Final Results

Highway Capital PLC
27 June 2003

                              HIGHWAY CAPITAL PLC


            PRELIMINARY RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2003


Chairman's Statement


Our results for the twelve months ended 28 February 2003 show a loss before tax
of £115,676 (2002: £211,524 loss)


The Company had cash at bank and in hand of £772,031 at the balance sheet date.


At this time we do not consider it appropriate to declare a dividend.

In the Interim Report, I informed shareholders that your Directors were in
discussions with a potential reverse-takeover target and that those discussions
were at an advanced stage. The discussions progressed and we reached agreement
in principle.


Confidential institutional marketing took place during March 2003, but market
conditions were such that it became apparent that it would not be possible to
raise the required funding and, unfortunately, the deal was aborted.


The Company had obtained an indemnity for all external costs incurred by the
Company through to completion or termination. Additionally, the arrangement
provided for the reimbursement of the Company's monthly costs for the duration
of the indemnity in exchange for the Company agreeing an exclusivity
arrangement. This has allowed the Company to show £30,000 of income during the
year ended 28 February 2003.


At a meeting on 30 April 2003, mindful of the continuing costs of operating the
Company as a cash shell, the Board resolved to enter into discussions with Mr
Levey, the Finance Director, to terminate his service contract. Agreement was
reached, and Mr Levey has resigned as an Executive Director. He will remain on
the Board as a Non-Executive Director and will continue to fulfil the role of
Company Secretary. The Non-Executive Directors have also, for the time being,
agreed to waive the majority of their fees and will each now receive fees of
£500 per quarter.


Dominic Wheatley

Chairman




Profit and Loss Account
                                                 
                                                           Year ended                    Year ended

                                                      28 February 2003              28 February 2002

                                                          (unaudited)                     (audited)

                                                                   £                             £
Management fees                                             30,000                        -
Other administrative expenses                               (173,582)                     (190,317)
Abortive acquisition costs                                  -                             (66,583)
Administrative expenses                                     (173,582)                     (256,900)
Operating loss                                              (143,582)                     (256,900)
Interest receivable                                         27,906                        45,376
Loss on ordinary activities before taxation                 (115,676)                     (211,524)
Tax on loss on ordinary activities                          -                             -
Loss for the financial year                                 (115,676)                     (211,524)
Dividends                                                   -                             -
Retained loss for the financial year                        (115,676)                     (211,524)
Basic and diluted loss per share
                                                                 (1.46)p                       (2.66)p


Continuing operations:

There are no acquired or discontinued operations in the above two financial
periods.


Total recognised gains and losses:

The Company has no recognised gains or losses other than the profit or loss for
the above two financial periods.




Balance Sheet

                                                      28 February 2003              28 February 2002

                                                           (unaudited)                     (audited)

                                                                     £                             £
Fixed assets
Investments                                                 -                             -
                                                            -                             -
Current assets
Debtors                                                     57,785                        12,838
Cash at bank and in hand                                    772,031                       895,593
                                                            829,906                       908,431
Creditors: amounts falling due within one year              (70,687)                      (33,536)
Net current assets                                          759,219                       874,895
Net assets                                                  759,219                       874,895
Capital and reserves
Share capital                                               158,913                       158,913
Share premium                                               295,437                       295,437
Profit and loss account                                     304,869                       420,545
Total equity shareholders' funds                            759,219                       874,895




Cash Flow Statement

                                                            Year ended                    Year ended

                                                     28 February 2003              28 February 2002

                                                           (unaudited)                     (audited)

                                                                    £                             £
Net cash outflow from operating activities                  (158,892)                     (282,416)
Returns on investments and servicing of finance
Interest received                                           27,906                        45,376
Net cash inflow from returns on investments and servicing
of finance                                                  27,906                        45,376
Taxation
Corporation tax                                             7,424                         -
Equity dividends paid                                       -                             -
Decrease in cash                                            (123,562)                     (237,040)




Notes


Basis of preparation:

The preliminary results have been prepared under the historical cost convention
and in accordance with applicable accounting standards. The financial
information set out above does not comprise statutory accounts for the purpose
of section 240 of the Companies Act 1985. The information for the year ended 28
February 2002 has been extracted from the statutory accounts which carried an
unqualified audit report and did not contain any statement under section 237(2)
or (3) of the Companies Act 1985. The statutory accounts for the year ended 28
February 2002 have been delivered to the Registrar of Companies. The auditors
are expected to give an unqualified opinion on the accounts for the year ended
28 February 2003. The statutory accounts for the year ended 28 February 2003
will be delivered to the Registrar of Companies following the Annual General
Meeting.


Loss per share:

The loss per ordinary share calculation has been based on the loss attributable
to ordinary shareholders of £115,676 (2002: £211,524 loss) divided by 7,945,638
(2002: 7,945,638), being the weighted average issued share capital during the
year. The basic and diluted loss per ordinary share figures are the same.




27 June 2003



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