Final Results

Symphony Plastic Technologies PLC
25 March 2004




For Immediate Release                                            25th March 2004



                       SYMPHONY PLASTIC TECHNOLOGIES PLC


                              PRELIMINARY RESULTS
                      FOR THE YEAR ENDED 31 DECEMBER 2003


Symphony Plastic Technologies plc ('Symphony' or 'the Company'), a company
specialising in fully degradable plastics and other environmentally responsible
products, is pleased to announce its results for the year ended 31st December
2003.


HIGHLIGHTS


• Turnover up 89% to £7.63m (2002: £4.04m)

• Operating loss after exceptional costs up 80% to £2.92m (2002: £1.62m)

• Operating loss before exceptional costs down 25% to £1.22m (2002: £1.62m)

• Second half operating loss after exceptional costs down 69% to £0.70m
  (2003 H1: £2.22m)

• Second half operating loss before exceptional costs down 37% to £0.47m
  (2003 H1: £0.75m)

• Achieving cash flow break even for 2004

• Expansion and diversification into International markets


Commenting on the results, Christopher Littmoden, Chairman of Symphony, said:


During the year Symphony has made major changes which have radically altered the
shape of the business. From being a licensee seller of a limited range of
products into restricted geographical territories, Symphony now owns its own
technology and is developing and marketing products and additives in worldwide
markets.


Despite the substantial efforts and cash that these changes have demanded,
Symphony has managed to establish new markets in Brazil, New Zealand and South
Africa. Sales progress in the UK has however been slower than anticipated.


The Company is now in a cash-flow breakeven position and this, together with the
growing public awareness of environmental issues, places Symphony in a better
position.

I am pleased that we are now in a cash-flow breakeven position and I now believe
that the time is right to resign as non executive Chairman and director with
immediate effect. A further announcement will be made once a new Chairman has
been appointed. I wish the Company success for the future'.


For further information, please contact:

Symphony                                            Tel: [phone]
Michael Laurier, CEO
Ian Bristow, FD

Buchanan Communications                             Tel: [phone]
Bobby Morse / Rebecca Skye Dietrich



Attached: Chief Executives' review; Consolidated Profit and Loss Account;
Consolidated Balance Sheet; Consolidated Cash Flow Statement; Notes to the
Preliminary Statement.





CHIEF EXECUTIVE'S REVIEW


This year has seen a much better financial performance with sales volumes up
from those of the previous years and operating margins increasing during the
second half. Substantial provisions in relation to the EPI license and
associated cost, together with a policy of amortising R&D as it is incurred, are
all taken into account in this years results.


Symphony has successfully launched its own degradable technology and as a result
has opened many new markets and opportunities in terms of product sales and
technology licensing contracts. The business is currently generating better
operating margins as a result of these changes. In addition, strict cost control
together with product and market diversification is the main business model for
going forward.


TRADING RESULTS


Symphony achieved a 133% increase in sales of d2wTM products from £2.39m to
£5.57m. Sales of non-degradable products increased by 25% from £1.65m to £2.06m.
Total group sales increased by 89% from £4.04m to £7.63m. The Group continued to
allocate most of its marketing and sales efforts to the further development of
d2wTM product sales, whilst maintaining and increasing the level of
non-degradable business where possible.


The operating loss was £2.92m in 2003, which is up from the 2002 results of
£1.62m, due to £1.70m of exceptional costs in respect to the termination of the
EPI licence, of which £1.26m included the write off of intangibles.
Administrative expenses before exceptional costs were £2.32m in 2003, which is
6% up from the 2002 figure of £2.19m, primarily as a result of increased staff
and management costs.


Group gross profit before exceptional costs was £1.38m (2002: £0.74m), which
represents an increase of 86%. Gross profit after exceptional costs was £1.19m
for 2003.


The loss per share increased to 7.09 pence from 5.32 pence.


