Interim Results

Newsplayer Group PLC
30 July 2003

FOR IMMEDIATE RELEASE

                                                                    30 July 2003

                              NEWSPLAYER GROUP PLC

             INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 APRIL 2003


Newsplayer Group plc ('NPG'), the media company, today announces interim results
for the six months ended 30 April 2003.

Financial Highlights:
          
•    Turnover of £113,505 compared to £350,526 for the six months ended 31
     October 2002.

•    Pre-tax loss of £2,426,194 compared to a loss of £2,744,292 for the six
     months ended 31 October 2002.

•    Cash reserves of £100,252 at 30 April 2003 compared to £438,874 at 31
     October 2002.

Operational Highlights:
     
•    Agreement signed with The Footballers Football Channel to enrich the
     content within Pure World Cup including the highlights of the 2002 
     tournament in Japan and South Korea.

•    Agreement signed with Cross Media Entertainment to distribute NPG
     properties in North America.

•    Mobile streaming video pilot programme launched with SFR in France.

Events subsequent to period under review:
     
•    Agreement signed with EMI to act as a Digital Service Provider in
     Europe for the provision of downloaded audio tracks.

•    2-year agreement signed with NTL to provide two channels of content to
     their Broadband platform.

•    Referral agreement signed with Global Media Services to provide
     professional services such as webcasting, encoding, storage, hosting and 
     e-mail marketing.

•    A placing of new shares to raise a minimum of £700,000 in progress.

Commenting on the results, Paul Duffen, Chief Executive Officer, said:

'In addition to the distribution and content agreements we have signed during
the period, the first half of the year has seen a focus on increasing efficiency
and reducing costs. In February we completed the transfer of all Group
technology resources to GMS in New York at an annualised cost saving of over
£500,000 whilst at the same time securing a scalable solution to distribute our
content globally at 'industry best' service levels.  As a result of this
initiative and other efficiencies we have reduced the fixed cost base of the
Group to less than £900,000 per annum. We are now in the process of completing a
placing of new shares, to raise a minimum of £700,000 before expenses to enable
us to complete the all-paper acquisition of Global Media Services. As at 29 July
2003 we have commitments in hand for the minimum amount of £700,000 and
anticipate the fundraising being completed by 1 August 2003.'


Enquiries:

NPG plc                         020 7927 6699
Paul Duffen, CEO

Merlin Financial                020 7606 1244
Philip Ranger/Nicola Davidson


CHIEF EXECUTIVE STATEMENT

OVERVIEW

Newsplayer Group plc is a new media company that exploits rights and/or licenses
to quality cultural and historical video content and markets them globally to
business, educational and consumer audiences using interactive technology.
Revenues are generated from the licensing of content to third parties, from
subscription and pay-per-view fees paid by consumers, and from shared
advertising revenues. NPG is becoming the partner of choice for the digitization
and distribution of broadcast content and interactive programme creation.

MEDIA CHANNELS AND LICENSED CONTENT

Footage.net - A leading stock footage portal which manages the databases of many
of the world's leading stock footage libraries, including ABC News, CNN, Action
Sports, National Geographic, and many others.

Newsplayer.com - ITN/Reuters Archives. A subscription consumer channel offering
1,000 hours of footage from ITN/ Reuters, including material from Paramount,
Gaumont, British Empire News, Visnews, French Pathe et al. Features original
video footage of some of the most important and notable events of the 20th
century.

Frost.tv - The Frost Collection. A video-on-demand subscription channel
featuring the unparalleled archive of 40 years of Sir David Frost's original
interviews with the world's most famous public figures. Strategic partnership to
develop commercial applications, both on- and off-line.

Screenplayer.com - Passport International Productions. A video-on-demand
subscription channel offering the largest collection of Hollywood footage in the
world, including more than 650 hours of movie-related documentaries comprised of
film trailers, celebrity interviews and profiles of the stars.

