Preliminary Results

Newsplayer Group PLC
16 January 2001


                              NEWSPLAYER GROUP PLC
         PRELIMINARY RESULTS FOR THE PERIOD ENDED 31ST OCTOBER, 2000

Newsplayer Group plc, the new media company, today announces maiden results
covering the period ended 31st October, 2000.

Highlights:
*  Turnover ahead of expectations at £128,225 (generated from Newsplayer.com
   in the 10 weeks prior to period end)
*  Pre-tax loss lower than expected of £2.67m
*  Appointment of Sir David Frost to the board as Non-Executive Director.

Achievements since IPO:
*  Launch of first educational product, Newsplayer Replay
*  Secured 20 year exclusive global internet rights to material from Alison
   Mercer Collection
*  Secured 10 year exclusive global internet licence to sports material from
   the Stock Video of Boston
*  Secured exclusive on-line and off-line rights to Sir David Frost
   interviews.

Commenting on the results and Sir David Frost's appointment, Paul Duffen,
Chief Executive Officer, said:

'I am delighted to report that we have delivered on our key strategic
objectives.  We have seen strong revenue growth from our first product
Newsplayer.com, acquired rights to over 2000 hours of additional content,
developed a leading technical facility for the digitisation of content and
launched our first educational product, Newsplayer Replay.  We are very well
positioned to benefit from the convergence of television and the Internet by
being a provider of high quality content and programming to an ever increasing
number of broadcasters across the platform spectrum.'

'The Directors are pleased to welcome Sir David Frost to the Board of
Newsplayer Group plc as a Non-Executive Director.  We are confident that he
will prove a great asset in the securing of additional content and in
brokering relationships with broadcast networks both in the UK and the USA.'

Enquiries:

Paul Duffen, Chief Executive      Tel: [phone]
Barry Llewellyn, Marketing        on 16th January 2000
Director                          thereafter Tel: [phone]
Newsplayer Group plc
                                  
Gavin Partington/Kate Inverarity  Tel: [phone]
Brunswick Group Ltd

OVERVIEW

These are the maiden financial results since admission of the Company to AIM
in May 2000 and cover the period ended 31st October, 2000.

The principal activity of the Group is the exploitation of rights and/or
licences to television and cinema content, using interactive technology and
the marketing of them to a global audience on B2B, B2E and B2C platforms.
Revenues are generated from the licensing of content to third parties (B2B),
from the charging of subscriptions to schools and colleges for access to
bespoke educational products (B2E) and from pay-per-view and video-on-demand
fees from consumers (B2C).

Newsplayer's original 20 year licence for 1000 hours of ITN and Reuters
material has now been augmented by the acquisition of material from Universal
News (The Alison Mercer Collection), Columbia Sports News and Castle Films
(Stock Video of Boston) and Sir David Frost  (The Frost Collection).  This
brings the total content archive to over 3000 hours.  The rights to the
majority of the material are worldwide, transferable and exclusive for periods
ranging between 10 and 20 years.  In the case of The Frost Collection the
rights extend 'off-line' and will generate revenues from licensing to
traditional television channels and programme makers in addition to a wide
range of New Media opportunities.

FINANCIAL RESULTS

Revenues for the period were £128,000.  These were generated exclusively from
the ITN and Reuters content on Newsplayer.com, covering a ten week period from
the launch of Newsplayer.com until the period end.

Gross profit generated from activities was £127,000.  The pre-tax loss for the
period was £2.67m including initial marketing costs of £2.3m.

Cash in the bank at the end of the period was £6.87m.  No dividend has been
paid or is proposed.

BUSINESS REVIEW

Overview

During the period the Company has made substantial progress on all of its key
deliverables, namely: the generation of turnover from the archive of ITN and
Reuters material on Newsplayer.com; the acquisition of rights to over 2000
hours of additional content; the development of a leading technical facility
for the digitisation of content and the launch of the first educational
product, Newsplayer Replay, in September 2000.

Newsplayer.com

The Newsplayer.com site is the world's largest on-line video newsreel archive.
It delivers video-on-demand of key worldwide events since 1896 (over 14,000
clips) and enables users to search and retrieve content via an intelligent
search facility.  Whilst all the material is encoded at both Narrowband and
Broadband speeds, it is significant that almost one third of all the footage
streamed by customers has been over Broadband connections.  This supports the
Director's belief that the Company is well positioned to

benefit from the roll out of high speed Internet connections around the world.
The base subscription model of £25 per annum was launched in the middle of
August and by the end of 2000 over 10,000 customers had subscribed to the
service.

