Interim Results

Feedback PLC
03 December 2004

                                  FEEDBACK PLC


Interim Results for the six months ending 30September 2004

Chairman's  Interim Statement 2004

The first six months of the financial year has seen the Group produce an
operating profit before reorganisation costs and pension charges of £32,100
(2003: Operating Loss £475,000) on turnover of £5 million, up 19.4% against the
same period in 2003.

Taking into account reorganisation costs of £139,300 and additional pension
costs of £305,200, the resulting total loss before tax was £422,400

I referred in my Statement in the 2004 Report and Accounts to the strategic
review which was being carried out by the Board and I can confirm that progress
has been made.  Restructuring has already resulted in the departure of a number
of staff members and there have been changes in internal reporting structures.
The product range, the Company's premises and our likely future funding
requirements are receiving ongoing active consideration and the Board will of
course keep shareholders up to date with developments.  As announced on 1
December, the terms of the loan advanced to the Company by Mr. Tom Charlton, a
former Non-executive Director, have been renegotiated, the principal change
being that  the date of repayment is now 30 September 2009.

Turning to the performance at our various divisions:

Feedback Instruments has seen the main impact of the order from the College of
the North Atlantic, Qatar, in the first half of this year, but it has been
generally difficult to secure business.  This difficulty continues but there are
indications that activity will improve toward the latter part of the second half
year.

Feedback Data, together with its German subsidiary, has traded profitably before
taking into account its share of the additional pension costs.  The reduced cost
base is having a beneficial effect, and prospects for both the data capture
business and access control products are encouraging.

Feedback Incorporated incurred a small loss in the period, largely due to a low
level of business in the summer months, but entered the second half with a
pleasing order book.

Pensions

The company is still awaiting confirmation from the Occupational Pensions
Regulatory Authority (Opra) that its application for an extended period to
address the shortfall in the funding of its defined benefit pension scheme has
been approved.  This scheme was closed to new entrants and to future benefits
accrual on 31st July 2004, and a new defined contribution scheme has been set up
in its place.  The company's liabilities under the new scheme are considerably
lower than previously.

Board Changes

It was announced on 12 November that Tom Charlton resigned as a non executive
director in order to devote more time to his other investment activities.  The
Board is grateful for the significant contribution he made during his time as a
director.

Dividends

The Company was unable to pay a dividend on its Cumulative Convertible
Redeemable Preference Shares due to the continued lack of distributable
reserves.

Outlook

The benefits of the restructuring have begun to have a positive impact although,
as previously stated, business at Feedback Instruments continues to be slow.  It
is, however, hoped that the situation will improve toward the year end.

David Harding
Chairman

03 December 2004

                                                                   6 months to        6 months to        Year to
                                                                   30 Sept 2004      30 Sept 2003     31 March 2004
                                                                      £'000s            £'000s           £'000s
                                                                     Unaudited          Unaudtied         Audited
SUMMARISED PROFIT AND LOSS ACCOUNT

Turnover                                                               5,041.0           4,221.1         8,688.8

Operating profit /(loss) before additional pension charges                32.1           (475.0)         (965.4)

 and exceptional items
Impairment adjustment                                                        -           (306.0)               -        
       
Reorganisation costs                                                   (139.3)                 -               -
                                                                                  
Additional pension charge                                              (305.2)                 -          (882.0)

Operating loss                                                         (412.4)           (781.0)        (1,847.4)
Loss on sale of trade                                                                                 
                                                                             -                 -          (365.5)
Net interest payable                                                    (10.0)            (21.4)           (24.3)


Loss on ordinary activities before taxation                            (422.4)           (802.4)       (2,237.2)

Tax on loss on ordinary activities                                           -                 -            28.7

Loss on ordinary activities after taxation                             (422.4)           (802.4)       (2,208.5)

Dividends                                                               (47.9)            (48.3)         (100.2)

Retained loss for the period                                           (470.3)           (850.7)       (2,308.7)

Basic and diluted loss per share                                       (3.90)p           (7.12)p         (19.27)


                                                                     6 months to        6 months to        Year to
                                                                     30 Sept 2004      30 Sept 2003     31 March 2004
                                                                        £'000s            £'000s            £'000s
                                                                      Unaudited          Unaudtied         Audited
SUMMARISED BALANCE SHEET

Fixed Assets                                                            566.4             999.4            598.9

Current Assets
                                                     Stock            1,013.7           1,483.2          1,692.4
                                                   Debtors            2,718.8           3,036.7          4,019.2
                                  Cash at bank and in hand              428.9             608.7              0.0

                                                                      4,161.4           5,128.6          5,711.6

Creditors: amounts falling due within one year                      (1,935.8)         (2,689.8)        (3,123.6)

Net current assets                                                    2,225.6           2,438.8          2,588.0

Total assets less current liabilities                                 2,792.0           3,438.2          3,186.9

Creditors: amounts falling due after more than one year               (671.9)           (207.2)          (657.0)
Provisions for liabilities and charges                                (974.1)                 -          (882.0)

                                                                      1,146.0           3,231.0          1,647.9

Ordinary share capital                                                1,204.6           1,203.4          1,204.6
Preference share capital                                                838.1             840.5            838.1

                                     Share premium account              379.8             378.7            379.8
                                       Revaluation reserve              369.4             369.3            369.4
                                           Capital reserve              299.9             299.9            299.9
                                   Profit and loss account          (1,945.8)             139.2        (1,443.9)