Video.tv - EMI Catalogue. A video-on-demand subscription channel providing an
interactive collection of EMI music videos featuring artists and groups spanning
the 20th Century. Advanced negotiations are underway with other major record
labels who have expressed an interest in having their material represented on
VideoTV.

Birdstream.com - RSPB Film Collection. A video-on-demand subscription channel
giving access to 100 hours of award-winning wildlife footage in the Film
Collection of the Royal Society for the Protection of Birds. Professional
programme makers can also license the material through RSPB's website.

Pure World Cup.com- A video-on-demand subscription channel providing World Cup
highlights from 1958 to 1998.

Ucreate.tv - A unique editing tool allowing users to make their own films online
using home video material and 1,000 hours of classic archive footage from
newsplayer.com.

The Alison Mercer Collection- Exclusive licence for 80 hours, or 1400 video
clips, of film-related material of cinema's golden age and US-focused archive
news and features.

Stock Video of Boston- Exclusive licence for 150 hours of classic sports footage
from Stock Video of Boston, sourced from Columbia Sports News, Castlefilms and a
selection of private collections.

FINANCIAL RESULTS

The loss for the period was £2,426,194 compared to a loss of £720,304 for the
equivalent period in 2002.  No dividend has been paid or is proposed.

OUTLOOK

The outlook for the Group continues to focus on the strategy outlined in the
annual report issued in April 2003. Our partnership with GMS in New York has
enabled the Company to strengthen and consolidate our technical resource whilst
at the same time providing us with the tools to pursue service-based revenues
around the creation and distribution of streaming media assets.  The USA is
undoubtedly a very important market for the Company's products and services and
the combination of our subsidiary company, NPG Inc., and our relationship with
GMS provides an ideal platform for us to exploit that opportunity.

We have stated that it is our intention to acquire GMS.  The process has taken
longer than originally anticipated but should be completed in the summer of
2003.  In the meantime we continue to work closely as strategic partners and I
am confident that the combination of our two businesses with complementary
products, skill sets, geographical location and a low cost base will enable the
Company to reach monthly profitability by the end of 2003.


Paul Duffen
Chief Executive


UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 APRIL 2003

Consolidated Profit and Loss Account

                                                 Note     Six months ended  Six months ended        Year ended
                                                             30 April 2003     30 April 2002       31 Oct 2002
                                                                         £                 £                 £

Turnover                                           5               113,505           603,738           954,264

Cost of sales                                                     (47,553)         (171,723)         (526,737)

Gross profit                                                        65,952           432,015           427,527

Operating expenses before exceptional charges                  (1,520,349)       (1,197,055)       (2,953,279)

Prepayment write off                               6             (682,058)                 -                 -

Impairment charges                                 6             (289,807)                 -         (998,699)

Total Operating expenses                                       (2,492,214)       (1,197,055)       (3,951,978)

Operating loss                                                 (2,426,262)         (765,040)       (3,524,451)

Interest receivable                                                  1,068            44,736            59,855

Interest payable                                                   (1,000)                 -                 -

Loss on ordinary activities before taxation                    (2,426,194)         (720,304)       (3,464,596)

Taxation                                                                 -             (500)           (1,000)

Loss on ordinary activities after taxation and                 (2,426,194)         (720,804)       (3,465,596)
retained profit for the period

Loss per ordinary share - basic                    3               (3.49p)           (1.07p)           (5.03p)



All operations derive from continuing activities.

No statement of total recognised gains and losses has been presented as there
are no recognised gains and losses other than the loss for the period.


