Vimio PLC

Half-yearly Report


                   Vimio Plc ("the Group" or "the Company")                    

                           Unaudited Interim Results                           

                     For the six months ended 30 June 2007                     

CHAIRMAN'S STATEMENT

I am pleased to present the unaudited interim results of the Group for the six
months ended 30 June 2007.

Turnover for the period was €1,434,240 (2006: € 942,964). Gross profits were €
1,431,840 (2006: €932,642) resulting in a loss before tax of €300,619 (2006: €
1,122,312). The loss per share for the period was 1.16 cents (2006: 4.38
cents).

The loss for the year has been reduced due to the increase in turnover combined
with a corresponding reduction in overheads. Earlier this year the board
undertook a strategic review of all operations and has implemented a number of
cost-saving exercises which have resulted in a reduction of monthly overheads.
The cost savings are continuing in the second half of the year. The Group also
incurred significant expenses in the first half of the year, fitting out a data
centre in the Middle East. The data centre has been completed and will
contribute to recurring revenues in the second half of the year.

At 30 June 2007, bank balances amounted to €130,081 (2006: €1,929,547) with a
debtor balance of €1,824,771 (2006: €1,137,614). The board is managing the
Group's debtors and cash flow on an ongoing basis and is confident that the
Group's cash position will improve in the second half of the year.

During the period we signed and implemented a number of contracts in the Middle
East, Russia, Ukraine and the Caribbean. Live TV subscription services have
been launched on Wataniya's network in Kuwait and in the Caribbean through the
Digicel Network. We are currently implementing our systems in Russia and
Ukraine and expect to launch commercially before the year-end.

The board is pleased with the Group's performance in the first half of the
year. We have a strong sales pipeline, however our experience has shown that
there can be a significant lapse of time between contract initiation and
commercial launch. We are confident that the current pipeline will mature into
further sales for the Group in the latter part of this year and in 2008.

Over the past two years the Group has invested heavily in research and
development, and our products are now available on over 250 mobile handset
models worldwide. This milestone has resulted in wider deployment opportunities
and the board is satisfied that this will result in further commercial
opportunities.

David McKenna

Chairman

26 September 2007

ENQUIRIES:

Vimio plc                                                                  
                                                                           
Padraic Marren, VP Business Development    Tel: +353 1 865 2400 / + 353 87 6980943                         
                                                                           
John East and Partners                                                     
                                                                           
Jeffrey Coburn                             Tel: +44 207 6282200            

Consolidated Income Statement

For the six months ended 30 June 2007

                                         Six months    Six months    Year ended
                                      ended 30 June                            
                                                    ended 30 June   31 December
                                               2007                            
                                                             2006          2006
                                        (Unaudited)                            
                                                      (Unaudited)     (Audited)
                                                  €                            
                                                                €             €
                                                                               
Revenue                                   1,434,240       942,964     1,375,972
                                                                               
Cost of sales                               (2,400)      (10,322)      (12,632)
                                                                               
Gross profit                              1,431,840       932,642     1,363,340
                                                                               
Research and development costs            (673,294)     (635,121)   (1,259,153)
                                                                               
Administration costs                    (1,058,798)   (1,478,279)   (3,020,372)
                                                                               
Operating loss                            (300,252)   (1,180,758)   (2,916,185)
                                                                               
Interest receivable                           2,454        58,630        83,685
                                                                               
Interest payable and similar charges        (2,821)         (184)         (219)
                                                                               
Loss on ordinary activities before        (300,619)   (1,122,312)   (2,832,719)
taxation                                                                       
                                                                               
Taxation on ordinary activities                   -       (5,687)       (9,047)
                                                                               
Loss on ordinary activities after         (300,619)   (1,127,999)   (2,841,766)
taxation                                                                       
                                                                               
Basic loss per share                       (0.0116)      (0.0438)      (0.1098)

Consolidated Statement of Recognised income and expense and statement of
changes in equity for the six months ended 30 June 2007

                                         Six months    Six months    Year ended
                                      ended 30 June                            
                                                    ended 30 June   31 December
                                               2007                        2006
                                                             2006              
                                        (Unaudited)                   (Audited)
                                                      (Unaudited)              
                                                  €                           €
                                                                €              
                                                                               
Loss retained for the period              (300,619)   (1,127,999)   (2,841,766)
                                                                               
Exchange differences on translation         (3,234)           766         1,744
of foreign operations                                                          
                                                                               
Total recognised gains and losses for     (303,853)   (1,127,233)   (2,840,022)
the financial period                                                           
                                                                               

Consolidated Balance Sheet

As at 30 June 2007

                                              30 June     30 June  31 December            
                                                                          2006            
                                                  2007        2006                         
                                                                     (Audited)            
                                           (Unaudited) (Unaudited)                         
                                                                             €            
                                                     €           €                         
                                                                              
Assets                                                                        
                                                                              
Non current assets                                                            
                                                                              
Property, plant and equipment                 102,599      125,094     104,510
                                                                              
Financial assets                            1,448,016            -   1,448,016
                                                                              
Total non-current assets                    1,550,615      125,094   1,552,526
                                                                              
Current assets                                                                
                                                                              
Trade and other receivables                 2,011,123    2,840,271   2,264,629
                                                                              
Cash and cash equivalents                     135,123    1,929,547     630,480
                                                                              
Total non-current assets                    2,146,246    4,769,818   2,895,109
                                                                              
TOTAL ASSETS                                3,696,861    4,894,912   4,447,635
                                                                              
EQUITY                                                                        
                                                                              
Called up share capital                     1,300,007    1,300,007   1,300,007
                                                                              
Share premium                               8,164,976    8,164,976   8,164,976
                                                                              
Other reserve                                 460,292      460,292     460,292
                                                                              
Retained losses                           (7,674,202)  (5,657,560) (7,370,349)
                                                                              
