Final Results

Evolution Group PLC
19 April 2002



                                                                   19 April 2002



                            The Evolution Group Plc
                       ("Evolution Group" or the "Group")

             Preliminary results for the year ended 31 December 2001

Evolution Group, the AIM listed investment bank specialising in enabling
technologies and retail asset management, today announces its results for the
year ended 31 December 2001.

Highlights

•        Group turnover has increased by 58% to £7.6 million (2000: £4.8
         million);
•        Total income, including investment gains realised, has increased by 97%
         to £14.6 million (2000: £7.4 million);
•        Operating profit on recurring activities £885,000 (2000: Loss £29,000),
         before major non-recurring costs (goodwill write off, £7.1 million and
         redundancy and restructuring, £1.7 million) and investment provision, 
         £4.7 million;
•        Balance sheet strength, cash balance of £36.0 million at year end;
•        Significant restructuring has been completed in 2001 and our cost base
         is now aligned to our current business requirements.

Alex Snow, Chairman & Chief Executive, commented:

"Our strategic aim is simple - to develop a leading independent investment bank
of the highest quality.  We will seek to do this by focusing on our core areas
of competence; retail portfolio and fund management, equity research, trading,
strategic advice and private equity.  We will continue the development we have
started by increasing the efficiency of our operational base, recruiting high
quality professionals and identifying shareholder value enhancing acquisitions
which will complement our existing businesses.

"Evolution Group believes it is uniquely positioned to capitalise on the
opportunities presented by the prevailing conditions in global markets.  We look
forward to 2002 with growing confidence."


                                     -Ends-


For further information please contact:

The Evolution Group Plc                                           020 7220 4800
Alex Snow, Chairman & Chief Executive
Richard Griffiths, Deputy Chairman
Graeme Dell, Finance Director

Hogarth Partnership Limited                                       020 7357 9477
Andrew Jaques/Georgina Briscoe


Notes to Editors:

The Evolution Group Plc is an independent investment bank which provides equity
research, trading, strategic advice and proprietary funding for public and
private companies seeking to identify and develop new enabling technologies
capable of global, commercial exploitation.  Evolution Group's key sectors of
research and expertise are: IP Exploitation, Emerging Engineering, Alternative
and Renewable Energies, Wireless and Electronics, Software and Services, Life
Sciences and Nanotechnology.  The Group publishes research in these areas for
institutional investors and provides due diligence and advisory services to both
private and public companies.

Evolution Group's retail financial services brand is Christows which operates
from offices in London, Bournemouth and Exeter.  Evolution Group is listed on
AIM with a current market capitalisation of over £85 million.

For further information on The Evolution Group Plc please go to
www.evolution-group.com.

Chairman's Statement

Review of the Year

Investment Banking

The Evolution Group Plc's ("Evolution Group" or the "Group") institutional
investment banking business was established during 2001.  Following the
acquisition of Evolution Capital Limited in March, the scope and scale of this
business has radically changed from private equity into the public equity market
place.  The recruitment of high calibre professionals, the installation of top
quality systems and the adoption of best practice process have allowed the
business to expand successfully.

Evolution Capital has signed many of the largest institutions in the UK as
clients and is successfully publishing leading edge research and beginning to
transact significant business on behalf of its institutional client base.  The
research sector coverage has also grown through the course of the year including
IP Exploitation, Emerging Engineering, Alternative and Renewable Energies,
Wireless and Electronics, Software and Services, Life Sciences and
Nanotechnology.

Evolution Capital also incorporates all the corporate finance and private equity
activities within the Group.

I expect Evolution Capital to continue to grow its franchise and earnings
capabilities throughout the course of 2002.

Private Client Stockbroking & Fund Management

In the first quarter of 2002, Christows Limited ("Christows") is operating
profitably, even in these difficult markets, and is continuing along the growth
path the Board determined during 2001. New discretionary funds under management
are growing at an unprecedented rate. This has been due to an increased sales
and marketing effort, and from the strength of the discretionary service
product.  Christows has also developed a specialised Independent Financial
Advisor ("IFA") discretionary product which has been widely adopted by IFAs and
will be an increasingly important area of business as the landscape of
regulation continues to change.

