Interim Results

Ten Alps PLC
05 December 2006



                                  Ten Alps Plc

                                Interim results

Ten Alps Plc ('Ten Alps' or the 'Group') announces its interim results for the
six-month period to 30 September 2006.  Ten Alps produces TV, internet video and
specialist media.

Financial

  • Revenues of £33.6m, up 53% on same period (2005: £22.0m)

  • Cash up 77% to £13.2m year-on-year (2005: £7.5m)

  • EBITDA up 22.3% to £2.2m (2005: £1.8m)

  • Basic EPS up 20.4% to 1.30p (2005: 1.09p)

  • PBT stable at £1.23m, after £283k goodwill amortisation and interest
    charge of £300k

  • Significant Internet TV development costs were fully written off to P&L,
    and matched targets set out in June 2006 (see separate RNS re launch of
    Public TV)

  • Underlying PBT growth of 99%. (Comparative 2005 figures included a one-off
    £608k public sector KPI bonus relating to 2004-5.)

  • See finance director section for further details.

Current Trading

  • On track for full year to 31 March 2007; revenue growth of at least 40%

  • Ten Alps is now factoring advertising revenues from Public TV for the
    first time into its outlook for 2007-8

  • Ten Alps Publishing, specialist media division (acquired as McMillan
    Scott, March 2006) is integrated and on track to exceed our expectations.

  • 300-fold increase in number of clients to 47,000, with the Group's largest
    client's share of revenue dropping from 45% to 25%

Operational Progress

Ten Alps now has 507 staff, in three divisions.

Broadcast (TV and Radio production)

  • Entry into formatted entertainment TV through Channel 4 series 'Harvey
    Goldsmith Project', on air from Feb 2007

  • Continuing factual output with 33 TV and 21 Radio productions during
    period (some of them series)

  • Current highlights include various Channel 4 'Dispatches' and docudramas
    for Discovery US such as 'USS Indianapolis' and 'Sago Mine'.

  • Teachers' TV has reached 1400 programmes online

Digital (Internet TV and commercial websites)

  • Public TV launched today at www.public.tv.  (See separate RNS)

  • Specialist internet TV channel projects under discussion around Ten Alps
    client publications

  • 65 commercial websites currently managed, and growing

  • Group-wide internet advertising server nearing completion

Communications (Commercial and specialist media)

  • Ten Alps Publishing now produces around 400 specialist titles, with a net
    increase of 12 in clients during period).

  • Ten Alps Live producing Ten Alps branded conferences and other events,
    around the same commercial client base

  • Acquisition of specialist media company Cameron Publishing (November
    2006.)

For further information please contact:

Paul McManus
020 7493 3716   or   07980 541 893
[e-mail]

Alex Connock (CEO) & Nitil Patel (Finance Director)
C/o Moira McManus
020 7878 2311
[e-mail]

www.public.tv

www.tenalps.com


TEN ALPS PLC
INTERIM RESULTS FOR THE PERIOD ENDED 30 SEPTEMBER 2006

Chairman - Brian Walden

Ten Alps has a five-year plan to create a large media business migrating TV and
niche media ('the long tail') to internet video - a plan we put in place in June
2006 at the end of our successful first five years on AiM.

The rest of 2006 has therefore been about growth, investment and change, in the
implementation of which we have been impressed by the enthusiasm of our staff.

Chief Executive - Alex Connock

Ten Alps has invested in internet video and other digital projects within the
financial and delivery targets we planned .  We believe that writing off these
development costs as they are incurred may affect short-term profitability but
is prudent.

Compared to last year, Ten Alps is significantly larger and more integrated,
with around double the staff (including 250 advertising sales people), some
47,000 customers, and new ventures from entertainment TV to internet video
aggregation.

Ten Alps has focussed on its branding, with a view to create more impact, and it
has strengthened  management and enhanced its financial and IT systems.

Financially, our track record demonstrates unbroken growth at an average,
compound, annual rate over six years of 53% in revenues and 22% in EBITDA.

