Final Results

Billam PLC
27 February 2004

                                  BILLAM PLC

                           PRELIMINARY ANNOUNCEMENT
                     FOR THE YEAR ENDED 31 DECEMBER 2003


The Board of Billam Plc ('Billam' or 'the Company'), the investment company
specialising in technology for the future, is pleased to announce its
Preliminary Results for the year to 31 December 2003.

Achievements

   •Net assets grown 70.7% over a three year period
   •Net assets £10.7 million at 31 December 2003
   •Significant commercial progress made by investee companies particularly
    CybIT Holdings plc
   •Revised website www.billamplc.co.uk
   •Successful flotation of EiRX Therapeutics plc in January 2004

Commenting on the results, Billam's Chairman, Victor Beamish, said:

'Billam is well positioned with a good portfolio of investments, minimal
borrowings and has an appetite to expand its portfolio and develop its existing
holdings. We look to float further companies in our portfolio during 2004 which
should increase value and give management greater flexibility to develop the
business.'

The above summary should be read in conjunction with the full text of the
following announcement.

Enquiries

Billam Plc                                020 7336 1300
Angus Forrest
Bishopsgate Communications                020 7430 1600
Maxine Barnes / Dominic Barretto
[e-mail]




CHAIRMAN'S STATEMENT

For the year ended 31 December 2003

The second half of 2003 brought some welcome relief after two very difficult
years in technology and biotech investment.

Billam's progress with both unquoted and quoted investments continued. In the
quoted sector, on the back of the impressive growth in its business Cybit
produced a spectacular recovery from the gloom of March 2003. Elsewhere in the
unquoted investments there have been success stories where companies have
commercialised their technologies. For example, Eirx Therapeutics and Physiomics
appear destined for significant progress during 2004.

Company

During 2003 we have devoted time and resources to the corporate structure of
your Company to focus it for future growth. This included buying 100% of the
shares of two subsidiaries, World Life Sciences and URCO. Also, we have
completed a consolidation on the basis of 1 share for every 100. This should
benefit all shareholders by reducing the bid/offer spread, reducing
administrative costs and making the company more attractive to institutions.

I would like to thank all the staff including my fellow directors, and in
particular Angus Forrest, for their hard work during 2003 and pay tribute to
those directors and employees who have left during the year.

Shareholders

We are very aware that the period up to the second half of 2003 has been a
difficult time for shareholders in Billam. We appreciate your support. The
Company is in good shape and we are hopeful that our past endeavours will be
reflected in a much more robust share price during 2004. The asset base is there
and we feel that with patience the market will come to recognise good value.

The free share dealing for small shareholders which I alluded to in my letter
prior to the share consolidation will run through to 30 March. Every eligible
shareholder, those with holdings of 1,000 or less Ordinary 10 pence shares, will
receive a personal letter and details of how to take advantage of this free
service with the Report and Accounts.

Outlook

As previously stated we are positioning our investee companies to go public.
Subsequent to the year-end, on 13 January 2004 Eirx Therapeutics plc's shares
were admitted to AIM. The flotation was well received and currently the shares
are trading at a premium to the share price on admission.

Billam is well positioned with a good portfolio of investments, minimal
borrowings and has an appetite to expand it's portfolio and develop its existing
holdings. We look to float further companies in our portfolio during 2004 which
should increase value and give management greater flexibility to develop the
business.

Victor Beamish
Chairman



CHIEF EXECUTIVE'S REPORT

FOR THE YEAR ENDED 31 DECEMBER 2003



Executive Report

In the past 12 months there has been increasing focus on the portfolio and
successful exits have been made from those investments in which Billam held
small shareholdings as well as those that showed little opportunity for
significant capital growth. All the remaining trading portfolio companies have
made substantial progress in building their businesses organically and in some
cases by targeted acquisition. In line with this focus there has been a
reduction in overheads which will be evident in 2004.

