Interim Results

FEEDBACK PLC                                  

          Interim Results for the six months ending 30 September 2003           

1 DECEMBER, 2003

CHAIRMAN'S STATEMENT -

The half-year to 30 September 2003 has been a very frustrating period for the
Group. As reported at the Annual General Meeting and in the trading statement
issued in October, business during the first half of the current year was below
expectations.

On a turnover of £4.22 million, a 17% reduction compared to the same period
during the last financial year, the loss on ordinary activities at the
half-year was £496,000.  The Board, in the light of the recent and anticipated
trading performance of Teknical, is of the opinion that there has been a
permanent diminution in the carrying value of Teknical and therefore an
impairment adjustment was made to write down the goodwill attributable to
Teknical by £306,000 resulting in a total loss before preference share
dividends at the half year of £802,000.

Once again, this is a reflection on the erratic nature of many of the markets
in which the Group operates. More potential business has been identified but
delays in negotiations, for various reasons, have meant that several large
contracts have not yet been closed.

Feedback Instruments was once again the victim of delays in securing large
contracts in overseas markets, notably the Middle East. It is anticipated that
a number of these negotiations will be concluded shortly and the company should
therefore be able to realise the benefits before the end of this financial
year. The emphasis on  mixed technology laboratories using hardware training
systems, integrated with intranet and internet based management software, is
gaining acceptance.  A number of new developments and re-engineering of some
established ranges is both improving margins and making the product range more
widely acceptable. This, together with restructuring within the sales
department and ongoing reviews in other areas, is already improving efficiency
and should result in an up turn in the company's fortunes.

Feedback Data together with its German subsidiary operated profitably during
the first-year and largely in line with its budget. The core products in the
data capture markets have maintained their position and sales, both direct and
through resellers, have been ahead of expectations. The re-emphasis on customer
care over recent years has continued to pay dividends and technical support has
become a very profitable area of the Company.

Feedback Incorporated broke even during the period. The first quarter was
particularly encouraging but diversion of funds away from the education sector
did have an adverse  effect during the second quarter. A large order book
carried forward, a pleasing prospect list and the appointment of a new sales
manager, all provide encouragement for the second half-year.

Teknical had a very disappointing half-year after the improved performance
during the previous financial year. Although the underlying technology is well
received and prospects exist, there has been a marked slow down in the UK
Further Education market and this trend has continued into the second half.

Subsequent to the year end Tom Charlton, a non executive director, has agreed
to make an unsecured loan to the company of $1million to help provide working
capital to support the fulfilment of large orders which it is anticipated will
be received shortly.

Overall the half-year performance of the Group has been very disappointing. 
The Board is currently undertaking a strategic review of the Group enabling it
to re-focus on core products and markets, which should improve efficiency and
ensure more success in the future.

The Board expects that losses in the second half of the financial year should
be much reduced.

The Board also announces today that it intends to apply to cancel the listing
of the Company's entire issued share capital from the Official List of the UK
Listing Authority (the 'Official List') and simultaneously apply for the same
to be admitted to trading on the Alternative Investment Market of the London
Stock Exchange ('AIM').

It is expected that the shares will de-list from the Official List and commence
trading on AIM on or about 31 December 2003.

In deciding to transfer to AIM, the Board has been particularly influenced by
the simplified ongoing administration and reporting requirements of that
market, with a consequential reduction in the costs associated with having its
shares listed on the Official List.

The move to AIM will not impact upon the conduct of the Company's business, its
corporate governance or its strategy.

Shareholders should be reassured that, so far as is known to the directors,
with the exception of shares held in a Personal Equity Plan or an Individual
Saving Account, the transfer to AIM will in no way affect their ability to hold
shares in Feedback and existing share certificates will remain valid.

As an AIM company, Feedback will continue to be subject to the regulatory and
disciplinary controls of the London Stock Exchange. 

Charles Stanley & Company Limited, the Company's existing financial adviser,
has agreed to act as nominated adviser and broker to the Company.

SUMMARISED PROFIT AND LOSS ACCOUNT                                                                                  
                                                                                                                    
                        Results prior to Impairment                      6 months to            6 months to  Year to
                                                                                                                    
                              impairment               adjustment       30 Sept 2003           30 Sept 2002 31 March
                                                                                                                2003
                                                                                                                    
                                  £'000s                   £'000s             £'000s                 £'000s   £'000s
                                                                                                                    
Turnover                         4,221.1 -                                   4,221.1                5,118.3 10,557.7
                                                                                                                    
Operating                        (475.0)                  (306.0)            (781.0)                 (83.3)    214.9
(loss) /                                                                                                            
profit                                                                                                              
                                                                                                                    
Net interest                      (21.4)                                      (21.4)                 (17.1)   (36.4)
(payable)                                                                                                           
                                                                                                                    
(Loss) /                         (496.4)                  (306.0)            (802.4)                (100.4)    178.5
profit on                                                                                                           
ordinary                                                                                                            
activities                                                                                                          
before                                                                                                              
taxation                                                                                                            
                                                                                                                    
Tax on (loss) -                          -                        -                  -                        (39.7)
/ profit on                                                                                                         
ordinary                                                                                                            
activities                                                                                                          
                                                                                                                    
(Loss) /                         (496.4)                  (306.0)            (802.4)                (100.4)    138.8
profit on                                                                                                           
ordinary                                                                                                            
activities                                                                                                          
after                                                                                                               
taxation                                                                                                            
                                                                                                                    
Preference                        (42.3) -                                    (42.3)                 (43.2)   (86.3)
dividends                                                                                                           
                                                                                                                    
