Final Results

12 November 2007

                                 PipeHawk Plc                                  

                  ("PipeHawk", "the Group" or "the Company")                   

                              Preliminary Results                              

                        for the year ended 30 June 2007                        

CHAIRMAN'S STATEMENT

The Directors believe that the year to 30 June 2007 was a transitional year
whereby the Company consolidated its achievements in the previous year and
established a solid foundation upon which to grow the business in the short to
medium term.

I am delighted to report the turnover for the year ended 30 June 2007 was £
4,471,000 (2006: £3,312,000), which is an increase of 35 per cent. on the
previous year and that the Group achieved a profit after taxation for the year
of £109,000 (2006: £141,000). This result reflects solid growth in the
Company's core operating units and recognises the considerable investment made
in PipeHawk's core businesses Adien and SUMO. However, this was offset by
isolated issues concerning QM Systems' principal customer.

The trading performances of the Group's four major business areas are set out
below:

Adien

Adien, our high definition underground mapping and planning service has had
another excellent year with a 26 per cent. rise in turnover to £1,624,000
(2006: £1,287,000) and an 87 per cent. increase in operating profits.

During the year Adien introduced a vacuum excavation service and is now able to
offer clients guaranteed levels of accuracy in utility detection through this
service. The benefits of vacuum excavation are that it saves the client time,
money and is safer than traditional hand dug excavations or "trial holes". As
far as the Directors are aware Adien are the only detection and mapping Company
offering this service in the UK, which is used as part of Adien's range of
solutions designed to assist clients in managing the risks associated with
buried utility services.

Adien is a recognised industry contributor to Government sponsored initiatives
(VISTA and Mapping the Underworld) programmes which consider the issues
surrounding the mapping and cataloguing of buried utility services. Adien also
continues to be involved with high visibility clients on major infrastructure
projects such as the building of major new railway connections under central
London and the refurbishment of Ministry of Defence sites across the country.
At some of Adien's client sites it has a full time presence.

Additional teams and custom built vans were added during the year and Adien is
well placed to continue their growth into 2008 when it intends to expand both
geographically and in terms of the services offered.

SUMO

Sumo - a 36 per cent owned joint venture company, which is able to provide
instant mark out services to its customers.

SUMO has also had another good year. It has increased its turnover from £
1,449,000 to £2,401,000, and returned a profit for the year of £197,000 (2006:
£2,000), and has strengthened its position within the utility detection and
mapping marketplace. It now operates a fleet of 22 vehicles nationwide and has
recently moved to larger premises to facilitate its growth plans in 2008 and
beyond.

Substantial investment in a new utility mapping division has significantly
changed the customer profile. While customers continue to enjoy the "rapid
response" lower value sales, SUMO has now proved itself to be a leading utility
mapping service provider and is consistently winning mapping projects with a
value of in excess of £50,000.

During the year, SUMO has been implementing new systems and marketing
initiatives to introduce its unique franchise model to the established
topographic surveying market. This is an exciting business opportunity for land
surveyors to operate their own business under the umbrella of an established
brand. The marketing for this initiative commenced during the latter half of
the year and early indications are that the Company will accelerate its growth
in 2008 from this activity.

Technology Division

PipeHawk Mk3 will be formally launched in Spring 2008 and represents the first
product developed by a new and highly innovative technology generation. Other
products are planned many of which are targeted upon providing Adien with a
market advantage in its sector. The Directors consider the development of new
architectural systems encompassed within these products to be essential to
allow the Group technological steps which are likely to be required for the
significantly delayed MineHawk project.

QM Systems ("QM")

In the second half of the year QM has taken steps to offset the effects of a
slow down in orders for bespoke test solutions of its largest customer which
has been caused primarily as a result of management and other changes. QM has
invested in the development of products for targeted markets and has produced
several designs leveraged on equipment designed for high power testing within
the aerospace market. The Directors are encouraged by the inclusion of a QM
single sourced product within Airbus' end user supply catalogue. Early sales
and encouraging prospects for testing units for lightning strike protection and
configurable production control systems underpin the Board's confidence in this
division. QM will continue its development of a series of configurable products
which address environmental testing and production workflow management, which
are common requirements across a broad range of industries.

Strategy and Outlook

Our strategy remains as before "to remain at the forefront of applied GPR and
non-invasive testing technologies, delivering high quality value added services
and products which play a vital role in the safety and protection of people
worldwide".

The difficulties with QM's principal customer has adversely impacted trading in
the first quarter of the current year, nevertheless the Group's core GPR
business continues to go from strength to strength. The many initiatives
implemented during the year leave the Group well placed to achieve sustainable
and evolutionary business growth.

