Interim Results

Image Scan Holdings PLC
28 June 2002


For Immediate Release                                               28 June 2002




                            IMAGE SCAN HOLDINGS plc
                        ('Image Scan' or the 'Company')

             MAIDEN RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2002

Image Scan, a leading provider of multi-view, 3D X-ray imaging for the security
and industrial inspection markets, announces its maiden interim results for the
six months ended 31 March 2002.  These results follow the Company's successful
flotation on the Alternative Investment Market on 25 April 2002.

Key Points:

  • Two significant agreements signed since flotation for the ongoing
    commercial development of the VIXionTM system

  • Order book increased to circa £750,000


                                                           6 months to              Year to
                                                              31 March         30 September
                                                                  2002                 2001
                                                           (Unaudited)            (Audited)
                                                                 £'000                £'000

•  Sales on continuing operations:                                  47                   62

•  Loss on ordinary activities before                             (408)                (524)
   taxation:

•  Loss per share:  Basic                                       (2.91p)              (4.36p)

                    Diluted                                     (2.89p)              (4.37p)


Commenting on the results Chairman, Nigel Tipple, said:

'Events have significantly changed the security sector and the public's
perception of the need for security products with a greater acceptance by
everyone that increased security will be part of our lives for the foreseeable
future.

Following the successful public listing on 25 April 2002, progress in the
commercial development of the Group continues to expand with some noteworthy
activities in the core business of our operations. The Board remains optimistic
about progress for the remainder of the current year.'

For further information please contact:
Nigel Tipple, Chairman/Nick Fox, Chief Executive
Image Scan Holdings plc                                  01664 503600

Richard Darby/Suzanne Dunne
Buchanan Communications                                  020 7466 5000



                              Chairman's Statement

Introduction

It gives me pleasure to present the interim results of Image Scan Holdings plc
for the six months ended 31 March 2002.  This is my first communication with
shareholders since the Company's ordinary shares were admitted to the
Alternative Investment Market (AiM) of the London Stock Exchange on 25 April
2002.  I am pleased to record that the commercial development of the Company
continues, with some notable advances in our core business, which are discussed
below.

Financial Results

Sales of £47,000 on continuing operations for the period to 31 March 2001 were
in line with expectations.  The reduced gross profit for the period of 14.9%
(85% for the year ended 30 September 2001) reflects the investment involved in
developing two new prototypes.  Recurring overheads - excluding research and
development (R&D) costs - were £298,000 (£490,000 for the previous financial
year); these reflect the Board's policy of increasing infrastructure and
manpower resources spending in accordance with the Business Plan.

Interest payable of £37,000 (£95,000 for the previous financial year) was made
up of the servicing costs of a £517,000 loan, now repaid, and continuing bank
loans of £147,000.

The loss per share for the period on continuing activities - on a fully diluted
basis - was 2.89 pence, compared to the last full year's loss of 4.37 pence per
share.  During the period under review, 1,818,182 new shares were issued at 55
pence per share, and 80,856 at 60 pence per share, raising in aggregate £982,000
net of expenses.

Accounting Policy

All R&D costs have previously been capitalised on a 'by project' basis.  The
Board, having now reviewed this policy, considers it appropriate to expense all
costs associated with R&D programmes as they are incurred, unless these costs
can be expected to lead to commercial revenue within the short term.
Accordingly, certain previously capitalised medical R&D costs amounting to
£68,000 have been written off during the period under review, and have been
included in the figure of £385,000 for administration expenses.

All patent costs have been retained as capital investment, and the sum of
£203,000 will be amortised, at a rate to be determined, when commercial income
is being generated from the sale of the technology involved (other than for
demonstration or evaluation purposes only).

Industry Background

The events of 11 September 2001 have significantly changed the public's
perception of the priority which should be accorded to products which have the
potential to improve security.  Capital equipment purchases related to security
control and monitoring have hitherto been regarded as 'grudge' purchases, but
are now being perceived in a more positive light, namely as contributors to
personal safety, and are being marketed as such to end consumers, including the
travelling public.

