Final Results

Harrier Group PLC
06 March 2003

                                HARRIER GROUP PLC
                        PRELIMINARY RESULTS ANNOUNCEMENT
                      FOR THE YEAR ENDED 31 DECEMBER 2002

CHAIRMAN'S STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2002

It is most disappointing to report a 44% fall in revenue for the year ended 31
December 2002 to £9.5m (2001: £17m) resulting in an increased operating loss
before exceptional severance costs and goodwill write off £864,536 (2001:
£48,172).  After severance costs of £193,964 and goodwill write downs of
£17,997,459 the loss for the financial year was £19,005,410.

Our confidence for 2002 was soon dented by difficult trading conditions
throughout the year which affected the whole of our chosen market sector.  As a
result we carried out two cost reduction exercises during the year in May and
September to bring our cost base in line with revenue and return the Group to
profitability.  Whilst our activity level and prospect list has improved,
conversion of these into orders has lengthened with the tightening in the
economy.

Owing to the severe drop in our market capitalisation and the poor trading
result for the year, we have decided to totally write off the remaining balance
of goodwill amounting to £17,997,459.

Due to the poor trading result, cash balances have declined during the year to
£1.6m (2001: £2.3m).

I would like to thank our management, staff and shareholders for their loyalty
and support during a very difficult year.

David Cheesman, our Chief Executive, has decided to retire from the Board with
effect 6 March 2003 to pursue his other interests.  We thank him for his
valuable contribution to the Group and wish him every success for the future.
He is being succeeded by Jim Stoddart who brings with him a wealth of experience
in the IT sector, Jim has over 30 years experience in the Information Technology
('IT') industry in the US, UK and Middle East.  He also has a successful record
in hardware and software technology sales, marketing, project management, and
the IT services marketplace.  His brief is to grow the existing business whilst
expanding into complementary areas by organic growth and acquisitions in line
with his previous experience.

We are determined to grow the Harrier Group in a profitable and positive manner
and hope to be able to achieve an improved result for 2003.

CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2002


                                                                                    2002                   2001
                                                                                       £                      £

Turnover                                                                       9,544,299             17,052,456

Cost of sales                                                                (4,537,280)           (10,207,318)

Gross profit                                                                   5,007,018              6,845,138

Administration expenses                                                      (5,871,554)            (6,893,310)

Operating loss before goodwill  impairment
      provision and exceptional severance costs                                (864,536)               (48,172)

Exceptional severance costs                                                    (193,964)              (187,479)
Goodwill impairment provision                                               (17,997,459)              (989,733)

Operating loss                                                              (19,055,959)            (1,225,384)

Interest receivable                                                              541,123                807,674
Interest payable                                                               (490,574)              (727,040)

Loss on ordinary activities before taxation                                 (19,005,410)            (1,144,750)

Taxation                                                                               -                      -

Loss for the financial year                                                 (19,005,410)            (1,144,750)

Basic loss per share                                                           ( 66.18p)                (4.00p)

Diluted loss per share                                                         ( 59.19p)                (3.59p)

IIMR 'headline' loss per share                                                  ( 3.51p)                (0.54p)



CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2002

                                              £                  2002                   £                   2001
                                                                    £                                          £

Fixed assets
Intangible assets                                                   -                                 17,878,082
Tangible assets                                               616,285                                    798,209

                                                              616,285                                 18,676,291

Current assets
Stocks                                   28,782                                    21,140
Debtors                               1,797,308                                 3,173,711
Cash and bank balances                1,595,654                                 2,275,448
Term deposit                         12,000,000                                14,000,000

                                     15,421,744                                19,470,299
Creditors: Amounts falling
    due within one year             (2,942,163)                               (4,045,314)

Net current assets                                         12,479,581                                 15,424,985

Total assets less current
    liabilities                                            13,095,866                                 34,101,276

Creditors: Amounts falling due
    after more than one year                             (12,000,000)                               (14,000,000)

Net assets                                                  1,095,866                                 20,101,276