Investment policy

Billam has concentrated on ensuring the success of its higher growth portfolio
companies. The objective has been, and continues to be, to increase the value of
the quoted proportion of the portfolio.

Billam seeks to invest in companies which have business models offering the
potential to become major players in their market and to develop an
international presence. These companies should offer a sustainable competitive
advantage with a value proposition which can demonstrate user benefits. The
companies should be early to market to generate sales, profits and cash through
trading and be able to float on a stockmarket to accelerate growth, possibly by
acquisition.

Investment activity

Our concentration on the core portfolio was a strategy designed to offer the
best potential for maximum returns for Billam shareholders. It comprised both
capital growth and the conversion of unquoted into quoted investments.
Therefore, we made no investments in new companies during the year.

Performance in the year 1 January 2003 to 31 December 2003

Our target is for net assets per share to out perform the benchmark indices
shown below:

Net assets per share have reduced by 11% (adjusted in respect of the share
consolidation) in the year.
FTSE Techmark All share index           42%
FTSE All share index                    17%
FTSE AIM index                          39%

While our net assets have shown significant growth they did not outperform the
benchmark indices in 2003. However over a three year period from 31 December
2000 they have grown 70.7% which compares favourably with FTSE Techmark All
share -56%, FTSE All share -26% and FTSE AIM -42%.

Outlook for the portfolio

In 2003 the financial markets began to recover from a two-year recession and the
technology sector benefited from investor interest. We continue to believe that,
over the longer term, technology businesses which are focused on commercial
applications will outperform. In the second half year the Company's performance
improved, with significant growth in assets compared to the interim results at
30 June 2003.

The increasing interest in technology has enabled EiRx Therapeutics plc to float
after the year end. This will significantly enhance the value of the quoted
portfolio.

Communications

Billam's website (www.billamplc.co.uk) will be regularly updated with portfolio
and Company news. Shareholders and others can obtain updates by email if they
register on the website.

Angus Forrest
Chief Executive

PORTFOLIO REVIEW

For the year ended 31 December 2003

The portfolio companies are described below.

Quoted securities


CYBIT HOLDINGS PLC


CybIT is believed to be the fastest growing provider of telematic services in
the UK. In the past 12 months it has launched new products and announced
alliances with several major UK companies including insurers such as Norwich
Union, telcos such as Vodafone and O2, lessors such as BRS and Lex, as well as
specialist mobile telecom distributors.

At the interims CybIT's sales had grown 79% (compared with 2002) and the company
declared a small profit. The company raised c.£4.5 million net of costs in
November 2003. This will allow CybIT to accelerate growth plans and develop its
recurring revenue based business model.

CybIT's shares are traded on AIM.


IVU TRAFFIC TECHNOLOGIES AG

IVU is a leading Berlin-based developer of software for telematic solutions and
logistics. It was established 25 years ago. Following a fast expansion by
acquisition in 2001 IVU has reorganised its structure, been refinanced and taken
measures to reduce costs and concentrate on profitability. In 2003 it introduced
new versions of existing products and increased its share in its core markets
whilst winning sales in new markets.

IVU shares are listed on the Frankfurt Stock Exchange.

Unquoted securities


AUTONOMICS LIMITED

Autonomics continues to develop a sophisticated financial modelling tool which
will be adapted for specific market applications particularly as a tool for
financial analysts, corporate financiers and the finance departments of
multinational businesses.

EIRX THERAPEUTICS PLC

EiRx Therapeutics Limited floated on AIM on 13 January 2004. This business was
one of the core constituents of EiRx Pharma Limited, the other being Physiomics
plc. EiRx Therapeutics' principal activity is the discovery and validation of
genes that are involved in apoptosis (a regulated series of events that occurs
in human cells and results in their death) and therefore potential targets for
novel therapeutics. In doing so, EiRx Therapeutics creates intellectual property
that it out-licenses or seeks to exploit by other means.

