Interim Results

Forbidden Technologies PLC
02 September 2005

                           FORBIDDEN TECHNOLOGIES PLC

             Interim Results for the six months ended 30 June 2005

Forbidden Technologies plc, through its proprietary technologies, has developed
and is marketing a range of Internet video sharing platforms for a wide range of
market segments in the wired and wireless world.

Highlights

•         FORscene being piloted with major producers and broadcasters
•         Consumer video sharing platform launch planned for Q4 2005
•         Loss for the six months was £344,922 (H1 2004: 227,021) reflecting
          increased expenditure on business and product development
•         £1.28 million liquid resources compare with £1.61 million at year end
          2004

Vic Steel, Chairman, Forbidden Technologies, commented:

'The focus in the first half of the year has been on customising our flagship
product FORscene for key pilot tests with broadcast producers such as ITV and
BBC.  We are also delighted to have established a route to the professional
market with a new partnership with NATS post production.

'As we showcase our tapeless video production process at IBC 2005 conference and
plan the consumer launch for later this year, we are increasingly confident of
the prospects for sales expansion in 2006.'

                                                                2 September 2005

Enquiries:

Forbidden Technologies plc                                         020 8879 7245
   Stephen Streater, Chief Executive
   Greg Hirst, Business Development Director

College Hill                                                       020 7457 2020
   Corinna Dorward/Adrian Duffield





FORBIDDEN TECHNOLOGIES plc

Interim Report 2005


Chairman's statement

Sales for the six months ending 30 June 2005 were £17,851 (2004: £46,202). The
loss in the six months was £344,922 (2004: £227,021), reflecting increased
expenditure on business and product development.  The Company continues to
manage resources tightly.  Liquid resources at the end of the period were £1.28
million compared with £1.61 million at the end of 2004.

The sales recorded in the first half of the year mask the exciting developments
which have been taking place. Much of the past six months have been concentrated
on working in partnership with some of the biggest programme producers. Their
interest in FORscene has meant that we have been able to focus directly on
creating customised features of relevance to these huge users of post-production
facilities. We are now progressing into pilot usage over the next few months,
and, assuming the pilots are successful, into more widespread use in 2006.

FORscene is a web-based video sharing platform, which runs automatically on PCs
and Macs. It allows video to be logged, edited, reviewed and published - all
from a standard computer. All hosting is supported automatically. Forbidden's
access to its own video compression technology has made it unusually well placed
to develop video editing and publishing tools. As no installation is needed to
run the software, the number of computers that can run FORscene is vast.

Initially we are targeting the large professional video post-production market
and have established a partnership with Nats (as announced at the AGM in June),
who are a large, independent, well-respected provider of post-production
facilities.

Although FORscene is designed as a complete, vertically integrated product
suite, initial pilots are being conducted at various points in the production
process: logging (as being used by ITV),  reviewing (three different BBC pilots)
and publishing (on mobile phones via our Italian partners and on the web via our
Finnish partners).

In September at IBC 2005 (Europe's largest broadcaster convention), we plan to
show how the recent advances in internet and computer technology can assist
video production to move to a tapeless process. We believe that FORscene, which
requires no capital cost from users and cuts out significant distribution and
support costs and time, has the potential to become the next industry standard
post-production tool.

With increasing penetration of high-end PCs and mobile phones, we are planning
to complement mobile publishing with photographic and video capture straight
from high-end mobile phones into FORscene. For the first time this will enable
consumers to create video content on their phones for editing on standard PCs
and to publish the resulting video for immediate viewing by friends and family.
Our consumer/domestic version of FORscene, separately branded with the name '
Clesh', will be introduced later this year with its own website.

Work continues on developing security and surveillance products and these will
be made available to the market in the coming months.

As described above, the exciting progress being made in both the professional
market with FORscene and the consumer market with Clesh, give us high confidence
that they will provide significant sales expansion in 2006 and beyond.