Alison Mercer Collection

During the period, Newsplayer secured the rights to material from the Alison
Mercer Collection, consisting of 1,400 video clips and representing 280 hours
of material for a 20 year exclusive Internet deal.  Part of the archive
comprises film-related material and biographies of icons of the cinema age.
Included are 600 film trailers dating back to the 1930s, sourced from the
largest film trailer archive in the UK, featuring stars like Marilyn Monroe
and Charlie Chaplin.  Interviews and screen tests with notable Directors and
actors including Alfred Hitchcock, Audrey Hepburn and James Dean are also
included in the archive.  The remaining material represents US newsreel
footage from the turn of the century, including some sport and serves as a
valuable addition to the existing Newsplayer archive.  Revenues will be
generated from licensing usage of the material to third party websites and
from video-on-demand streaming direct to consumers.

Stock Video of Boston

Newsplayer also secured a ten year exclusive Internet licence for the Stock
Video of Boston archive, representing a further 800 hours of US-based sports
footage including Baseball, American Football, Basketball, Motorsport, Ice
Hockey, Boxing and Golf, originating from Columbia Sports News and
Castlefilms.  Revenues will be generated from licensing usage of the material
to third party websites and from video-on-demand streaming direct to
consumers.  In conjunction with the Alison Mercer Collection this material
represents an important addition of content specifically relevant to a US
audience, a key target market for the Company.

The Frost Collection

In December 2000 the Company entered into a joint venture with Sir David
Frost, securing the exclusive rights to hundreds of interviews conducted by
him over the past 40 years.  The deal adds a new revenue stream to
Newsplayer's existing business.  Newsplayer will exploit opportunities in both
on-line and off-line syndication, deals with ISPs, other websites and DVD
sales.

Possibly the best known television interviewer in the world, Sir David has
interviewed the last six UK Prime Ministers and last six US Presidents as well
as other leading figures including Bill Gates, Mikhail Gorbachev, Jacques
Cousteau, Yasir Arafat, the Beatles, Elton John, Clint Eastwood, Woody Allen,
Muhammed Ali and Nelson Mandela.

Newsplayer will catalogue, tag and digitise the library of interviews,
creating an 'interactive digital jukebox' for use by broadcasters and
consumers over the Internet.  Through the application of interactive
technology, this wealth of material, much of which has not been seen since its
original screening, will be made available to a global audience on a licence
(B2B) or pay per view (B2C) basis.  Broadcasters and programme makers around
the world will be able to research and view the material on-line, thereby
removing much of the time and cost usually associated with sourcing television
content.  Once the required material has been identified, the licence
agreement, payment and even delivery of the footage can be transacted on-line
at minimal cost to Newsplayer.  The company will also provide programming from
the Frost Collection to emerging platforms, such as interactive television.
Further opportunities for revenue exist in the post production of the material
and the creation of physical product such as DVDs as well as syndication to
third party websites and portals.

The joint venture is structured as a revenue share between Newsplayer and Sir
David Frost.

Programmaker

The Company has developed on-line video editing software, which will be
applied to the content on its websites, as an additional feature for customers
and will be marketed to other organisations on a licence basis.

Strategic Partners
******************

Newsplayer has entered into several strategic alliances:

Microsoft

In March 2000 Newsplayer entered into an agreement with Microsoft as its
technology partner and is exclusively using Windows Media Player as a
streaming format.  In return, Microsoft promotes newsplayer.com on its
streaming media websites, for example, Windowsmedia.com, through press
releases and its international on-line newsletter. Microsoft actively promotes
Newsplayer through its new Media Guide and promoted Newsplayer.com as part of
the product launch of Windows Media 7.

Yahoo! Europe

In April 2000 Newsplayer signed an agreement with Yahoo! Europe for an initial
24 month period.  The agreement means that Yahoo! users will have access to a
limited selection of streamed video clips via a hyper-link from a co-branded
page which will promote newsplayer.com.  It is intended that access will at
first be available through the websites Yahoo.co.uk and Broadcast.com, and
will then be rolled out across the Yahoo! portfolio of websites worldwide.
The agreement also allows Newsplayer to place streamed advertising before the
clips which will be played to visitors accessing the Newsplayer archive via
the Yahoo! hyperlink.  As Yahoo! has some 120 million users worldwide, this
partnership has strong potential to generate a significant amount of traffic
for newsplayer.com and revenue for the Company.

BT Interactive

During the summer of 2000 Newsplayer formed a strategic partnership with BT
Interactive.  Newsplayer was a content provider at the launch of BT Open World
and continues to be involved in promotional activities.