Aiming to maintain that, we will keep making calculated investments.  Some will
be internal, which will at times mean worthwhile trade-offs against short-term
profits growth.  And some will be acquisitions, on which we are having
discussions.

Operational detail

Ten Alps' 507 staff are located in London (217), Manchester & Macclesfield
(204), Gateshead (48), Fareham (20), Edinburgh (14) and Derby (4).

Ten Alps is bigger in specialist and digital media than it is in TV production
(even without including Teachers' TV in the specialist category).  Within the
sector of TV producers that it was defined by historically, Ten Alps has a
unique business model: to produce and most importantly, own content across the
full spectrum of media, and migrate everything it does ultimately towards
internet video.

Ten Alps now spans high end television (mostly factual, but also developing
entertainment formats), through digital television (perhaps best described as '
mass niche', catering to large constituencies, such as those in the teaching
profession) into specialist internet, publishing and TV ('niche niche', such as
anaesthetists.)

The more diversified Ten Alps can be along that spectrum, the less vulnerable it
will be to the changing fashions which have traditionally made TV production
high risk.  Significant progress has been made this year.  The number of clients
served is over 300 times. bigger and the largest client now represents 25% of
turnover, compared to 45% in 2005-6.

Digital Division

Ten Alps' overall digital strategy is to create a scaleable network of video
internet sites around the wide customer base it already has in specialist media
sectors such as health, transport and business.

The principle is that there is a vast amount of video entertainment on the
internet, but fewer propositions bringing together professional training,
government and public sector video - all attractive markets.

Public TV, a video aggregator which has today gone online (in beta version)
provides the launchpad to successfully implement Ten Alps' digital strategy.
Ten Alps plans to fund these sites through advertising sales on the same
business model that sustains Ten Alps' 400 specialist publishing titles.

Ten Alps incurred significant development costs in this period to create Public
TV, which can now be cost-effectively replicated and rolled out for other niche
sectors.  Those development costs are in line with budgets and were written off
in full to the profit and loss account.  Commercial discussions with a number of
organisations about niche internet TV work have good potential to deliver viable
projects in the next six months.

Meanwhile Ten Alps has three commercial website production operations, currently
managing around 65 websites, with more under discussion.   In addition, the
Communications Division is implementing the creation of online versions of its
publications.

Broadcast

TV & Radio

Ten Alps has made a breakthrough into formatted entertainment TV with six
episodes of the in-production 'Harvey Goldsmith Project' for Channel 4,
accompanied by an E4 series to go out concurrently.  Ten Alps has already had
international format sale discussions around this and other properties, and aims
to make a significant push in entertainment in 2007.

Ten Alps' core TV activity remains factual.  For the US market, significant
docudramas are in production on 'USS Indianapolis' and 'Sago Mine', and in the
UK a series on Tony Blair for Channel 4 is nearing delivery, whilst a major BBC
series on Iran is in development (all from Brook Lapping.)  Ten Alps has put
together two of its factual companies (Blakeway and 3BM) under the single brand
of Ten Alps Blakeway/3BM . and they are producing various Channel 4 Dispatches
programmes, documentaries for Channel 4 (eg 'Gordon Brown', 'God is Green') and
BBC4 ('Buchan') plus existing and new docudrama projects ('Zero Hour') for
Discovery Europe.   There is increasing demand for factual formats, and Ten Alps
is reacting accordingly.

By contrast, Ten Alps' Drama has not been successful thus far, and investment
has been written off on an ongoing basis. An appealing slate of projects with
broadcaster interest has been developed and the project is continuing for at
least the next six months, with no revenues factored into group projections.
The board is aware, from the experience of other independent producers, that a
drama business can take time to bring fully on stream, and will continue to
monitor the situation closely.

Meanwhile in Radio, Ten Alps continues to produce programmes for BBC Radio 5
Live, Radio 2 and Radio 4, with revenues in this area just slightly ahead of
last year, though still only around 1.5% of the group as a whole.

Digital TV

Teachers' TV continues to establish itself with its educational stakeholders and
the wider media landscape.