Gordon Watt

Chairman

12 November 2007

Consolidated Profit and Loss Account

For the year ended 30 June 2007

                                                    Note        2007       2006
                                                                               
                                                               £'000      £'000
                                                                               
Turnover                                                                       
                                                                               
Group and share of joint venture                               4,471      3,312
                                                                               
Less: share of joint venture turnover                          (865)      (529)
                                                                               
Group turnover - total continuing activities                   3,606      2,783
                                                                               
Group operating costs                                        (3,576)    (2,690)
                                                                               
Group operating profit                                            30         93
                                                                               
Share of operating profit                                         71         19
                                                                               
Profit on ordinary activities before interest and                101        112
taxation                                                                       
                                                                               
Group interest receivable and similar income                       3          4
                                                                               
Group interest payable and similar charges                      (81)       (44)
                                                                               
Profit on ordinary activities before taxation                     23         72
                                                                               
Tax credit on profit on ordinary activities           5           86         69
                                                                               
Transfer to reserves                                             109        141
                                                                               
                                                                2007       2006
                                                                               
                                                                   p          p
                                                                               
Earnings per share                                                             
                                                                               
Basic                                                 3          0.4        0.6
                                                                               
Diluted                                               3          0.3        0.4

There are no recognised gains or losses other than those reported above.

Consolidated Balance Sheet

As at 30 June 2007

                                        2007       2007       2006         2006
                                                                               
                                       £'000      £'000      £'000        £'000
                                                                               
Fixed assets                                                                   
                                                                               
Intangible assets                                 1,499                   1,121
                                                                               
Tangible assets                                     287                     354
                                                                               
Investment in joint venture:                                                   
                                                                               
Share of gross assets                    163                    70             
                                                                               
Share of gross liabilities              (77)                  (55)             
                                                                               
                                          86                    15             
                                                                               
                                                     86                      15
                                                                               
                                                  1,872                   1,490
                                                                               
Current assets                                                                 
                                                                               
Stocks                                              279                     757
                                                                               
Debtors                                             741                     969
                                                                               
Cash at bank                                          -                     221
                                                                               
                                                  1,020                   1,947
                                                                               
Creditors: amounts falling due                  (1,444)                 (2,088)
within one year                                                                
                                                                               
Net current liabilities                           (424)                   (141)
                                                                               
Total assets less current                         1,448                   1,349
liabilities                                                                    
                                                                               
Creditors: amounts falling due                    (563)                   (602)
after more than one year                                                       
                                                                               
Net assets                                          885                     747
                                                                               
Capital and reserves                                                           
                                                                               
Called up share capital                             269                     267
                                                                               
Share premium account                             4,842                   4,815
                                                                               
Profit and loss account                         (4,226)                 (4,335)
                                                                               
Equity shareholders' funds                          885                     747

Consolidated Cash Flow Statement

For the year ended 30 June 2007

                                                               2007        2006
                                                                               
                                                              £'000       £'000
                                                                               
Net cash inflow from operating activities                       525         133
                                                                               
Returns on investments and servicing of finance                                
                                                                               
Interest received                                                 3           4
                                                                               
Interest element of finance lease rentals                      (77)         (3)
                                                                               
Interest paid                                                   (4)        (41)
                                                                               
                                                               (78)          93
                                                                               
Corporation tax received                                         86          77
                                                                               
Capital expenditure and financial investment                                   
                                                                               
Payments for tangible fixed assets                             (37)        (96)
                                                                               
Payments for intangible fixed assets                          (438)           -
                                                                               
Receipts from sale of tangible fixed assets                       2           -
                                                                               
Acquisitions and disposals                                                     
                                                                               
Cash acquired through purchase of subsidiary                      -         221
                                                                               
Costs of acquisition                                              -        (51)
                                                                               
Cash inflow before use of liquid resources and                   60         244
financing                                                                      
                                                                               
Financing                                                                      
                                                                               
Issue of ordinary share capital                                  29           -
                                                                               
New loans                                                        29           -
                                                                               
Repayment of loans                                             (80)       (110)
                                                                               
Capital element of finance lease and hire                      (34)        (21)
purchase payments                                                              
                                                                               
                                                               (56)       (131)
                                                                               
Increase in cash                                                  4         113

Notes to the Cash Flow Statement

A. Reconciliation of Operating (Loss) to Net Cash Outflow from Operating
Activities

                                                             2007         2006
                                                                              
                                                            £'000        £'000
                                                                              
Operating profit                                               30           93
                                                                              
Amortisation of intangible assets                              60           27
                                                                              
Depreciation of tangible fixed assets                         164          169
                                                                              
Working capital movements                                                     
                                                                              
Stock and work in progress                                    478           65
                                                                              
Debtors                                                       228        (323)
                                                                              
