Final Results

Harrier Group PLC
05 April 2005


                               HARRIER GROUP PLC
          PRELIMINARY RESULTS ANNOUNCEMENT YEAR END 31ST DECEMBER 2004

CHAIRMAN'S STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2004

After a profitable start to the year, I am disappointed to announce a loss for
the Group for the year ended 31 December 2004.

Whilst turnover for the year increased to £11.2m (2003: £9.0m) the second half
turnover declined to £5.1m from £6.1m in the first half owing to a slow down in
third quarter revenue, causing the Group to become loss making during the second
half of the year. Gross margins declined over the year to 40% (2003: 49%), due
to higher product sales.

EBITDA for the year fell to £100,566 (2003: £566,027), the loss on ordinary
activities before exceptional costs amounted to £34,120 (2003: profit £349,286)
and the net loss for the year was £124,178 after the abortive costs of £90,058
of the proposed merger with Articon Integralis AG (2003: profit £200,381).

Cash balances increased to £1.45m at the year end (2003: £1.3m)

Although the markets in which we operate have been active, our trading
performance has not been delivered in line with expectations.

During the past three years we have failed to grow the Group organically or by
acquisition and our proposed move into outsourcing never materialised. As a
result, the Board decided to consider approaches from parties interested in
consolidating our market sector.

Having considered possible offers for the Company or its businesses over the
last six months, we announced on 10 March 2005 the sale of the businesses of
HarrierZeuros Ltd, HarrierZeuros Storage Solutions Ltd and IKAN Ltd, along with
certain assets of the Group to Matrix Communications PLC for a total
consideration, including the repayment of intercompany loan accounts, of
£4.5million in cash.

Cash position at the 1st April 2005 was £4.3m, with £100,000 held within Escrow.

Following the sale, Jim Stoddart has resigned as Chief Executive and Sarah
Carter has resigned as Sales and Marketing Director of the Company. We thank
both of them for their contributions to the Group and wish them every success
for the future.

The Board of Harrier will now consider the best use of the company's cash for
the benefit of shareholders including, amongst other things, seeking to acquire
new businesses or returning the cash to shareholders.



CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2004
                                                           2004           2003
                                                              £              £

Turnover                                             11,214,119      9,029,851

Cost of sales                                        (6,682,404)    (4,613,122)
                                                       ----------     ----------

Gross profit                                          4,531,715      4,416,729

Administration expenses                              (4,616,405)    (4,107,933)
                                                       ----------     ----------

Operating (loss)/profit before exceptional costs        (84,690)       308,796

Exceptional costs
- severance costs                                             -       (148,905)
- professional fees relating to abortive merger         (90,058)             -
                                                       ----------     ----------

Operating (loss)/profit                                (174,748)       159,891

Interest receivable                                      51,348        186,591

Interest payable                                           (778)      (146,101)
                                                       ----------     ----------

(Loss)/profit on ordinary activities before
taxation                                               (124,178)       200,381
                                                       ----------     ----------

Taxation

(Loss)/profit for the financial year                   (124,178)       200,381
                                                       ==========     ==========

Basic (loss)/profit per share                             (0.42)p         0.69p
                                                       ==========     ==========

Diluted (loss)/profit per share                           (0.39)p         0.55p
                                                       ==========     ==========



CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2004
                                               2004                       2003
                     Notes            £           £            £             £

Fixed assets
Intangible assets                                 -                          -
Tangible assets                             302,569                    376,059
                                            ---------                  ---------
                                            302,569                    376,059

Current assets
Stocks                            7,172                  103,841
Debtors                       2,356,138                2,143,900
Cash and bank                 1,446,822                1,284,124
balances                        ---------                ---------
                              3,810,132                3,531,865

Creditors: Amounts
falling due within           (2,903,074)              (2,583,672)
one year                        ---------                ---------
Net current assets                          907,058                    948,193
                                            ---------                  ---------

Total assets less                         1,209,627                  1,324,252
current liabilities                         =========                  =========


