Final Results

ON-LINE PLC
1 October 1999




                     PRELIMINARY ANNOUNCEMENT

                     FOR THE YEAR ENDED

                     30 JUNE 1999


                On-Line PLC Announces Strong Annual Results
                          With Significant Growth

On-line PLC, the Internet content and games developer and publisher, today
announced final results for the year ended 30 June 1999. On-line has
experienced rapid growth and has formed several lucrative partnerships with
major international corporations.

Highlights were:

* Turnover up by 53% to £1,008,000 (1998: £659,000)

* Pre-tax loss reduced by 28% to £182,000 (1998: £254,000)

* Loss per share fell 34% to 5.1p (1998: 7.7p)

* Development costs of £436,000 fully written off


Commenting on the results, Michael Hodges, Chairman of On-line PLC said:

'We have achieved substantial progress in the last year, but believe we are
only in the early stages of exploiting the range of potential opportunities
available to us.

I am confident that On-line will extend its rapid progress in this dynamic
marketplace.'


For further information, please contact:

David Crump         Finance Director      On-line PLC      0181-591-1125
Adrian Weston       Media Relations       Weston.com       01273-506655       


Chairman's statement

Results


The year to the end of June 1999 has been a dynamic one for On-line PLC and I am
pleased to report that the Group's turnover is up 53% on the previous year from
£659,000 to £1,008,000. We have also seen pre-tax losses significantly down - by
28% - from £254,000 to £182,000 after fully writing off development costs of
£436,000. The loss per share also fell by 34% from 7.7p to 5.1p and at the
year-end we had a very healthy cash balance of £762,000. These figures were well
ahead of the board's original expectations.

Internet

In the interim report I mentioned our new Internet project 'The Edge' as part of
the Group's plans to significantly increase our Internet presence. It is very
gratifying to have our belief in this area of business confirmed and to see The
Edge ready to launch in a number of versions.

The Edge, is in essence, a 3D stock market visualisation tool, allowing
simultaneous visual presentation of large volumes of stock market data. The Edge
has been in closed test and has been extremely well received by interested
parties. It is a unique, innovative application which has been instrumental in
enabling us to forge several significant new business alliances for the Group.
To date, we have established partnerships with major international providers of
Internet financial sites, including Quote.com, GlobalNet Financial.com and
Hemmington Scott Ltd. Furthermore, talks regarding significant future alliances
with other multinational companies are progressing well.

Our partnership with Quote.com via their real time Qfeed service, will give us
access to over a million users per month in the important US market. The
relationship with Hemmington Scott will provide us with their highly regarded
fundamental corporate data on all UK listed companies.

The partnership with GlobalNet Financial.com, concluded since the year end,
involves a £250,000 share swap giving them a 4.4% holding in the Group, and
includes the provision of a custom version of The Edge for their UK-iNvest.com
site. UK-iNvest.com is the exclusive provider of investment information within
the Money Channel on Freeserve, the UK's largest ISP. I believe that these
agreements are indicative of the significant potential for The Edge.

In line with this, The Edge will also be central to a new site, called ADVFN
(Advanced Financial Network), which we will be launching in the coming months.
ADVFN will be a comprehensive financial web site incorporating a private
investor community. The site will not only showcase The Edge but will also be an
exciting business prospect in its own right.

Games & Development

We previously announced the initiation of our own publishing division and I am
happy to report that we are now poised and ready to establish ourselves as a UK
games publishing force. Building on the soccer project we produced for Canal+,
we have developed a unique 3D stadium sports engine. We are leveraging this
technology to produce a series of sports properties, which we are confident will
become strong revenue generating projects.

At the recent games industry show, ECTS (European Computer Trade Show), we
presented our future line up of games under the On-line Sports brand to
international retailers, distributors and journalists. The titles, which
included a football management product Giant Killers and an extreme bike trials
game received strong interest. Additionally, there were very positive responses
from several major publishers suggesting significant opportunities for
international licensing.

Chairman's statement

Our first venture into development on the Nintendo Colour Gameboy format,
entitled MicroMachines has been enthusiastically received by THQ Inc., its
NASDAQ listed publisher, and is due for pre-Christmas release. We expect to
follow-up with more projects in this popular format.