Creditors                                                   (435)          102
                                                                              
Net cash inflow from operating activities                     525          133

B. Reconciliation of Net Cash Flow to Movement of Net Debt

                                                              2007         2006
                                                                               
                                                             £'000        £'000
                                                                               
Increase in cash                                                 4          113
                                                                               
Increase in debt and finance lease agreements                   85        (171)
                                                                               
Decrease/(Increase) in net debt from cash flows                 89         (58)
                                                                               
New finance leases                                            (63)            -
                                                                               
Debt acquired with subsidiary                                    -         (10)
                                                                               
Reduction/(Increase) in net debt                                26         (68)
                                                                               
Opening net debt                                             (794)        (726)
                                                                               
Closing net debt                                             (768)        (794)
                                                                               

C. Analysis of changes in net debt

                                          1 July 2006     Cashflow 30 June 2007
                                                                               
                                                £'000        £'000        £'000
                                                                               
Cash at bank and in hand                          221          221            -
                                                                               
Bank overdraft                                  (258)          225         (33)
                                                                               
Cash                                             (37)            4         (33)
                                                                               
Loans                                           (655)           51        (604)
                                                                               
Finance leases                                  (102)         (29)        (131)
                                                                               
Borrowings                                      (757)           22        (735)
                                                                               
Net debt                                        (794)           26        (768)
                                                                               

Notes to the preliminary statements

1. Publication of non-statutory accounts

The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in Section 240 of the Companies Act
1985.

The consolidated balance sheet at 30 June 2007, and the consolidated profit and
loss account, consolidated cash flow statement and associated notes for the
period then ended have been extracted from the Group's financial statements.
Those financial statements have not yet been delivered to the Registrar of
Companies.

2. Going concern

The Group continues to develop its range of products and source new buyers and
is optimistic about the positive market reaction to these new products and the
award of significant new contracts within the near future. However at the
balance sheet date the group has net current liabilities of £424,000. The
directors have reviewed the group's funding requirements and the Executive
Chairman, G G Watt, has pledged to provide ongoing financial support for a
period of at least twelve months from the approval date of the group balance
sheet. It is on this basis that the directors consider it appropriate to adopt
the going concern basis of preparation within these financial statements.

3. Earnings per share

This has been calculated on profits of £109,000 (2006: profit £141,000) and the
number of shares used was 26,917,330 (2006: 24,245,068) being the weighted
average number of shares in issue during the year. For the fully diluted
calculations the number of shares used for the calculation was 34,667,952.

4. Dividend

The Directors are not proposing the payment of a dividend in respect of the
year ended 30 June, 2007.

5. Taxation

                                                       2007           2006
                                                                          
                                                      £'000          £'000
                                                                          
United Kingdom Corporation Tax                                            
                                                                          
Current taxation                                       (80)           (70)
                                                                          
Adjustments in respect of prior years                   (6)              1
                                                                          
                                                       (86)           (69)
                                                                          
Deferred taxation                                         -              -
                                                                          
Tax on loss on ordinary activities                     (86)           (69)
                                                                          
                                                       2007           2006
                                                                          
                                                      £'000          £'000
                                                                          
Profit/(loss) on ordinary activities before              23             72
taxation                                                                  
                                                                          
Theoretical tax at UK corporation tax rate                7             21
30 per cent.                                                              
                                                                          
Effects of:                                                               
                                                                          
- losses brought forward                                (8)           (93)
                                                                          
- joint ventures' losses unrelieved                       -            (6)
                                                                          
- timing differences                                  (131)              -
                                                                          
- R&D tax credit adjustments                             16             15
                                                                          
- other expenditure that is not tax                       1              2
deductible                                                                
                                                                          
- adjustments in respect of prior years                 (6)             12
                                                                          
- accelerated capital allowances                         19            (3)
                                                                          
- losses carried forward                                 19             15
                                                                          
- short term timing differences                         (3)           (32)
                                                                          
Actual current taxation charge                         (86)           (69)
                                                                          

6. Report and Accounts

Copies of the Report and Accounts will be sent to shareholders in due course
and will be available from the Company's registered office, Systems House, Mill
Lane, Alton, Hampshire, GU34 2QG

Further Enquiries:

PipeHawk Plc                                                                   
                                                                               
Gordon Watt, Chairman                                         Tel: [phone]
                                                                               
John East & Partners Limited                                                   
                                                                               
Simon Clements                                                    Tel: [phone]
                                                                           2200
                                                                               
J M Finn                                                                       
                                                                               
Sam Smith/Charles Cunningham                                      Tel: [phone]
                                                                           9688