Preliminary Results

Harrier Group PLC
12 April 2000

                               HARRIER GROUP PLC
                                       
                   PRELIMINARY AUDITED RESULTS OF THE GROUP
                      FOR THE YEAR ENDED 31 DECEMBER 1999


Chairman's statement
The  past  year  has  been a significant year of growth  and  development  for
Harrier culminating in our flotation on the Alternative Investment Market on 4
November 1999.

The flotation has raised the capital required to grow Harrier both organically
and  through  acquisition  in  order to capitalise  on  the  Company's  market
position and the forecast growth in the markets in which it operates.

The  Company  is now well placed for the challenge ahead with sufficient  cash
resources,  a strong management team, well resourced operating businesses  and
growing markets.

We  are  pleased to report record revenue for the year to 31 December 1999  of
£5.4 million an increase of 22 per cent. compared to £4.5 million in 1998.  We
continue to grow the revenues of our strategic business, which increased by 38
per  cent.  to  £5.3 million in 1999 from £3.9 million in 1998.  The  loss  on
ordinary  activities  for 1999 of £154,000 compared  with  £494,000  for  1998
reflects  the  growth in our higher margin business sectors  and  the  planned
increase in overhead costs in our Sales, Technical and Marketing activities to
meet our future growth targets.

Net  assets have improved to £3.1 million reflecting the flotation in November
which  raised £4.8 million in cash and allowed the Company to repay  its  long
term debt.

Building  on  the  1999 results, the Group is now making significant  progress
towards becoming a leading provider of integrated solutions in our two  market
areas: Internet and network security, and advanced data protection and storage
management. The Directors believe that Harrier is now well positioned to  take
advantage of the projected growth in both of these areas.

Harrier  provides the outsourced services and solutions, required by corporate
organisations  who,  with the increasing complexity of computer  software  and
hardware,  are  finding it more difficult to maintain in-house IT  departments
that  have  a sufficiently detailed knowledge of all technological spheres  to
satisfy their organisation's IT requirements.

Solutions  from  Harrier are enabling e-business to take place  securely.  The
requirements for the enabling technologies that we supply and support continue
to  increase  in  importance  to companies as  they  develop  and  grow  their
e-commerce requirements and their employees start to work remotely on  a  more
regular  basis.  The  ability  of e-storage to  support,  protect  and  enable
corporate resources is now not only fully recognised but valued accordingly.

In October 1999, the Board of Directors was strengthened with the appointments
of  Mark  Rowlinson as Finance Director and Derek Alway and Brian Wrighton  as
Non-executive  Directors.  Their  appointments  bring  a  wealth  of  industry
experience  to  the  Group  and a commitment to the  growth  strategy  of  the
Company.

During  the  latter  part  of 1999 we significantly increased  the  number  of
employees in the group from 26 members of staff to 43 at the end of the  year,
primarily  augmenting  the  revenue  generating  teams  within  the  operating
businesses.

On  15  March 2000, the Company strengthened its Internet and network security
division  through  the acquisition of Re-Net Limited, an  IT  consultancy  and
support services company, for £130,000 in cash.

I  am  pleased to announce that today the Company has reached an agreement  to
acquire Zeuros for a consideration of £14 million plus two million shares. The
cash  element of the consideration will be met through an underwritten placing
and  open offer. The acquisition of Zeuros will considerably enhance Harrier's
position in the Internet and network security solutions market in the  UK  and
will also increase the range of products and services that the Company is able
to offer.

I  would  like  to thank my fellow Directors and all Harrier staff  for  their
support and commitment over the past year. Harrier can only be as good as  its
staff  and  1  am  pleased  to report that we continue  to  be  successful  in
recruiting  and retaining skilled individuals to join our highly  professional
team.

Harrier  is  well  positioned in both of its market  places  and  the  Group's
solutions  and skills are in strong demand. The Directors look to  the  future
with confidence.

A L R Morton
Chairman




Consolidated Profit and Loss Account
For the year ended 31 December 1999

                                                   Year ended 31
                                                      December
                                                   1999       1998
                                                               (As
                                                         restated)
                                                  £'000      £'000
                                                                  
Turnover                                          5,437      4,465
Cost of sales                                    (3,146)    (2,793)
                                                                  
Gross Profit                                      2,291      1,672
Administrative expenses                          (2,229)    (1,846)
Exceptional redundancy costs                          -       (88)
                                                                  
Operating profit/(loss)                              62      (262)
Interest receivable                                  15          -
Interest payable                                   (229)      (230)
                                                                  
Loss on ordinary activities before taxation       (152)      (492)
Taxation                                              -          -
                                                                  
Loss on ordinary activities after taxation        (152)      (492)
Additional finance costs of non-equity              (2)        (2)
minority interests
                                                                  
Loss for the financial year                       (154)      (494)
                                                                  
Basic loss per share                               0.5p       5.9p
                                                                  
Diluted loss per share                             0.49p           


Statement of total recognised gains and losses

                                                    Year ended 31
                                                       December
                                                   1999       1998
                                                               (As
                                                         restated)
                                                  £'000      £'000
                                                                  
Loss for the financial year                       (154)      (494)
Prior year adjustment                             (176)          -
                                                                  
