Interim Results

Forbidden Technologies PLC
24 September 2004


                           FORBIDDEN TECHNOLOGIES PLC
             Interim Results for the six months ended 30 June 2004

Forbidden Technologies plc, which has developed and is marketing a range of
products for video distribution over the Internet and mobile devices including
phones, announces Interim Results for the six months ended 30 June 2004.

Highlights

•        Commercialisation of product range continues to gather pace

•        Launch of proprietary video editing software, FORscene

•        FORscene pulls together all of Forbidden's technologies into single,
         marketable package

•        Significant interest shown at recent IBC European broadcast media
         conference in Amsterdam

•        Mentorn a leading UK production company first customer and development
         partner

•        Tight cost controls maintained: £1.8 million cash in hand

Vic Steel, Chairman, commented:

'FORscene was greeted with acclaim at IBC as a technical breakthrough in the
large established video editing and publishing market. The product also extends
this market into new areas for web and mobile video publishing, giving content
owners easy access to these channels.

Numerous visitors have expressed strong interest in the product and the first
sales are already coming in. We expect FORscene to become a very significant
product as it develops over the coming year.'

                                                               24 September 2004



Enquiries:
Forbidden Technologies plc                                     020 8879 7245
    Stephen Streater, Chief Executive
    Greg Hirst, Business Development Director

College Hill                                                   020 7457 2020
    Nicholas Nelson/Corinna Dorward




Chairman's Statement
Interims 2004

Results

I am pleased to report that sales for the six months ending 30 June 2004, at
£46,202, were triple the level of the same period a year ago (2003: £15,333).
The loss in the six months was lower, at £227,021 (2003: £233,919) and the
balance sheet remains strong with cash resources at £1,874,171 (2003:
£2,442,962).

The company continues its tight cost control and efficient use of skilled
resources and partners.

Progress

We have continued our move towards the successful commercialisation of value
added products, culminating in the launch of FORscene at Europe's largest
broadcasting convention, IBC, in Amsterdam this September. FORscene combines
Forbidden's web and mobile technology into an intuitive editing front end.

Forscene pulls together the full process of ingesting raw video, editing it and
publishing it through multiple channels across different bandwidths, e.g.
mobile, broadband and modem. One of our earliest customers and our development
partner is Mentorn, one of the largest production companies in the UK. Their
support for the product is evident from the video interview which can be seen on
our website http://www.forbidden.co.uk/.  The product is being sold either as a
pay-as-you-go service, or through the provision of an in-house system with usage
based charges.  Our 'pay as you go' service allows customers to log in from
anywhere in the world and edit and collaborate in the post production process,
an activity that to date has often involved long delays, expensive flights and
sending video tapes by courier.

FORscene adds many benefits to the production and distribution of videos at a
significantly lower cost to current alternatives.  The key benefits include
multi-location collaborative editing, easy access to video for client approval,
a low up-front cost compared to current editing systems, the ability to add web
based channels to monetize archived video and the ability to provide
distribution of produced materials down multiple channels.  It uses the FORlive
codec launched last year and can now be done on your own PC without any software
or hardware upgrades. FORweb (video on the web) and FORmobile (video on mobile
phones) are now as simple as drag and drop on the graphical user interface.

At the IBC event the organisers used Forbidden's FORmobile player to distribute
news of their event on mobile phones. Using an IBC branded player, delegates
were able to swap videos for free using our Viewtooth technology.

Prospects

FORscene was greeted with acclaim at IBC as a technical breakthrough in the
large established video editing and publishing market. The product also extends
this market into new areas for web and mobile video publishing, giving content
owners easy access to these channels. Numerous visitors have expressed strong
interest in the product and the first sales are already coming in. We expect
FORscene to become a very significant product as it develops over the coming
year.