In June 2001, the new management team embarked on a significant cost reduction
programme and restructuring, which was completed in October 2001. This included
a significant reduction in the number of non-revenue earning staff and the
elimination of non-core activities. As a result, fixed salary costs were reduced
by the year end to month on month levels of 60% of opening levels.  The
combination of lower operating costs with the current levels of new fund inflows
will mean that Christows is particularly well placed to benefit from any upturn
in the market.

It is the intention of your Board to grow this business profitably over the
course of 2002, not only in terms of discretionary funds under management, but
also in terms of geographic coverage.

Non-recurring costs

Within the year there have been some exceptional costs which the Board does not
expect to be repeated during the course of 2002. The Group has taken a £1
million cost for the redundancy programme and further costs of £0.7 million for
non-recurring legal fees and restructuring costs.

Due to the significant business developments undertaken and the major change of
business focus from the date of the acquisition of Evolution Capital Limited,
your Board has reviewed the goodwill arising and assessed the appropriateness of
retaining it in the balance sheet.  It has therefore been prudent to take the
impact of the goodwill arising from the acquisition of Evolution Capital in
whole in the last financial year, which has led to a goodwill charge of £7.1
million.

Investment Provisions

It has also been prudent to take a further £4.7 million write-down associated
with our existing technology investment portfolio.  Many of the investee
companies were very early stage and, in these difficult market conditions, many
of the failures have been crystallised earlier than some of the potential
winners within the portfolio.   Although it is prudent to take this write-down,
it is the hope of the Board that some success will be derived from the portfolio
over the coming year.

Board Changes

There were a number of changes to the Board in 2001 and these have resulted in
the formation of a significantly stronger and more focused executive management
structure. In addition it is hoped to strengthen the representation of
non-executives on your Board during 2002.

Outlook & Strategy

On 29 January 2002, your Board announced that it had made a strategic investment
in Inter-Alliance Group PLC ("Inter-Alliance"), the UK's largest national
independent financial advisory group.  Evolution Group has been involved in a
significant amount of effort in aiding the restructuring and refinancing of
Inter-Alliance.  On 11 April 2002, your Board announced that, after the Placing
and Open Offer, Evolution Group now owns approximately 22% of the enlarged
issued share capital of Inter-Alliance.  The Board believes that the investment
in Inter-Alliance will bring real value across Evolution Group during the course
of 2002.

Twelve months ago in this report I stated that I would take the necessary steps
to realign our costs with the current market conditions and this has been
completed.  It is important that the Group can now grow and add real shareholder
value in what are challenging conditions in equity markets.  Your Group now has
two operating subsidiaries that are demonstrating significant growth potential.
Evolution Group has demonstrated the ability to create substantial value
through corporate actions which are beneficial to our group activities.

Our strategic aim is simple - to develop a leading independent investment bank
of the highest quality.  We will seek to do this by focusing on our core areas
of competence; retail portfolio and fund management, equity research, trading,
strategic advice and private equity.  We will continue the development we have
successfully started by increasing the efficiency of our operational base,
recruiting high quality professionals and identifying shareholder value
enhancing acquisitions which will complement our existing businesses.

Clearly the outlook for capital markets remains challenging and uncertain. The
Directors of Evolution Group believe that your Group is uniquely positioned to
capitalise on these conditions.  We look forward to 2002 with growing
confidence.

Critically, the quality and attitude of our people is vital in achieving these
new performance levels.  I would take this opportunity to thank all our
employees for their commitment and continued support.

A C W Snow
Chairman and Chief Executive
19 April 2002




CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER

                                                                                      2001              2000
                                                                                                  (Restated)
                                                                                     £'000             £'000

Turnover                                                                             7,580             4,821

Commissions payable                                                                (1,386)           (1,493)

Gross Profit                                                                         6,194             3,328


Administrative expenses:
Administrative expenses before impairment of goodwill                             (14,110)           (6,562)
Impairment of goodwill                                                             (7,144)           (4,919)
                                                                                  (21,254)          (11,481)

Other operating income                                                                  31                60
Profit on sale of fixed asset investments                                            7,003             2,471
Provision against fixed asset investments                                          (4,739)          (23,840)