Capital and reserves
Called up share capital                     293,103                    292,420
Share premium account                             -                 23,962,485
Capital redemption reserve                        -                    268,972
Profit and loss account                     916,524                (23,199,647)
                                            ---------                  ---------

Equity shareholders' funds                1,209,627                  1,324,230

Minority interests                                -                         22
                                            ---------                  ---------

Total shareholders' funds                 1,209,627                  1,324,252
                                            =========                  =========




CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2004
                                              2004                        2003
                                      £          £             £             £

Net cash inflow/(outflow) from
operating activities                       214,321                    (363,021)

Returns on investments and
servicing of finance

Interest received                51,348                  186,591
Interest paid                      (778)                (146,101)
                                ---------                ---------

Taxation                                    50,570                      40,490
Corporation tax paid                             -                           -

Capital expenditure and
financial investment
Purchases of tangible fixed    (114,021)                 (19,003)
assets
Sales of tangible fixed assets    2,255                    2,000
                                ---------                ---------

Net cash outflow from                     (111,766)                    (17,003)
investing activities                       ---------                   ---------

                                           153,125                    (339,534)

Financing
Issue of ordinary share           9,573                   28,004
capital
Redemption of loan notes              -              (12,000,000)
                                ---------                ---------
                                             9,573                 (11,971,996)
                                           ---------                   ---------

Increase/(decrease) in cash                162,698                 (12,311,530)
                                           =========                   =========


Reconciliation of net cash low to movement in net
funds

Increase/(decrease) in cash in the year                  162,698   (12,311,530)
Redemption of loan notes                                       -    12,000,000
                                                        ----------    ----------

Movement in net funds in the year                        162,698      (311,530)

Net funds at start of year                             1,284,124     1,595,654
                                                        ----------    ----------

Net funds at end of year                               1,446,822     1,284,124
                                                        ==========    ==========



NOTES TO THE FINANCIAL INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2004

1 The preliminary announcement of results has been prepared under the historical
cost convention in accordance with the Group's accounting policies for the year
ended 31 December 2004.

2 The above financial information does not constitute statutory accounts as
defined in Section 240 of the Companies Act 1985. The summarised balance sheet
at 31 December 2004 and the summarised profit and loss account and cash flow
statement for the year then ended have been extracted from the Group's financial
statements. These financial statements have not yet been delivered to the
Registrar of Companies.

3 The calculation of basic and diluted loss per ordinary share of 1p each is
based on the loss on ordinary activities after taxation and minority interests
of (£124,178) divided by the weighted average number of ordinary shares of 1p
each 29,287,573 (basic) and 37,893,119 (diluted).

4 Reconciliation of profit/(loss) to net cash outflow from continuing operating
activities

Reconciliation of (loss)/profit to net                       2004         2003
cash inflow/(outflow) from                                      £            £
operating activities

Operating (loss)/profit                                  (174,748)
Depreciation                                              178,588      249,748
Loss on sale of fixed assets                                6,668        7,481
Decrease/(Increase) in stock                               96,669      (75,059)
Increase in debtors                                      (212,238)    (346,592)
Increase/(Decrease) in creditors                          319,382     (358,490)
                                                         ----------    ---------

Net cash inflow/(outflow) from operating activities       214,321     (363,021)
                                                         ==========    =========

5 All of the Group's activities are classed as discontinuing due to the sale of
the Subsidiary trading companies on the 10th March 2005. There are no gains and
losses other than those disclosed in the Consolidated Profit and Loss Account.

6 No dividends are proposed or were paid during the period.

7 The Report and Accounts together with a Notice of Annual General Meeting which
will contain a summary of the Company's investment strategy will be sent to
shareholders shortly. Further copies may be obtained on application to the
Company's Registered Office, (Cromwell House, Cromwell Way, Bartley Wood, Hook,
Hampshire, RG27 9XA) or will be available for collection at the same address for
a period of 1 month from the date of publication.



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