Interim Results

Feedback PLC
17 December 2002

                                  Feedback PLC

                           Interim Statement for the

                       Six months to 30th September 2002.


Chairman's Interim Statement

I am pleased to report that the Group has seen a marked improvement in
operations during the half-year to 30 September 2002. On a significant increase
in turnover and an improvement in margins, the Group reduced losses on ordinary
activities before taxation to £100,400. This compares, on the same basis, with
losses of £516,100 for the corresponding period last year.

With the exception of Feedback Instruments all trading companies in the Group
operated profitably. I indicated in the statement released at the Annual General
Meeting in August 2002 that Feedback Instruments had experienced delays in
finalising negotiations on major project business. This continued late into the
first half of the year and there was a noticeable increase in the time taken
between the announcement of a successful project submission and the issuing of
contracts. However, the Company did secure a number of projects, albeit later
than anticipated, which has added significantly to the order book carried
forward to the second half of the year. The improvement seen in the UK education
market has been maintained and the Company continues to benefit from the
increased sales and marketing effort made in the area in the past two years. The
Company's development program for fully integrated teaching laboratory
solutions, incorporating TekniCAL e-learning systems, is now complete and a
number of large installations have been commissioned.

TekniCAL has had a particularly pleasing first half-year. In line with
expectations this Company returned to profitability after a period of heavy
losses. The long awaited release of government funding to the UK Further
Education Sector for Virtual Learning Environments has led to a significant
increase in sales. Many of these are on an annual licence basis and will result
in further revenues and value added e-learning content sales in subsequent
years. The Company's continued investment in both the development of its product
range and in the strategic partnerships already established is also proving
beneficial. The Company, in conjunction with these partners, now supplies
product for the schools market and has developed a Virtual Learning Support
Centre, to complement the Virtual Campus. The market for e-learning continues to
evolve, with significant Government and European funding being made available
for regional broadband provisions, for the delivery of education and training
services across the Internet. The Company is well placed to continue to take
advantage of these opportunities.

Feedback Incorporated had a very good first half year. Turnover increased 30% on
the corresponding period last year resulting in a significant increase in
profits. Despite the present uncertainties in the US economy, it is anticipated
that the Company should continue to progress in the second half year.

Feedback Data, and its German subsidiary, operated profitably in the first
half-year. The overall trading environment in the Company's traditional data
capture terminal market continued to reflect the general weakness in the IT
sector particularly in manufacturing. However, the level of interest and orders
for all the Company's new product solution areas - building access control,
staff scheduling, temperature monitoring and software integration increased. The
Company has continued with its substantial commitment to new, innovative,
product development of data capture related products and software designed to
establish alternative revenue streams to the traditional core business area.
This has resulted in widening the customer base for the Company's products into
such diverse markets as the residential and community care environment,
exhibitions, catering, leisure and theme park organisations. The level of both
interest and initial orders in these new business sectors is promising.

In all our areas of operation, we strive to keep abreast of market needs and
current technology.  Our order books are somewhat fuller than at this time last
year and prospects for a number of both UK and overseas projects within the
educational sector are encouraging.


D H Harding
Chairman

17 December 2002

                                                              6 months to     6 months to          Year to 
                                                             30 Sept 2002    30 Sept 2001    31 March 2002 
                                                                   £'000s          £'000s           £'000s 
             SUMMARISED PROFIT AND LOSS ACCOUNT                                                            

             Turnover                                             5,118.3         4,057.1          8,908.2 

             Operating loss                                        (83.3)         (355.4)          (307.5) 
             Share of operating loss of joint venture                   -         (168.9)          (301.9) 
             Net interest (payable) / receivable                   (17.1)             8.2             16.4 
                                                                                                           
             Loss on ordinary activities before taxation          (100.4)         (516.1)          (593.0) 

             Tax on loss on ordinary activities                        -               -               5.2 
                                                                                                           
             Loss on ordinary activities after taxation           (100.4)         (516.1)          (587.8) 

             Ordinary dividends paid and proposed                      -               -                -  
             Preference dividends paid and proposed                (43.2)          (43.4)           (86.6) 
             Preference share cost appropriation                       -               -            (11.1) 
                                                                                                           
