Interim Results

Harrier Group PLC
4 September 2000


                             CHAIRMAN'S STATEMENT
                                       
                                       
I am pleased to report that we successfully completed the acquisition of
Zeuros Limited on 12 May 2000.  This has firmly positioned the Group as a
leading provider and enabler of secure e-business solutions.

The turnover for the six months to 30 June 2000 amounted to £4.87 m
(1999:£2.53 m) and the loss before tax and goodwill was £173,785 (1999:£20,488
profit).

The loss for the half year reflects the increase in the Group's overheads
comprising a move to larger premises and the recruitment of additional
employees to cope with increased organic opportunities in a rapidly growing
market, the benefits of which will be reflected in the second half of the year
and 2001.

The first quarter's trading was disappointing with many projects being
deferred, but this was followed by a significant improvement in order intake
in the second quarter, which has continued during the third quarter,
particularly in respect of managed and professional services.  The current
level of business under negotiation is at an all time high having grown
continuously month on month throughout the period.

The operating business of Zeuros Limited and the smaller Renet Limited
acquisition have been fully integrated together with Harrier Network Solutions
and Harrier Storage Solutions into a new operating entity, Harrier Zeuros
Limited, with a consequent saving in management costs giving a total focus on
our chosen market sector of e-business and internet security.

Harrier Zeuros Limited is focussing on developing a higher margin managed and
professional services business and building an increasing contract base, with
deferred income having grown to £984,900 as at 30 June 2000 (1999:£288,700).

The Board is focussing on organic growth and has decided with effect from 4
September 2000, to promote the key directors of Harrier Zeuros Limited to the
Group Board, namely David Cheesman, Chief Operating Officer; Colin Bradley,
Sales Director and Sarah Carter, Marketing Director.  Trevor Meredith, a co-
founder of the Group, is retiring from the Board with effect from 4 September
2000 and we are all indebted to him for his hard work and support in helping
create the exciting future, which the Group enjoys today and wish him every
success and good health in the future.

Our employee numbers have grown from 43 as at 31 December 1999 to 79 as at 30
June 2000 and will continue to grow in line with the organic development of
the business.

We have made significant progress since our flotation in November 1999 and
will continue to grow the business organically utilising strategic alliances
and acquisitions where appropriate.  Current trading is excellent and well
ahead of last year and we look forward to the future with confidence.


A L R Morton
Chairman
1 September 2000

CONSOLIDATED PROFIT AND LOSS ACCOUNT                                          
SIX MONTHS ENDED 30 JUNE 2000                                                 

                                                                              
  
                                 Unaudited                                
                    Six months to 30 June 2000        Audited          Audited
                   Continuing                        Six months      Year ended
                   Activities  Acquisitions TOTAL   to June 1999  December 1999 
                                             
                                                         
                       £             £       £           £               £    
                                                                              
  
Turnover           2,827,454   2,040,983   4,868,437   2,534,314     5,437,201
                                                                             
Cost of sales     (1,774,300) (1,165,749) (2,940,049) (1,415,966)   (3,146,552)
                                                                              
  
                                                                              
  
Gross profit       1,053,154      875,234  1,928,388   1,118,348     2,290,649 
                                
                                                                              
  
Administrative     1,873,145      250,438  2,123,583     961,273     2,229,011
expenses 

Exceptional           30,000         -        30,000       -             -
Redundancy                            
costs                                                                         
                                                                           
Operating (loss)    (849,991)      624,796  (225,195)    157,075        61,638
/profit    
                               
                                                          
Interest receivable                           52,780       -            14,832 
Interest payable                              (1,370)   (135,470)     (229,148)

                 
(Loss)/Profit on ordinary                                                     
activities before taxation                  (173,785)     21,605      (152,678) 
                                          
Taxation                                        -          -              -
                                                                              
  
(Loss)/Profit on ordinary                                                     
activities after taxation                   (173,785)     21,605      (152,678) 
                                              
