Interim Results

Feedback PLC
19 December 2001



                                 Feedback PLC

                          Interim Statement for the

                        period to 30th September, 2001


CHAIRMAN'S INTERIM STATEMENT

In the half year to 30 September, the Group traded very much as indicated at
the time of the Annual General Meeting held in August. On turnover of £4.06M,
down 12% on the same period last year, the Group made a pre-tax loss of £
516,000 for the six months, which included £169,000 related to our share of
losses in our joint venture Company, TekniCAL. This result reflects the very
difficult trading conditions arising from the downturn in the UK manufacturing
sector and the current turbulent World markets in which the Group operates.

As a result of the poor trading experiences, some limited staff reduction of
the Group has been carried out since September, the benefits of which should
begin to show in the second half and will result in savings of some £250,000
in a full year. In implementing this, care has been taken to retain core
competency within the Group and maintain the level of both product development
and marketing effort to ensure we are able to meet market requirements.

The trading situation of the educational sector of the Group has been
disappointing. At Feedback Instruments export business continued to run behind
anticipated levels with delays in finalising contracts adversely affecting the
level of shipments in the first half of the year. We believe that business has
been delayed, not lost, by recent World events. Our sales staff continue to be
active in most areas of the World and this is viewed as very positive by our
customers, particularly those in politically sensitive regions and has
resulted in orders being secured.

In the UK we have seen a significant increase in business. This reflects the
current strength of the UK education market coupled with the release of the
Company's new Discovery Manager software and Internet based educational
products. Discovery Manager and the supporting educational content puts the
Company in a strong position in the developed markets of the World.

I have previously stated that TekniCAL represents both a major opportunity and
challenge for the Group. This is still the case and whilst the first half
results of TekniCAL have been below expectations they do show an improvement
on the comparable period last year. TekniCAL's channels to market have
increased significantly working with several prestigious organisations
including the consultancy arm of KPMG. This, together with routine business
now being secured, should lead to better results in the future. We remain
committed to acquiring our joint venture partner's 50% holding in TekniCAL and
it is hoped to conclude negotiations shortly.

The process of integrating the hardware/software products of Feedback
Instruments with TekniCALs Internet based virtual learning environments and
delivery systems continue. The education/training market has expectations of
ever increasing computer support in the teaching process and we believe the
current Feedback/TekniCAL products meet this requirement. The current product
development programme will keep us in the forefront of education and training
trends.

Feedback Incorporated operated broadly in line with expectations and was
profitable in the first half year. The slow down in the UK manufacturing
sector has had an adverse effect on the results of Feedback Data during the
first half year. Demand for Data Capture Terminals, the Company's core
business, was weaker than anticipated and served to reinforce the strategy of
developing data capture related products for a broad range of market sectors
outside the traditional core business area. Overall, these efforts are showing
encouraging signs. The Access Control range of products now has an established
user base and continues to secure both new and repeat business. A new Staff
Scheduling and Rostering System, aimed at small to medium sized businesses,
has been launched. Set against a background of on-going employment legislation
changes and general movement towards more flexible working practices, the
product has generated significant interest from the service sector and leisure
industry.

We continue new product development aimed at niche markets and an opportunity
has been recognised within the catering industry for a low cost innovative
product designed to record the temperature of fridges, freezers and chiller
cabinets. Initial orders and interest shown by the industry is already putting
the product on a sound footing. The German subsidiary operated satisfactorily
during the period .

The Group's trading generally has been adversely affected by market conditions
and, whilst the prospects and quotation levels remain very positive, the
timing of this potential business is even more difficult to predict than it
has been in the past. However, we are confident that the strategies which we
have in place are appropriate for developing and widening our market position
in data capture and meets the potential that now exists in the computer based
learning and training market, which is widely recognised as a major growth
area.

D H Harding, Chairman          19 December 2001



INTERIM REPORT

SUMMARISED PROFIT AND LOSS ACCOUNT


                              6 months to 30     6 months to 30      Year to 31
                                   Sept 2001          Sept 2000      March 2001 
                                      £'000s             £'000s         £ '000s 
              
Turnover                               4,057.1          4,625.9         9,320.7
Operating (loss) / profit              (355.4)         ( 140.0)           387.8
Share of operating (loss) of           (168.9)          (218.6)        ( 380.9)
joint venture
Net interest receivable /                  8.2              6.4          ( 6.8)
(payable)
(Loss) / profit on ordinary           ( 516.1)          (352.2)             0.1
activities before taxation
Tax on (loss) on ordinary                    -                -           192.1
activities
(Loss) / profit on ordinary            (516.1)          (352.2)           192.2
activities after taxation
Ordinary dividends paid and                  -                -               -
proposed
Preference dividends paid and           (43.4)           (46.1)          (89.5)
proposed
Preference share costs                       -            (2.1)          (10.2)
appropriation
Retained (loss) / profit for           (559.5)          (400.4)            92.5
the period
(Deficit)/ earning's per               (4.70)p          (3.43)p            0.8p
share
Diluted (deficit)/ earning's           (4.70)p          (3.43)p            0.8p
per share



Note:     The interim figures for the six months to 30 September 2001, which
are unaudited, have been prepared on the basis of the accounting policies set
out in the Annual Report for the year ended 31March 2001. The Financial
information contained in this Interim Report does not constitute statutory
accounts within the meaning of Section 240 of the Companies Act 1985.

