,562
                                      ---------       ---------       ----------



NETCALL PLC
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 2004.

(b) Statutory accounts in respect of the year to 30 June 2004 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 2003 and 31 December 2004 have not been delivered to the Registrar of
Companies.

2.  The Board has not declared an interim dividend to shareholders (2003: 0 pence
    per share).

3.  The profit per ordinary share is calculated by dividing the net profit for 
    the period attributable to ordinary shareholders by the weighted average 
    number of 65,509,270 ordinary shares in issue during the six months ended 
    31 December 2004 (31 December 2003: 56,730,267 and 30 June 2004:60,005,122).

4.  Administration and other operating expenses includes £16,000 relating to 
    reorganisation costs (31 December 2003: £nil and 30 June 2004: £65,721).

Copies of this interim report are being sent to all shareholders on the Register
of Members on the 31st January. 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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