Nelson Thornes

In April 2000 Newsplayer signed heads of agreement with Nelson Thornes, a
leading educational publisher, to develop a range of products in the UK
educational market for Newsplayer, incorporating material from the Newsplayer
archive. The projects will target all national curriculum subjects at Key
Stage 1, 2 and 3 as well as GCSE courses on Key Stage 4 and all GCSE, Advanced
Level and GNVQ subjects.  The agreement runs for a minimum period of five
years and will generate revenue for Newsplayer through a share of
subscriptions taken by schools, colleges and universities. This collaboration
will help to establish Newsplayer as a definitive aid to learning both in the
classroom and in the home.  The first product of this relationship, Newsplayer
Replay, has now been completed and it is anticipated that it will be
generating revenue from Q2 in the current financial year.

Hollinger International Inc.

Hollinger, the multinational media company based in Canada is a strategic
investor and partner of Newsplayer.  As an owner of numerous media titles
(including: The Daily Telegraph, The Chicago Sun-Times, The Ottawa Citizen and
The Jerusalem Post) and investor in on-line ventures (including the Electronic
Telegraph, handbag.com, UKMax.com and canada.com), Hollinger continues to
provide an important and valuable resource to the Company.

BOARD APPOINTMENT

Sir David Frost, joins the Board as a Non-Executive Director, with effect from
16th January, 2001.  In addition, he holds directorships in the following
companies:

David Paradine Limited
David Paradine Productions Limited
David Frost Enterprises Limited
David Paradine Plays Limited
David Paradine Films Limited
Glebe Music Company Limited
Discovery Productions Limited
Paradine Co-Productions Limited
Paradine Documentaries Limited
Paradine Castle Communications Limited
Telecircuit Limited
Demob Limited
Charterhouse Paradine Limited
Rogue Trader Productions Limited
West 175 Media Group
Eurodisney SCA

There is nothing further to disclose pursuant to paragraph 16.8 (e) of the AIM
rules.

OUTLOOK

Newsplayer has secured rights to an exceptional amount of quality content and
is well positioned to generate revenue from multiple streams over the coming
year.  Newsplayer will continue to grow turnover generated from subscriptions
to Newsplayer.com, and will also see the benefits of new sources of revenue.

These will include subscriptions from marketing new products and newly
acquired content, fees from licensing content to websites and portals, fees
from licensing content to television companies, pay-per-view revenue from
interactive television platforms, sales of DVD product, revenues from the
licensing of video editing software and sponsorship and advertising.  While
growing revenues the Company will benefit from a relatively low cost base.  As
a consequence, the Directors remain confident that the Company will achieve
profitability during the first half of the financial year ending 31st October
2002.

FINANCIAL RESULTS

The information set out in this report consolidates the accounts of Newsplayer
Group plc and its subsidiaries for the period from 14 October 1999 to the 31
October 2000 as if Newsplayer Group plc had been the holding company of the
Group throughout the period.  The consolidated information has been prepared
in accordance with merger accounting principles.

Extract of the preliminary financial information for the period from 14th
October, 1999 to 31st October, 2000 is as follows:

Profit and loss account

                                            Period ended
                                                31st Oct
                                                    2000
                                             (unaudited)
                                 Note           £
Turnover                          2         128,225
                                            
Cost of sales                               (439)
                                            ____________
                                            
Gross profit                                127,786
                                            
Operating expenses                          (2,978,255)
                                            ____________
                                            
Operating loss                              (2,850,469)
                                            
Net interest receivable                     176,348
                                            ____________
                                            
Loss on ordinary activities                 
before taxation                             (2,674,121)
                                            
Taxation                                    -
                                            
Loss on ordinary activities after           
taxation                                    (2,674,121)
                                            ============
                                            
Loss per ordinary share - basic             4.65p
and diluted

No statement of total recognised gains and losses has been presented as there
are no recognised gains and losses other than the loss for the financial year.

