Interim Results

Billam PLC
15 July 2004



                              BILLAM PLC ('BLLM')
                                     (AIM)
      Interim Financial Information for the six months ended 30 June 2004

The Board of Billam Plc ('Billam' or 'the Company'), the investment company
specialising in technology for the future, announces its unaudited interim
results for the six months ended 30 June 2004.
The half-year has seen continued progress for each of the investee companies'
businesses and, of particular importance for Billam Plc, the flotation of EiRx
Therapeutics plc. This is further validation of your Company's strategy and
business model.

The value of our shareholding in Cybit Holdings plc has had a major impact on
our results: whilst operationally Cybit has performed well with sales up 60% and
showing an operating profit (an improvement of £1 million compared to 2002/3),
this has not been reflected in its share price. We believe Cybit's share price
has been affected by the well publicised troubles of other telematic service
providers, rather than Cybit's performance in the past year. As a fast growing
market leader we believe Cybit will be re-rated in due course.

Sirus Pharmaceuticals Limited was sold to Arakis Limited, a larger and better
funded business. Arakis identifies, researches and commercialises product
opportunities based on new clinical uses for known drugs or known drug
templates. We believe that becoming part of a larger, better resourced group
will result in reduced risks and increased chances for commercial success. Since
the acquisition, Arakis has made positive announcements about two of its drugs
in Phase II(a) trials.

Company
The key issue for Billam Plc shareholders is the change in the nature of the
portfolio, as the investee companies develop and an increasing proportion of the
portfolio is represented by quoted shares. At the end of this period 50% of the
value of the Company's total assets is represented by quoted shares (including
EiRx Therapeutics plc), whereas at the year end it was 33.5%.

There has been coverage of Billam Plc in the investment press and in two broker
notes, and in all cases there has been comment on the discount between net
assets per share and the share price. Your Board has been aware of this discount
for some time. The strategy to reduce the discount is a combination of
increasing the number and value of quoted companies in the portfolio, and better
communications with newsflow in the press and via the website.

In line with the statements made in the Annual Report and Accounts and following
the steps taken last year there has been a significant reduction in overheads of
the business without a detrimental effect on its operational efficiency.

Shareholders

Since the share consolidation in December 2003, the spread between bid and offer
prices has been much reduced.

More than 400 holders took up the free dealing service offered to small
shareholders in March.

It is the Board's intention to have a further consolidation of the shares and
reduce the number of shareholders for the reasons given previously. It will seek
the necessary approvals at an Extraordinary General Meeting, details of which
will be sent to shareholders.

Outlook
Portfolio: The plan for the portfolio, subject to stock market conditions and
company performance, includes one more flotation in 2004. The other portfolio
companies continue to expand and strengthen their trading performances with the
prospect of further flotations in 2005.

In view of the increasing maturity of the existing portfolio Billam Plc has
again been screening potential investment opportunities and several interesting
businesses have been identified as new investment candidates.

Corporately: Following the changes I referred to in my statement in the year end
accounts, further changes to the Company's structure are being considered to
assist with the development of the business. Details of these will be sent to
shareholders later in the year.

Victor Beamish
Chairman



Billam Plc

Consolidated statement of total return (unaudited)

                            ---------------           ---------------          -------------
                         Six months to 30 June     Six months to 30 June    Year to 31 December
                                2004                       2003                   2003
                        Capital Revenue   Total Capital Revenue  Total    Capital Revenue   Total
                         £000    £000    £000    £000    £000   £000       £000    £000    £000

Realised (losses)/gains
on investments           (326)      -    (326)    (29)      -    (29)       132       -     132

Net change in unrealised
investments             (1,681)     -   (1,681)  (497)      -   (497)     2,061       -   2,061

Income                      -      21      21       -      21     21          -     239     239
                         ------  ------  ------  ------  ------ ------     ------  ------  ------

Gross Return            (2,007)    21   (1,986)  (526)     21   (505)     2,193     239   2,432

Administrative expenses     -    (304)   (304)      -    (491)  (491)         -    (871)   (871)

Loss on sale of subsidiary  -       -       -       -       -      -       (116)      -    (116)

Interest payable            -      (2)     (2)      -       -      -          -      (6)     (6)
                         ------  ------  ------  ------  ------ ------     ------  ------  ------

Return before taxation  (2,007)  (285)  (2,292)  (526)   (470)  (996)     2,077    (638)  1,439

Provision for taxation     336      -      336      -       -      -       (339)    121    (218)
                         ------  ------  ------  ------  ------ ------     ------  ------  ------

Return after taxation   (1,671)  (285)  (1,956)  (526)   (470)  (996)     1,738    (517)  1,221
                         ------  ------  ------  ------  ------ ------     ------  ------  ------
                                   

Transfer to reserves    (1,671)  (285)  (1,956)  (526)   (470)  (996)     1,738    (517)  1,221
                         ------  ------  ------  ------  ------ ------     ------  ------  ------

