Final Results

NewMedia SPARK PLC
13 June 2001



NewMedia SPARK plc

Preliminary Announcement of Annual Results for the year ended 31 March 2001


NewMedia SPARK plc, one of Europe's leading early stage TMT venture
capitalists, today announces preliminary results for the year ended 31 March
2001


Business and financial highlights:


  * Thorough review of each of SPARK's investee companies resulting in a
    prudently valued portfolio of 56 companies (2000, 32) with strong upside
    potential

  * Strengthened key areas of the business to weather the technology and
    market downturn

  * European network developed and expanded, positioning SPARK well for
    future growth and development of third party fund management business

  * Tentative signs of recovery in technology markets supported by
    encouraging recent activities and funding events

  * Net Asset Value of 42p per share (2000, 77p)

  * Cash balance of £76.6 m (2000, £33.5 m)

  * Total Net Assets of £207.7 m (2000, £173.4 m)



Commenting on the results, Mike Whitaker, CEO of SPARK, said,



'The last year has been a challenging one for SPARK. Nevertheless, we have
strengthened our balance sheet through acquisitions and improved our
investment capabilities in the UK and Europe. We now have a prudently valued
portfolio and are encouraged to see that many of our investments are
developing into robust and profitable businesses. We continue to believe that
as European capital markets converge and information technology re-emerges as
a key driver of economic growth in the region, early stage investment in the
TMT sector will generate substantial returns for our shareholders. We look
forward to the future with confidence and determination.'

-ENDS-



For further information:

NewMedia SPARK:

Mike Whitaker, Chief Executive Officer          020 7851 7777

Bruno Delacave, Chief Financial Officer



For press enquiries:

Lawrence Dore                                   020 7072 2300

Mantra



CEO's report

The last year has been an extremely eventful and challenging one for SPARK.
The decline in our net asset value to 42p per share (2000, 77p) is
disappointing, although not as severe as the declines in the main quoted
technology indices and the broader technology venture capital markets as a
whole during the same period:

                                                               % fall in period
                                                                    Mar 2000 to
                                                                       Mar 2001
SPARK Net Asset Value per share                                           45.5%
Techmark 100                                                              55.9%
NASDAQ                                                                    59.7%
EASDAQ                                                                    74.2%
Neuer Markt                                                               79.6%

(Source: Primark/Company)

SPARK's financial year began in April 2000 as technology markets around the
world peaked. This was followed at the end of 2000 and particularly in early
2001 by significant declines in TMT valuations.

The Group closed the year with cash balances of £76.6 m (2000, £33.5 m) and
shareholders' funds of £207.7 m (2000, £173.4 m). The loss before tax for the
year amounted to £46.3 m (2000, profit of £2.8 m). The Group's investment
portfolio comprised 56 companies (2000, 32) based in the UK, Europe, India and
the USA, and valued at £109.7 m (2000, £151.8 m). Administrative expenses, net
of goodwill amortisation, reflecting the central costs of administering and
managing the Group's investment portfolio amounted to £7.2 m (£1.07 m for the
period ended 31 March 2000).

As at 31 March 2001 the Group had 498 million ordinary shares (2000, 225
million) in issue. No dividend is proposed for the current year (31 March
2000, nil).

Faced with these difficult market conditions, we believe that SPARK performed
well, reacting quickly to strengthen its balance sheet to withstand the
downturn. In May 2000 we acquired Softtechnet.com plc, a transaction which
contributed £23.4 m in additional cash and in November 2000 we acquired
Internet Indirect plc which contributed a further £75.5 m in cash. As a result
of these acquisitions we ended the year with a stronger balance sheet
including cash of approximately £76.6 m and other assets totalling £132.6 m.

During the year ended 31 March 2001 the Group incurred realised and unrealised
losses on investments of £73.7 m (2000, gains of £21.3 m) of which £45.5 m
were reported with the interim results at 30 September 2000. £40.8 m has been
taken to profit and loss (2000, gain £3.2 m) and £32.8 m has been posted to
reserves (2000, gain £18.1 m). Of the losses, £49.2 m were attributable to the
Swedish portfolio, £11.2 m to losses in quoted companies and £13.3 m to all
other investee companies. However losses in Sweden pertain to assets acquired
through Cell ICD, the purchase consideration for which was SPARK shares valued
at 151p. For this reason the cash cost of these assets was considerably less
than the apparent book cost. Of the £13.3 m loss on all other investee
companies, this included unrealised gains of £6.1 m based on external funding
events, (2000, £18.1 m).

These revaluations were approved by SPARK's Directors after a thorough review
process and prudent estimation of the value of the portfolio. Of SPARK's total
investee companies (by number), 36% have attained positive or flat
revaluations, 11% are quoted investments which are marked to market and of the
remaining 53%, 18% have been written down to nil valuation. We believe that
the outcome of this process is a fairly valued portfolio with significant
potential for future gains.