Total equity                                2,251,073    4,267,715   2,554,926
                                                                              
LIABILITIES                                                                   
                                                                              
Current liabilities                                                           
                                                                              
Trade and other payables                      924,927      610,562   1,876,669
                                                                              
Current tax liabilities                        15,819       16,635      16,040
                                                                              
Interest bearing loans and borrowings         505,042            -           -
                                                                              
Total current liabilities                   1,445,788      627,197   1,892,709
                                                                              
TOTAL EQUITY AND LIABILITIES                3,696,861    4,894,912   4,447,635



Consolidated Cash Flow Statement

For the six months ended 30 June 2007

                                           Six months  Six months  Year ended 
                                            ended 30     ended 30 31 December 
                                            June 2007   June 2006        2006 
                                                                              
                                          (Unaudited) (Unaudited)   (Audited) 
                                                                              
                                                    €           €           € 
                                                                              
Cash flows form operating activities                                          
                                                                              
Operating loss                              (300,252) (1,180,758)  (2,916,185)
                                                                              
Depreciation                                   30,759      29,861       62,979
                                                                              
Exchange movement                             (3,234)         766        (961)
                                                                              
Movement in working capital                 (698,236)   (764,398)    (459,887)
                                                                              
                                            (970,963) (1,914,529)  (3,314,054)
                                                                              
Interest received                               2,454      58,630       83,685
                                                                              
Interest paid                                 (2,821)       (184)        (219)
                                                                              
Income tax paid                                 (221)     (1,163)      (5,118)
                                                                              
Net cash outflow from operating             (971,551) (1,857,246)  (3,235,706)
activities                                                                    
                                                                              
Investing activities                         (28,848)    (17,086)     (27,635)
                                                                              
Purchase of property, plant and equipment           - (1,442,585)  (1,448,016)
                                                                              
Investment in financial asset                                                 
                                                                              
Net cash outflow from investing              (28,848) (1,460,391)  (1,475,651)
activities                                                                    
                                                                              
Financing activities                                                          
                                                                              
Issue of shares                                     -   1,448,016    1,448,016
                                                                              
Loans advanced to directors                         -    (94,653)     (95,000)
                                                                              
Loans repaid by directors                           -           -       95,000
                                                                              
Advance of third party loan notes             500,000           -            -
                                                                              
Net cash inflow from financing activities     500,000   1,353,363    1,448,016
                                                                              
Net decrease in cash and cash equivalent    (500,399) (1,964,274)  (3,263,341)
                                                                              
Cash and cash equivalent at beginning of      630,480   3,893,821    3,893,821
period                                                                        
                                                                              
Cash and cash equivalent at end of period     130,081   1,929,547      630,480



Notes to the Financial Information

1. Basis of financial information - going concern

The financial information has been prepared on a going concern basis which
assumes that the group will continue to trade for the foreseeable future.
During the period the group incurred losses after taxation of €300,619 and at
the balance sheet date the profit and loss account deficit was €7,674,202.

Additionally, in the two months ended 31 August 2007 the group incurred losses.

The nature and stage of the group's business is such that there can be
considerable unpredictable variations in the timing of cash inflows. During the
period the group has reduced its workforce in Sweden and has carried out a
review of all of its overheads to enable further cost savings to be made.
Additionally the group secured additional unsecured loans during the period.

The directors have prepared projected cash flow information, which incorporates
their best estimate of the timing and value of sales revenue and consequential
external funding requirements. On the basis of these forecasts the directors
expect the group to continue to meet its liabilities as they fall due. On this
basis the directors continue to adopt the going concern basis in preparing
their financial information. This assumes the required levels of sales revenue
and forecast external funding are achieved by the group. The financial
information do not include any adjustments that would result should the group
not generate forecast sales revenue or raise additional finance.

2. Tax on ordinary activities

                                        Six months   Six months Year ended 31
                                          ended 30     ended 30 December 2005
                                              June         June              
                                                                    (Audited)
                                              2007         2006              
                                                                            €
                                       (Unaudited)  (Unaudited)              
                                                                             
                                                 €            €              
                                                                             
Current taxation                                                             
                                                                             
Ireland                                          -        5,458           529
                                                                             
Overseas taxation                                -          229         8,518
                                                                             
                                                 -        5,687         9,047

3. Dividends

There being no distributable reserves, no interim dividend can be paid for the
six months to 30 June 2007.

4. Loss per share

The calculation of the loss per share is based on the loss attributable to the
ordinary equity shareholders divided by the weighted average of 26,000,140 (31
December 2006: 25,879,592) ordinary shares of €0.05 each in issue.

5. Interim report

This unaudited interim financial information was approved by the Board of
Directors on 25 September 2007.

6. Copies of the interim financial statements

Copies of the interim financial statements are available on request from the
Company's registered office at Block F2, Eastpoint Business Park, Fairview,
Dublin 3, Ireland.