Consolidated Balance Sheet

                                                  Note                     At                At               At
                                                                30 April 2003     30 April 2002      31 Oct 2002
                                                                            £                 £                £

Fixed assets:
Intangible assets                                     7             2,071,624         3,218,746        2,727,455
Tangible assets                                                       183,108           238,267          237,370
                                                                    2,254,732         3,457,013        2,964,825

Current assets:
Debtors                                               8               218,066         2,132,230        1,067,839

Cash at bank and in hand                                              100,252         1,783,885          438,874

Creditors: amounts falling due within one year        9             (560,055)         (499,147)        (342,349)

Net current (liabilities)/assets                                    (241,737)         3,416,968        1,164,364

Total assets less current liabilities                               2,012,995         6,873,981        4,129,189

Creditors: amounts falling due in more than one       9             (160,000)                 -                -
year


Total Net assets                                                    1,852,995         6,873,981        4,129,189


Capital and Reserves
                                                                            £                 £                £

Called up share capital                              10               722,688           692,688          692,688

Share premium account                                              11,827,380        11,707,380       11,707,380

Merger reserve                                                      (509,386)         (509,386)        (509,386)

Profit and loss account                                          (10,187,687)       (5,016,701)      (7,761,493)

Shareholders' funds                                  11             1,852,995         6,873,981        4,129,189



Consolidated Cash Flow Statement


                                                      Note     Six months ended   Six months ended      Year ended
                                                                  30 April 2003      30 April 2002     31 Oct 2002
                                                                              £                  £               £

                                                                                               
Net cash outflow from operating activities             12             (649,690)          (795,366)     (1,223,993)

Returns on investment and servicing of finance                            1,068             45,313          59,855

Taxation paid                                                                 -                  -         (1,500)

Capital expenditure and financial investment                                  -          (822,186)     (1,893,015)

Management of liquid resources                                                -                  -               -

Acquisitions and disposals                                                    -          (476,731)       (335,330)

Cash outflow before financing                                         (648,622)        (2,048,970)     (3,393,983)

Financing:
New unsecured loan                                     9                160,000                   -               -
Issue of ordinary share capital                        10               150,000              34,634          34,636

Decrease in cash                                                      (338,622)         (2,014,336)     (3,359,347)


Notes
     
1.   Accounting policies and additional information

     These interim results for the six month period ended 30 April 2003 do not
     constitute statutory accounts and have been neither reviewed nor audited by 
     our auditors. The financial information for the year ended 31 October 2002 
     is derived from the statutory accounts for that year which have been 
     delivered to the Registrar of Companies.  The auditors reported on those 
     accounts; their report was unqualified and did not contain a statement 
     under s237(2) or (3) Companies Act 1985.

     The accounting policies are consistent with those applied in the 
     preparation of the statutory accounts for the year ended 31 October 2002.
     
2.   Going concern

     The Directors have prepared this financial information on a going concern 
     basis as the forecasts they have prepared indicate that the Group will have 
     sufficient cash resources to satisfy its liabilities as they fall due for a 
     period of at least twelve months from the date of this announcement. These 
     forecasts are subject to a number of uncertainties.

     Firstly, the forecast contains a significant increase in revenues that are
     dependent upon the completion of a number of deals that are in the final 
     stages of negotiation. Significant contracts have been signed after the 
     review period, most notably with NTL, and the Directors are confident that 
     they will be successful in securing further deals. Furthermore, the Group 
     has made a claim for more than £150,000, after expenses, in tax credits in 
     relation to research and development expenditure.  At the date of approval 
     of the accounts, this tax claim had been submitted although the outcome of 
     the claim is still uncertain.

     In addition, the Group is in the process of raising additional funding that 
     is necessary to fund the operations and expansion of the Group. The 
     Directors have agreed to defer a proportion of their entitlement to further 
     salary payments until this fund raising has been completed and have agreed 
     to accept payment in Newsplayer Group plc shares to conserve further the 
     cash available to the Group. With commitments already secured for the 
     minimum amount required, the Directors are confident that this fundraising 
     will be successful and as a result that the Group will remain a going 
     concern.

     The financial information does not include any adjustments that would 
     result if the going concern basis of preparation was not appropriate.
     
3.   Loss per share

     The calculation of loss per share has been based on the loss after taxation 
     for the period of £2,426,194 and the weighted average number of ordinary 
     shares in issue during the period of 71,942,393.

     Diluted EPS is not presented in respect of outstanding share options since 
     none of the options are dilutive.
     
4.   Dividend

     The directors do not recommend the payment of a dividend for the period.
     
