Final Results

Pennant International Group PLC
22 March 2004


For Release at 7.00am, Monday, 22 March 2004


                        Pennant International Group plc

    Pennant International Group plc, listed on AIM, is a leading supplier of
technology solutions to the defence and industrial sectors, including specialist
 software, technical data services and data management systems, simulation and
                               training systems.


              Preliminary results for year ending 31 December 2003

 'The continuing strong order bank, good cash position and strengthened balance
 sheet, combined with prospects for new business in all areas, gives your Board
            confidence for continued progress in the current year.'

                               CHRISTOPHER POWELL

                                    Chairman



• Group turnover up 32%

• Group profit before tax of £711,498

• Return to dividend - Cash dividend of 0.4p per share

• Worldwide order bank shows potential revenues of £11,000,000

• Significantly improved cash position


For further information contact:
Joe Thompson, Chief Executive, Pennant on 01452 714881
Barrie Newton, Rowan Dartington & Co on )117 925 3377
Ken Rees, Binns Winningtons on 0117 317 9477 or mobile [phone]


CHAIRMAN'S STATEMENT

I am pleased to report a return to profit and dividend for the year ending 31st
December 2003.  A much improved position was anticipated in my statement
accompanying the 2002 results when I reflected the Board's confidence in a
return to profitability in 2003 as the benefits of increased orders, cost
reductions and efficiency gains were realised.

RESULTS AND DIVIDEND

Turnover for the year was £11,879,580 (2002: £9,030,396), an increase of 32% on
2002 with growth in all three business areas of software solutions, data
services and training systems.  Group profit on ordinary activities before
taxation was ahead of expectations at £711,498 (2002: loss of £1,483,329).  The
result includes a profit of £163,729 arising on the disposal of a surplus part
of the Group's Southampton property and is after further redundancy costs of
£137,000.  Cash generated from operating activities was £1,726,030 (2002:
£798,085) and the balance sheet shows net cash of £140,361 (2002: net debt
£1,611,267).  Basic earnings per share are 2.08p.  Since the year end the Group
has made early repayment of loans amounting to £505,830.

Your Board is recommending a cash dividend for the year of 0.4p per share (2002:
nil).  This proposed payment is covered 5 times by reported basic earnings.  The
dividend will be paid on 14 May 2004 to shareholders on the register at close of
business on 16 April 2004.  The shares are expected to go ex dividend on 14
April 2004.

CURRENT TRADING AND OPERATIONS

Although market conditions remain challenging, I am pleased to report that the
high levels of tendering activity experienced in 2003 have continued into the
first quarter of 2004.  Group companies have continued to secure new business
during the year and, as at today's date, the firm order bank has the potential
to generate revenues of approximately £11,000,000 with some 20% of the new
orders by value coming from new customers.

BUSINESS STRATEGY

The portfolio of Group capabilities, products and services is designed to
provide operators and maintainers with the knowledge and skills to succeed in
their appointed tasks.  The inter-related elements of data, information,
knowledge and training to develop skills, within an overall integrated logistic
support plan, are key features in the solutions that Pennant offers to its
clients in all its target markets.

In the current business climate of whole life asset support, brought into sharp
focus in 2003 with the launch of a new international standard for Product Life
Cycle Support (PLCS), it is vitally important for Pennant's businesses to be
able to provide solutions that contribute to whole life support objectives.
Defence programmes are the driving force for whole life asset support
applications, although the principals are equally applicable to other
industries, and PLCS compliant solutions are becoming a standard requirement.
Pennant invested time and intellectual input to the PLCS initiative,
participated in the international launch of the new standard and is working with
Eurostep AB of Sweden to deliver PLCS compliant data solutions linking Pennant's
OmegaPS supportability engineering software and Eurostep's Share-A-spaceTM?
product.

PROSPECTS

The Company's sales performance during 2003 has been in line with expectations
and, in looking ahead, prospects remain good.  As always, this is subject to
contracts being awarded on time and running to schedule.  The strong order bank
is being maintained and the positioning within our potential markets is
encouraging, with many new business opportunities in prospect.  This situation
extends to Group businesses in the UK, USA, Canada and Australia.

The Group has invested in the year to develop business opportunities in two key
non-defence market sectors, namely oil and gas and civil aerospace.  Both
industries offer growth potential for Pennant products and services.  In July
2003 the Company announced the acquisition of a small business based in Aberdeen
that brought its core cartographic and draughting business into the Group but
also provided a base in the heart of the UK oil and gas business community.  The
objective in establishing an Aberdeen base was to build on the existing
technical data services activity as well as promoting other new business
opportunities.  Also in July 2003, we announced an agreement with
Sonovision-ITEP of Paris, France, which, together with their Eurodoc Sonovision
subsidiary in Hamburg, Germany, and their joint venture with Indra of Madrid,
Spain, provided a way for the Company to exploit opportunities for technical
data services work on Airbus.  Pennant Information Services Limited, the UK
member of this four-nation grouping, will be tendering for a share of the UK
technical data services business for the Airbus A380, super jumbo passenger
aircraft, and the A400M, military transport aircraft.  The A380 programme is
underway and Pennant Information Services has already received its first orders
for technical data services.

In other areas the high level of interest shown in overseas markets for existing
Pennant Training Systems products, such as GenFly and Hawk aircraft training
systems, continues and there is potential for orders in the year ahead.  The
change made to the organisation and management of Pennant Information Services
Inc in the USA, with the appointment of a US citizen as President and CEO, is
also showing encouraging signs with new opportunities for OmegaPS software sales
being identified.