Operating loss                                                                    (12,765)          (29,462)

Interest receivable and similar income                                               1,896             2,116
Interest payable and similar charges                                                   (9)              (10)

Loss on ordinary activities before taxation                                       (10,878)          (27,356)

Tax on loss on ordinary activities                                                     369             (640)

Loss on ordinary activities after taxation                                        (10,509)          (27,996)

Minority interest                                                                      (1)                 -

Loss for the financial year attributable to the members of The
Evolution Group Plc                                                               (10,510)          (27,996)

Basic loss per ordinary share                                                       (9.92)           (64.01)

Diluted loss per ordinary share                                                     (9.05)           (47.82)


CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER

                                                                                   2001                 2000
                                                                                                  (Restated)
                                                                                  £'000                £'000
Fixed assets
Tangible assets                                                                   1,016                  634
Investments                                                                       4,764                4,913
                                                                                  5,780                5,547
Current assets
Debtors                                                                           3,983                1,786
Investments                                                                           -                   12

Equity shares                                                                        64                    -
Cash at bank and in hand                                                         35,969               37,371
                                                                                 40,016               39,169

Creditors: Amounts falling due within one year                                  (2,413)              (3,569)

Net current assets                                                               37,603               35,600

Total assets less current liabilities                                            43,383               41,147

Provisions for liabilities and charges                                            (414)                    -

Net assets                                                                       42,969               41,147

Capital and Reserves
Called up share capital                                                           8,153                7,742
Share premium account                                                            66,150               54,271
Merger reserve                                                                    6,031                6,031
Profit and loss account                                                        (37,367)             (26,897)

Total shareholders' funds                                                        42,967               41,147

Shareholders' funds - Equity                                                     35,996               41,147
Shareholders' funds - Non-equity                                                  6,971                    -

Minority interests                                                                    2                    -

Minority interests & shareholders' funds                                         42,969               41,147


CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER

                                                                         2001                          2000
                                                                                                 (Restated)
                                                           £'000        £'000            £'000        £'000

Net cash outflow from operating                                       (8,698)                       (1,281)
activities

Returns on investments and servicing of
finance
Interest received                                          1,923                         2,116
Interest paid                                                (9)                          (10)
Income from fixed asset investments                           31                             -

Net cash inflow from returns on                                         1,945                         2,106
investments and servicing of finance

Taxation
Corporation tax                                                         (106)                         (242)

Capital expenditure and financial
investment
Sale of tangible fixed assets                                  1                             1
Purchase of tangible fixed assets                          (704)                         (343)
Purchase of fixed asset investments                     (14,030)                      (25,942)
Sale of fixed asset investments                           16,411                         3,419

Net cash inflow/(outflow) from capital                                  1,678                      (22,865)
expenditure and financial investments

Acquisitions and disposals
Disposal of subsidiaries                                    (36)                             -
Purchase of subsidiaries                                   (187)                         (387)
Net cash acquired with subsidiaries                        2,523                           737

                                                                        2,300                           350

Cash outflow before management of liquid                              (2,881)                      (21,932)
resources and financing

Management of liquid resources
Decrease in short term deposits                                             -                           800

Financing
Issues of ordinary share capital                           1,537                        59,063
Expenses of share issue                                     (31)                         (690)
Lease repayments                                            (27)                           (8)

Net cash inflow from financing                                          1,479                        58,365

(Decrease)/ Increase in cash in the year                              (1,402)                        37,233

Other information

Report and Accounts

The financial information in this statement has been prepared on the historical
cost basis, modified by the revaluation of certain assets held for trading
purposes.  It does not constitute the Group's statutory accounts for the year
ended 31 December 2001 within the meaning of Section 240 of the Companies Act
1985.  The statutory accounts for 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.

The Group will be circulating the full annual report and accounts to
shareholders and copies will be available from the Registered Office of the
Company 29-30 Cornhill, London EC3V 3NF from the date of dispatch to
shareholders for one month.

Annual General Meeting

The arrangements for, and notification of business to be transacted at, the
Company's Annual General Meeting will be provided in the annual report and
accounts circulated to shareholders.



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