Interim Results

RTS NetWorks Group PLC
18 October 2001


                      RTS NetWorks Group PLC
                  ('RTS NetWorks' or 'the Group')

       Interim Results for the Six Months Ended 30 June 2001

CHAIRMAN'S STATEMENT

Our half-year results for the six months ended 30 June 2001 reflect
the trends outlined in our Annual Report.

Solutions and prospects
Our  Annual Report highlighted our solutions strategy.   The  first
half of 2001 saw several key product launches, with upgrades to our
Commerce  Management  suite,  new versions  of  XML  Site  Kit  and
Synchronicity CMS.

With   the   launch  of  2.5G  networks,  we  also   anticipate   a
strengthening  of  customer  interest  in  wireless  extensions  to
existing  products  such as HDi and Mobile HDi.   Most  independent
analysts still foresee high growth in the mobile data market, where
the Group is well positioned.

Financial review
Turnover  for  the six months ended 30 June 2001 was  £2.9  million
(seven  months  to 30 June 2000 was £2.5 million).   The  operating
loss  before  amortisation of goodwill was £2.5  million  (30  June
2000:  £4.4 million) and after amortisation £5.5 million  (30  June
2000:  £5.1  million).   The amortisation of goodwill  includes  an
additional   write  off  of  £2  million  to  reflect   a   further
reassessment  of  estimated recoverable values, taking  account  of
recent developments.

Over  the  period  the Group's cost base has been  reduced  by  the
disposal of some leased facilities, staff headcount reductions  and
the  careful control of expenses.  Costs were incurred  on  further
product   development,  predominantly  XML  Site   Kit,   HDi   and
Synchronicity CMS.

The  market for e-commerce solutions was less buoyant than over the
same  period last year and the  sales cycle continued to  be  drawn
out.

The  Directors have been successful in raising sufficient funds  to
ensure  that the business can continue in operational existence  at
the  present  time  but  they continue to actively  pursue  further
funding  opportunities  in order to secure  the  Group's  long-term
future.  Therefore the financial information in this statement  has
been prepared on the going concern basis.

Post-balance sheet events
To  confirm  our  presence in that market,  we  acquired  a  Danish
'mobile  enabling'  technology company, Juize A/S,  in  July  2001.
This  company  develops  products and  solutions  that  are  highly
complementary to our own, and enjoys privileged contacts  with  the
telco operator community.  Olicom A/S, the listed Danish technology
investment   company  and  the  majority  shareholder   in   Juize,
subscribed  £550,000  in  cash  for 6,179,775  new  shares  in  RTS
NetWorks   at  a  price  of  9.5p  per  share.   Olicom  now   owns
approximately 10% of the Company's equity.

During  July 2001, the Company finalised the further loan financing
facility  of  £500,000 from Robotic Technology  Systems  PLC  ('RTS
PLC') which was announced on 13 June 2001.

Also in July 2001, Peter Weil was appointed Chief Operating Officer
for  the  Group.  He has a strong track record  in  increasing
sales  and  profitability.  Both the UK and French  operations
have been restructured under his guidance and further measures
are planned for the Nordic and US operations.  I am pleased to
report  that, with effect from today, Peter has been  promoted
to the role of Group Chief Executive.

Given the strengthening of the Company's senior management team
through  Peter Weil's appointment and following the  reduction
in  the level of RTS PLC's shareholding in the Company earlier
in  the year, both Philip Johnson and David Timmins considered
it   an  appropriate  time  to  stand  down  as  non-executive
directors  of the Company and resigned from the  Board  on  25
September 2001, as previously announced.

On 17 October 2001, the Company secured further working capital
funding  totalling  £430,000.  5,400,000 new  ordinary  shares
have been placed at 5p with institutional and other investors,
including  management  'Placees'), to  raise  £270,000  and  a
subordinated  loan facility of £160,000 has been  provided  by
RTS  PLC.  In  addition, subject to the Company obtaining  the
requisite shareholder authorities at an Extraordinary  General
Meeting  to be convened in due course (' the EGM'),  the  loan
will  be  convertible into a maximum of 3,200,000 new ordinary
shares in the Company at the option of the Company or RTS PLC.