CONCLUSION

The Group's return to profitability is attributable to many factors.  We
recognise and are grateful to our shareholders and our customers for their
support but a key factor has been the continued efforts of the staff and their
willingness to adopt further efficiency improvements.  Their contribution has
been excellent.

The continuing strong order bank, good cash position and strengthened balance
sheet, combined with prospects for new business in all areas, gives your Board
confidence for continued progress in the current year.

CHRISTOPHER POWELL

Chairman

22 March 2004



GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2003

                                             2003        2002
                                                £           £
Turnover
Continuing operations                  11,720,504   9,030,396
Acquisitions                              159,076           -
                                       __________   _________
                                       11,879,580   9,030,396
Cost of sales                          (6,327,521) (5,488,050)
                                       __________   _________
Gross profit                            5,552,059   3,542,346
Administration expenses                (4,902,652) (4,947,563)
Other operating income                      5,616       8,904
                                       __________   _________
Operating profit/(loss)
Continuing operations                     658,744  (1,396,313)
Acquisitions                               (3,721)          -
                                       __________   _________
                                          655,023  (1,396,313)
Profit on sale of property                163,729     110,255
                                       __________   _________
Profit/(loss) on ordinary activities      818,752  (1,286,058)
before interest
Interest receivable and similar            13,005         999
income
Interest payable                         (120,259)   (198,270)
                                       __________   _________
Profit/(loss) on ordinary activities      711,498  (1,483,329)
before taxation
Tax on profit on ordinary activities      (46,340)          -
                                       __________   _________
Profit/(loss) on ordinary activities
after taxation attributable to members
of the                                    665,158  (1,483,329)
parent undertaking - retained

Dividends                                (128,000)          -
                                       __________   _________
Retained profit/(loss) for the year       537,158  (1,483,329)
                                       __________   _________

Earnings/(loss) per share
Basic                                        2.08p      (5.34p)
Diluted                                      1.93p      (5.14p)



GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
FOR THE YEAR ENDED 31 DECEMBER 2003
                                                         2003                 2002
                                                            £                    £        
Profit/(loss) for the financial year                  665,158            (1,483,329)
Currency translation differences on foreign            
currency net investments                               (7,386)               47,373
                                                    _________             _________
Total gains and losses recognised since last annual   
report                                                657,772            (1,435,956)
                                                    _________             _________


GROUP BALANCE SHEET
AS AT 31 DECEMBER 2003

                                           2003          2002
                                             £              £

Fixed assets
Intangible assets                    1,273,960      1,410,813
Tangible assets                      2,628,813      2,900,535
Investments                              6,135          6,135
                                    __________     __________
                                     3,908,908      4,317,483

Current assets
Stocks                                 514,165        498,402
Debtors                              2,204,782      2,581,263
Cash at bank and in hand             1,965,649        599,265
                                    __________     __________

                                     4,684,596      3,678,930
Creditors: amounts falling due
within one year                     (3,687,326)    (2,825,206)
                                    __________     __________
Net current assets                     997,270        853,724
                                    __________     __________
Total assets less current            4,906,178      5,171,207
liabilities

Creditors: amounts falling due
after more than one year            (1,179,443)    (1,974,244)

Provisions for liabilities and               
charges                                      -              -
                                    __________     __________
                                     3,726,735      3,196,963
                                    __________     __________
Capital and reserves
Called up share capital              3,045,400      3,045,400
Share premium                        3,563,504      3,563,504
Profit and loss account             (2,882,169)    (3,411,941)
                                    __________     __________
Shareholders' funds                  3,726,735      3,196,963
                                    __________     __________


The financial statements were approved by the Board on 19 March 2004.

J J J Thompson                              J M Waller
Director                                    Director




COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2003

                                            2003        2002
                                               £           £

Fixed assets

Investments                            8,556,148   8,171,828
                                       _________   _________
                                       8,556,148   8,171,828

Current assets

Debtors (including £1,587,927 (2002 -  
£1,585,000) due after more than one
year                                   2,184,469   1,852,963

Cash at bank                              83,371     556,452
                                       _________   _________
                                       2,267,840   2,409,415
Creditors: amounts falling due
within one year                       (2,540,879) (2,062,643)
                                       _________   _________
Net current (liabilities)/assets        (273,039)    346,772
                                       _________   _________
Total assets less current              
liabilities                            8,283,109   8,518,600

Creditors: amounts falling due
after more than one year              (1,175,285) (1,305,384)
                                       _________   _________
                                       7,107,824   7,213,216
                                       _________   _________

Capital and reserves

Called up share capital                3,045,400   3,045,400
Share premium                          3,563,504   3,563,504
Profit and loss account                  498,920     604,312
                                       _________   _________
Shareholders' funds                    7,107,824   7,213,216
                                       _________   _________

The financial statements were approved by the Board on 19 March 2004.
J J J Thompson                                     J M Waller
Director                                           Director



GROUP CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2003

                                            2003        2002
                                               £           £
Net cash inflow from
operating activities                   1,726,030     798,085

Returns on investments and servicing    
of finance                              (107,254)   (197,271)

Taxation                                  (3,248)        680

Capital expenditure                      263,300    (506,205)

Acquisitions and disposals              (127,200)          -
                                       _________   _________
Cash inflow before financing           1,751,628      95,289

Financing                               (385,244)  2,182,101
                                       _________   _________

Increase in cash                       1,366,384   2,277,390
                                       _________   _________







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