Profit and loss account
For the six months ended 30 June 2005

                                                           Unaudited            Unaudited            Audited
                                                        half year to         half year to            year to
                                                             30 June              30 June        31 December
                                                                2005                 2004               2004
                                                                   £                    £                  £
Turnover                                                      17,851               46,202             76,788

Administrative expenses                                    (401,493)            (311,510)          (787,563)
Operating loss                                             (383,642)            (265,308)          (710,775)

Interest receivable                                           38,720               38,287             68,259
Loss on ordinary activities before taxation                (344,922)            (227,021)          (642,516)

Tax on loss on ordinary activities                               ---                    -             28,389
Loss for the period                                        (344,922)            (227,021)          (614,127)

Basic and diluted loss per ordinary
0.8 pence share                                              (0.46p)              (0.30p)            (0.81p)



Reconciliation of movements in shareholders' funds
For the six months ended 30 June 2005


                                                                 Unaudited         Unaudited          Audited
                                                              Half year to      half year to          year to
                                                                   30 June           30 June      31 December
                                                                      2005              2004             2004
                                                                         £                 £                £
Loss for the period                                              (344,922)         (227,021)        (614,127)
New share capital subscribed
(net of issue costs)                                                   ---                 -            5,625
Net reduction in shareholders' funds                             (344,922)         (227,021)        (608,502)
Opening shareholders' funds                                      1,692,477         2,300,979        2,300,979
Closing shareholders' funds                                      1,347,555         2,073,958        1,692,477

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
As at 30 June 2005

                                                                Unaudited          Unaudited          Audited
                                                              half year to      half year to          year to
                                                                   30 June           30 June      31 December
                                                                      2005              2004             2004
                                                                         £                 £                £
Reconciliation of operating loss to net
cash outflow from operating activities
Operating loss                                                   (383,642)         (265,308)        (710,775)
Depreciation charges                                                11,484             9,089           30,130
Decrease/(increase) in debtors                                         768          (40,505)           27,163
Increase/(decrease) in creditors                                    33,553          (22,883)         (12,193)
Net cash outflow from operating activities                       (337,837)         (319,607)        (665,675)

Cash flow statement

Cash flow from operating activities                              (337,837)         (319,607)        (665,675)

Returns on investment and servicing of finance                      23,787            11,318           68,882
Taxation                                                               ---                 -           25,277
Capital expenditure                                               (14,312)          (22,458)         (32,124)
Cash outflow before management
of liquid resources                                              (328,362)           330,747        (603,640)
Management of liquid resources                                     338,128           282,988          589,945
Financing                                                              ---                 -            5,625
Increase/(decrease) in cash in the period                            9,766          (47,759)          (8,070)

Reconciliation of net cash flow
to movement in net funds
Increase/(decrease) in cash in the period                            9,766          (47,759)          (8,070)

Cash outflow from liquid resources                               (338,128)         (282,988)        (589,545)
Movement in net funds in the period                              (328,362)         (330,747)        (598,015)

Net funds at the start of the period                             1,606,903         2,204,918        2,204,918
Net funds at the end of the period                               1,278,541         1,874,171        1,606,903


Balance sheet
As at 30 June 2005
                                                                 Unaudited         Unaudited          Audited
                                                              half year to      half year to          year to
                                                                   30 June           30 June      31 December
                                                                      2005              2004             2004
                                                                         £                 £                £
Fixed assets
Tangible assets                                                     18,640            27,187           15,812
Current assets

Debtors                                                            167,481           234,698          142,551
Cash                                                                   ---                 -              ---
Liquid resources                                                 1,280,451         1,913,860        1,606,903
                                                                 1,447,932         2,148,558        1,749,454
Creditors: amounts falling due within one year                   (119,017)         (101,787)         (72,789)
Net current assets                                               1,328,915         2,046,771        1,676,665

Net assets                                                       1,347,555         2,073,958        1,692,477

Capital and reserves
Called up share capital                                            605,300           603,800          605,300
Share premium account                                            2,925,375         2,921,250        2,925,375
Capital contribution reserve                                       125,000           125,000          125,000
Profit and loss account                                        (2,308,120)       (1,576,092)      (1,963,198)
Equity shareholders' funds                                       1,347,555         2,073,958        1,692,477


This interim report was approved by the board of directors on 1 September 2005
and was signed on their behalf by:


Stephen Streater
Director





Basis of preparation

The interim report for the six months ended 30 June 2005 and 2004 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 2004.

The results for the year ended 31 December 2004 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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