Profit and loss account
For the six months ended 30 June 2004
                                                              Unaudited     Unaudited              Audited
                                                           half year to  half year to              year to
                                                           30 June 2004  30 June 2003     31 December 2003
                                                                      £             £                    £

Turnover                                                         46,202        15,333               40,471

Administrative expenses                                       (311,510)     (295,210)            (664,071)

Operating loss                                                (265,308)     (279,877)            (623,600)

Interest receivable                                              38,287        45,958               82,589

Loss on ordinary activities before taxation                   (227,021)     (233,919)            (541,011)

Tax on loss on ordinary activities                                  ---             -               64,168

Loss for the period                                           (227,021)     (233,919)              476,843

Basic and diluted loss per ordinary 0.8 pence share                           (0.31p)              (0.64p)




Reconciliation of movements in shareholders' funds
for the six months ended 30 June 2004

                                                              Unaudited     Unaudited              Audited
                                                           half year to  half year to              year to
                                                           30 June 2004  30 June 2003     31 December 2003
                                                                      £             £                    £

Loss for the period                                           (227,021)     (233,919)            (476,843)

New share capital subscribed (net of issue costs)                   ---             -               33,750

Net reduction in shareholders' funds                          (227,021)     (233,919)            (443,093)

Opening shareholders' funds                                   2,300,979     2,744,072            2,744,072

Closing shareholders' funds                                   2,073,958     2,510,153            2,300,979


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 2004
                                                              Unaudited     Unaudited              Audited
                                                           half year to  half year to              year to
                                                           30 June 2004  30 June 2003     31 December 2003
                                                                      £             £                    £

Reconciliation of operating loss to net cash outflow
from operating activities

Operating loss                                                (265,308)     (279,877)            (623,600)

Depreciation charges                                              9,089        10,479               31,631

Decrease/(Increase) in debtors                                 (40,505)      (18,802)             (55,306)

(Decrease)/increase in creditors                               (22,883)      (46,250)               11,152

Net cash outflow from operating activities                    (319,607)     (334,450)            (636,123)

Cash flow statement

Cash flow from operating activities                           (319,607)     (334,450)            (636,123)

Returns on investment and servicing of finance                   11,318       131,352              152,965

Taxation                                                            ---             -               24,599

Capital expenditure                                            (22,458)      (14,852)             (31,185)

Cash outflow before management of liquid resources              330,747       217,950            (489,744)

Management of liquid resources                                  282,988       225,475              476,655

Financing                                                           ---             -               33,750

Increase/(Decrease) in cash in the period                      (47,759)         7,525               20,661

Reconciliation of net cash flow to movement in net
funds

Increase/(Decrease) in cash in the period                      (47,759)         7,525               20,661

Cash inflow from liquid resources                             (282,988)     (225,475)            (476,655)


Movement in net funds in the period                           (330,747)     (217,950)            (455,994)

Net funds at the start of the period                          2,204,918     2,660,912            2,660,912


Net funds at the end of the period                            1,874,171     2,442,962            2,204,918


Balance sheet
As at 30 June 2004
                                                              Unaudited     Unaudited              Audited
                                                           half year to  half year to              year to
                                                           30 June 2004  30 June 2003     31 December 2003
                                                                      £             £                    £
Fixed assets

Tangible assets                                                  27,187        18,637               13,818

Current assets

Debtors                                                         234,698        76,133              167,224

Cash                                                                  0             0                8,070

Current Asset Investments                                     1,913,860     2,448,028            2,196,848


                                                              2,148,558     2,524,161            2,372,142

Creditors: amounts falling due within one year                (101,787)      (32,645)             (84,981)


Net current assets                                            2,046,771     2,491,516            2,287,161


Net assets                                                    2,073,958     2,510,153            2,300,979


Capital and reserves

Called up share capital                                         603,800       594,800              603,800

Share premium account                                         2,921,250     2,896,500            2,921,250

Capital contribution reserve                                    125,000       125,000              125,000

Profit and loss account                                     (1,576,092)   (1,106,147)          (1,349,071)


Equity shareholders' funds                                    2,073,958     2,510,153            2,300,979


This interim report was approved by the board of directors on 23 September 2004
and was signed on their behalf by:

Douglas Blaikie
Financial Director

Basis of preparation

The interim report for the six months ended 30 June 2004 and 2003 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 2003. The results for the year ended 31 December 2003 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.


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