Balance Sheet

                                             31st Oct
                                                 2000
                                           unaudited)
                                  Note         £
Fixed assets:                               
Intangible assets                           305,000
                                            
Tangible assets                             57,828
                                            
Current assets:                             
Debtors                           3         1,797,282
                                            
Investments                       4         5,100,000
                                            
Cash at bank and in hand                    1,771,646
                                            
Creditors due within one year               (904,450)
                                            
Net current assets                          7,764,478
                                            
Net assets                                  8,127,306
                                            ============

Capital and Reserves

                                               £
Called up share capital           5         658,054
                                            
Share premium account                       10,652,759
                                            
Merger reserve                              (509,386)
                                            
Profit and loss account                     (2,674,121)
                                            
Shareholders' funds               6         8,127,306
                                            ============

Cash Flow Statement

                                            Period ended
                                               31st Oct
                                                   2000
                                            (unaudited)
                                 Note            £
Net cash outflow from operating   7         (3,737,829)
activities
                                            
Returns on investment and                   120,330
servicing of finance
                                            
Capital expenditure and financial           (312,282)
investment
                                            
Management of liquid resources    4         (5,100,000)
                                            
Financing:                                  
Issue of ordinary share capital             11,398,500
                                            
Expenses paid in connection with            
ordinary share issues                       (597,073)
                                            
Increase in cash                            1,771,646

Notes to the Financial Highlights

1.  The preliminary results for the period ended 31 October 2000 are
unaudited.  The financial information set out in the announcement does not
constitute the company's statutory accounts for the period ended 31 October
2000.  The statutory accounts for the period ended 31 October 2000 will be
finalised by the Directors on the basis of the financial information contained
in this preliminary announcement and will be delivered to the Registrar of
Companies following the company's Annual General Meeting.

2.  Turnover
Turnover is subscription income for access to the newsplayer.com web site.

3.  Debtors
Debtors includes amounts of £398,160 in respect of recoverable VAT and
£1,118,328 in respect of prepaid advertising.

4.  Investments
Investments of £5,100,000 are fixed term cash deposits with Natwest Bank Plc
with maturity dates from 8th March, 2001 to 7th September, 2001.

5.  Share Capital

                                  Note      £
Authorised:                                 
90,000,000 ordinary shares of 1             900,000
pence each
                                            
Allotted, issued and fully paid:            
65,805,357 ordinary shares of 1             658,054
pence each

The company was incorporated on 20 March 2000 with an authorised share capital
of 50,000 ordinary shares of £1 each.

The following alterations in the authorised and issued share capital have
taken place in the period:

On the 3rd April 2000:
 *  the authorised share capital was increased to £900,000 and each of the
    unissued and issued Ordinary Shares of £1 each were subdivided in to 100
    Ordinary Shares of 1p each
 *  51,038,550 Ordinary Shares were issued credited as fully paid to the
    Selling Shareholders as consideration for the acquisition of the entire
    issued share capital of Newsplayer Limited.

On the 12th April 2000 2,686,250 Ordinary Shares were issued at £0.4654 per
share to Hollinger Telegraph New Media Ltd.

On the 23rd May 2000 the Company issued a single series of warrants to
Investec Bank pursuant to a warrant instrument which entitles Investec Bank to
subscribe for one Ordinary Share at any time up to and including the date
which falls 28 days after the publication of the final results of the Company
for the year ending 31st October 2005 (the 'Expiry Date').  The subscription
price for the warrants will be £0.4654.  If not exercised by the Expiry Date
any warrants outstanding at that date will lapse.

In connection with the Placing on the 30th May 2000 the Company issued
12,080,357 new Ordinary Shares for an aggregate consideration of £10,147,500.
5.  Share Capital

At 31st October 2000 there were currently 1,250,303 unapproved share options
outstanding under the Executive Share Option Scheme.  These options are
exercisable at any time between 30th May 2003 and 30th May 2010 at an exercise
price of 84p.

6.  Reconciliation of movement in shareholders' funds

                                  Note          £
Loss on ordinary activities after           (2,674,121)
taxation
                                            
Issue of ordinary share capital             
(net of issue costs)                        10,801,427
                                            __________
                                            
Net addition to shareholder's               8,127,306
funds
                                            
Opening shareholder's funds                 0
                                            
Closing shareholders' funds at 31           
October 2000                                8,127,306
                                            ___________
                                            

7.  Reconciliation of operating loss to operating cashflows

                                  Note         £ 
Operating loss                              (2,850,469)
                                            
Depreciation                                8,143
                                            
Amortisation                                130,000
                                            
Increase in debtors                         (1,741,263)
                                            
Increase in creditors                       715,760
                                            ___________
                                            
Net cash outflow from operating             (3,737,829)
activities                                  ===========

BOARD APPROVAL OF PRELIMINARY ANNOUNCEMENT

This report was approved by the Board on 15th January 2001.

ANNUAL REPORT

The Annual Report, which will contain the audited financial statements, will
be issued to shareholders in due course and will be available to members of
the public from the Company's registered office at 6th Floor Windsor House, 50
Victoria Street, London, SW1H 0NW and from the Company's website at
www.newsplayer.com.