The autumn launch showcased a varied and high profile slate of new programmes
including a three part series featuring Cherie Blair, a major series following
the building of a school over one year, celebrity interviews including Boris
Johnson, David Blunkett teaching poetry, a late night satirical talk show and a
strand of programmes shot in schools around the world. A new and varied
peak-time schedule was introduced and is published in the Guardian every
Tuesday.

From the end of September the channel secured a daily two hour slot from 11am to
1pm on Freeview. Daytime exposure to the growing Freeview audience should help
to extend the channel's reach.

In October the website was re-launched with a radical new look and major
infrastructure improvement maximising navigation and access to the 1400
programmes now permanently available on broadband.

The Guardian continues to podcast Teachers' TV programmes to a growing audience
and the channel's own news podcasts are growing in popularity. In the next month
the channel will launch a Video on Demand service via the ntl cable network.

Ten Alps' wholly owned subsidiary, Brook Lapping, owns 70% of Education Digital
Limited, which together with Educational Digital Management Limited, provides
the Teachers' TV Channel.   Under the current contract, which runs to mid 2008,
a retender process may take place during 2007.

Communications

Ten Alps Communications brings together Ten Alps' commercial client-facing
activities.  Within this division, renaming McMillan-Scott as Ten Alps
Publishing brings an increase in the commercial traction the Ten Alps brand can
achieve.  (The implementation process of rebranding the three offices as Ten
Alps Publishing is well underway and is expected to complete in January 2007.)

The 250 sales staff will be rebranding on publications and events which will
enable Ten Alps to put its name out into the commercial economy from January
2007.  This was a major undertaking.  The Ten Alps team has been greatly
enhanced with a number of new talented managers, and both teams consider the
acquisition of McMillan-Scott to have been an operational success.

Under the unified brand, the Communications operations will now work together to
offer increased services - a joined-up approach which will potentially deliver
incremental margin opportunities and expansion.

Ten Alps Publishing

As well as being the platform from which to build niche, web-based media, the
re-branded McMillan-Scott business is a solid specialist publishing and
advertising sales operation which has delivered growth in the period.

Revenue growth has been delivered through increased trade event activity, and by
strong business development success, with a net 12 new contract publishing
clients coming on board in the period.  Client wins include new publishing
services to The Royal Yachting Association, The Association Of Optometrists and
advertising sales services for the BBC staff publication, Aerial.   Ten Alps
Publishing - as it will be known from January - now publishes circa 400 titles
per annum.

These positive trends and initiatives combined with underlying advertising
revenues helped to deliver an annual growth in revenues of 7.8% year on year.
Meanwhile the shift to fee based publishing income and improved product cost
controls saw margins strengthen in the Publishing operation to 31.5%.

Ten Alps Publishing will increasingly bring its titles online over the coming
months, facilitating incremental sales growth and product cost savings. In
addition Public TV can allow increased marketing of publications and the
opportunity to sell wider communication packages to its clients and advertisers.

As announced on 7 November 2006, Ten Alps acquired the Gateshead-based
specialist media company Camerons Publishing for an initial consideration of
£400,000. Camerons Publishing will be fully integrated and rebranded as part of
Ten Alps Publishing in April 2007, and we will use this Gateshead operation to
expand the existing Manchester office to provide increased advertising sales
opportunities.

Ten Alps Live

The event management business now spans music (Metro Weekender) as well as
corporate events (BP, EMI) and live TV coverage (including Scottish Party
Conferences for the BBC).

Having moved into the London offices of Ten Alps Publishing, the events team are
working to produce new trade events, of which ten new shows are planned over the
next year, focussed on infrastructure, urban regeneration, security and
transport.  There is a synergy here with Public TV.  The aim is for repeatable
sponsorship and exhibitor revenues from these shows.

Ten Alps RMA / Ten Alps MTD

The marketing agency businesses have seen revenues flatten during this period
with the loss of the creative aspect of Stannah (though we have retained its
media buying operations) partially offset by new client wins.   Reductions in
the cost base in both operations have left projected performance collectively
about £0.1m down against the prior year.   However it is envisaged that positive
overlap with the digital, publishing and events operations will complement the
existing business development initiatives within these operations in the coming
months.