Security Applications

Our subsidiary, Baggage Scan Ltd has seen a marked increase in interest for its
products, with significant orders having been received for AXIS-3D(R) baggage
inspection systems from the British government, and for the supply of OEM X-ray
camera systems for use in existing suppliers' equipment.  During the period
under review, orders were also received for the development of two new products:

C-Safe - a portable scanner for high resolution, in situ screening of abandoned
baggage

X-Check - a device for auditing the date and time that specific freight or
luggage items were X-ray scanned

Industrial Applications

Significant progress has been made in the industrial inspection arena as a
result of long-term initiatives which were a particular focus of management
attention during the period under review.  This progress is more specifically
described below, under 'Post Balance Sheet Events'.

Post Balance Sheet Events

The Company has announced two significant agreements since the end of the period
under review, which serve to validate the Company's technology, and its approach
to commercial markets:

- An agreement was signed with Bespak to produce a novel, multiple view X-ray
imaging  system to inspect a range of that customer's drug delivery and drug
dispensing products, with the purpose of enabling Bespak to identify potential
manufacturing and/or assembly faults

- The Company received in April 2002 a contract, valued at £198,000, to
investigate extending performance of its VIXIONTM industrial inspection system,
and to develop specific paradigms which would enable customers to design X-ray '
inspectability ' into their products

Pursuant to a Placing & Open Offer, the Company issued 1,150,000 new shares in
April at 65 pence per share, to raise £611,000 after expenses.  In consequence,
there are now 16,250,203 shares in issue.

Human Resources

I am pleased to confirm the appointment of Ray Gibbs, FCA, as Finance Director
immediately following the completion of the Placing & Open Offer and admission
to AiM on 25 April 2002.  Two new technical staff and a Financial Controller
have been recruited since the end of the period under review, in accordance with
the Company's Business Plan.

Current Trading

The Company continues to pursue commercial opportunities identified in the
security and industrial inspection sectors.  The present order book has risen,
in line with the directors' expectations, to £750,000, reflecting the
significant order described above for VIXIONTM, together with a general increase
in customer activity.  Delivery of orders received is scheduled to be spread
over the remainder of this year and next year, leading me to view the prospects
for the balance of the current financial period with cautious optimism.

Conclusion

Technology innovation, and the extension of the Company's intellectual property
portfolio, remain at the heart of our activity.  The focus for the immediate
future will be the promotion of additional, long-term commercial relationships
with established, value-added distributors and customers, along the lines of the
recently announced agreement with Bespak.  I look forward to reporting further
progress in my Statement, which will accompany the full year figures to 30
September 2002.

Nigel J. Tipple, Chairman

28 June 2002



Image Scan Holdings plc

Unaudited Consolidated Profit & Loss Account

                                                                               6 months to                  Year to
                                                                             31 March 2002             30 Sept 2001
                                                                               (Unaudited)                (Audited)
                                                                                     £'000                    £'000
    Turnover                                                                            47                       62
    Cost of sales                                                                     (40)                      (9)

    Gross profit                                                                         7                       53

    Administration expenses                                                          (385)                    (490)

    Operating loss                                                                   (378)                    (437)

    Interest received                                                          7                        8          

    Interest payable                                                        (37)      (30)           (95)      (87)

    Loss on ordinary activities before taxation                                      (408)                    (524)

    Taxation                                                                             -                        -

    Loss on ordinary activities after taxation                                       (408)                    (524)

    Dividends                                                                            -                        -

    Loss per share:      Basic                                                     (2.91)p                  (4.36)p
                         Fully diluted                                             (2.89)p                  (4.37)p

Image Scan Holdings plc
Unaudited Consolidated Balance Sheet
                                                                                                       
                                                                                31 March   30 September
                                                                                    2002           2001
                                                                             (Unaudited)      (Audited)
                                                                                   £'000          £'000
                  Fixed assets                                                                         
                  Tangible assets                                                    105            104
                  Intangible assets                                                  203            265
                                                                                     308            369
                  Current assets                                                                       
                  Work in progress                                                    62              5
                  Debtors                                                             38             29
                  Cash at bank and in hand                                           671            436
                                                                                     771            470