We also took steps during the year ended 31 March 2001 to strengthen our
investment capabilities. In September 2000 we acquired NewMedia Investors Ltd
which has contributed significant investment, deal structuring and corporate
finance expertise. We also opened offices and recruited key personnel in
Madrid and Berlin to complement our offices in London and Stockholm. In
January 2001 we rationalised and reorganised our Swedish office. As a result,
we now have a highly experienced team of approximately 50 employees across
Europe and are one of the few early stage TMT investors operating on a
pan-European basis. We believe that this structure and depth of resource
combined with our strong balance sheet gives us a significant competitive
advantage which we will be able to exploit over the coming year.

SPARK invests in companies at a very early stage where we believe it is
possible to generate significant value for shareholders. Our task is to
identify innovative technology, media and telecoms companies that will
generate attractive returns for investors. We take a very hands-on approach to
all our investee companies and, in order to provide our portfolio companies
with the necessary support, have built up a strong team of people comprising
many years experience in the technology industry, venture capital financial
markets and corporate broking.

SPARK's pan-European operations are grounded in the SPARK culture and based on
a genuine sharing of expertise. Whilst this incurs an upfront investment, our
pan-European presence has provided SPARK with local knowledge and expertise,
access to talent in the key European markets and a functional and effective
infrastructure which enables portfolio companies to roll-out rapidly and
cost-effectively. The geographical breakdown of the portfolio (by number) at
31 March 2001 was as follows: 68% UK, 21% Sweden, 5% Other European, 4% India
and 2% other countries.

We are prudent in our organisational approach and our expansion, whether in
Europe or more recently in India, reflects a gradual and progressive approach
rather than an attempt to achieve immediate critical mass in new and
unfamiliar markets. We will not enter any new market unless we are able to
recruit the best local people and believe that we will be able to generate
exceptional returns for our shareholders. For example, our wholly owned
subsidiary, SPARK India, is run by the former Softtechnet team who have
extensive experience of the Indian market. We have already made 2 investments
in India and we will be looking to build our presence in this market over the
coming year.

The building and strengthening of our international infrastructure will mean
that we will be well placed to raise local funds when local market conditions
allow. The management of these dedicated investment funds will, in due course,
comprise a valuable addition to SPARK's business.

Within our organisation, we have structured our investment teams into three
core areas of expertise: Digital Media, Technology and Communications and
Software Applications. The sector breakdown of our portfolio (by value) is
now: 54% digital media, 17% technology and communications, 17% enterprise
software solutions and 12% other. These are areas where we see particular
value and where we also have in-depth knowledge gained through our extensive
investments in these fields to date. Our strong financial position has enabled
us to continue investing at a time when the market downturn afforded good
investment opportunities. Twenty four new investments have been added over the
period, building our portfolio around these core sectors.

The last year has been challenging for our portfolio companies. As an early
stage investor we anticipate the failure of some of our investments. However
this has been exacerbated during the year by the collapse in capital markets
and the reduction in VC funding and corporate investing. We have had to take a
tough line with our less successful investee companies and have written down,
closed, sold or merged all those investments where we were no longer confident
of their success. Nevertheless, in this process, every attempt has been made
to maximise any remaining value. An example of where this approach has enabled
us to retain some value includes the sale of i-Crunch to Music Choice post the
year-end.

We have also applied considerable resource to our successful investments. A
number of these are now developing into substantial businesses with
considerable growth potential. Some of our investee companies have reached
profitability, which is encouraging given the early stage nature of most of
our investments. Other investments such as EO, Pricerunner and DX3 have taken
advantage of market conditions to acquire market share and strengthen their
businesses. This will place them in a strong position as their markets develop
further. In addition, despite the weak capital markets, we have been able to
arrange syndicated follow-on funding rounds for a number of our investments,
in some cases at a premium to our initial investment. Examples include Blue
Tiger Networks, Linkguard and, since the year-end, Mergermarket. We have also
seen substantial progress over the period from SPARKidea, the company we
established with Joakim Borgsved (founder of Cell Networks and Cell Ventures)
to set up new businesses in areas where we see particular opportunity.
SPARKidea has successfully launched two new businesses in the digital music
field.

We now retain a healthy, substantial and conservatively valued portfolio of
promising businesses across most areas of the TMT industries and across a
growing number of countries. Despite a testing twelve months, we now see
tentative signs that investment conditions in technology markets are improving
and we anticipate gradual increases in our asset value during the remainder of
the year as our more successful companies continue to develop.

Looking ahead, we will continue to develop SPARK into the leading early stage
TMT venture capital organisation in Europe. We believe that if we are
successful in this aim then we will be able to deliver exceptional investment
returns to shareholders over the longer term. Such goals are not achieved
overnight and the last year has been a sobering and instructive experience.
However we have survived and become stronger at a time when many of our
competitors have failed. We therefore look forward to the challenges of the
future with confidence and determination.