Finance Director - Nitil Patel

Financial analysis

The six months to 30 September 2006 was a period of investment and profits
stability.

Group turnover grew by 52.7% to £33.6m (2005: £21.99m) and gross profits
increased by 83.7% to £9.6m (2005: £5.23m).

Gross margins increased from 23.8% in the prior interim period to 28.6% for the
period under review, primarily due to the addition of Ten Alps Publishing.  As a
consequence administrative expenses have increased as a percentage and now
represent 23.1% of turnover (2005: 15.9%).

EBITDA or headline profit, a key measure used by the board, increased by 22.3%
to £2.17m (2005: £1.77m) even after a significantly increased level of
investment, relating to the strategic development of Ten Alps Digital, Public TV
and (less successfully) Ten Alps Drama. The development costs relating to these
activities were written off in full directly to the profit and loss account.
EBIT was also up to £1.53m (2005: £1.16m) illustrating strong growth in
underlying earnings.

The amortisation charge for the period was £283,000 (2005: £397,000) and was
calculated on acquisitions with a useful economic life of 10 years. The goodwill
associated with Ten Alps Publishing (McMillan-Scott) has been assessed on an
indefinite useful economic life and therefore no amortisation has been provided
for in that respect.   A full explanatory note will be included in the statutory
accounts for the year to 31 March 2007.

The profit before tax was stable at £1.23m (2005: £1.23m), reflecting the
interest charge of £ (300,000) (2005: £63,000) on the debt outstanding as at 30
September 2006.

The retained distributable profit and loss account reserves are now at £1.69m
(2005: £0.84m).

The Group continues to maintain a strong balance sheet and as at 30 September
2006 had cash at bank of £13.18m (2005: £7.46m). The cash balance is £1.33m
lower than the 31 March 2006, reflecting cash outflows on acquisitions and
reduction of loans due to the bank by £1.2m (2005: Nil).

As at the period end the Group had outstanding loans of £9.65m (2005: £0.71m) of
which £8m (2005: £0.64m) is due after more than one year.

Profit Growth

The Group's profitability before tax was stable, with only 0.4% growth, however, 
when adjusting for development costs written off during the period, and the 
one-off bonus of £608,000 relating to the previous year (2004-5), Group profit 
before tax grew by 99%.  (In the year ended 31 March 2006, a Key Performance 
Indicator bonus was received relating to a period which included nine months 
from the 2004-5 financial year.  Removing the effect of this bonus gives a more 
appropriate comparative purely for 2005-6. This is also illustrated by the 
minority interest line, which is substantially reduced in this half year (£112k) 
compared to last (£270k).)

Taxation

The tax charge for the period is £447,000 (2005: £475,000) at an effective rate
of 29.1% (2005: 26.5%) reflecting the fact that Ten Alps plc has now utilised
most of its tax losses.

Earning per share

Basic earnings per share in the period was 1.30p (2005: 1.09p), an increase of
18.9%, and was calculated on profits after taxation of £672,000 (2005: £485,000)
divided by the weighted average number of shares in issue during the period of
51,830,413 (2005: 44,458,330).

The number of shares in issue increased as a result of the placing carried out
at the time of the acquisition of McMillan-Scott, when 7 million new shares
where issued. The remaining changes are due to employees exercising share
options during the period.

Diluted basic earnings per share in the year was 1.26p (2005: 1.07p), an
increase of 17.8%, and is based on the basic earnings per share calculation
above, except that the weighted average number of shares includes all dilutive
share options granted as if those options had been exercised on the first day of
the accounting year or the date of the grant, if later.

This gives a weighted average number of shares in issue of 53,198,587(2005:
45,256,618) reflecting the impact of the outstanding share options as at 30
September 2006.

The Group has adopted FRS20, which has been reflected in the interims and prior
year in accordance with requirements of the standard.  The amounts in question
are shown separately on the face of the profit and loss account.

