Interim Results

Farsight PLC
26 February 2004

                                FARSIGHT PLC

                  INTERIM RESULTS FOR THE SIX MONTHS TO
                             30 NOVEMBER 2003


A period of continued reorganisation of business in terms of costs accompanied
by a consistent, month by month increase in remote video monitoring revenue.



Highlights

•    Operating loss before goodwill reduced to £331,000 (2002: loss £831,000)

•    Major contract utilising new e-surveillance software secured with Johnson 
     Workplace Management

•    New loan facility established




Enquiries:

Chris Thomas, Chief Executive, Tel: [phone]




Farsight plc

Chairman's Statement

Introduction
I am pleased to present my report for the six months ended 30 November 2003, a
period that has seen the continued re-organisation of the business in terms of a
reduction in costs and a consistent, month by month increase in remote video
monitoring (rvm) revenue.

In the annual report for the year ended 31 May 2003, we affirmed that the Group
is well placed to take advantage of the market opportunities created by customer
security networks increasingly utilising internet protocol (IP) technology. I
can confirm that the first stage of the contract with Johnson Workplace
Management has been commissioned following a three month planning and
mobilisation period. The directors estimate the potential value of this contract
to be a minimum of £250,000 over the next two years in terms of consultancy and
remote video monitoring.

Results and Dividends
The loss on ordinary activities before taxation was £501,000 (2002: loss of
£978,000) on turnover of £431,000 (2002: £597,000). The loss includes £76,000 of
exceptional costs incurred in the business re-organisation, specifically the
costs of closure of the old Ninth Floor PLC head office, Winchester House in
London. The loss also includes £144,000 of amortised goodwill (2002: £147,000).

We are not in a position to recommend a dividend. As at 30 November 2003 the
Group had bank borrowings of £98,000.

Trading Review
Sales revenues from rvm operations continue to grow. The value of our invoiced
sales in the second quarter exceeded that of the first quarter by 25%. New
client monitoring contracts are growing by between £15,000 and £35,000 per
month. This is as a result of the closer working relationships our sales team
has developed with a wider CCTV installer base across the U.K.

We have now demonstrated our ability to compete for and win a major new
consultancy and rvm contract with Johnson Workplace Management that utilises our
e-surveillance software. At the core of this suite of software is our capability
to provide the customer with a secure and confidential web based information
service providing access to live cameras and recordings of events and patrols.

This ensures complete transparency of the service provided, and delivers
management information on the quality of service provision.

Farsight has continued to invest heavily in e-surveillance. This release is
scheduled for April 2004 and it is anticipated will begin to generate a new
revenue stream for the business as we release for the first time a
shrink-wrapped off the shelf version to the markets later in 2004.

Research and development expenditure in the last six months totalled £70,000 and
over the last eighteen months our subsidiary E Surveillance Limited has incurred
£266,000 of development expenditure on the new 'e' surveillance software. All
this expenditure has been written off.

Overall, the new systems enable Farsight to deliver a significantly improved
service to our customers over previous generations of telephony based systems
and at the same time offer an unprecedented level of information and
transparency on the service and performance delivered by Farsight. The
capability to integrate with other systems pulls together the different
technologies employed in the overall security operation thereby significantly
improving the effectiveness of the operation and the availability of valuable
management information.

The technology deployed to deliver a reliable and dependable operational service
is the use of Microsoft. Net and SQL databases. Farsight is a Microsoft
certified partner, and we recognise the value and importance of this technical
relationship going forward. We have initiated discussions with companies in the
USA and France to establish new strategic channel partners both to distribute
e-surveillance and to continue its technical relevance. In particular, we are
developing technologies to allow streaming to hand held devices.

Costs
The cost base of Farsight continued to reduce during the period. The London
office at Winchester House was closed at the end of August 2003 following a
successful termination of our lease. In addition a number of old finance leases
came to an end during the period.

Funding
At the EGM held on 29 December 2003, all resolutions including those in relation
to the approval of a £750,000 conditional secured convertible loan facility were
approved by shareholders. As a result of this exercise, £750,000 is available to
the company the conditions for which the directors believe will be satisfied to
enable the company to repay its legacy debts and provide sufficient working
capital for the company's present requirements.