Again, subject to the Company obtaining the requisite shareholder
authorities at the EGM, the new ordinary shares to  be  issued
to Placees, and to RTS PLC on conversion of the new loan, will
have  warrants attached on a one for two basis at an  exercise
price  of 1 penny and exercisable, at the earliest, 12  months
from today save in exceptional circumstances when exercise can
be accelerated.

Application has been made for the 5,400,000 new ordinary shares to
be issued as a result of the placing to be admitted to AIM and
it is expected that dealings will commence on 26 October 2001.

A circular will be posted in the next few days to shareholders in
order  to  convene  the  EGM  at  which  resolutions  enabling
Directors  to  allot shares in the Company for  cash  will  be
proposed.

Because of the size of its shareholding in the Company, RTS PLC is
classified as a related party under the AIM Rules.  It is  the
opinion  of the Directors, after consulting with the Company's
Nominated  Adviser,  Brown, Shipley & Co.  Limited,  that  the
terms  of  the  loan  are  fair  and  reasonable  so  far   as
shareholders of the Company are concerned.

Outlook

In recent months, the Company has focused increasingly on more
proactive sales and marketing-driven activities.  As a result,
the  sales pipelines in the UK and France have increased which
should lead to greater revenues.

In  parallel,  the  Company continues actively  to  engage  in
discussions on further strategic partnership arrangements  for
the future.

Bernard R Fisher
Non-executive Chairman                         18 October 2001


For further information please contact:

RTS NetWorks Group                        + 44 (0) 207 749 5000
Bernard Fisher, Chairman                           www.rtse.com
Square Mile BSMG Worldwide                + 44 (0) 207 601 1000
Nick Oborne/Sally Lewis


==============================================================================
Group Profit and Loss Account
for the six months ended 30 June 2001   
 
                                           6 month      7 month     16 month
                                            period       period       period
                                             ended        ended        ended
                                          30/06/01     30/06/00     31/12/00
                                        (Unaudited)  (Unaudited)    (Audited)

                                Notes        £'000        £'000        £'000
------------------------------------------------------------------------------
Turnover                                     2,867        2,479        6,074

Cost of sales                               (1,961)      (2,092)      (4,746)

------------------------------------------------------------------------------
Gross profit                                   906          387        1,328

Administrative expenses                     (3,391)      (4,774)     (18,253)
Amortisation of goodwill                    (3,050)        (688)      (2,936)

------------------------------------------------------------------------------
Operating loss                              (5,535)      (5,075)     (19,861)

Net Interest (payable)/receivable              (21)          94          175

------------------------------------------------------------------------------
Loss on ordinary activities before taxation (5,556)      (4,981)     (19,686)

Taxation                                         -            -            -

------------------------------------------------------------------------------

Loss on ordinary activities for the period  (5,556)      (4,981)     (19,686)
==============================================================================
Loss per share
- Basic and diluted                 2         5.91p        6.23p       28.55p
==============================================================================


==============================================================================
Statement of Total Recognised Gains & Losses
for the six months ended 30 June 2001       
                                            6 month      7 month     16 month
                                             period       period       period
                                              ended        ended        ended
                                           30/06/01     30/06/00     31/12/00
                                         (Unaudited)  (Unaudited)    (Audited)

                                Notes        £'000         £'000        £'000
------------------------------------------------------------------------------
Loss for the period                         (5,556)       (4,981)     (19,686)

Exchange adjustments                            10           (41)        (189)

------------------------------------------------------------------------------
Total recognised gains and 
losses for the period             4         (5,546)       (5,022)     (19,875)
==============================================================================

==============================================================================
Group Balance Sheet
                                                   At         At          At
                                             30/06/01   30/06/00    31/12/00
                                           (Unaudited)(Unaudited)   (Audited)

                                  Notes         £'000      £'000       £'000

------------------------------------------------------------------------------
Fixed assets
Intangible assets                               5,890      9,795       9,000
Tangible assets                                   918      1,156       1,159
Investments                                       156          -         162