The results for the year ended 31 March 2001 are extracted from the published
accounts for that period on which the auditors gave an unqualified report
under section 235 of the companies act and which have been filed with the
Registrar of Companies. The deficit per share for the six months ended 30
September 2001 is based on the Group loss on ordinary activities after
taxation and preference dividends of £559,500 attributable to 11,895,181
ordinary shares, being the weighted average number of ordinary shares in
issue. The diluted earnings per share is calculated allowing for the full
conversion of the Preference Shares and the full exercise of outstanding share
options. However, in accordance with Financial Reporting Standard 14, as
neither of these conversions have a dilutive effect the earnings per share
figure remains unaltered.



INTERIM REPORT

SUMMARISED BALANCE SHEET

                                6 months to 30    6 months to 30     Year to 31
                                     Sept 2001         Sept 2000     March 2001 
                                        £'000s            £'000s         £'000s 
           
Fixed assets                             634.7            579.2           582.7
    Current assets Stock               2,028.9          1,787.7         1,958.6

                      Debtors          3,820.9          4,649.1         4,191.5

     Cash at bank and in hand            649.4            915.1           628.6

                                   -----------      -----------     -----------

                                       6,499.2          7,351.9         6,778.7
Creditors: amounts falling           (2,779.5)        (3,780.6)       (2,631.7)
due within one year
Net current assets                     3,719.7          3,571.3         4,147.0
Total assets less current              4,354.4          4,150.5         4,729.7
liabilities
Creditors: amounts falling             (167.8)          (182.9)         (152.5)
due after more than one year
Provisions for liabilities             (402.7)           (71.5)         (233.8)
and charges
                                   -----------       ----------      ----------

                                       3,783.9           3896.1          4343.4
Ordinary share capital                 1,191.5          1,164.1         1,189.5
Preference share capital                 864.2            919.1           868.2
Reserves                               1,728.2          1,812.9         2,285.7
Shareholders' funds                    3,783.9          3,896.1         4,343.4



INTERIM REPORT

CASH FLOW STATEMENT
                               6 months to 30    6 months to 30     Year to 31
                                    Sept 2001         Sept 2000     March 2001 
                                       £'000s            £'000s         £'000s  
          
Net cash (outflow)/ inflow            (309.6)          (417.3)            72.3
from operating activities
Returns on investments and                8.2              6.4           (6.8)
servicing of finance
Preference dividend paid               (43.4)           (46.1)          (89.5)
Corporation tax (paid)/                 (1.7)             83.3            39.6
recovered
Capital expenditure                   (102.5)          (128.6)         (136.3)
Financing                              (15.0)           (18.7)          (42.2)
Management of liquid                        -            650.0           550.0
resources
(Decrease)/ increase in cash          (464.0)            129.0           387.1



Reconciliation of operating profit to net cash flow from operating activities


Operating (loss)/profit                         (355.4)     (140.0)       387.8
Depreciation charges                               50.5        57.5       113.3
(Profit) on sale of tangible fixed assets             -      (13.5)      (16.4)
Exchange difference                                   -       (8.8)     (113.9)
(Increase) in stocks                             (70.3)     (343.0)     (513.9)
Decrease/(increase) in debtors                    406.5     (502.1)         7.6
(Decrease)/increase in creditors                (340.9)       532.6       207.8
Net cash (outflow) / inflow from                (309.6)     (417.3)        72.3




INTERIM REPORT

Independent Review Report to Feedback plc

Introduction

We have been instructed by the company to review the financial information for
the six months ended 30 September 2001 set out on pages 4 to 6. We have read
the other information contained in the interim report and considered whether
it contains any apparent misstatements or material inconsistencies with the
financial information.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The directors
are responsible for preparing the interim report in accordance with Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999
/4 issued by the Auditing Practices Board for use in the United Kingdom. A
review consists principally of making enquiries of group management and
applying analytical procedures to the financial information and underlying
financial data and based thereon, assessing whether the accounting policies
and presentation have been consistently applied unless otherwise disclosed. A
review excludes audit procedures such as tests of controls and verification of
assets, liabilities and transactions. It is substantially less in scope than
an audit performed in accordance with United Kingdom Auditing Standards and
therefore provides a lower level of assurance than an audit. Accordingly we do
not express an audit opinion on the financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 September 2001.

BDO Stoy Hayward

Chartered Accountants

69 Tweedy Road

Bromley

Kent BR1 3WA


Copies of the interim statement will be sent to all shareholders in due
course.


Enquiries:     Roger Barnett

Feedback plc

01892 653 322