International Financial Reporting Standards (IFRS)

The Group will report under IFRS for the year ending 31 March 2008 and has set
up a committee to assess the impact of the new standards on the annual report.



TEN ALPS PLC

CONSOLIDATED SUMMARISED PROFIT AND LOSS ACCOUNT

For the period ended 30 September 2006

                                      Six months ended       Six months ended           Year ended
                                        30 Sept 2006           30 Sept 2005           31 March 2006
                                          Unaudited             Unaudited                Audited
                              Notes        £ '000                 £ '000                  £ '000

Turnover
- continuing operations                    33,578                 21,988                  41,805
- acquisitions                                                                             406
                                           33,578                 21,988                  42,211
Cost of sales                             (23,979)               (16,763)                (32,749)
Gross profit                                9,599                 5,225                   9,462

Amortization of goodwill                    (283)                 (397)                   (658)
FRS 20 Share-based payment                  (14)                  (164)                   (341)
Administrative expenses                    (7,771)               (3,497)                 (6,895)
Total administrative expenses              (8,068)               (4,058)                 (7,894)

Operating profit
- continuing operations                     1,531                 1,167                   1,609
- acquisitions                                                                             (41)
Profit on ordinary activities
before interest                             1,531                 1,167                   1,568

Net interest                                (300)                   63                      91
(payable) /
receivable
Profit on ordinary activities
before tax                                  1,231                 1,230                   1,659

Taxation                                    (447)                 (475)                   (819)
Profit on ordinary activities
after taxation                               784                   755                     840

Equity minority interest                    (112)                 (270)                   (365)

Retained profit for the year                 672                   485                     475
Basic earnings per share           2        1.30p                 1.09p                   1.08p
Diluted earnings per share         2        1.26p                 1.07p                   1.06p



TEN ALPS PLC

CONSOLIDATED SUMMARISED BALANCE SHEET AS AT

30 September 2006

                                              As at                  As at                   As at
                                          30 Sept 2006           30 Sept 2005             31 Mar 2006
                                            Unaudited              Unaudited                Audited
                                             £ '000                 £ '000                  £ '000
Fixed Assets
Intangible assets                            15,172                  3,467                  15,718
Tangible assets                               1,583                  1,178                   1,611
Intangible assets- Investments in
Productions                                     -                     171                      -
                                                
                                             16,755                  4,816                  17,329
Current assets
Work in progress                              2,190                   62                     2,662
Debtors                                      11,411                  7,585                  12,978
Bank                                         13,183                  7,456                  14,515
                                             26,784                 15,103                  30,155

Creditors
Amounts falling due within one              (22,317)               (11,140)                (25,005)
year

NET CURRENT ASSETS                            4,467                  3,963                   5,150

Total assets less current                    21,222                  8,779                  22,479
liabilities

Creditors
Amounts falling due after one year           (7,997)                 (636)                 (10,078)

Net assets                                   13,225                  8,143                  12,401

Capital and reserves
Called up share capital                       1,037                   892                    1,035
Share premium account                         7,152                  3,065                   7,127
Merger reserve                                2,930                  2,930                   2,930
Special reserve                                 2                      2                       2
Profit and loss account                       1,691                   839                    1,006
Shareholders' funds                          12,812                  7,728                  12,100
Minority interest                              413                    415                     301

Equity shareholders                          13,225                  8,143                  12,401


TEN ALPS PLC

CONSOLIDATED SUMMARISED CASH FLOW STATEMENT

For the period ended 30 September 2006

                                                      As at                As at                As at
                                                 30 Sept 2006          30 Sept 2005         31 Mar 2006
                                                    Unaudited           Unaudited             Audited
                                                     £ '000               £ '000              £ '000

      Net Cash inflow from operating activities 3     2,037                433                 3,644
             
      Return on investments and servicing of          (300)                 63                 (119)
      finance