Compared to 2002, the second half of the year saw like for like sales up 138%
and gross profit up 153%. The operating loss before exceptional costs reduced
56% to £0.47m (2002 H2: £1.06m). The operating loss after exceptional costs
reduced by 34% to £0.70m (2002 H2: £1.06m).


Compared to the first half of 2003 the second half year sales increased by 6%,
gross profit before exceptional costs was up by 7%, with administrative expenses
before exceptional costs down by 19%. The operating loss before exceptional
costs reduced 38% from £0.75m to £0.47m. After exceptional costs, gross profit
increased by 29% from £0.52m to £0.70m and the operating loss decreased by 69%
from £2.22m to £0.70m


Dispute between Symphony and EPI

As notified on 3rd March 2004, EPI issued proceedings against Symphony for 
breach of contract passing off and misuse of confidential information. As 
stated at the time, we were confident that the claim is wholly unmeritorious. 
As a result of more recent advice our position remains unchanged.

Further to the exceptional costs reported at the interim stage an additional
£0.23m has been provided due to the legal action undertaken by EPI.


International Markets


Symphony has been rapidly expanding its international sales activities with an
ever increasing product range. The d2wTM degradable products and additives are
now being distributed in Brazil, the Caribbean, Middle East, New Zealand and
South Africa. In addition other new overseas markets have started to buy our
products and additives. Negotiations are on going in several new territories and
we are optimistic that additional distribution agreements will be signed over
the next few months thus expanding the Company's global presence yet further.


It is our belief that the international markets will show the fastest growth
rate for the Company in the coming months and years as we are effectively
duplicating the UK sales structure several times over without having to directly
pay the cost for doing this.


UK Sales


We have continued to market and promote our products into a wide variety of
sectors, primarily retail, governmental, healthcare and packaging. Degradable
refuse sacks, disposable aprons and mailing film sales increased during the
second half of 2003. Sales of d2wTM carrier bags and consumer products continue
into the Somerfield Group and d2wTM carrier bags into Co-operative Retail.


As announced on 19th November 2003 we were awarded a contract for the supply of
non-degradable bags for supply to the Welsh Purchasing Organisation. Deliveries
started in January 2004 and the contract is expected to exceed its initial
target of 30 million non-degradable bags or £900,000 over the two year contract
life.


In recent months we have also been engaged in the development of other
environmentally responsible plastic solutions. These new products are expected
to provide a substantial contribution to the revenue stream over the coming
months.


Financing


In April 2003 we raised £2 million to strengthen the balance sheet as well as
for cash-flow purposes in order to support the expected increase in sales. I am
pleased to report that for 2004 we are now operating on a cash-flow break even
basis. The net cash position as at 31 December 2003 including bank discounted
debt was (£94,000).


Board Changes


It is with regret that our Chairman, Christopher Littmoden is resigning from the
Board effective from today. We are grateful for his past support and wish him
well for the future. Further announcements will be made in due course in respect
to the appointment of a new chairman as well as a further non executive director
in order to strengthen the Board.


Outlook


There is no doubt that the market opportunity for a highly competitive
environmentally responsible plastic products is better now than it has ever
been. We remain in a unique position of being able to supply a very broad range
of solutions from additives to finished products in ever expanding market
sectors. Legislation would be a major boost and governments are contemplating
solutions to the problems associated with plastic pollution. Recent changes have
been made to the EU Packaging Directive that encourages environmentally
responsible products and we are hopeful that the legislative environment will
continue to change in favour of our technology.


We remain optimistic and confident for the future growth of the business.