------------------------------------------------------------------------------
                                                6,964     10,951      10,321
Current assets
Stocks                                            234          -         219
Debtors due within one year                     1,836      1,435       1,399
Debtors due after more than one year               86          -         164
Cash at bank and in hand                          495      1,913       1,444
------------------------------------------------------------------------------
                                                2,651      3,348       3,226
Creditors: amounts falling due within one year (2,190)    (1,140)     (2,468)
------------------------------------------------------------------------------

Net current assets                                461      2,208         758
------------------------------------------------------------------------------

Total assets less current liabilities           7,425     13,159      11,079
 
Creditors: amounts falling due after more 
than one year                                  (1,083)       (94)        (51)

Provisions for liabilities and charges           (162)         -        (788)
------------------------------------------------------------------------------

Net assets                                      6,180     13,065      10,240
==============================================================================
Capital and reserves
Called up share capital               3           948        802         906
Share premium account                 4        19,597     17,285      18,153
Shares to be issued                   4         1,000          -       1,000
Merger reserve                        4        10,056          -      10,056
Profit and loss account               4      (25,421)     (5,022)    (19,875)

------------------------------------------------------------------------------
Equity shareholders' funds                     6,180      13,065      10,240
==============================================================================



Consolidated Cash Flow Statement
for the six months ended 30 June 2001

                                             6 month      7 month   16 month
                                              period       period     period
                                               ended        ended      ended
                                            30/06/01     30/06/00   31/12/00
                                          (Unaudited)  (Unaudited)  (Audited)

                                               £'000        £'000      £'000

------------------------------------------------------------------------------
Cash outflow from operating activities        (2,420)      (4,323)    (9,773)

Returns on investments and servicing of finance  (21)          94        175

Capital expenditure and financial investment       7         (761)    (1,436)

Acquisitions                                       -         (889)    (2,372)
------------------------------------------------------------------------------

Net cash outflow before financing             (2,434)      (5,879)   (13,406)

Financing                                      1,485        7,792     14,873
------------------------------------------------------------------------------

(Decrease)/Increase in cash in the period       (949)       1,913      1,467

==============================================================================

Reconciliation to net cash
------------------------------------------------------------------------------

Net cash at the start of the period            1,444            -          -

(Decrease)/Increase in net cash                 (949)        1,913     1,467
Borrowings acquired with subsidiaries              -             -      (309)
Movements in borrowings                            -             -        85
Exchange adjustment                                -             -       (23)
------------------------------------------------------------------------------

Net cash at end of period                        495         1,913     1,220
==============================================================================


==============================================================================

Notes to the Financial Information

1  Basis of preparation

The  interim  financial information has been  prepared  using  the
accounting policies set out in the Group's 2000 Annual Report  and
Financial Statements.  The figures for the period 31 December 2000
have   been   extracted  from  the  Annual  Report  and  Financial
Statements  that have been filed with the Registrar of  Companies.
The  auditor's  report  on those accounts  was  unqualified.   The
financial information set out in this document does not constitute
statutory  financial statements within the meaning of section  240
of the Companies Act 1985.

The  financial information has been prepared on the going  concern
basis  as the Directors have secured adequate financing to  enable
the  Company  to continue in operational existence at the  present
time.   Furthermore,  the Directors are of the  opinion  that  the
Company  is in a position to secure adequate further financing  to
enable  the Company to continue in operational existence  for  the
foreseeable future.

In  the above context, the Company has negotiated (see Note 5) and
is  currently  in  negotiation with  regard  to  procuring  future
funding  by  way of equity investment and/or a fully  subordinated
long-term  loan and the Directors are confident that such  funding
will be secured.

Should  further funding not be made available as expected  by  the
Directors, the going concern basis of preparation of the financial
information  may  not be appropriate and accordingly,  adjustments
would  have  to  be made to reduce the value of  assets  to  their
recoverable  amount, to provide for any further liabilities  which
might  arise,  and  to  reclassify  fixed  assets  and  long  term
liabilities    as   current   assets   and   current   liabilities
respectively.

