Final Results

Forbidden Technologies PLC
12 March 2001

                          FORBIDDEN TECHNOLOGIES PLC

          Preliminary Results for the year ended 31st December 2000



                           A year of rapid progress



Forbidden Technologies plc, which listed on AIM via an offer for Subscription
in February 2000 and was established to develop technology for video
distribution over the internet, announces its maiden preliminary results.



HIGHLIGHTS

  * Tight cost controls maintained - Loss before tax, £115,218
  * Cash balance of £3.31 million - cash resources utilised in the year less
    than 5%
  * Initial product met by encouraging interest from potential customers
  * Picture quality continues to improve
  * Delays in Broadband offer significant opportunities





Vic Steel, Chairman commented:

'This has been an excellent development year for Forbidden Technologies. In
February we floated the company successfully on the Alternative Investment
Market (AIM) of the London Stock Exchange with the objectives of creating a
significant shareholder base and of raising sufficient funds to cover the
development of our technology.

'In the year ahead we anticipate some expansion of our people resources as we
begin the commercial development of our business. Although we expect sales to
commence at a modest level during this next year, we are confident that our
rate of expansion will increase as our technology becomes more widely exposed
and adopted.

'Our progress to date makes us increasingly confident of Forbidden
Technologies' ability to become a major participant in the new media of the
world.'

                                                                 12 March 2001
ENQUIRIES:
College Hill                                           020 7457 2020
Nicholas Nelson/Michael Padley





                             Chairman's Statement



Results

I am pleased to report the full year results to the end of December 2000 for
Forbidden Technologies. The company incurred a loss of £115,218 before tax
after using £266,274 on the running costs of the business and having the
advantage of £151,056 of interest income from its cash resources. The closing
balance sheet shows net assets of £3,405,907 of which cash represents £
3,311,838. The operating costs are in line with those forecast at the
beginning of the year and our interest income proved to be higher than
originally expected giving us a better than expected loss before tax. Prudent
cost control means that the loss after tax represents a diminution of present
cash resources of less than 5%.

This has been an excellent development year for Forbidden Technologies. In
February we floated the company successfully on the Alternative Investment
Market (AIM) of the London Stock Exchange with the objectives of creating a
significant shareholder base and of raising sufficient funds to cover the
development of our technology. By approaching the market through an Offer for
Subscription we have laid the foundation of a wide private shareholder base,
and have in excess of 2,200 shareholders. Following the Offer for Subscription
we did a number of share placings which brought cash into the business of £
2,643,628 increasing the cash balance to £3,400,000.

Business Review

The purpose of our business is to make money for our shareholders by enabling
people throughout the world to use our technology on the internet to watch
whatever they choose, whenever they choose.

At the beginning of the year we had a working assumption that this was only
achievable with the advent of broadband but our rapid technological progress
over the last twelve months has proved that high resolution and high frame
rate video can be achieved via a standard modem. This opens up market
opportunities irrespective of the speed of development of broadband, and
recent evidence of further delays in broadband delivery gives us encouragement
for the early adoption of our video compression.

Our product is proving to be extremely easy to use by both the user and the
supplier of video content, since no additional hardware or software is
required by either party.

I would like to emphasise that our product development programme is a
continuous process and our technology continues to be improved at the rate of
approximately 2.5% per week, in terms of the data compression rate. This is
quite different from the implanting of an industry standard like MPEG which is
very specific, rigid and inflexible. By comparison, Forbidden's compression
works within a framework of internet standards including TCP/ IP, http and
Java, as well as working on a variety of

widely used web browsers and operating systems. The number of viewers on our
web site has been growing by a factor of ten each quarter

In our half-year results, we anticipated that we would have an initial product
worthy of commercialisation by the end of the year. This was duly achieved and
following announcement of its availability in February, the level of interest
from potential customers has been most encouraging and the proportion of
positive consumer comment increases in line with the upgrades of the video on
our web site, http://www.forbidden.co.uk/.

We are very grateful to the significant number of our shareholders who have
helped us in trialing and testing the different stages of our product
development by giving us regular constructive critical feedback and we hope
that they will continue with this valuable contribution.

Our management and staff continue to be highly motivated, dedicated and
enthusiastic in the pursuit of achieving visible results.



Prospects

There is clear need for an effective method of delivering high quality video
via typical internet connections.

As we have introduced better compression rates and better picture quality, the
scope for application of our technology is broadening into new areas. These
include set top boxes, mobile phones, games consoles - any internet linked
device is a potential delivery platform.

