Interim Results

Forbidden Technologies PLC
30 September 2003


                           FORBIDDEN TECHNOLOGIES PLC

            Interim Results for the six months ended 30th June 2003

Forbidden Technologies plc, which has developed and is marketing a range of
products  for video distribution over the Internet and mobile devices including
phones, announces Interim Results for the six months ended 30 June 2003


•  Turnover £15,333 (2002: £5,350) Pre-tax loss of £233,919 (2002:£147,906).

•  Healthy cash balance £2.4 million

•  Launch of Live video streaming product FORlive - attracted high interest at 
   recent European media trade show


Vic Steel, Chairman, commented:

'We believe that the increasing acceptance of our innovative products augurs
well for significant growth over the years ahead.

'Our business development team is achieving increasing success in unlocking the
doors that can lead to participation in a huge and varied market-place of
Internet based video for business and pleasure applications.'


                                                               30 September 2003

Enquiries:

Forbidden Technologies plc                Tel: [phone]
Stephen Streater, Chief Executive

College Hill                              Tel: [phone]
Nicholas Nelson



                              CHAIRMAN'S STATEMENT

Results

In the six months to 30th June 2003 the company had sales of £15,333 (2002:
£5,350) and incurred a loss of £233,919 (2002: £147,906). The increased loss was
mainly due to planned increases in development and marketing resources and the
establishment of our compression bureau. Cash balances remain strong at £2.4
million


The Marketplace

During the first six months of the year the technology marketplace showed signs
of renewed interest in innovative developments at both consumer and business
levels. Whilst the vast majority of Internet users continue to depend upon
modems, broadband is now increasing its penetration and popularity. Our data
rate-sensing product, which automatically detects each receiver's connection
speed, allows us to service all Internet viewers appropriately. Mobile devices
continue to grow in volume and variety, particularly Symbian mobile phones.


Progress

Our product development has continued to make excellent progress producing a
range of attractive shippable products. We have run successful beta tests on our
compression software and can now deliver compressors to volume customers.

Development of a superior suite of tools for use by video production companies
is now in progress. Used with our compression technology, this will offer
customers a valuable tool which speeds up and eases the video post production
process.

Our progress in the business services sector is accelerating with customers such
as Cantos, Misys and others using our technology increasingly.

We are increasingly successful at attracting partners. Recent partners, Siteseer
in Japan and Siteseer UK, are reporting good progress.



Live video streaming

The highlight of our recent product innovations is the announcement and
demonstration of our live product, FORlive. This can provide live transmission
of video over the Internet via a standard web server. It appears in a web page,
viewed with a standard web browser and needs no plug-ins. This product provides
a major enhancement to our existing product range.

The recent launch of FORlive at the international media exhibition, IBC in
Amsterdam, created huge interest from a wide range of potential customers. In
the days following this exhibition the company had a sustained surge in the
number of visits to our website (www.forbidden.co.uk) and a high demand for our
shares. The opportunities offered by FORlive for smaller broadcasters was
recognised as was its use for previewing archive material. Both have produced
multiple expressions of serious interest.


Outlook

We believe that the increasing acceptance of our innovative products augurs well
for significant growth over the years ahead.

Our business development team is achieving increasing success in unlocking the
doors that can lead to participation in a huge and varied market-place of
Internet based video for business and pleasure application.


Victor Steel
                       29 September 2003 Chairman


Copies of this statement will be available for a period of 14 days from the
Company's registered office:  2-4 St. George's Road, Wimbledon, London SW19 4DP



PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 30 JUNE 2003

                                                             Unaudited        Unaudited           Audited
                                                          half year to     half year to           year to
                                                          30 June 2003     30 June 2002  31 December 2002
                                                                     £                £                 £

Turnover                                                        15,333            5,350             9,040
Administrative expenses                                       (295,210)        (220,873)         (568,302)
Operating loss                                                (279,877)        (215,523)         (559,262)
Interest receivable                                             45,958           67,617           128.281
Loss on ordinary activities
before taxation                                               (233,919)        (147,906)         (430,981)
Tax on loss on ordinary activities                                ----                -                 -
Loss for the period                                           (233,919)        (147,906)         (430,981)

