Interim Results

PipeHawk PLC
28 March 2002

                                   PIPEHAWK PLC

             INTERIM REPORT FOR THE 6 MONTHS ENDED 31 DECEMBER 2001

                              CHAIRMAN'S STATEMENT


Your company made significant progress during the six months to December 2001
with all planned milestones being met.  The company's product range has been
widened and PipeHawk has become the predominant GPR brand in the UK.

External Development Projects

A highlight of the first half of the year was the award by NYGAS of a contract
to develop a lightweight portable radar device.  This is now underway and is on
schedule. Early technical progress is very encouraging and will, we believe,
lead to the successful introduction of a product with varying applications for
use within the worldwide construction and utility markets. Early expressions of
interest have been received from companies interested in distribution and
Original Equipment Manufacturing arrangements.  These expressions of interest
are in addition to the US Corporation that has been assisting with the programme
to date.

LOTUS is now one of only two vehicle mounted landmine detection projects
remaining in the EU programme. It has recently successfully passed a full
technical review and UK field trials are now taking place. These trials utilise
inert dummy mines to test the system's detection accuracy and are an essential
step prior to a demonstration scheduled to be held in Bosnia in August this
year.

The value of the NYGAS and LOTUS projects during the period was £401,000 and a
similar sum will be contributed to the second half of our current financial
year.  In addition the company has just been notified of a new initial contract,
which is part of the government sponsored ETSU wind turbine programme. The value
of the contract, the majority of which will contribute to the current financial
year, is £90,000.

Internal Product Development

The company has now completed a new version of its core PipeHawk product
designed to the specific requirements of its joint venture franchise company,
SUMO Services Ltd, which now has two pilot franchises operating.  The
development cost of this project was £120,000, which has been charged to the
Profit and Loss Account.

The further development of the PipeHawk product range has continued with a model
to measure the thickness of asphalt layers in repaired roads and pathways
(Electronic Core Sampling).  This new product development has only been possible
because of the technical advances achieved within the landmine project. The
programme is on schedule with field Beta testing now underway, prior to a major
product launch scheduled for early summer.

In order to accelerate market acceptance and widen the potential customer base
for this new inspection methodology, the company is planning to introduce a
non-invasive electronic core sampling service utilising this new product.

The development costs associated with this programme in the first half are
£146,000, which have been charged to the Profit and Loss Account.

Product Sales

PipeHawk sales and prospects were encouraging at the beginning of the period but
were disappointing overall. Despite a significant commitment to advertising and
marketing (£47,000), sales enquiries and orders reduced in the last three months
as companies stopped or deferred their capital spending programmes. This
unexpected shortfall in orders resulted in the sales revenue being £270,000
below forecast - equivalent to nine unit sales.

However, since the beginning of January sales have increased, with orders
received from China, Korea and the UK - in particular a further two orders from
UKAEA.

Loan Repayments

The two loan accounts of £145,704 and £300,000 which fall due for repayment in
August 2002 are, in the opinion of the Board, capable of being renewed or
replaced to the extent then required by the company.

Future Prospects

A major benefit of joining AIM has been the enhanced public profile of your
company and the Board is now able to consider broadening the company's range of
activities so as to establish a service based activity specialising in
non-invasive leading edge technologies complimentary to its core radar business.
Positive preliminary discussions have been held with a number of companies key
to this strategy and initial indications of support from potential providers of
finance have been obtained.

Having completed the major part of our development programme we have been able
to reduce costs going forward and this coupled with expected higher product
sales, leads the Board to be confident that the second half of the current year
will show a much improved trading position.