Michael Laurier
Chief Executive





GROUP PROFIT AND LOSS ACCOUNT

For the year ended 31 December 2003
                                                Year ended      Year ended
                                         31 December 2003    31 December 2002

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

Turnover                                             7,628               4,035

Cost of sales - other                     (6,243)             (3,292)
Cost of sales - Exceptional item            (196)                  -
                                           -------              ------
Cost of sales                                       (6,439)             (3,292)
                                                     -------              ------

Gross profit                                         1,189                 743

Distribution costs                                    (281)               (179)

Administrative expenses - other           (2,325)             (2,187)
Administrative expenses - Exceptional     (1,501)                  -
item                                       -------              ------
Administrative expenses                             (3,826)             (2,187)
                                                     -------              ------

Operating loss                                      (2,918)             (1,623)

Net interest                                           (91)                (56)
                                                     -------              ------

Loss on ordinary activities before                  
taxation                                            (3,009)             (1,679)

Tax on loss on ordinary activities                       -                   -
                                                     -------              ------

Loss for the financial year transferred             
from reserves                                       (3,009)             (1,679) 
                                                     =======              ======

Basic and diluted earnings per share in              (7.09)p             (5.32)p
pence




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




CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2003


                                                           2003           2002
                                                          £'000          £'000
Fixed assets
Intangible assets                                             1          1,401
Tangible assets                                             209            187
Investments                                                  16             16
                                                         --------       --------

                                                            226          1,604

Current assets
Stocks                                                      593            738
Debtors                                                   2,111          1,241
Cash at bank and in hand                                    170            107
                                                         --------       --------

                                                          2,874          2,086

Creditors: amounts falling due within one year           (1,828)        (1,228)
                                                         --------       --------

Net current assets                                        1,046            858
                                                         --------       --------

Total assets less current liabilities                     1,272          2,462

Creditors: amounts falling due after more than one          
year                                                        (25)           (13)
                                                         --------       --------
                                                          1,247          2,449
                                                         ========       ========

Capital and reserves
Called up share capital                                     453            342
Share premium account                                     8,593          6,896
Other reserves                                              822            823
Profit and loss account                                  (8,621)        (5,612)
                                                         --------       --------

Shareholders' funds                                       1,247          2,449
                                                         ========       ========



CONSOLIDATED CASH FLOW STATEMENT

For the year ended 31 December 2003

                                                                2003      2002
                                                                   £         £

Net cash outflow from operating activities                    (1,435)   (1,343)

Returns on investments and servicing of finance
Interest received                                                  4         2
Interest paid                                                    (91)      (53)
Interest element of finance leases and hire purchase              (4)       (5)
                                                              --------  --------

Net cash outflow from returns on investments and servicing       
of finance                                                       (91)      (56)
                                                              --------  --------
Capital expenditure and financial investment
Payments to acquire tangible fixed assets                        (57)      (23)
Receipts from sale of fixed assets                                18         -
                                                              --------  --------

Net cash outflow from capital expenditure and financial          (39)      (23)
investment                                                    --------  --------
Cash outflow before financing                                 (1,565)   (1,422)

Financing
Issue of equity share capital                                    111        34
Share premium on issue of equity share capital                 1,697       820
Capital element of finance leases and hire purchase              (58)      (51)
                                                              --------  --------

Net cash inflow from financing                                 1,750       803
                                                              --------  --------

Increase/(Decrease) in cash                                      185      (619)
                                                              ========  ========



NOTES TO THE PRELIMINARY STATEMENT


Preliminary Results for year ended 31 December 2003



1   Basis of preparation

The preliminary announcement has been prepared on the basis of accounting
policies consistent with the audited financial statements for the year ended 31
December 2003.


2   Loss per share

The calculation of basic loss per share is based on a loss for the year of
£3,009,000 (2002: £1,679,000) divided by the weighted average number of shares
in issue during the year of 42,421,388 (2002: 31,578,768).


3   Publication of non-statutory accounts 

The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in section 240 of the Companies Act
1985.


The balance sheet at 31 December 2003 and the profit and loss account for the
year then ended have been extracted from the Group's financial statements upon
which the auditors opinion is unqualified.


The 2002 financial statements have been filed with the Registrar of Companies,
but the 2003 financial statements are not yet filed.








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