The previously announced 'massively multiplayer', on-line version of the
best-selling game Carmageddon (licensed from SCI Entertainment Group Plc) is
progressing well, contributing further to our on-line gaming strength.

Share Capital

As I reported in the Interim Statement we took advantage of the demand for our
shares during the early part of the year with a new share issue, increasing our
capital and shareholder base. This provided us with substantial funds enabling
us to fuel our ongoing expansion plans.

Prospects

The continuing financial strength of the Group, our ability to absorb
development costs and our increasing turnover has reinforced our belief that our
core business areas are vibrant and will continue to grow. The UK market is
increasingly well placed to support the Internet sector and market response to
our projects continues to be overwhelmingly positive. I am therefore confident
that On-line will extend its rapid progress in this dynamic marketplace.

The pace of developments on both the Internet and games sides of our business
promises to bring another exciting year. The enthusiastic interest we are
receiving in both our products and through our alliances reinforces our belief
that we are experiencing the initial stages of a range of lucrative
opportunities. It only leaves me to thank the team we have built at On-line for
their dedication, enthusiasm and commitment.

Michael Hodges
Chairman
30 September 1999


On-line PLC

Consolidated profit and loss account 
for the year ended 30 June 1999


                                     1999               1998

                            Notes    £'000              £'000


Turnover                             1,008                659

Cost of sales                          (30)               (24)

Gross profit                           978                635

Administrative expenses

  Amortisation                        (436)              (152)       
 
  Other administrative 
  expenses                            (729)              (733)

                                    (1,165)              (885)

Operating loss                        (187)              (250)

Interest receivable and 
similar income                          13                  4

Interest payable and 
similar charges                         (8)                (8)

Loss on ordinary activities 
before taxation                        (182)             (254)

Tax on loss on ordinary 
activities                               -                  -

Loss on ordinary 
activities after taxation       3      (182)             (254)

Loss per ordinary share         2                     

Basic                                  (5.1p)            (7.7p)

Diluted                                (5.0p)            (7.7p)

There were no recognised gains or losses other than the loss for the financial
year.


On-line PLC

Balance sheets
at 30 June 1999


                                                 Group
                            Notes     Group       1998     Company     Company
                                       1999   restated        1999        1998 
                                      £'000      £'000       £'000       £'000
Fixed Assets

Intangible assets                         -         67           -           -
Tangible assets                         139         64          20          27
Investments                              26          -       1,430       1,404
                                       ----       ----       -----       -----
                                        165        131       1,450       1,431

Current Assets

Stocks - finished goods for resale       12          -           -           -
Debtors              
 Due in more than one year                -          -         500           -
 Due in less than one year              247        213         233         447
Cash at bank and in hand                762         14         711          11
                                       ----       ----       -----       -----
                                      1,021        227       1,444         458
       
Creditors: amounts falling 
due within one year                    (300)      (237)       (159)       (114)

Net current assets/(liabilities)        721        (10)      1,285         344

Total assets less current 
liabilities                             886        121       2,735       1,775

Creditors: amounts falling 
due after more than one year            (52)       (11)          -          (4)
                                      -----      -----       -----       -----
Net assets                              834        110       2,735       1,771

Capital and Reserves
Called up share capital               1,987      1,655       1,987       1,655
Share premium account                   657         83         657          83
Profit and loss account              (1,810)    (1,628)         91          33
                                     ------     ------       -----       -----
Shareholders' funds       3             834        110       2,735       1,771

The accounts were approved by the Board of Directors on 30 September 1999


On-line PLC

Consolidated cash flow statement
for the year ended 30 June 1999
 
                                                        1999              1998
                                    Notes              £'000             £'000

Net cash inflow/(outflow) from
operating activities                  4                  298               (78)

Returns on investment and
servicing of finance
Interest received                                         13                 4
Interest paid                                             (8)               (8)
                                                        ----              ----
                                                           5                (4)

Taxation
Corporation tax paid                                       -                (5)