Basic and diluted loss per ordinary 0.8 pence share             (0.31p)          (0.20p)           (0.58p)





RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
FOR THE SIX MONTHS ENDED 30 JUNE 2003
                                                             Unaudited        Unaudited           Audited
                                                          half year to     half year to           Year to
                                                          30 June 2003     30 June 2002  31 December 2002
                                                                     £                £                 £

Loss for the period                                          (233,919)        (147,906)         (430,981)
Net reduction in shareholders' funds                         (233,919)        (147,906)         (430,981)
Opening shareholders' funds                                 2,744,072        3,175,053         3,175,053
Closing shareholders' funds                                 2,510,153        3,027,147         2,774,072


A statement of recognised gains and losses has not been included as part of this
interim report as the Company made no gains or losses in the year other than as
disclosed in the Profit and Loss Account.

The results stated above are all derived from continuing operations.




CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2003
                                                            Unaudited        Unaudited          Audited
                                                         half year to     half year to          year to
                                                         30 June 2003     30 June 2002 31 December 2002
                                                                    £                £                £
Reconciliation of operating
loss to net cash outflow
from operating activities

Operating loss                                              (279,877)        (215,523)        (559,262)
Depreciation charges                                          10,479            5,221           29,254
Decrease/(increase) in debtors                               (18,802)          23,104           27,011
Decrease in creditors                                        (46,250)         (22,394)          27,734
Net cash outflow from
operating activities                                        (334,450)        (209,592)        (475,263)

Cash flow statement

Cash flow from operating activities                         (334,450)        (209,592)        (475,263)
Returns on investment and servicing
of finance                                                   131,352          141,776          146,502
Taxation                                                       -----                -                -
Capital expenditure                                          (14,852)          (3,550)         (32,077)
Management of liquid resources                               225,475           39,495          331,377
Financing                                                      -----                -                -
Increase/(Decrease) in cash in the period                      7,525          (31,871)         (29,461)

Reconciliation of net cash flow
to movement in net funds
Increase/(Decrease) in cash in the period                      7,525          (31,871)         (29,461)
Cash inflow from liquid resources                           (225,475)         (39,495)        (331,377)
Movement in net funds in the period                         (217,950)         (71,366)        (360,838)
Net funds at the start of the period                       2,660,912        3,021,750        3,021,750
Net funds at the end of the period                         2,442,962        2,950,384        2,660,912




BALANCE SHEET
AS AT 30 JUNE 2003

                                                             Unaudited        Unaudited           Audited
                                                          half year to     half year to           Year to
                                                          30 June 2003     30 June 2002  31 December 2002
                                                                     £                £                 £
Fixed assets
Tangible assets                                                18,637            9,770            14,264
Current assets
Debtors                                                        76,133           90,694           142,725
Cash at bank and in hand                                    2,448,028        2,950,384         2,673,503
                                                            2,524,161        3,041,078         2,816,228
Creditors
Amounts falling due within one year                           (32,645)         (23,701)          (86,420)
Net current assets                                          2,491,516        3,017,377         2,729,808
Net assets                                                  2,510,153        3,027,147         2,744,072

Capital and reserves
Called up share capital                                       594,800          594,800           594,800
Share premium account                                       2,896,500        2,896,500         2,896,500
Capital contribution reserve                                  125,000          125,000           125,000
Profit and loss account                                    (1,106,147)        (589,153)         (872,228)
Equity shareholders' funds                                  2,510,153        3,027,147         2,744,072

This interim report was approved by the board of directors on 29 September 2003
and were signed on their behalf by:


Douglas Blaikie
Financial Director


Basis of preparation

The interim report for the six months ended 30 June 2003 and 2002 is unaudited
and does not constitute statutory accounts within the meaning of Section 240 of
The Companies Act 1985. They have been prepared under the historical cost
convention and on a basis consistent with the accounting policies for the year
ended 31 December 2002. The results for the year ended 31 December 2002 and the
balance sheet of that date are an extract from the statutory financial
statements for that year, which have been filed with the Registrar of Companies
and on which the Company's auditors gave an unqualified report and did not
contain a statement under Section 237 (2) or (3) of that Act.


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