Interim Results

Forbidden Technologies PLC
19 September 2002



                           FORBIDDEN TECHNOLOGIES PLC

             Interim Results for the six months ended 30 June 2002

Forbidden Technologies plc, which listed on AIM in February 2000 and develops
and markets proprietary technology for video distribution over the Internet,
announces Interim Results for the six months ended 30 June 2002.


                                   HIGHLIGHTS


•      Loss for the period of £147,906 (2001: £87,386)

•      Cash balance - £2.95 million

•      Significant progress made in all areas of activity

•      Delivery of full screen, high quality video streamed via mainstream
       connections to hand held computers/PDAs now a reality

•      New Java mobile phone codec enables real-time compression

•      Continuing delays in adoption of Broadband & 3G justify Forbidden's
       strategy of targeting delivery via standard modem connections


Vic Steel, Chairman commented:

'We have made significant progress in the development and refinement of our
video compression technology in each of our target markets and through all of
the key platforms.  We have moved towards a product focus and this has eroded
the boundaries between our different Codecs.

'There are signs that the market environment is beginning to improve and we have
a high level of confidence that the firm foundations which we have built over
the past two years are beginning to yield results.  We look forward to an
accelerating rate of growth in the months ahead.'


                                                               19 September 2002


ENQUIRIES:

College Hill                                                    Tel:    [phone]
Nicholas Nelson
Michael Padley



                              CHAIRMAN'S STATEMENT

Results

In the six months to 30 June 2002 the Company had sales of £5,350 (2001: £691)
and incurred a loss of £147,906 (2001: £87,386).  The increased loss was mainly
due to lower interest income (£40,671 less than the comparable period in 2001)
and increased expenditure on commercial development resources. Cash balances
remain strong at £2,950,334.


The Market Place

Three key characteristics were evident in the market place during the first six
months of the year.  Firstly broadband penetration and adoption remained very
low in comparison to narrowband.  Secondly in mobile telecoms 3G continued to be
delayed and is still a long way from catching up with GPRS/2.5G and thirdly the
pressures across the economy increased the level of risk-aversion in most
companies, slowing the rate of adoption of new technologies.


Product Progress

We have moved towards a product focus and this has eroded the boundaries between
our different Codecs.  We have made significant progress in the development and
refinement of our video compression technology in each of our target markets and
through all of the key platforms.

For the advertising market on PCs via websites, we have developed a series of
new features to meet the needs of advertisers and viewers. We can now
incorporate buttons, pre-load facilities and, with ad-server integration can
count clicks and impressions, thus enabling accurate measurement of campaign
reach. Our new suite of tools allows a much wider range of content to be
accessible, and using our Java player we can reach the widest possible audience
without any need for external 'plug-in' software.

One stunning development is our ability to provide full-screen, high quality
colour video on the new generation of hand held computers/PDAs such as the XDA
and iPAQ over existing mobile links.  Our new Java mobile phone codec enables
real-time compression with much higher picture quality.  These developments will
prove to be invaluable in helping us to establish our business in the corporate
communications, entertainment and related markets.


Business Development

We continue to build the company.  We are establishing deeper relationships with
our customers and have increased our internal resources by adding to our
software development team, staffing a compression bureau function, and adding a
further senior sales manager.  Although the results of the efforts are not yet
visible from outside the company they are important steps towards contracts with
larger organisations.



Outlook

There are signs that the market environment is beginning to improve and we have
a high level of confidence that the firm foundations which we have built over
the past two years are beginning to yield results.  We look forward to an
accelerating rate of growth in the months ahead and would encourage everyone to
visit our website http://www.forbidden.co.uk/ regularly in order to keep up to
date with our progress and related news.


Victor Steel
Chairman

19 September 2002



Profit and Loss Account
for the six months ended 30 June 2002


                                                    Unaudited           Unaudited                 Audited
                                                 half year to        half year to                 year to
                                                 30 June 2002        30 June 2001        31 December 2001

Turnover                                               5,350                 691                   2,672

Administrative expenses                             (220,873)           (196,365)               (441,594)

Operating loss                                      (215,523)           (195,674)               (438,922)

Interest receivable                                   67,617             108,288                 188,268

Loss on ordinary activities before taxation         (147,906)            (87,386)               (250,654)

Tax on loss on ordinary activities                         -                   -                  19,800

Loss for the period                                 (147,906)            (87,386)               (230,854)