Preference                         (6.0) -                                     (6.0) -                        (12.3)
share cost                                                                                                          
appropriation                                                                                                       
                                                                                                                    
Retained                         (544.7)                  (306.0)            (850.7)                (143.6)     40.2
(loss) /                                                                                                            
profit for                                                                                                          
the period                                                                                                          
                                                                                                                    
(Loss) /                                                                     (7.12)p                (1.20)p    0.34p
earnings per                                                                                                        
share                                                                                                               
                                                                                                                    
Diluted                                                                      (7.12)p                (1.20)p    0.34p
(loss) /                                                                                                            
earnings per                                                                                                        
share                                                                                                               
                                                                                                                    


SUMMARISED BALANCE SHEET                                                       
                                                                               
                                                6 months   6 months        Year
                                                      to         to            
                                                                             to
                                                                               
                                                 30 Sept    30 Sept    31 March
                                                    2003       2002        2003
                                                                               
                                                  £'000s     £'000s      £'000s
                                                                               
Fixed Assets                                       999.4    1,289.6     1,276.2
                                                                               
Current Assets                                                                 
                                                                               
Stock                                            1,483.2    1,555.7     1,356.6
                                                                               
Debtors                                          3,036.7    3,485.7     4,349.8
                                                                               
Cash at bank and in hand                           608.7      775.8       360.7
                                                                               
                                                 5,128.6    5,817.2     6,067.1
                                                                               
Creditors: amounts falling due within one      (2,689.8)  (3,051.7)   (3,011.7)
year                                                                           
                                                                               
Net current assets                               2,438.8    2,765.5     3,055.4
                                                                               
Total assets less current liabilities            3,438.2    4,055.1     4,331.6
                                                                               
Creditors: amounts falling due after more        (207.2)    (292.6)     (249.9)
than one year                                                                  
                                                                               
                                                 3,231.0    3,762.5     4,081.7
                                                                               
Ordinary share capital                           1,203.4    1,192.0     1,192.0
                                                                               
Preference share capital                           840.5      863.2       863.2
                                                                               
Share premium account                              378.7      367.3       367.3
                                                                               
Revaluation reserve                                369.3      313.8       369.4
                                                                               
Capital reserve                                    299.9      299.9       299.9
                                                                               
Profit and loss account                            139.2      726.3       989.9
                                                                               
Reserves                                         1,187.1    1,707.3     2,026.5
                                                                               
Shareholders' funds                              3,231.0    3,762.5     4,081.7
                                                                               


CASH FLOW                                                                            
STATEMENT                                                                            
                                                                                     
                             6 months to             6 months to              Year to
                                                                                     
                            30 Sept 2003            30 Sept 2002        31 March 2003
                                                                                     
                                  £'000s                  £'000s               £'000s
                                                                                     
Net cash                            73.2                    31.8                412.5
inflow from                                                                          
operating                                                                            
activities                                                                           
                                                                                     
Returns on                        (21.4)                  (17.1)               (36.4)
investments                                                                          
and                                                                                  
servicing of                                                                         
finance                                                                              
                                                                                     
Preference                        (42.3)                  (43.2)               (86.3)
dividend                                                                             
paid                                                                                 
                                                                                     
Corporation   -                                             39.5 -                   
tax                                                                                  
recovered                                                                            
                                                                                     
Capital                           (86.7)                  (13.9)               (73.4)
expenditure                                                                          
                                                                                     
Financing                         (42.8)                  (24.3)               (76.2)
                                                                                     
(Decrease) /                     (120.0)                  (27.2)                140.2
increase in                                                                          
cash                                                                                 
                                                                                     
Reconciliation of operating profit to net cash flow from operating activities        
                                                                                     
Operating                       (781.0)                   (83.3)                214.9
(loss) /                                                                             
profit                                                                               
                                                                                     
Depreciation                       57.5                     72.2                188.0
and                                                                                  
amortisation                                                                         
charges                                                                              
                                                                                     
Impairment                        306.0 -                        -                   
adjustment                                                                           
                                                                                     
Loss on sale -                          -                                         7.9
of tangible                                                                          
fixed assets                                                                         
                                                                                     
Exchange     -                            0.4                                    72.3
difference                                                                           
                                                                                     
(Increase) /                    (126.6)                    254.6                453.7
decrease in                                                                          
stock                                                                                
                                                                                     
Decrease /                      1,313.1                  (219.8)            (1,084.0)
(increase)                                                                           
in debtors                                                                           
                                                                                     
(Decrease) /                    (695.8)                      7.7                559.7
increase in                                                                          
creditors                                                                            
                                                                                     
Net cash                           73.2                     31.8                412.5
inflow from                                                                          
operating                                                                            
activities                                                                           
                                                                                     

Notes

The interim figures for the six months to 30 September 2003, which are
unaudited, have been prepared on the basis of the accounting policies set out
in the Annual Report for the year ended 31 March 2003.  The financial
information contained in this Interim Report does not constitute statutory
accounts within the meaning of Section 240 of the Companies Act 1985. The
results for the year ended 31 March 2003 are extracted from the published
accounts for that period on which the auditors gave an unqualified report under
Section 235 of the Companies Act and which have been filed with the Registrar
of Companies.  The loss per share for the six months ended 30 September 2003 is
based on the Group loss on ordinary activities after taxation and preference
dividends of £544,700 attributable to 11,943,047 ordinary shares, being the
weighted average number of ordinary shares in issue.  The diluted earnings per
share is calculated allowing for the full conversion of the Preference Shares
and the full exercise of outstanding share options.  However, in accordance
with Financial Reporting Standard 14, as neither of these conversions have a
dilutive effect the earnings per share figure remains unaltered.