Capital and reserves
Called up share capital                                       287,197                                    287,197
Share premium account                                      23,939,703                                 23,939,703
Capital redemption reserve                                    268,972                                    268,972
Profit and loss account                                  (23,400,028)                                (4,394,618)

Equity shareholders' funds                                  1,095,844                                 20,101,254

Minority interests                                                 22                                         22

Total shareholders' funds                                   1,095,866                                 20,101,276



CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2002

                                                 £              2002                   £                   2001
                                                                   £                                          £


Net cash (outflow)/inflow from                             (558,766)                                    367,222
  operating activities

Returns on investments and servicing
  of finance

Interest received                          541,123                               807,674
Interest paid                            (490,574)                             (727,040)
                                                              50,549                                     80,634

Taxation
Corporation tax paid                                               -                                  (257,840)

Capital expenditure and financial
   investment
Purchases of tangible fixed assets        (71,239)                             (290,685)
Sales of tangible fixed assets              19,040                                35,449

Net cash outflow from investing
activities                                                  (52,199)                                  (255,236)

Acquisitions and disposals
Purchase of subsidiary undertaking                         (119,378)                                          -

Net cash outflow before financing                          (679,794)                                   (65,220)

Financing

Issue of ordinary share capital                  -                                 5,147
Hire purchase loans repaid                       -                              (16,834)

                                                                   -                                   (11,687)

Decrease in cash                                           (679,794)                                   (76,907)



                                                                                      2002              2001
                                                                                         £                 £
Reconciliation of net cash flow
  to movement in net funds

Decrease in cash in the year                                                     (679,794)          (76,907)
Change in net debt resulting from cashflows                                              -            16,834

Movement in net funds in the year                                                (679,794)          (60,073)

Net funds at start of year                                                       2,275,448         2,335,521

Net funds at end of year                                                         1,595,654         2,275,448


NOTES TO THE FINANCIAL INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2002

1.     The preliminary announcement of results has been prepared under
the historical cost convention in accordance with the Group's accounting
policies for the year ended 31 December 2002.

2.     The above financial information does not constitute statutory
accounts as defined in Section 240 of the Companies Act 1985.  The summarised
balance sheet at 31 December 2002 and the summarised profit and loss account and
cash flow statement for the year then ended have been extracted from the Group's
financial statements.  These financial statements have not yet been delivered to
the Registrar of Companies.

3.     The calculation of basic and diluted loss per ordinary share of
1p each is based on the loss on ordinary activities after taxation and minority
interests of £19,005,410 divided by the weighted average number of ordinary
shares of 1p each 28,719,702 (basic) and 32,110,390 (diluted).  The IIMR '
headline' loss per share is the basic figure excluding the goodwill amortisation
and is therefore based on a loss of £(1,007,951) and a weighted average number
of shares of 28,719,702.

4.     Reconciliation of loss to net cash (outflow)/inflow from
continuing operating activities

                                                                                        2002              2001
                                                                                           £                 £

Operating loss                                                                  (19,055,959)       (1,225,384)
Goodwill impairment provision                                                     17,997,459           989,733
Depreciation                                                                         237,103           221,027
(Profit)/Loss on sale of fixed assets                                                (2,979)            26,671
(Increase)/Decrease in stock                                                         (7,642)            13,109
Decrease/(Increase) in debtors                                                     1,376,403         (501,018)
(Decrease)/Increase in creditors                                                 (1,103,151)           843,084

Net cash (outflow)/inflow from operating activities                                (558,766)           367,222


5    All of the Group's activities are classed as continuing and there are no
     gains and losses other than disclosed above.

6    No dividends are proposed or were paid during the period.

7    The Annual General Meeting will be held at 12.00pm on 28 April 2003 at
     Cromwell House, Hook.

8    The Report and Accounts will be sent to shareholders on, or before 28 March
     2003.  Further copies may be obtained on application to the Company's 
     Registered Office, Cromwell House, Cromwell Way, Bartley Wood, Hook, 
     Hampshire, RG27 9XA) or will be available for collection at the same 
     address for a period of 1 month from the date of publication.


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