      Taxation                                        (390)                 -                  (429)
      Capital expenditure and financial               (326)               (281)                (387)
      investment
      Acquisitions and disposals                     (1,113)              (315)              (10,497)

      Net cash (outflow) before financing             (92)                (100)               (7,788)

      Financing
      Issue of ordinary share capital                  27                   40                 3,863
      Expenses paid in connections with share                                                   382
      issues
      Capital element of finance lease rentals        (67)                 (6)                 (14)
      Loans net (decrease)/increase                  (1,200)                -                 10,550

      Net cash (outflow)/inflow from financing       (1,240)                34                14,781

      (Decrease)/Increase in cash                    (1,332)               (66)                6,993

      Reconciliation of net cash flow movement
      to movement in net debt
      (Decrease)/Increase in cash in period          (1,332)               (66)                6,993
      Change in debt and  finance leases              1,267                 6                (10,536)
      Change in net debt resulting from cash          (65)                 (60)               (3,543)
      flows
      Finance Leases acquired with subsidiaries                             -                  (116)
      Movements in media loans                                              -
      Exchange adjustments                             11                   3                   (4)
                                                      (54)                 (57)               (3,663)
      Net funds at beginning of period                3,468               7,131                7,131
      Net funds at end of period                      3,414               7,074                3,468



NOTES TO THE FINANCIAL STATEMENTS

1              Basis of Preparation

The financial information in this statement does not constitute statutory
accounts but have been prepared in accordance with the principal accounting
policies set out in the statutory accounts of 31 March 2006, which remain
unchanged other than the adoption of FRS20 Share based payments.

The financial information in respect of the year ended 31 March 2006 has been
extracted from the statutory accounts, which received an unqualified auditors'
report and have been delivered to the Registrar of Companies.

2              Earnings per share

Basic earnings per share in the period was 1.30p (2005:1.09p) based on the
profit on ordinary activities after taxation of £672,000 divided by the weighted
average number of shares in issue during the period of 51,830,413 (2005:
44,458,330).

Diluted earnings per share in the year was 1.26p (2005:1.07p) based on the basic
earnings per share calculation above, except that the weighted average number of
shares includes all dilutive options granted by the balance sheet date as if
those options had been exercised on the first day of the accounting year or the
date of the grant, if later. This gives a weighted average number of shares in
issue of 53,198,587 (2005: 45,256,618).

                                             As at                As at                 As at
                                         30 Sept 2006          30 Sept 2005          31 Mar 2006
                                           Unaudited            Unaudited              Audited
                                            £ '000                £ '000               £ '000
For basic earnings per share

Profit for the financial period             672,000              485,000               475,000

For adjusted earnings per share

Profit for the financial period             672,000              485,000               475,000
Add Back:

Goodwill Amortisation                       283,000              397,000               658,000
FRS 20 Share-based payment                  14,000               164,000               341,000

Adjusted profit for the financial           969,000             1,046,000             1,474,000
period


                                           Number of            Number of             Number of
                                            Shares                Shares               Shares

For basic earnings per share              51,830,413            44,458,330           44,554,163
Share Options                              1,368,174             798,288              1,082,198

For diluted earnings per share            53,198,587            45,256,618           45,636,361


3              Reconciliation of operating profit to net cash inflow/ (outflow)
from operating activities

                                               As at                 As at                 As at
                                            30 Sept 2006          30 Sept 2005          31 Mar 2006
                                             Unaudited             Unaudited              Audited
                                               £ '000                £ '000                £ '000

Operating profit                               1,531                 1,167                 1,568
Depreciation                                    354                   212                   464
Goodwill amortisation                           283                   397                   658
Loss/ (gain) on sale of fixed assets            (2)                    -                     8
Foreign exchange loss/ (gain) on media
loans
                                                (11)                  (3)                    4
Change in work in progress                      472                   182                   (25)
Change in debtors                              1,623                 (352)                (1,546)
Change in Creditors                           (2,227)               (1,334)                2,172
FRS 20 payments                                  14                   164                   341

Net Cash inflow from operating                 2,037                  433                  3,644
activities



ENDS


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