In 2003 EiRx signed three commercial agreements to out-license drug targets and
to carry out contract research.

EiRx Therapeutics' fund raising and float are important steps in accelerating
its drug discovery and development schedule and in enabling it to out-license
its products at a later and more valuable stage of their development.


INAPLEX LIMITED

Inaplex' software is a key component to enable users of other software products
to migrate their data from one system to another quickly, efficiently and at low
cost. Inaplex is the first developer of data integration software to be an
accredited technical partner of Frontrange, SalesLogix and Microsoft for CRM
packages. In the past year the company has been approved by SalesLogix and
Microsoft and has been building sales via dealer networks in the UK and US. The
company's business model is being developed to increase revenue streams.

PHYSIOMICS PLC

Physiomics has developed a systems biology knowledge model using its own
mathematical simulation and software-based products and services. Using the
virtual research environment of a Systemcell TM, scientists can simulate
experiments in silico (in computer) that could take months or years to complete
in the lab or clinic. This increases productivity at every stage of drug
discovery and development (lead generation, lead optimisation and clinical
development).

Physiomics has begun to commercialise its products and services. It has been
able to demonstrate commercial success and is negotiating collaboration
agreements with several pharma and biotech companies.

SIRUS PHARMA LIMITED

Sirus is an emerging, speciality pharmaceutical company, focusing on the
improvement of established drugs to treat diseases of the nervous system. The
company is achieving this through targeting drugs to the site of action in the
nervous system, by utilising sophisticated delivery systems and by modification
of the chemical properties of medications of proven efficacy.

Sirus has a pipeline of pre-clinical and clinical stage products in various
phases of development based upon its suite of proprietary platform technologies
covering pain, emesis, epilepsy and insomnia.

The company has a collaboration programme with a major pharmaceutical company.

TRI-MEX GROUP LIMITED

TRI-MEX is a provider of telematic services specialising in security
applications, particularly for high value goods and assets. In the past year it
has increased revenues, forged partnerships with insurers and has built a
customer base which includes major international companies.

TRI-MEX is now concentrating on two services: a higher cost service (CHIEFS),
which continuously monitors loads (users are typically silicon chip, computer,
mobile phone and cigarette makers); and a lower cost service (EuroWatch), which
is a reporting and liaison service operated with police forces throughout
Europe, including the Eastern Bloc. Both services have proven efficiency and
their customer numbers and sales revenues are growing.

Subsidiary undertakings

URCO plc - The Company, through its subsidiary undertakings, has a 100% interest
in URCO plc. URCO plc's business is to make and manage investments in start-up
and early stage companies.

World Life Sciences Limited - The Company has a 100% interest in World Life
Sciences Limited. World Life Sciences Limited makes and manages investments in
start-up and early stage bio-technology companies.

CONSOLIDATED STATEMENT OF TOTAL RETURN (incorporating the revenue account)

For the year ended 31 December 2003

                                2003      2003     2003      2002      2002     2002
                      Note     £'000     £'000    £'000     £'000     £'000    £'000
                             Capital   Revenue    Total   Capital   Revenue    Total

Gains/(losses) on
investments                    2,193         -    2,193    (1,912)        -   (1,912)

Income                             -       239      239         -       157      157
                               -------   -------  -------   -------   -------  -------

Gross revenue and
capital
return/(deficit)               2,193       239    2,432    (1,912)      157   (1,755)

Administrative
expenses                           -      (871)    (871)        -      (650)    (650)
                               -------   -------  -------   -------   -------  -------

Net return/(deficit)
before exceptional
items, finance costs
and taxation                   2,193      (632)   1,561    (1,912)     (493)  (2,405)

Loss on sale of
subsidiary                      (116)        -     (116)        -         -        -

Interest payable and
similar charges                    -        (6)      (6)        -        (1)      (1)
                               -------   -------  -------   -------   -------  -------

