Interim Results

Highway Capital PLC
28 November 2006


                              HIGHWAY CAPITAL PLC

INTERIM REPORT 2006

Chairman's Statement

The results for the six months ended 31 August 2006 showed a loss before tax of
£29,000 (2005: £27,000 loss).

No dividend has been declared.

In our statement issued on 11 August 2006 shareholders were informed that three
directors had resigned and Mr Aron Freedman had joined the Board as a
non-executive director. Target companies have continued to be identified and
evaluated as your Board seeks opportunity to maximize shareholder value. The
Board will report to you as soon as there are positive developments.

A H Drummon
Chairman

28 November 2006



Income Statement              Notes  6 months ended      6 months ended
                                     31 August 2006      31 August 2005
                                        (unaudited)         (unaudited)
                                              £'000               £'000

Revenue                                          -                   -
Administration expenses                        (39)                (39)
                                             -----               -----
Operating loss                                 (39)                (39)
Finance income                                  10                  12
                                             -----               -----
Loss before taxation                           (29)                (27)
Tax on loss                                      -                   -
                                             -----               -----
Loss attributable to equity
shareholders                                   (29)                (27)
                                             =====               =====

Loss per share                   2           (0.36)p             (0.34)p
                                             =====               =====
Dividends per share              3               -                   -
                                             =====               =====


Reconciliation of Equity Shareholders' Funds                     £'000

Loss attributable to equity shareholders                           (29)
Dividends                                                            -
                                                                 -----
Net decrease in shareholders' funds                                (29)
Shareholders' funds at 1 March 2006                                568
                                                                 -----
Shareholders' funds at 31 August 2006                              539
                                                                 =====



Balance Sheet                           31 August 2006  31 August 2005
                                           (unaudited)     (unaudited)
                                                 £'000           £'000

Fixed assets
Investments                                          -               -
                                                 -----           -----
                                                     -               -
Current assets
Debtors                                             11               8
Cash at bank and in hand                           554             629
                                                 -----           -----
                                                   565             637
Creditors: amounts falling due within
one year                                           (26)            (39)
                                                 -----           -----
Net current assets                                 539             598
                                                 -----           -----
Net assets                                         539             598
                                                 =====           =====
Capital and reserves
Share capital                                      159             159
Share premium                                      295             295
Profit and loss account                             85             144
                                                 -----           -----
Total equity shareholders' funds                   539             598
                                                 =====           =====


Cash Flow Statement                   6 months ended    6 months ended
                                      31 August 2006    31 August 2005
                                        (unaudited)       (unaudited)
                                      £'000    £'000    £'000    £'000

Net cash outflow from operating
activities                                       (47)              (29)
Returns on investments and servicing
of finance
Dividends received                        -                 -
Interest received                        10                12
                                      -----             -----
                                                  10                12
Equity dividends paid                              -                 -
                                               -----             -----
Decrease in cash                                 (37)              (17)
                                               =====             =====


Notes to the Interim Statement

1.  Basis of preparation of the interim statement

    The income statement, reconciliation of equity shareholders' funds, balance
    sheet and cash flow statement have been prepared on a basis consistent with
    the financial statements for the year ended 28 February 2006. A copy of the
    full financial statements for the year ended 28 February 2006, 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.

    Highway Capital plc is a stand-alone company and does not prepare
    consolidated accounts. It has therefore continued to prepare its accounts in
    accordance with UK rather than international accounting standards, as
    permitted under EC Regulation 1606/2002.

2.  Loss per share

    The loss per ordinary share calculation has been based on the losses
    attributable to ordinary shareholders of £29,000 (2005: £27,000), divided by
    7,945,638 (2005: 7,945,638) being the average of the issued share capital
    during the period.

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

3.  2006 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 73 Wimpole Street,
    London W1G 8AZ.



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