                                                                                
Additional finance costs                        -         (1,117)       (1,851)
of non-equity
minority interest                              
                                              
Loss on ordinary                            (173,785)     20,488      (154,529)
activities
before goodwill                            
                           
Goodwill                                    (136,073)       -              -    
             
                                             
Retained (loss)/profit                      (309,858)     20,488     (154,529) 
for the period                                 
                                                                              
  
BASIC LOSS PER SHARE                         (1.36p)        N/A       (0.5p) 
                                                                              
 
DILUTED LOSS PER SHARE                       (1.26p)        N/A       (0.49p) 

CONSOLIDATED BALANCE                                                
SHEET
AS AT 30 JUNE 2000                                                   
                                                                      
                                 30 June        30 June         31 Dec 
                                  2000           1999            1999
                                Unaudited       Audited         Audited 
                                   £               £               £    
                                                                      
Fixed Assets                                                          
Tangible assets                  659,798        358,317        346,333 
Goodwill                      19,366,749             -              -           
           
                                             
                                                                      
                              20,026,547        358,317        346,333 
                                
                                                                      
Current Assets                                                        
Stock                             94,913         23,400         55,538 
Debtors                        4,940,746      1,364,504      2,133,925 
Term deposit                  14,000,000             61      2,106,779        
                                                  
Cash and bank balances         1,753,003             -              -
                                                                      
                              20,788,662      1,387,965      4,296,242 
                              
                                                                      
Creditors                                                             
Amounts falling due           (4,533,338)    (1,386,780)    (1,532,488) 
within one year               
                                                          
Net Current assets            16,255,324          1,185      2,763,754 
                                 
                                                                      
                                                                      
Total assets less current     36,281,871        359,502      3,110,087 
liabilities                      
                                                                      
Creditors                                                             
Amounts falling due          (14,015,119)     (1,541,373)      (10,731) 
afterone year                      
                                                                      
Net assets/(liabilities)      22,266,752      (1,181,871)    3,099,356 
                                                          
Capital and reserves                                                 
Called up share capital          285,650         428,980       206,617 
Share Premium account         23,946,311         104,724     4,548,112 
                                 
Capital redemption               268,972              -        268,972 
reserve                                 
Profit and loss account       (2,234,203)     (1,749,328)   (1,924,345) 
                                        
Minority interest                     22          33,753            -
                                                     
                                                                      
Equity Shareholders' Funds    22,266,752      (1,181,871)    3,099,356 
              
                                    
CONSOLIDATED CASHFLOW                                                      
SIX MONTHS ENDED 30 JUNE 2000                                              
                                         Unaudited      Audited      Audited
                                         Six months   Six months    Year ended
                                           ended         ended
                                       30 June 2000  30 June 1999  31 Dec 1999
                                 NOTES       £             £            £
Net cash outflow from operating                                            
activities                        4       (678,592)      (88,051)     (320,074)
                                                                            
Returns on investments and                                                 
servicing of finance                                                       
Interest received                           52,780            -         14,832
Interest paid                               (1,370)      (65,957)     (229,148)
                                                                            
                                            51,410       (65,957)     (214,316)
Taxation                                                                   
Corporation Tax paid                             -            -             -   
                         
                                              
                                                                            
Capital expenditure and                                                    
financial investment                                                       
Purchases of tangible fixed                (214,822)    (127,376)     (131,651)
assets
Sales of tangible fixed asset                80,586       23,446        17,500
Purchase of minority interests                   -            -        (34,487) 
  
                                                                                
                                        
Net cash outflow from investing            (134,236)    (103,930)     (148,638)
                                                                            
Acquisitions and disposals                                                 
Purchase of subsidiary                     (112,500)           -            -  
undertaking               
Net cash acquired with                      578,476            -            -  
subsidiaries                                                 
                                                                            
                                            465,976            -            -   
         
                                                                            
Net cash outflow before                    (295,442)    (257,938)     (683,028)
financing
                                                                            