Total losses recognised since last annual         (330)      (494)
report




Consolidated balance sheet as at 31 December 1999

                                      As at 31         As at 31
                                    December 1999    December 1998
                                                     (As restated)
                                   £'000    £'000    £'000   £'000
Fixed assets                                                      
Tangible assets                               346              341
                                                                  
Current assets                                                    
Stock                                 55                37        
Debtors                            2,134             1,648        
Cash at bank                       2,107                 -        
                                            4,296            1,685
                                                                  
Creditors: Amounts falling due             (1,532)          (2,510)
within one year
                                                                  
Net current                                 2,764            (825)
assets/(liabilities)
                                                                  
Total assets less current                   3,110            (484)
liabilities
Creditors: Amounts falling due                                    
after more than one year                     (11)          (1,169)
                                                                  
Net assets/(liabilities)                    3,099          (1,653)
                                                                  
Capital reserves                                                  
Called up share capital                       207               84
Share premium account                       4,548                -
Capital redemption reserve                    269                -
Profit and loss account                    (1,925)          (1,770)
                                                                  
Equity shareholders funds                   3,099          (1,686)
Non-equity minority interests                   -               33
                                                                  
Total shareholders funds                    3,099          (1,653)



Consolidated cash flow statement
for the year ended 31 December 1999

                                                    Year         31
                                                   ended   December
                                                    1999       1998
                                                                (As
                                                          restated)
                                                   £'000      £'000
Reconciliation of operating profit to cash                         
inflow from operating activities
Operating profit/ (loss)                              62      (262)
Depreciation                                         164        159
Loss on sale of fixed assets                           7         13
(Increase)/ decrease in stock                        (18)        29
Increase in debtors                                 (486)      (423)
(Decrease) /increase in creditors                    (49)       500
                                                                   
Net cash (outflow)/inflow from operating            (320)        16
activities
                                                                   
Returns on Investments and Servicing of                            
Finance
Interest received                                     15          -
Interest paid                                       (229)      (120)
                                                                   
Net cash outflow from returns on investments        (214)      (120)
and servicing on finance
                                                                   
Capital expenditure and financial investment                       
Payments to acquire tangible fixed assets           (132)       (47)
Sale of tangible fixed assets                         17         12
Purchase of minority interests                       (34)          -
                                                                   
Net cash outflow from investing activities          (149)       (35)
                                                                   
Net cash outflow before financing                   (683)      (139)
                                                                   
Financing                                                          
Issue of ordinary shares                           5,460          -
Costs of issue of ordinary share capital            (520)         -
Issue of discounted capital bond                     284          -
Repurchase of discounted capital bonds            (1,436)         -
Other loans                                         (400)        381
Hire purchase loans repaid                          (133)        (93)
                                                                   
Net cash inflow from financing                     3,255         288
                                                                   
Increase in cash in the year                       2,572         149
                                                                   
Reconciliation of net cashflow to movement in                      
net funds/(debt)
Increase in cash in the year                       2,572         149
Change in net debt resulting from cashflows        1,685        (288)
New finance leases                                   (63)        (43)
Interest on discounted capital bonds                   -        (110)
                                                                   
Movement in net funds/(debt) in the year           4,194        (292)
Net debt at start of year                         (2,322)     (2,030)
                                                                   
Net funds/(debt) at end of year                    1,872      (2,322)


Notes to the financial information for the year ended 31 December 1999

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 1999.
   
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 1999 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  prior year adjustment is in relation to a change in accounting  policy
   for revenue recognition of maintenance contracts. This brings the Group  in
   line with other Companies in the sector.

4. On  31  March  1999, the Company issued 345,276 £1 ordinary  shares  for  a
   total  consideration of £450,000 and a further £284,295 was raised  by  the
   issue  of  a  12  per cent. capital bond. The proceeds were used  to  repay
   £300,000  of  short term borrowings and to provide £434,295  of  additional
   working capital.
   
   On  4  November 1999 the Company was admitted to the Alternative Investment
   Market  and  upon admission the Company's share capital was  subject  to  a
   capital reorganisation.
   
   The  existing  £1  ordinary shares totalling 428,982 were sub-divided  into
   100  ordinary  shares of lp each. Immediately after this sub-division  62.7
   per  cent.  of  the  issued  sub-divided share  capital  was  converted  to
   deferred  shares  of  I  p each which were purchased  by  the  Company  and
   cancelled,  leaving  a total of 16,001,029 lp ordinary  shares.  A  further
   4,660,652  1p  ordinary shares were issued on admission to the  Alternative
   Investment Market.

5. The  basic and  diluted loss  per ordinary share has been calculated on the
   basis of the loss for the financial year of £154,529 and a weighted average
   number of ordinary shares of 30,745,468 (basic) and 31,540,019 (diluted).

6. All of the company's operations are classed as continuing.

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

8. The  Annual  General Meeting will be held at 12.00 p.m. on 26 May  2000  at
   the offices of Peel Hunt plc, 62 Threadneedle Street, London EC2R 8HP.

9. The  Report  and  Accounts will be sent to shareholders on,  or  before  20
   April  2000.  Further copies may be obtained on application to the  Company
   at  the  Registered Office (Pacific House, Imperial Way, Reading, Berkshire
   RG2 OTD).