2  Loss per share

Loss  per  ordinary share has been calculated using  the  weighted
average  number of shares in issue during the period.   For  basic
earnings  per share, the weighted average number of equity  shares
in issue is 94,061,650 and the earnings being losses after tax are
£5,556,000.

3  Share capital
                                                        No.     £000's

Authorised ordinary shares of 1p each           100,000,000      1,000
Allotted, called up and fully paid ordinary 
shares of 1p each                                94,756,094        948


4  Shareholders' Funds



                       Share    Share  Shares to   Merger  Profit and   Total
                     capital  premium  be issued  reserve        loss

                       £'000    £'000      £'000    £'000       £'000   £'000

------------------------------------------------------------------------------
At 1 January 2001        906   18,153      1,000   10,056     (19,875) 10,240
Shares issued in the 
period                    42    1,458          0        0           0   1,500
Share issue expenses       0      (14)         0        0           0     (14)
Exchange adjustment        0        0          0        0           0       0
Profit for the period      0        0          0        0      (5,546) (5,546)

------------------------------------------------------------------------------
At 30 June 2001          948   19,597      1,000   10,056     (25,421)  6,180
==============================================================================

5   Events subsequent to balance sheet date

Acquisition of Juize A/S
The  Company acquired Juize A/S, a Danish company specialising  in
Internet   technology  and  solutions  for  telephone   operators,
Internet   service   providers  and  corporate  enterprises.   The
consideration payable to the vendors of Juize was satisfied by the
issue  of 5,840,000 new ordinary shares in the Company at a  price
of  9.5p  per share valuing Juize at approximately £0.55  million.
Revenues  in  the 12 months ended 31 December 2000 were  DKR42,000
(approximately  £4,000), achieving a net loss of DKR7.675  million
(approximately £600,000). As at 31 December 2000,  Juize  had  net
assets of DKR1.556 million (approximately £130,000).

Fundraising
On  17  October 2001, the Company secured further working  capital
funding  totalling £430,000.  5,400,000 new ordinary  shares  have
been   placed  at  5p  with  institutional  and  other  investors,
including  management, to raise £270,000 and a  subordinated  loan
facility  of  £160,000 has been provided by RTS PLC. In  addition,
subject   to  the  Company  obtaining  the  requisite  shareholder
authorities at an Extraordinary General Meeting to be convened  in
due  course,  the  loan  will be convertible  into  a  maximum  of
3,200,000 new ordinary shares in the Company at the option of  the
Company or RTS PLC.

Again,  subject to the Company obtaining the requisite shareholder
authorities  at the EGM, the new ordinary shares to be  issued  to
placees and the loan will have warrants attached on a one for  two
basis  at  an  exercise price of 1 penny and exercisable,  at  the
earliest,  12  months from today save in exceptional circumstances
when exercise is accelerated.


Independent Review Report to RTS NetWorks Group PLC

Introduction
We  have  been  instructed by the Company to review the  financial
information for the six months ended 30 June 2001 on pages 3 to 6.
We have read the other information contained in the interim report
and  considered  whether it contains any apparent misstatement  or
material inconsistencies with the financial information.

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  Listing  Rules  of  the
Financial  Services  Authority which require that  the  accounting
policies and presentation applied to the interim figures should be
consistent  with  those applied in preparing the preceding  annual
financial statements except where any changes, and the reasons for
them, are disclosed.

Review work performed
We  conducted our review in accordance with guidance  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.

Fundamental uncertainty
In  arriving  at  our  review conclusion, we have  considered  the
adequacy  of  the  disclosure made in  the  financial  information
concerning  the  adoption  of  the  going  concern  basis  in  the
preparation   of   the  financial  information.    The   financial
information  has  been prepared on the going  concern  basis,  the
validity  of  which  depends  upon further  future  funding  being
available.   The  financial  information  does  not  include   any
adjustments  that would result from a failure to  obtain  funding.
Details   of   the  circumstances  relating  to  this  fundamental
uncertainty are described in Note 1.  Our review conclusion is not
qualified in this respect.

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 30 June 2001.

BDO Stoy Hayward
Chartered Accountants
Manchester

18 October 2001