Return/(deficit) on
ordinary activities
before taxation                2,077      (638)   1,439    (1,912)     (494)  (2,406)

Tax on ordinary
activities               2      (339)      121     (218)      483       155      638
                               -------   -------  -------   -------   -------  -------
                               1,738      (517)   1,221    (1,429)     (339)  (1,768)

Minority interests
attributable to
equity shareholders                -         -        -      (100)      (13)    (113)
                               -------   -------  -------   -------   -------  -------

Return/(deficit)
attributable to
equity shareholders            1,738      (517)   1,221    (1,529)     (352)  (1,881)
                               =======   =======  =======   =======   =======  =======

Return/(deficit) per
ordinary share
Basic and fully
diluted                  3      12.7p     (3.8p)    8.9p    (13.0p)    (3.0p)  (16.0p)
                               =======   =======  =======   =======   =======  =======

The return per ordinary share is based on the weighted average number of
ordinary shares in issue during the year of 13,624,235 ordinary shares of 10
pence (2002 restated: 11,724,400 ordinary shares of 10 pence).

The revenue column of this statement is the profit and loss of the Group.

All of the above results arise from continuing activities.

The accompanying accounting policies and notes form an integral part of these
financial statements.


CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2003

                                                             2003     2002
                                                            £'000    £'000
Fixed assets
Tangible assets                                                 -       24
Investments                                                11,798    9,354
                                                            -------  -------
                                                           11,798    9,378
Current assets
Debtors                                                       137      206
Cash at bank and in hand                                      158       12
                                                            -------  -------
                                                              295      218

Creditors: amounts falling due within one                    (143)    (719)
year                                                        -------  -------

Net current assets/(liabilities)                              152     (501)
                                                            -------  -------

Total assets less current liabilities                      11,950    8,877

Creditors: amounts falling due after more                    (899)       -
than one year

Provision for liabilities and charges                        (336)    (118)

Minority interests                                              -     (111)
                                                            -------  -------
                                                           10,715    8,648
                                                            =======  =======
Capital and reserves
Called up share capital                                     1,775    1,345
Share premium account                                       5,056    4,640
Other reserves
Capital reserve realised                                     (886)  (1,239)
Capital reserve unrealised                                  4,850    3,465
Merger reserve                                              1,736    1,736
Revenue account                                            (1,816)  (1,299)
                                                            -------  -------
Shareholders' funds                                        10,715    8,648
                                                            =======  =======

Total shareholders' funds are attributable
to:
Equity shareholders                                        10,557    8,490
Non-equity shareholders                                       158      158
                                                            -------  -------
                                                           10,715    8,648
                                                            =======  =======
Net asset value per share
Ordinary shares                                              65.3p    71.5p
Deferred shares                                               0.1p     0.1p
                                                            =======  =======


CONSOLIDATED CASH FLOW STATEMENT

For the year ended 31 December 2003
                                              2003    2003    2002    2002
                                      Note   £'000   £'000   £'000   £'000

Net cash outflow from operating
activities                               4            (817)           (794)

Returns on investment and servicing
of finance
Interest paid                                   (6)             (1)
                                             -------         -------
Net cash outflow from returns on
investment and servicing of finance                     (6)             (1)

Capital expenditure and financial
investment
Purchase of tangible fixed assets                -             (36)
Purchase of investment in subsidiary           (17)              -
Purchase of investments                     (1,027)         (1,171)

Sale of investments                            776           1,177
                                             -------         -------
Net cash outflow from capital
expenditure and financial investment                  (268)            (30)

Acquisitions
Deferred consideration and other
costs                                            -            (365)
on previous acquisitions                     -------         -------
Net cash outflow from acquisitions                       -            (365)
                                                     -------         -------

Net cash outflow before financing                    (1,091)         (1,190)

Financing
Issue of share capital                         846             344
Receipt of borrowings                          397               -
                                             -------         -------

Net cash inflow from financing                       1,243             344
                                                     -------         -------

Increase / (decrease) in cash in the
year                                     5             152            (846)
                                                     =======         =======


NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2003

1 BASIS OF PREPARATION

The preliminary announcement has been prepared under the historical cost
convention, as modified by the revaluation of investment assets.