David Mahony
Chairman
27 March 2002




INDEPENDENT REVIEW REPORT TO PIPEHAWK PLC

Introduction

We have been instructed by the company to review the financial information,
which comprises the consolidated profit and loss account, cashflow statement,
balance sheet and the related notes.  We have read the other information
contained in the interim report and considered whether it contains any apparent
misstatements or material inconsistencies with the financial information. In
particular, we note the comments relating to loan repayments in the Chairman's
Statement.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors.  The directors
are responsible for preparing the interim report in accordance with the AIM
Rules.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom.  A review
consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial data
and, based thereon, assessing whether the accounting policies and presentation
have been consistently applied, unless otherwise disclosed.  A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions.  It is substantially less in scope than an audit
performed in accordance with United Kingdom Auditing Standards and therefore
provides a lower level of assurance than an audit.  Accordingly we do not
express an audit opinion on the financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 December 2001.


RSM Robson Rhodes
Chartered Accountants
London, England
                                        27 March 2002




SUMMARISED CONSOLIDATED PROFIT AND LOSS ACCOUNT


                                                           6 months to          6 months to       12 months to
                                                           31 December          31 December            30 June
                                               Note               2001                2000                2001
                                                             Unaudited            Unaudited            Audited
                                                                     £                    £                  £

Turnover           - continuing operations                     497,115              195,184            652,250

Operating costs                                            (1,143,813)            (676,458)        (1,606,929)

Operating loss  - continuing operations                      (646,698)              481,274          (954,679)

Interest payable less interest receivable                     (14,893)             (40,622)           (17,388)

Loss on ordinary activities before taxation                  (661,591)            (521,896)          (972,067)
Tax on profit on ordinary activities             2                   -                    -

Loss on ordinary activities after taxation                   (661,591)            (521,896)          (972,067)
Dividends                                        3                   -                    -                  -

Retained loss for the period                                 (661,591)            (521,896)          (972,067)

Loss per share - Basic and diluted               4              (4.6p)               (5.1p)             (8.2p)

Dividends per share                                                nil                  nil                nil


SUMMARISED CONSOLIDATED CASH FLOW STATEMENT

                                                         6 months to          6 months to         12 months to
                                                         31 December          31 December              30 June
                                                                2001                 2000                 2001
                                                           Unaudited            Unaudited              Audited
                                                                   £                    £                    £

Net cash outflow from operating activities       5         (618,044)            (508,731)          (1,281,087)
Returns on investment and servicing of finance              (14,893)             (40,621)             (17,388)
Taxation paid                                                      -                    -                    -
Capital expenditure and financial investment                (66,290)             (63,225)            (324,260)
Acquisitions and disposals                                         -                    -                    -
Equity dividends paid                                              -                    -                    -

Increase/(decrease) in cash before financing               (699,227)            (612,577)          (1,622,735)
Management of liquid resources                               650,000                    -            (750,000)
Financing                                                          -            2,579,401            2,487,729

Increase/(decrease) in cash                                 (49,227)            1,966,824              114,994


SUMMARISED CONSOLIDATED BALANCE SHEET
as at 31 December

                                                       31 December 2001    31 December 2000        30 June 2001
                                                              Unaudited           Unaudited             Audited
                                                                      £                   £                   £
Fixed assets
Intangible assets                                               235,432             186,876             277,057
Tangible assets                                                 257,010             119,798             233,720

                                                                492,442             306,674             510,777
Current assets
Stocks                                                          421,464             173,738             265,465
Debtors due within one year                                     463,638             332,331             557,887
Cash at bank and in hand                                        215,668           2,016,727             914,895

                                                              1,100,776           2,522,796           1,738,247
Creditors: Amounts falling due within one year                (911,715)           (548,814)           (596,253)

Net current assets                                              189,061           1,973,982           1,141,994

Total assets less current liabilities                           681,503           2,280,656           1,652,771

Creditors: Amounts falling due after more than one
year                                                           (82,881)           (570,280)           (392,556)


Net assets                                                      598,616           1,710,376           1,260,205


Capital and reserves

Share capital                                                   144,652             144,652             144,652
Share premium account                                         2,389,834           2,389,834           2,389,834
Capital reserve                                                 921,359             921,359             921,359
Profit and loss reserve                                     (2,857,229)         (1,745,469)         (2,195,640)

Equity shareholders' funds                                      598,616           1,710,376           1,260,205

NOTES

1.         BASIS OF ACCOUNTING

The consolidated interim financial information has been prepared using merger
accounting.  Under merger accounting the results and cash flows are combined
from the beginning of the financial period and all comparatives are restated on
the combined basis.  The comparative interim financial information consolidates
the financial information of PipeHawk plc and Emrad Limited as though they had
been in existence with its present constitution.