Financing                                                                  
Issue of Ordinary Share Capital          14,758,343      450,000     5,459,621
Costs of Issue                             (581,111)          -       (519,624)
Issue of shares to minority                      22           -             -   
          
Issue of discounted capital                      -       284,295       284,295
bond                                           
Other loans                                      -             -      (400,000)
Repurchase of Discounted                         -             -    (1,436,439)
Capital Bond                                                    
Hire purchase loans repaid -               (19,690)       (3,078)     (133,238)
net
                                                                            
                                                                            
                                        14,157,564       731,217     3,254,615
                                                                            
Increase in cash                        13,862,122       473,279     2,571,587
                                                                            
                                                                            
Reconciliation of net cash flow to 
movement in net funds/(debt)
                                                                            
Increase in cash in the period          13,862,122       473,279     2,571,587
                                                                            
Cash inflow from increase in           (14,000,000)           -             -  
debt                                                    
Cash outflow from decrease in lease         19,690            -             -  
financing                                                
Change in net equity resulting from       (118,188)      (51,846)    1,685,382
cashflows                                                            
New finance leases                              -             -        (62,955) 
                           
Finance leases acquired with               (19,276)           -             -  
subsidiaries 
                                                               
                                                                            
Movement in net funds in period           (137,464)      421,433     4,194,014
                                                                            
Net funds/(debt) at start of             1,871,803    (2,322,211)   (2,322,211)
period                                                                     
                                                                            
                                                                           
Net funds/(debt) at end of               1,734,339    (1,900,778)    1,871,803
period                                                       


                         NOTES TO THE INTERIM RESULTS

  1.   The  interim  figures  for the six month period to  30  June  2000  are
       unaudited and do not constitute statutory accounts.

  2.   The  financial  information set out in the interim statement  has  been
       prepared in accordance with applicable accounting standards. The
       accounting policies have been consistently applied both in 1999 and 2000 
      and are described in the 1999 financial statements.

  3.   The basic loss per share figure is based on the loss for the period and
       the weighted average number of ordinary shares in issue during the
       period of 22,828,725. Fully diluted loss per share includes share        
      options and the weighted average number of ordinary shares in the period  
     is 24,681,222.

  4.   Reconciliation  of  (loss)/profit to  net  cash  flows  from  operating
       activities  after  taking  into account the acquisition  of  subsidiary
       undertakings detailed in note 5.
  
                                   6 months to    6 months to     Year ended
                                    June 2000      June 1999       Dec 1999
                                        £              £              £

      Operating(loss)/profit         (225,195)      157,075         61,638
      Depreciation                     58,334        80,688        164,382
      Loss on sale of fixed assets     30,420         6,022          7,488
      Decrease/(increase in stock     573,780        13,839        (18,299)
  (Increase)/decrease in debtors   (2,600,928)      283,252       (486,169)
      
   Increase/(decrease in creditors  1,484,997      (628,927)       (49,114)
       

  Net  cash outflow from operating   (678,592)      (88,051)      (320,074)   
   activities                 
       

  5.   Subsidiary undertakings were purchased in the period to 30 June 2000:
                                                       
                                                                      £
                                                       
       Net assets acquired
       Fixed assets                                                267,982
       Stock                                                       613,155
       Debtors                                                     205,893
       Cash at bank and in hand                                    578,476
       Creditors                                                (1,719,052)
       Finance leases                                              (19,276)
                                                                   (72,822)
       
       Goodwill                                                 19,502,822
                                                                19,430,000

       Satisfied by
       Cash                                                       112,500
       Deferred consideration                                      17,500
       Consideration shares                                     5,300,000
       Loan notes                                              14,000,000
                                                               19,430,000

  
  6.   Minority interests represent new voting, non-participating shares in
       the subsidiary company Harrier Corporation Limited.

  7.   The interim report was approved by the directors on 1 September 2000. A
       copy of the interim report will be posted to shareholders and will also
       be available from the Company's registered office at Pacific House,
       Imperial Way, Reading, Berks RG2 0TD.