The Group's accounts have been prepared in accordance with the Statement of
Recommended Practice for investment trusts.
The significant accounting policy of the Group is as follows;

INVESTMENTS

Listed investments are valued at mid market prices. Unlisted investments are
valued at cost or with reference to available information including market
prices of similar companies, latest dealings, accounting information and
professional advice as appropriate in accordance with the guidelines issued by
the British Venture Capital Association.

Realised surpluses or deficits on the disposal of investments and permanent
impairments in the value of investments are taken to capital reserve - realised,
and unrealised surpluses and deficits on the revaluation of investments are
taken to capital reserve - unrealised, as explained in the capital reserve
policy below.

2 TAX ON ORDINARY ACTIVITIES

The tax (charge) / credit for the year is made up as follows:

                               2003      2003     2003      2002      2002     2002
                              £'000     £'000    £'000     £'000     £'000    £'000
                            Capital   Revenue    Total   Capital   Revenue    Total

Deferred tax                   (339)      121     (218)      483       155      638
                              =======   =======  =======   =======   =======  =======

3 RETURN PER ORDINARY SHARE

The return per ordinary share is based on the weighted average number of
ordinary shares in issue during the year of 13,624,235 ordinary shares of 10
pence (2002 restated: 11,724,400 ordinary shares of 10pence) and the following
figures:

                      2003      2003      2003       2002       2002       2002
                     £'000     £'000     £'000      £'000      £'000      £'000
                   Capital   Revenue     Total    Capital    Revenue      Total

Return
attributable to      1,738      (517)    1,221     (1,529)      (352)    (1,881)
equity              ========  ========  ========   ========   ========  =========
shareholders

Return per
ordinary              12.7p     (3.8p)     8.9p     (13.0p)     (3.0p)    (16.0p)
shares              ========  ========  ========   ========   ========  =========

All options outstanding during the year and at the year end were non-dilutive.

4 RECONCILIATION OF OPERATING return/(deficit) TO NET CASH FLOW FROM OPERATING
ACTIVITIES
                                                          2003      2002
                                                         £'000     £'000

Operating return/(deficit)                               1,561    (2,405)
Depreciation                                                24        14
Release of negative goodwill                               (94)      (60)
Loss on sale of subsidiary                                (116)        -
(Gain)/loss on sale of investments                        (132)    1,429
Unrealised (increase)/decrease in investment            (2,061)      483
appreciation
Decrease/(increase) in debtors                              69      (143)
Decrease in creditors                                      (68)     (112)
                                                        --------  --------
Net cash outflow from operating activities                (817)     (794)
                                                        ========  ========

5 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
                                                          2003      2002
                                                         £'000     £'000

Increase/(decrease) in cash in the year                    152      (846)
Loan note issued in the year                              (397)        -
                                                        --------  --------
Change in net funds resulting from cash flows             (245)     (846)
Net funds at 1 January 2003                                  6       852
                                                        --------  --------
Net (debt)/funds at 31 December 2003                      (239)        6
                                                        ========  ========

6 PUBLICATION OF NON-STATUTORY ACCOUNTS

The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in section 240 of the Companies Act
1985.

The summarised balance sheet at 31 December 2003 and the summarised profit and
loss account, summarised cash flow statement and associated notes for the year
then ended have been extracted from the Group's 2003 statutory financial
statements upon which the auditors opinion is unqualified.

Those financial statements have not yet been delivered to the Registrar.

7 ANNUAL GENERAL MEETING

The Company's Annual General Meeting will be held at midday on 30 March 2004 at
the offices of KBC Peel Hunt, 111 Old Broad Street, London, EC2N 1PH.



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