Reserves                                                              (896.7)           1,187.1          (394.8)

Shareholders' funds                                                   1,146.0           3,231.0          1,647.9


                                                                    6 months to        6 months to        Year to
                                                                    30 Sept 2004      30 Sept 2003     31 March 2004
                                                                       £'000s            £'000s           £'000s
                                                                      Unaudited          Unaudtied         Audited
CASH FLOW STATEMENT

Net cash inflow (outflow) from operating activities                      611.6              73.2       (1,010.4)

Returns on investments and servicing of finance                         (10.0)            (21.4)          (24.3)
Preference dividend paid                                                    -             (42.3)          (42.3)
Capital expenditure                                                     (10.6)            (86.7)          (57.6)
Net consideration from sale of trade                                         -                 -           334.0
Financing                                                               (15.0)            (42.8)           324.0

Increase / (decrease) in cash                                            576.0           (120.0)         (476.6)


Reconciliation of operating profit to net cash flow from operating activities

Operating (loss)                                                      (412.4)               (781.0)      (1,847.4)
Depreciation of tangible fixed assets                                    43.1                  57.5         100.7
Amortisation of and provision against intangible                                              
fixed assets                                                                -                 306.0          26.0       
                   
Sale of tangible fixed assets                                               -                     -           3.3
Exchange difference                                                    (93.5)                     -        (198.0)      
           
Decrease / (increase) in stock                                          678.7               (126.6)        (335.8)
Decrease / (increase) in debtors                                      1,300.4               1,313.1          321.4
(Decrease) / increase in creditors                                    (904.7)               (695.8)          919.4

Net cash inflow (outflow) from operating activities                     611.6                  73.2      (1,010.4)


Notes:

1) Basis of the Report

The interim figures for the six months to 30 September 2004, 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 2004.  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 2004 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.

2) Going concern

The group operates a defined benefit scheme which currently has a significant
Minimum Funding Requirement deficit. This scheme was closed to new entrants and
to future benefit accrual with effect from 31 July 2004. Under Minimum Funding
Requirement regulations, the scheme actuary has calculated that the group needs
to make contributions equivalent to £850,000 per annum over a three year period
in order to clear 90% of the deficit.  The directors have made an application to
the Occupational Pension Regulatory Authority to effect an extension to the
payment period under Regulations 25 and 26 of the Occupational Pensions Scheme
(Minimum Funding Requirements and Actuarial Valuations) Regulations 1996.  The
application is currently being considered by the Occupational Pension Regulatory
Authority and the directors are awaiting a decision.  In the meantime the
Occupational Pension Regulatory Authority has agreed that the group can reduce
the contributions payable on a temporary basis in accordance with the
application.

The financial forecasts prepared by the directors indicate that the group would
be unable to trade within its current banking facilities should an extension not
be granted.  Should an extension not be granted the directors would need to
obtain additional sources of finance.

The directors believe that a satisfactory outcome of the OPRA application will
be reached. Consequently the directors consider that it is appropriate to
prepare the financial information on a going concern basis.  This financial
information does not include any adjustments that would arise if the group were
unable to finance the contribution requirements of the Occupational Pension
Regulatory Authority.

3) Loss per Share

The loss per share for the six months ended 30 September 2004 is based on the
Group loss on ordinary activities after taxation of £473,300 attributable to
12,045,846 ordinary shares, being the weighted average number of shares in
issue.  The diluted earnings per share is calculated allowing for the full
conversion of the Preference Shares.  However, in accordance with Financial
Reporting Standard 14, as these conversions do not have a dilutive effect, the
earnings per share figure remains unaltered.

4)

Copies of the Interim Report will be mailed to shareholders shortly and will
also be available from the Company's registered office at Park Road,
Crowborough, East Sussex, TN6 2QR.


Auditor Review of the accounts

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 2004.  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.

Our report has been prepared in accordance with the terms of our engagement to
assist the company in meeting the requirements of rules of the London Stock
Exchange for companies trading securities on the Alternative Investment and for
no other purpose.  No person is entitled to rely on this report unless such a
person is a person entitled to rely upon this report by virtue of and for the
purpose of our terms of engagement or has been expressly authorised to do so by
our prior written consent.  Save as above, we do not accept responsibility for
this report to any other person or for any other purpose and we hereby expressly
disclaim any and all such liability.

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 the rules of
the London Stock Exchange for companies trading securities on the Alternative
Investment Market which require that the half-yearly report be presented and
prepared in a form consistent with that which will be adopted in the company's
annual accounts having regard to the accounting standards applicable to such
annual accounts.

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 by auditors
of fully listed companies.  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.
Fundamental Uncertainty

In arriving at our review conclusion, we have considered the adequacy of the
disclosures made in the financial information concerning the possible outcome of
the application by the directors to the Occupational Pension Regulatory
Authority to extend the period required to clear the current Minimum Funding
Requirement Deficit relating to the defined benefit pension scheme. Should an
extension of the Minimum Funding Requirement Deficit not be granted the
directors would need to obtain additional sources of finance.

Details of the circumstances relating to this fundamental uncertainty are
described in note 2.

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 2004.


BDO STOY HAYWARD LLP
Chartered Accountants

Bromley


Date: 03 December 2004


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