In the year ahead we anticipate some expansion of our people resources as we
begin the commercial development of our business. Although we expect sales to
commence at a modest level during this next year, we are confident that our
rate of expansion will increase as our technology becomes more widely exposed
and adopted.

Our progress to date makes us increasingly confident of Forbidden
Technologies' ability to become a major participant in the new media of the
world.


Profit and loss account

for the year ended 31 December 2000


                                                            2000          1999
                                                               £             £

Administrative expenses                                (266,274)      (72,048)


Operating loss                                         (266,274)      (72,048)
Other interest receivable and similar income             151,056         8,870


Loss on ordinary activities before taxation            (115,218)      (63,178)
Tax on loss on ordinary activities                      (30,211)       (1,786)


Loss for the financial year                            (145,429)      (64,964)



Basic loss per ordinary 0.8 pence share             (0.20) pence  (0.10) pence



All amounts are derived from continuing operations.

There were no gains or losses in the current or previous year other than those
recognised within the profit and loss account.

The results for the year disclosed in the profit and loss account are on an
historical cost basis.


Balance sheet

at 31 December 2000
                                                 2000                    1999
                                        £           £           £           £
Fixed assets
Tangible assets                                20,025                  19,351

Current assets
Debtors                           158,562                  37,844
Cash at bank and in             3,311,838                 530,938
hand

                                3,470,400                 568,782
Creditors: amounts               (84,518)                (28,097)
falling

due within one year


Net current assets                          3,385,882                 540,685


Net assets                                  3,405,907                 560,036



Capital and reserves
Called up share capital                       594,800                 500,000
Share premium account                       2,896,500                       -
Capital contribution                          125,000                 125,000
reserve
Profit and loss account                     (210,393)                (64,964)


Shareholders' funds -                       3,405,907                 560,036
equity



Cash flow statement

for the year ended 31 December 2000
                                                            2000           1999
                                                               £              £

Reconciliation of operating loss to net
cash outflow from operating activities

Operating loss                                          (266,274)       (72,048)
Depreciation charges                                      29,758         15,517
Loss on sale of fixed assets                               1,314              -
Increase in debtors                                     (36,052)       (37,844)
Increase in creditors                                     27,996         26,311


Net cash outflow from operating activities              (243,258)       (68,064)


Cash flow statement

Cash flow from operating activities                     (243,258)       (68,064)
Returns on investments and servicing of                   66,390          8,870
finance
Taxation                                                 (1,786)              -
Capital expenditure                                     (31,746)       (34,868)


Cash outflow before management of liquid                (210,400)       (94,062)
resources and financing

Management of liquid resources                          (3,043,492)           -
Financing                                               2,991,300        625,000


(Decrease)/increase in cash in the year                 (262,592)        530,938


Reconciliation of net cash flow

to movement in net funds

(Decrease)/increase in cash in the year                 (262,592)        530,938

Cash used to increase liquid resources                  3,043,492              -


Movement in net funds in the year                       2,780,900        530,938
Net funds at the start of the year                       530,938              -


Net funds at the end of the year                        3,311,838        530,938






Reconciliation of movements in shareholders' funds

for the year ended 31 December 2000
                                                            2000           1999
                                                               £              £

Loss for the financial year                            (145,429)       (64,964)
New share capital subscribed (net of issue costs)      2,991,300        500,000
Capital contribution                                           -        125,000

Net addition to shareholders' funds                    2,845,871        560,036
Opening shareholders' funds                              560,036              -

Closing shareholders' funds                            3,405,907        560,036




                                    Notes

1.    Accounting policies

      The following accounting policies have been applied consistently in
      dealing with items which are considered material in relation to the
      company's financial statements.


      Basis of preparation
      The financial statements have been prepared in accordance with applicable
      accounting standards and under the historical cost accounting rules.



2.         Taxation

      The charge for taxation is based on the result for the year and takes
      into account taxation deferred because of timing differences between the
      treatment of certain items for taxation and accounting purposes.
      Provision is made for deferred tax to the extent that it is probable that
      an asset or liability will crystallise.


      Cash and liquid resources

      Cash, for the purpose of the cash flow statement, comprises cash in hand
      and deposits repayable on demand, less overdrafts payable on demand.

      Liquid resources are current asset investments which are disposable
      without curtailing or disrupting the business and are either readily
      convertible into known amounts of cash at or close to their carrying
      values or traded in an active market. Liquid resources comprise term
      deposits of less than one year and a corporate bond.



3.         Earnings per share

           No diluted earnings per share has been presented as all potential
      ordinary shares would be anti-dilutive.

      Basic earnings per share

      The weighted average number of shares in issue during the period is
      72,174,590 (1999:62,500,000).