Interim Results

Highway Capital PLC
26 November 2004


                              HIGHWAY CAPITAL PLC

INTERIM REPORT 2004

Chairman's Statement

The results for the six months ended 31 August 2004 show a loss before tax of
£26,102 (2003: £43,948 loss).

At this time we do not consider it appropriate to declare a dividend.

In the last annual statement, I informed shareholders that we believed that
market optimism has continued to grow and this had been reflected in the number
of approaches made to the company to use it as a vehicle for a reverse takeover.

I also reported that the board believed that the shell could be suitable as a
consolidation vehicle and had sought to identify possible target companies in
appropriate sectors.

Meetings have been held with a number of parties and discussions continue as
your board continues to seek opportunities to maximize the value of the company.
I will report to you as soon as there are definite developments.

Dominic Wheatley
Chairman

26 November 2004


Profit and Loss Account        Notes    6 months ended   6 months ended
                                        31 August 2004   31 August 2003
                                           (unaudited)      (unaudited)
                                                 £'000            £'000

Turnover                                            -               20
Administration expenses                           (38)             (74)
                                                 -----            -----
Operating loss                                    (38)             (54)
Income from fixed asset
 investments                                        -                -
Interest receivable                                12               11
                                                 -----            -----
Loss on ordinary activities
before taxation                                   (26)             (43)
Tax on loss on ordinary
 activities                                         -                -
                                                 -----            -----
Loss for the financial period                     (26)             (43)
Dividends                                           -                -
                                                 -----            -----
Retained loss for the
 financial period                                 (26)             (43)
                                                 =====            =====
Loss per share                     2            (0.33)p          (0.54)p
                                                 =====            =====
Dividends per share                3                -                -
                                                 =====            =====


Balance Sheet                           31 August 2004   31 August 2003
                                           (unaudited)      (unaudited)
                                                 £'000            £'000

Fixed assets
Investments                                         -                -
                                                 -----            -----
                                                    -                -
Current assets
Debtors                                             8               11
Cash at bank and in hand                          666              733
                                                 -----            -----
                                                  674              744
Creditors: amounts falling due within
 one year                                         (18)             (28)
                                                 -----            -----
Net current assets                                656              716
                                                 -----            -----
Net assets                                        656              716
                                                 =====            =====
Capital and reserves
Share capital                                     159              159
Share premium                                     295              295
Profit and loss account                           202              262
                                                 -----            -----
Total equity shareholders' funds                  656              716
                                                 =====            =====


Cash Flow Statement                    6 months ended    6 months ended
                                       31 August 2004    31 August 2003
                                          (unaudited)       (unaudited)
                                       £'000    £'000    £'000    £'000

Net cash outflow from operating
 activities                                      (51)              (50)
Returns on investments and servicing
 of finance
Dividends received                        -                 -
Interest received                        12                11
                                       -----             -----
                                                  12                11
Equity dividends paid                              -                 -
                                                -----             -----
Decrease in cash                                 (39)              (39)
                                                =====             =====


Notes to the Interim Statement

1.  Basis of preparation of the interim statement

    The profit and loss account, balance sheet and cash flow statement have been
    prepared on a basis consistent with the financial statements for the year
    ended 29 February 2004. A copy of the full financial statements for the year
    ended 29 February 2004, on which the auditors have issued an unqualified
    report, has been delivered to the Registrar of Companies. The financial
    information contained in the interim statement does not constitute statutory
    accounts within the meaning of section 240 of the Companies Act 1985. There
    are no acquired or discontinued operations in the above two financial
    periods.

2.  Loss per share

    The loss per ordinary share calculation has been based on the losses
    attributable to ordinary shareholders of £26,000 (2003: £43,000), divided by
    7,945,638 (2003: 7,945,638) being the average of the issued share capital
    during the period.

    There is no difference between basic and diluted loss per share.

3.  2004 interim dividend

    No interim dividend has been declared.

4.  Publication

    Copies of this statement will be circulated to all shareholders and will 
    also be available from the company's registered office at 2 Fitzhardinge
    Street, London W1H 6EE.



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