Michael Whitaker

CEO

13 June 2001

Consolidated Statement of Total Recognised Gains and Losses
year ended 31 March 2001
                                                Year ended          Period from
                                                  31 March         26 July 1999
                                                      2001                   to
                                                                  31 March 2000
                                                     £'000                £'000
                                                 Unaudited              Audited

(Loss)/Profit for the year/period                 (46,004)                1,971
Unrealised (loss)/gain on investments             (32,873)               18,064
Minority interest share of revaluations              6,007                    0
Exchange differences                               (7,444)                    0

Total recognised (losses)/gains in the year/      (80,314)               20,035
period





Reconciliation of Movements in Consolidated Shareholders' Funds
year ended 31 March 2001
                                                 Year ended         Period from
                                                   31 March        26 July 1999
                                                       2001                  to
                                                                  31 March 2000
                                                      £'000               £'000
                                                  Unaudited             Audited

(Loss)/Profit for the year/period                  (46,004)               1,971
Other recognised (losses)/gains for the year/      (34,310)              18,064
period
Proceeds of issue of shares                         106,195             153,377
Deemed proceeds from issue of warrants                8,391                   0
Net addition to shareholders' funds                  34,272             173,412
Opening shareholders' funds                         173,412                   0
Closing shareholders' funds                         207,684             173,412



Consolidated Profit & Loss Account
year ended 31 March 2001
                                                 Year ended         Period from
                                                   31 March        26 July 1999
                                                       2001                  to
                                                                  31 March 2000
                                                      £'000               £'000
                                                  Unaudited             Audited

Administrative expenses                             (9,317)             (1,072)
Other operating income                                  857                 126
Operating loss                                      (8,460)               (946)

(Loss)/Profit on investments                       (40,851)               3,173
Interest receivable and similar income                3,059                 624
Interest payable and similar charges                      0                 (3)
(Loss)/Profit on ordinary activities before        (46,252)               2,848
taxation

Tax on profit on ordinary activities                   (15)               (898)
(Loss)/Profit on ordinary activities after         (46,267)               1,950
taxation

Equity minority interests                               263                  21
Retained (loss)/profit for the financial year/     (46,004)               1,971
period

(Loss)/Earnings per ordinary share                 (13.48p)               1.22p
Diluted (loss)/earnings per ordinary share         (11.84p)               1.12p



In the year ended 31 March 2001, acquired businesses contributed £2.6 million
to administrative expenses, reduced other operating income by £0.1 million and
contributed £2.7 million to operating loss.


Consolidated Balance Sheet
as at 31 March 2001
                                                           2001            2000
                                                          £'000           £'000
                                                      Unaudited         Audited
Fixed Assets
Intangible assets                                        16,281               0
Tangible fixed assets                                     1,440             469
Investments                                             109,731         151,787
                                                        127,452         152,256
Current Assets
Debtors                                                   5,349           2,581
Cash at bank and in hand                                 76,568          33,531
                                                         81,917          36,112

Creditors: amounts falling due within one year          (1,541)         (5,263)

Net current assets                                       80,376          30,849

Total assets less current liabilities                   207,828         183,105

Equity minority interest                                  (144)         (9,693)

Net Assets                                              207,684         173,412

Capital and reserves
Called up share capital                                  12,459           5,630
Share premium account                                   247,113         109,155
Shares to be issued                                           0          38,592
Revaluation reserve                                     (8,802)          18,064
Capital reserve                                           8,391               0
Profit and loss account                                (51,477)           1,971
Equity shareholders' funds                              207,684         173,412



Consolidated Cash Flow Statement
year ended 31 March 2001
                                                   Year ended       Period from
                                                     31 March           26 July
                                                         2001           1999 to
                                                                       31 March
                                                                           2000
                                                        £'000             £'000
                                                    Unaudited           Audited

Net cash outflow from operating activities           (13,379)             (562)

Returns on investments and servicing of finance
Interest received                                       3,059               624
Interest paid                                               0               (3)
Net cash inflow from returns on investments and         3,059               621
servicing of finance

Taxation
UK Corporation Tax Paid                                 (982)                 0
Overseas Tax Paid                                        (27)                 0
Net cash outflow from taxation                        (1,009)                 0

Capital expenditure and financial investment
Payments to acquire tangible fixed assets               (945)             (458)
Payments to acquire investments                      (30,964)          (32,235)
Receipts from sales of investments                        467             3,851
Net cash outflow from investing activities           (31,442)          (28,842)

Acquisitions and disposals
Purchase of subsidiary undertakings                  (10,465)          (27,743)
Purchase of minority interest                         (3,446)                 0
Net cash acquired with subsidiaries                    99,719               459
Net cash inflow/(outflow) from acquisitions and        85,808          (27,284)
disposals

Net cash inflow/(outflow) before financing             43,037          (56,067)

Financing
Issue of ordinary share capital                             0            91,015
Expenses paid in connection with share issues               0           (1,417)
Net cash inflow from financing                              0            89,598

Increase in cash in the year / period                  43,037            33,531



Note

The above financial information does not constitute the group's statutory
accounts for the year ended 31 March 2001 or the period ended 31 March 2000,
but is abridged from those accounts.

Statutory accounts for the period ended 31 March 2000 have been delivered to
the Registrar of Companies. The statutory accounts for the year ended 31 March
2001 will be finalised on the basis of the financial information presented by
the Directors in this preliminary announcement and will be delivered to the
Registrar of Companies following the Company's Annual General Meeting.

Further copies of this announcement are available from The Company Secretary,
NewMedia SPARK plc, 33 Glasshouse Street, London W1R 5RG.