Capital expenditure
Payments to acquire intangible 
fixed assets                                            (369)              (88)
Payments to acquire tangible 
fixed assets                                            (128)              (19)
Payment to acquire investments                           (32)                -
                                                       -----             -----
                                                        (529)             (107)
              
Net cash outflow before financing                       (226)             (194)

Financing                     
Issue of ordinary share capital                          906                 -
Capital element of new finance 
leases and hire purchase contracts                       103                 -
Capital element of finance leases 
and hire purchase contracts repaid                       (35)              (24)
       
Net cash inflow/(outflow) from 
financing                                                974               (24)
Increase/(decrease) in cash           5                  748              (218)

On-line PLC

Notes for the year ended 30 June 1999

1.       Basis of preparation

The financial information herein does not constitute statutory accounts as
defined in section 240 of the Companies Act 1985.

The financial information has been extracted from the group's 1999 statutory
financial statements upon which the auditors opinion is unqualified and does not
include any statement under section 237 of the Companies Act 1985.

The accounts have been prepared in accordance with applicable accounting
standards and under the historical cost convention as modified by the
revaluation of marketable securities.

The principal accounting policies of the group have remained unchanged from the
previous annual report except that in accordance with Financial Reporting
Standard No 10 on Goodwill and Intangible Assets (FRS 10), which applies for the
first time this year, the goodwill write-off reserve at 30 June 1998 of
£1,484,000 has been transferred to the profit and loss account. The comparatives
have been restated accordingly. The policy for foreign currencies and the policy
for investments which has been extended to cover marketable securities are both
relevant for the first time this year.

Copies of the annual report are being posted to shareholders and copies will be
available from the company's registered office at Crown House, Linton Road,
Barking, Essex, IG11 8HJ.

2.       Loss per ordinary share

                                    1999                      1998
                               Number of   Loss per      Number of   Loss per
                       Loss       shares   share   Loss     shares      share
                      £'000         '000          £'000      £'000

Loss for the year      (182)                       (254)
Weighted average 
number of shares                   3,558                     3,310
Basic loss per share                       (5.1p)                      (7.7p)

Number of shares under 
option at less than 
average share price
during the year of 83p               274                         -

Number of shares 
that would have been 
issued at fair value                (165)                        -

Diluted loss per 
share                 (182)        3,667    (5.0p)  (254)    3,310      (7.7p)


3.       Reconciliation of  movements in shareholders' funds

                                                      Group        Group
                                                       1999         1998
                                                      £'000        £'000
Loss for the financial year                            (182)        (254)
Receipts from issue of shares                           906            -
                                                      -----         -----
Net increase/(decrease) in 
shareholders funds in the year                          724          (254)
Shareholders' funds at 1 July 1998                      110           364
                                                      -----         -----
Shareholders' funds at 30 June 1999                     834           110


On-line PLC
                                                                
Notes for the year ended 30 June 1999

4.       Reconciliation of operating loss to net cash inflow/(outflow)
         from operating activities

                                                       1999          1998
                                                      £'000         £'000

Operating loss                                         (187)         (250)
Amortisation                                            436           152
Depreciation                                             53            31
Provision against investment                              6             -
(Increase)/decrease in stocks                           (12)           14
Increase in debtors                                     (34)          (83)
Increase in creditors                                    36            58
                                                      -----         -----
Net cash inflow/(outflow) 
from operating activities                               298           (78)


5.       Reconciliation of net cash flow to movement in net funds

                                                       1999          1998
                                                      £'000         £'000

Increase/(decrease) in cash for the year                748          (218)
New finance leases and hire purchase agreements        (103)            -
Cash outflow from capital repayments of hire 
purchase and finance lease agreements                    35            24
                                                      -----        ------
Movement in net funds/(debt) in the year                680          (194)

Net (debt)/funds at 1 July 1998                         (20)          174

Net funds/(debt) at 30 June 1999                        660           (20)

6.       Analysis of net funds/(debt)
                                                       1999          1998
                                                      £'000         £'000

Cash at bank                                            762            14
Finance lease and hire purchase agreements             (102)          (34)
                                                      -----         -----
Total                                                   660           (20)