Return per ordinary 
share (p) (4)            (10.3)  (1.8)   (12.1)  (4.0)   (4.0)  (8.0)      12.7    (3.8)    8.9
                         ------  ------  ------  ------  ------ ------     ------  ------  ------



Billam Plc

Consolidated balance sheet as at 30 June 2004

                                             30 June    30 June   31 December
                                                2004       2003          2003
                                               £'000      £'000         £'000

Fixed assets
Tangible assets                                    -         13             -
Investments                                    9,694      8,823        11,798
                                              --------   --------    ----------
                                               9,694      8,836        11,798
                                              --------   --------    ----------

Current assets
Debtors                                          196        199           137
Cash at bank and in hand                         165        207           158
                                              --------   --------    ----------
                                                 361        406           295

Creditors: amounts falling due within one year  (513)    (1,006)         (143)
                                              --------   --------    ----------

Net current (liabilities)/assets                (152)      (600)          152
                                              --------   --------    ----------

Total assets less current liabilities          9,542      8,236        11,950

Creditors: amounts falling due after more
than one year                                   (783)         -          (899)

Provisions for liabilities and charges             -       (118)         (336)
                                              --------   --------    ----------
                                               8,759      8,118        10,715

Minority interests                                 -       (110)            -
                                              --------   --------    ----------

Total net assets                               8,759      8,008        10,715
                                              ========   ========    ==========

Financed by:
Called up share capital                        1,775      1,525         1,775
Share premium account                          5,056      4,812         5,056
Capital reserve realised                      (1,198)    (1,082)         (886)

Capital reserve unrealised                     3,491      2,782         4,850
Merger reserve                                 1,736      1,736         1,736
Revenue account                               (2,101)    (1,765)       (1,816)
                                              --------   --------    ----------

Shareholders' funds                            8,759      8,008        10,715
                                              --------   --------    ----------



Total shareholders' funds are attributable to:

Equity interests - ordinary shareholders'
funds                                          8,601      7,850        10,557

Non equity interests                             158        158           158
                                              --------   --------    ----------

                                               8,759      8,008        10,715
                                              ========   ========    ==========

Net asset value pence per share (7)
Ordinary shares                                 53.2       66.1          65.3
Deferred shares                                  0.1        0.1           0.1






Consolidated Cash Flow Statement (unaudited)

                                      Six months      Six months      Year ended
                                      to 30 June      to 30 June     31 December
                                            2004            2003            2003
                                            £000            £000            £000

Net cash outflow from operating activities   (88)           (164)          (817)

Net cash outflow from returns on servicing
finance                                       (2)              -             (6)

Net cash outflow from investment            (356)           (566)        (1,044)

Net cash inflow from sale of investments     453             572            776

New cash inflow from financing                 -             353            846
Receipt of borrowings                          -               -            397
                                         --------       --------        --------

Increase in cash for the period                7             195            152
                                         ========       ========        ========

Notes:

1. Basis of preparation

The unaudited interim results have been prepared on the basis of the accounting
policies set out in the statutory accounts of the Company for the year ended 31
December 2003.


2. Comparatives

Comparatives are shown for the six months to 30 June 2003 and year to 31
December 2003.


3. Results for the year ended 31 December 2003

The results for the year ended 31 December 2003 are a non-statutory version of
the full report and accounts for that year, which have been filed with the
Registrar of Companies on which the auditors reported under Section 235 of the
Companies Act 1985. The report contained no qualifications, in respect of the
year ended 31 December 2003, or any statement under Section 237(2) or (3) of the
said Act.


4. Returns

Returns per Ordinary Share are based on the weighted average number of ordinary
shares in issue during the period 16,172,312 Ordinary and 157,950,000 deferred
shares in issue (year to 31 December 2003 13,624,235 Ordinary and 157,950,000
deferred shares/period to 30 June 2003 restated 11,736,700 Ordinary and
157,950,000 deferred shares).


5. Taxation

No tax provision was considered necessary on the unrealised gain.


6. Dividends

The Directors do not recommend the payment of an interim dividend.


7. Net asset value per share

Net asset value per Ordinary Share is based on the net assets attributable to
Ordinary shareholders at the period end and 16,172,312 Ordinary and 157,950,000
deferred shares in issue at the period end (at 31 December 2003: 16,172,312
Ordinary and 157,950,000 deferred shares/at 30 June 2003: restated 11,872,311
Ordinary and 157,950,000 deferred shares).

Copies of this announcement will be available for collection, free of charge,
from Billam's offices, 32 Clerkenwell Green, London EC1R 0DU for a period of one
month from the date of this announcement

                                    --ENDS--

Enquiries:

Billam Plc                                Tel: [phone]
Angus Forrest

Bishopsgate Communications Ltd            Tel: [phone]
Maxine Barnes / Dominic Barretto



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