5.   Turnover

     Turnover comprises subscription income for access to the company's web 
     sites, fees from licensing of media rights and licensing fees for software.
     
6.   Prepayment write off and intangible asset impairment

     In June 2003 Management performed an impairment review of the intangible 
     assets held by group.  As a result of that review it was determined that 
     certain intangible assets should be impaired due to insufficient future 
     expected earnings relating to those assets.  Consequently the intellectual 
     property rights were impaired by £289,807.

     In July 2003 a prepayment with Hollinger became non-recoverable due to 
     timing restrictions on the use of the prepayment.  As a result the total 
     amount outstanding of £682,058 was written off.
     
7.   Intangible fixed assets

                                                       Goodwill Intellectual Property               Total
                                                              £                     £                   £               
    
Cost as at 1 November 2002 and at 30 April              233,687             4,176,741           4,410,428
2003

Amortisation as at 1 November 2002                     (19,474)           (1,663,499)         (1,682,973)
Charge for the year                                    (14,693)             (351,331)           (366,024)
Impairment                                                    -             (289,807)           (289,807)
Amortisation as at 30 April                            (34,167)           (2,304,637)         (2,338,804)


Net book value as at 30 April 2003                      199,520             1,872,104           2,071,624

Net book value as at 31 October 2002
                                                        214,213             2,513,242           2,727,455

8.   Debtors     
                                                                                     At                   At
                                                                        30th April 2003        31st Oct 2002
                                                                                      £                    £

     Trade debtors                                                               61,491               64,866
     Prepayments and accrued income                                              50,813              750,023
     Other debtors                                                              105,762              252,950
     Total debtors                                                              218,066            1,067,839
     
9.   Creditors
                                                                                     At                  At
                                                                        30th April 2003       31st Oct 2002
                                                                                      £                   £

     Trade creditors                                                            199,284              89,670
     Other creditors                                                             33,409              21,491
     Accruals and deferred income                                               327,362             231,188
     Creditors falling due within one year                                      560,055             342,349
     Creditors falling due after more than one year (convertible
     loan)
                                                                                160,000                   -
     Total creditors                                                            720,055             342,349

10.  Changes in share capital

     There has been a total of 3,000,000 1p ordinary shares issued since 1 
     November 2002. These shares were issued as a part of the consideration in 
     respect of an agreement with Hollinger Advertising.  £150,000 cash was 
     received in consideration for these shares.
     
11.  Reconciliation of movement in shareholders' funds

                                                       Six months ended      Six months ended         Year ended
                                                          30 April 2003         30 April 2002        31 Oct 2002
                                                                      £                     £                  £

     Loss on ordinary activities after taxation             (2,426,194)             (720,804)        (3,465,596)
     Issue of ordinary share capital                            150,000             1,089,255          1,089,255
     Net increase/(reduction) in shareholders'              (2,276,194)               368,451        (2,376,341)
     funds
     Opening shareholders' funds                              4,129,189             6,505,530          6,505,530
     Closing shareholders' funds                              1,852,995             6,873,981          4,129,189
          
12.  Reconciliation of operating loss to operating cashflows

                                                        Six months ended      Six months ended         Year ended
                                                           30 April 2003         30 April 2002        31 Oct 2002
                                                                       £                     £                  £


     Operating loss                                          (2,426,262)             (765,040)        (3,524,451)
     Exceptional non-cash charges                                971,865                     -            998,699
     Depreciation                                                 54,262                36,171             82,600
     Amortisation                                                366,024               135,756            376,582
     Decrease /(increase) in debtors                             167,714             (338,830)            805,891
     (Increase)/decrease in creditors                            216,707               136,577             30,696

     Net cash outflow from operating                           (649,690)             (795,366)        (1,223,993)
     activities


     This Interim Report was approved by the Directors on 29 July 2003.

     The report will be sent to all registered shareholders and will be 
     available to members of the public from the Company's registered office at 
     12 Gough Square, London EC4A 3DW and online from the Company's corporate 
     website at www.npg-plc.com.


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