FRS19 'Deferred Tax' has been adopted for the first time in this interim report.
The group has not recognised deferred tax balances which exist in respect of
brought forward corporation tax losses and has therefore not made a prior year
adjustment.

2.         TAX

No corporation tax was payable in either period as a result of losses arising.

3.         DIVIDENDS

No interim dividend will be paid.

4.         LOSS PER SHARE


                                                       6 months to          6 months to          12 months to
                                                  31 December 2001     31 December 2000          30 June 2001
                                                         Unaudited            Unaudited               Audited   
                                                                                                    

These have been calculated on losses of:                 (661,591)            (521,894)             (972,067)

The weighted average number of shares used was:         14,465,220           10,330,186            11,686,407

Basic and diluted                                           (4.6p)               (5.1p)                (8.2p)



5.         RECONCILIATION OF OPERATING PROFIT TO NET CASH
OUTFLOW FROM OPERATING ACTIVITIES
                                                       6 months to          6 months to         12 months to
                                                  31 December 2001     31 December 2000         30 June 2001
                                                         Unaudited            Unaudited              Audited

Operating loss                                           (646,698)            (481,274)            (954,679)
Depreciation and amortisation                               84,627               49,620              131,135
Loss on disposal of tangible fixed assets                        -                    -              (1,419)
(Increase)/decrease in stock                             (155,999)             (47,476)            (139,203)
(Increase)/decrease in debtors                              94,249            (110,835)            (307,589)
Increase/(decrease) in creditors                             5,777               81,234              (9,332)

Net cash outflow from operating activities               (618,044)            (508,731)          (1,281,087)


6.         RECONCILIATION OF NET CASH FLOW TO MOVEMENT OF NET DEBT


                                                     6 months to          6 months to         12 months to
                                                31 December 2001     31 December 2000         30 June 2001
                                                       Unaudited            Unaudited              Audited
                                                               £                    £                    £

Change in cash                                          (49,227)             (57,302)              114,994
Cash flow from (increase)/decrease in debt
and lease finance                                          8,055             (83,518)             (43,305)
Increase/(decrease) in liquid resources                (650,000)            2,000,000              750,000

Change in net debt from cash flows                     (691,172)            1,859,180              821,869

Loan repaid in shares                                          -                    -               12,889
Inception of hire purchase agreements                          -             (15,934)             (23,164)

(Increase)/Reduction in net debt                       (691,172)            1,843,246              811,414
Opening net funds/(debt)                                 357,254            (454,160)            (454,160)

Closing net funds/(debt)                               (333,918)            1,389,086              357,254



7.         RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS


                                                     6 months to          6 months to         12 months to
                                                31 December 2001     31 December 2000         30 June 2001
                                                       Unaudited            Unaudited              Audited
                                                               £                    £                    £

Total recognised losses relating to the
period                                                 (661,591)            (521,896)            (972,067)
Shares issued before group reconstruction                      -               12,889               12,889
                                                               
Net proceeds of placing                                        -            2,444,424            2,444,424

Increased/(decrease) in shareholders' funds             (661,591)            1,935,417            1,485,246

Opening shareholders' funds/(deficit)                  1,260,205            (225,041)            (225,041)

Closing shareholders' funds                              598,616            1,710,376            1,260,205



8.         INTERIM REPORT

This interim report was approved by the Board on 27 March 2002.  It
has been prepared using accounting policies that are consistent with those
adopted in the statutory accounts for the year ended 30 June 2001.  The figures
for the year ended 30 June 2001 were derived from the statutory accounts for
that year, which have been delivered to the Registrar of Companies and received
an audit report which was unqualified and did not contain statements under s237
(2) or (3) of the Companies Act 1985.



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