FIDELITY SYSTEMS PLC INTERIM RESULTS FOR THE SIX MONTHS TO 31ST AUGUST 2011 I am pleased to be able to report further growth resulting in a significant increase in profit during the first half of the financial year to 31st August 2011. BRIEF FINANCIAL RESULTS Pre-tax profits increased to GBP 249,976 from the previous periods GBP 178,033, an increase of 40.41%. Gross profit margins rose to 69.5% compared to 64.5% for the previous period, an increase of 7.75%. Turnover was GBP 948,884, compared to the previous year's GBP 964,365 Earnings per share have increased to 0.83p from last year's 0.59p OPERATING REVIEW Demand for Fidelity's products remains healthy and the first half of our financial year has seen many diverse new customers added to our existing user base. These have been a mix of both education, leisure and commercial sector clients. By tradition the summer has always been our busy time for University installations and this year has been no exception. We now supply and support a total of eighty Universities and colleges in the UK and continue to work with them, supplying both new equipment and upgrading existing hardware and software. We have had two large UK installations in the holiday park sector plus a third in the visitor attraction sector in the R.O.I. In addition we have also taken an order for a large corporate catering system at the headquarters of a national bank in the North of England. Development work on the RFID health and safety product is now completed and already two installations have taken place together with two further pilot sites with clients evaluating the system. I look forward to reporting more on the RFID project in the near future. OUTLOOK Fidelity will as always, strive to increase our market penetration in all areas, improve our existing products and develop cutting edge new ones. Paul Lowsley Chairman 21st September 2011 OPERATING PROFIT & NET PROFIT Half Year Half Year 31.08.11 31.08.10 unaudited unaudited GBP GBP Turnover 948,884 964,365 Cost of Sales 289,053 342,736 Gross Profit (69.5%) 659,831 (64.5%) 621,629 Administration Expenses 415,594 448,684 Operating Profit / Loss 244,237 172,945 Interest Receivable 5,739 5,088 Profit / Loss on ordinary activities 249,976 178,033 Earnings per share 0.83 0.59 The interim accounts and comparative figures have been prepared on a basis of accounting policies consistent with those used in the Group's audited accounts for the year ended 28th February 2011. The financial results have not been audited but have been reviewed by the auditors