                  Creditors: amounts falling due within one year                   (371)          (687)

                  Net current assets / (liabilities)                                 400          (217)

                  Total assets less current liabilities                              708            152

                  Creditors: amounts falling due after more than one year          (110)          (128)

                  Net assets                                                         598             24

                  Capital and reserves                                                                 
                  Called up share capital                                            151            132
                  Share premium account                                            2,255          1,292
                  Capital reserve                                                   (51)           (51)
                  Profit and loss account                                       ( 1,757)        (1,349)

                  Equity shareholders' funds                                         598             24


Image Scan Holdings plc                         
Unaudited Consolidated Cash Flow statement
       

                                                                                                        
                                                                         6 months to             Year to
                                                                       31 March 2002   30 September 2001
                                                                         (Unaudited)           (Audited)
                                                                Note           £'000               £'000

                Net cash outflow from operating activities       (a)           (632)               (457)

                Returns on investments and service                                                      
                Interest received                                                  7                   8
                Interest paid                                                   (37)                (95)
                                                                                (30)                (87)
                Capital expenditure and financial investment                                            
                Purchase of tangible fixed assets                               (24)               (101)
                Purchase of intangible fixed assets                              (6)                  48
                                                                                (30)                (53)

                Net cash flow before management of liquid                                               
                resources and financing                                        (692)               (597)

                Financing                                                                               
                Issue of ordinary share capital                                  982                 996
                Increase in debt - secured loan                                    -                  97
                                                                                 982               1,093

                Increase in cash in the period                   (b)             290                 496


Note (a) Reconciliation of operating loss to operating cash flows
               

                                                                                                     
                              Operating loss                                   (378)               (437)
                              Depreciation                                        23                  42
                              Development costs written off                       68                   -
                              (Increase) / decrease in work in progress         (57)                  28
                              (Increase) / decrease in debtors                   (9)                  29
                              (Decrease) / increase in creditors               (279)               (119)
                              Net cash outflow from operating activities       (632)               (457)

Note (b)   Analysis of net debt                                                   
                                                                             2001   Cash flow    2002
                                                                            £'000       £'000   £'000

                              Cash at bank and in hand                        436         235     671
                              Bank overdraft                                 (37)          37       -
                              Debt due within one year                       (37)           -    (37)
                              Debt due after one year                       (128)          18   (110)
                                                                              234         290     524

Reconciliation of movement in shareholders' funds
                          
                                                                                            
                                                                 6 months to       Year to 30
                                                               31 March 2002   September 2001
                                                                 (Unaudited)        (Audited)
                                                                       £'000            £'000

Opening shareholders' funds                                               24            (448)
Issue of shares - at par                                                  19               21
Issue of shares - share premium                                          963              975
Loss attributable to members                                           (408)            (524)
                                                                         598               24



Image Scan Holdings plc
Notes to the Unaudited Interim Statement

1   Basis of preparation

(a) The interim statement has been prepared in accordance with the accounting
policies set out in the Company's Annual Report and Accounts for the year ended
30 September 2001 with the exception of development costs which are now written
off as incurred.

(b) The interim statement is neither audited nor reviewed. The figures for the
year ended 30 September 2001 do not comprise statutory accounts for the purpose
of section 240 of the Companies Act 1985 and have been extracted from the
Company's full accounts for that year, which received an unqualified Auditors'
Report and did not contain a statement under section 237(2) or (3) of the
Companies Act 1985. The accounts have been filed with the Registrar of
Companies.

(c) Basic loss per ordinary share is based on the loss on ordinary activities
after taxation of £408,000 and on 14,020,358 ordinary shares being the weighted
average of those in issue during the period.

The fully diluted loss per ordinary share is based on the loss on ordinary
activities after taxation of £408,000 and on 14,098,994 ordinary shares. The
number of shares is based upon the weighted average number of shares in issue
during the period together with 78,636 shares deemed to have been issued at nil
consideration pursuant to the options outstanding.




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