Basic loss per ordinary 0.8 pence share               (0.20p)             (0.12p)                 (0.30p)



Reconciliation of movements in shareholders' funds
for the six months ended 30 June 2002


                                                    Unaudited           Unaudited                 Audited
                                                 half year to        half year to                 year to
                                                 30 June 2002        30 June 2001        31 December 2001

                                                            £                   £                       £

Loss for the period                                 (147,906)            (87,386)               (230,854)

Net reduction in shareholders' funds                (147,906)            (87,386)               (230,854)

Opening shareholders' funds                        3,175,053           3,405,907               3,405,907

Closing shareholders' funds                        3,027,147           3,318,521               3,175,053



A statement of recognised gains and losses has not been included as part of this
interim report as the Company made no gains or losses in the year other than as
disclosed in the Profit and Loss Account.

The results stated above are all derived from continuing operations.


Cash Flow Statement
for the six months ended 30 June 2002


                                                     Unaudited            Unaudited            Audited
                                                  half year to         half year to            year to
                                                  30 June 2002         30 June 2001   31 December 2001
                                                             £                    £                  £
Reconciliation of operating loss to net cash
outflow from operating activities

Operating loss                                       (215,523)            (195,674)          (438,922)

Depreciation charges                                    5,221               13,159             31,051

Decrease/(increase) in debtors                         23,104               18,118             (3,974)

Decrease in creditors                                 (22,394)             (39,607)            (8,212)

Net cash outflow from operating activities           (209,592)            (204,004)          (420,057)


Cash flow statement

Cash flow from operating activities                  (209,592)            (204,004)          (420,057)

Returns on investment and servicing of finance

                                                      141,776              153,729            182,647

Taxation                                                    -                    -            (30,211)

Capital expenditure                                    (3,550)             (13,516)           (22,467)

Management of liquid resources                         39,495             (225,115)            38,612

Financing                                                   -                    -                  -

Decrease in cash in the period                        (31,871)            (288,906)          (251,476)


Reconciliation of net cash flow to movement in net funds

Decrease in cash in the year                          (31,871)            (288,906)          (251,476)

Cash used to increase liquid resources                (39,495)             225,115            (38,612)

Movement in net funds in the period                   (71,366)             (63,791)          (290,088)

Net funds at the start of the period                3,021,750            3,311,838          3,311,838

Net funds at the end of the period                  2,950,384            3,248,047          3,021,750



Balance Sheet
as at 30 June 2002
                                                   Unaudited             Unaudited                   Audited
                                                half year to          half year to                   Year to
                                                30 June 2002          30 June 2001          31 December 2001
                                                           £                     £                         £
Fixed assets
Tangible assets                                       9,770                20,383                    11,441
Current assets
Debtors                                              90,694                95,001                   187,957
Cash at bank                                      2,950,384             3,248,047                 3,021,750
                                                  3,041,078             3,343,048                 3,209,707
Creditors
Amounts falling due within one year                 (23,701)              (44,910)                  (46,095)
Net current assets                                3,017,377             3,298,138                 3,163,612
Net assets                                        3,027,147             3,318,521                 3,175,053

Capital and reserves
Called up share capital                             594,800               594,800                   594,800
Share premium account                             2,896,500             2,896,500                 2,896,500
Capital contribution reserve                        125,000               125,000                   125,000
Profit and loss account                            (589,153)             (297,779)                 (441,247)
Equity shareholders' funds                        3,027,147             3,318,521                 3,175,053




This interim report was approved by the board of directors on 18 September 2002
and were signed on their behalf by



Douglas Blaikie
Financial Director



Basis of preparation

The interim report for the six months ended 30 June 2002 and 2001 is unaudited
and does not constitute statutory accounts within the meaning of Section 240 of
The Companies Act 1985. They have been prepared under the historical cost
convention and on a basis consistent with the accounting policies for the year
ended 31 December 2001. The results for the year ended 31 December 2001 and the
balance sheet of that date are an extract from the statutory financial
statements for that year, which have been filed with the Registrar of Companies
and on which the company's auditors gave an unqualified report and did not
contain a statement under Section 237 (2) or (3) of that Act.

Copies of this statement will be available for a period of 14 days from the
Company's registered office: 2-4 St. George's Road, Wimbledon, London SW19 4DP.



                      This information is provided by RNS
            The company news service from the London Stock Exchange