Conclusion
In essence I repeat what was stated last May - Farsight is well placed to take
advantage of the market opportunity as security networks increasingly utilise IP
technology. Having won a major contract based on our 'e' surveillance software,
the challenge is to repeat this success, and talks have commenced with a
multinational telecoms group.

Remote video monitoring sales grew by 25% in the last quarter to 30 November
2003 and continue with a strong order book for the remainder of this financial
year. Costs continue to be cut back, and with a conditional secured loan
facility of up to £750,000 in place, the Board anticipates that in 2004 the
group will see a positive cash flow from its operations, and a continued
improvement in trading performance. This will enable the Board to actively
pursue growth opportunities.


A T G Wix, Chairman

25 February 2004



Consolidated Profit and Loss Account
for the six months ended 30th November 2003
                                                            Unaudited        Unaudited         Audited
                                                           six months       six months         year to
                                                            to 30 Nov        to 30 Nov       to 31 May
                                                                 2003             2002            2003
                                                               £000's           £000's          £000's
Turnover
Continuing operations                                             431              277             669
Discontinued operations                                             -              320             358
                                                                  431              597           1,027
Cost of sales                                                   (314)            (720)         (1,186)
Gross profit/(loss)                                               117            (123)           (159)

Net operating expenses                                          (516)            (659)         (1,366)
Exceptional net operating expenses                               (76)            (196)         (1,293)
Total net operating expenses                                    (592)            (855)         (2,659)

Operating loss before goodwill                                  (331)            (831)         (1,355)
Goodwill                                                        (144)            (147)         (1,463)
Operating loss after goodwill                                   (475)            (978)         (2,818)

Operating loss
Continuing operations                                           (475)            (856)         (1,795)
Discontinued operations                                             -            (122)         (1,023)
                                                                (475)            (978)         (2,818)
Profit on sale of discontinued operations                           -                -             400
Interest payable and similar charges                             (26)              (2)            (41)
Interest receivable                                                 -                2               3
Loss on ordinary activities before taxation                     (501)            (978)         (2,456)
Taxation                                                            -               50               -
Loss on ordinary activities after taxation                      (501)            (928)         (2,456)

Loss for the financial period                                   (501)            (928)         (2,456)
Loss per ordinary share                                      (0.002p)         (0.047p)        (0.997p)
Fully diluted loss per ordinary share                        (0.002p)         (0.047p)        (0.997p)



Consolidated Balance Sheet
for the six months ended 30th November 2003
                                                             Unaudited        Unaudited        Audited
                                                            six months       six months        year to
                                                             to 30 Nov        to 30 Nov         31 May
                                                                  2003             2002           2003
                                                                £000's           £000's         £000's
Fixed assets
Intangible assets                                                  741            2,200            885
Tangible assets                                                    365              536            408
                                                                 1,106            2,736          1,293
Current assets
Debtors                                                            279              317            248
Cash at bank and in hand                                             2              491             14
                                                                   281              808            262

Creditors: Amounts falling due within one year                   1,234            1,420          1,003

Net current assets liabilities                                   (953)            (612)          (741)

Total assets less current liabilities                              153            2,124            552
Creditors: Amounts falling due after one year                    (117)            (104)           (13)
Provisions for liabilities and charges                               -              (2)            (2)

Net assets                                                          36            2,018            537

Capital and reserves
Share capital                                                    7,452            7,402          7,452
Share premium account                                            4,493            4,496          4,493
Capital redemption reserve                                          20               20             20
Profit and loss account (deficit)                             (11,929)          (9,900)       (11,428)
Equity shareholders' funds                                          36            2,018            537




Notes to the Interim Report for the six months ended 30 November 2003

Basis of preparation
The interim accounts were approved by the Board of Directors on 25 February
2004, and are neither audited nor reviewed by the auditors. They do not
constitute statutory accounts, but have been prepared on the basis of the
accounting policies set out in the annual report and accounts for the year ended
31 May 2003. Information in respect of the year ended 31 May 2003 is derived
from the Group's statutory accounts for the year ended 31 May 2003 which have
been delivered to the Registrar of Companies.

Earnings/(loss) per ordinary share
The calculation of basic loss per share is based on a loss of £501,000 (November
2002: loss of £928,000; May 2003: loss of £2,456,000) and a weighted average
number of shares of 302,447,072; (November 2002: 197,477,072; May 2003:
246,422,277).


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