             Retained loss for the period                         (143.6)         (559.5)          (685.5) 

             Loss per share                                       (1.20)p         (4.70)p          (5.70)p 
             Diluted loss per share                               (1.20)p         (4.70)p          (5.70)p 
 
 


                                                                                                                 
                                                                    6 months to     6 months to          Year to 
                                                                   30 Sept 2002    30 Sept 2001    31 March 2002 
                                                                         £'000s          £'000s           £'000s 
       SUMMARISED BALANCE SHEET                                                                                  

       Fixed Assets                                                     1,289.6           634.7          1,302.9 

       Current Assets                                                                                            
       Stock                                                            1,555.7         2,028.9          1,810.3 
       Debtors                                                          3,485.7         3,820.9          3,305.5 
       Cash at bank and in hand                                           775.8           649.4            365.3 

                                                                        5,817.2         6,499.2          5,481.1 

       Creditors: amounts falling due within one year                 (3,051.7)       (2,779.5)        (2,584.3) 
                                                                                                                 
       Net current assets                                               2,765.5         3,719.7          2,896.8 

       Total assets less current liabilities                            4,055.1         4,354.4          4,199.7 

       Creditors: amounts falling due after more than one year          (292.6)         (167.8)          (338.6) 
       Provisions for liabilities and charges                                -          (402.7)               -  

                                                                        3,762.5         3,783.9          3,861.1 

       Ordinary share capital                                           1,192.0         1,191.5          1,192.0 
       Preference share capital                                           863.2           864.2            863.2 

       Share premium account                                               24.8            24.8             24.8 
       Revaluation reserve                                                313.8           268.8            268.8 
       Capital reserve                                                    299.9           299.9            299.9 
       Other reserve                                                      342.5           342.0            342.5 
       Profit and loss account                                            726.3           792.7            869.9 

       Reserves                                                         1,707.3         1,728.2          1,805.9 

       Shareholders' funds                                              3,762.5         3,783.9          3,861.1 
 
                                                                                                                     
                                                                         6 months to     6 months to          Year to 
                                                                        30 Sept 2002    30 Sept 2001    31 March 2002 
                                                                              £'000s          £'000s           £'000s 
  CASH FLOW STATEMENT                                                                                                 

  Net cash inflow / (outflow) from operating activities                         31.8         (309.6)          (204.0) 

  Returns on investments and servicing of finance                             (17.1)            8.2              16.4 
  Preference dividend paid                                                    (43.2)          (43.4)           (86.6) 
  Corporation tax recovered / (paid)                                           39.5            (1.7)             17.5 
  Capital expenditure                                                         (13.9)         (102.5)           (72.2) 
  Financing                                                                   (24.3)          (15.0)            237.8 
  Acquisitions                                                                    -               -           (300.0) 
  Management of liquid resources                                                  -               -             450.0 

  (Decrease) / increase in cash                                               (27.2)         (464.0)             58.9 

  Reconciliation of operating profit to net cash flow from operating activities                                       

  Operating loss                                                              (83.3)         (355.4)          (307.5) 
  Depreciation and amortisation charges                                        72.2            50.5            133.2  
  Profit on sale of tangible fixed assets                                         -               -             (5.7) 
  Exchange difference                                                           0.4               -            176.0  
  Decrease / (increase) in stock                                              254.6           (70.3)           148.3  
  (Increase) / decrease in debtors                                           (219.8)          406.5            927.1  
  Increase / (decrease) in creditors                                            7.7          (340.9)        (1,275.4) 

  Net cash inflow / (outflow) from operating activities                         31.8         (309.6)          (204.0) 


Notes:

The interim figures for the six months to 30 September 2002, which are
unaudited, have been prepared on the basis of the accounting policies set out in
the Annual Report for the year ended 31 March 2002.  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 2002 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 loss per share for the six months ended 30 September 2002 is
based on the Group loss on ordinary activities after taxation and preference
dividends of £143,600 attributable to 11,920,181 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.

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


Enquiries:          Roger Barnett
                    Feedback PLC
                    01892 653 322


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