Interim Results

I2S PLC
31 December 2002


                                    I2S plc

                                Interim Results
                   For the six months ended 30 September 2002


Chairman's Statement


The six month period to 30 September 2002 saw continued uncertainty in
international and domestic equity markets.  I2S remained conservative in its
approach to costs and cash whilst continuing to explore a range of
opportunities, obtained shareholder approval for a reduction in its share
premium account and saw both its portfolio investments secure new funding.


Financial Results


Turnover for the Group for the six months to 30 September 2002 (derived from
monies on deposit) was £77,243 (30 September 2001 £100,079) resulting in a net
loss before tax for the Group of £68,010 (30 September 2001 £30,659),
attributable mainly to non-recurring costs relating to investigations into a
potential investment.  As before, your directors are not recommending the
payment of a dividend for the period.


As at 30 September 2002, your Group's portfolio was split 15% in unquoted
investments and 85% in cash.


The Group's net asset value per share was 64p as at 30 September 2002.


Portfolio Investments


Sit-up Limited has continued to trade in line with your Directors' expectations
since our last update to shareholders in the Annual Report.  During the period
the company received £5 million in new funding from Alpine Capital Partners, a
US Venture Capital fund.  Sit-up's main channel, bid-up.tv, reported gross sales
in October of £5.40 million and the management believes it is now well
positioned for the crucial Christmas period. The company bolstered its other
brand offering, Screenshop, with the launch of Screenshop 2, and is
transitioning Screenshop from being a direct sales business to a vendor of
airtime to third parties.


IX Imaging spent much of the year seeking new funds and successfully closed on a
£2.25 million round, led by BTG plc, in August 2002.  It is expected that these
funds will enable the company to progress the customer leads generated to date
from evaluation licensees to full service and design customers.


Corporate Action


As previously advised, at an EGM on 7 June 2002, shareholders passed a
resolution that an application be made to the Court to sanction a reduction of
the share premium account from £3.83 million to nil.  This petition was approved
by the Court on 26 June 2002.


Post-balance sheet events


In line with previous statements and under the authority given by shareholders,
your Group purchased 70,000 of its own shares in October/November 2002 for
cancellation, costing an average of 37.6p per share.  This brings the total
number of shares in issue of your Group to 7,350,000.

Outlook


The last three years have seen unprecedented destruction of shareholder value in
the TMT sector.  Our prudent approach in maintaining 85% of our portfolio in
cash during this period has worked well, although sustained low interest rates,
and the likelihood of further easing, will be detrimental to the amount of
income earned on cash deposits.  Your Directors have been encouraged by the
substantial new funds raised by both our investments and by the number, quality
and valuations of new opportunities being presented to us. We continue to
explore ways in which to create enhanced shareholder value.



I2S PLC
Interim Report
(unaudited and unreviewed for the period ended 30th September 2002)

                                                                 Half-year            Half-year
                                                                     ended                ended
                                                              30 September         30 September
                                                                      2002                 2001
                                                                         £                    £

Interest receivable and similar items                               72,423              100,079

Administration expenses                                          (140,433)            (101,619)
                                                              ____________          ___________

Operating loss                                                    (68,010)              (1,540)


Loss on revaluation of investment                                        -             (25,426)
Loss on disposal of investments                                          -              (3,693)
                                                              ____________          ___________

Loss on ordinary activities before taxation                       (68,010)             (30,659)

Taxation

Loss for the half year                                            (68,010)             (30,659)

Loss per ordinary share                                               0.92 p               0.41 p

Net dividends per ordinary share                                         - p                  - p


Note:

Loss per ordinary share is based on the weighted average number
of shares in issue during the period of 7,420,000.


STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES


Loss for the financial period                                     (68,010)             (30,659)

Unrealised deficit on revaluation of investments                         -             (78,508)

Total recognised gains and losses relating to the half            (68,010)            (109,167)
year



I2S PLC
GROUP BALANCE SHEET

As at 30 September 2002

                                                                        £

FIXED ASSETS
Tangible                                                                1,036
Investments                                                           714,000

                                                                      715,036

CURRENT ASSETS
Debtors                                                                14,776
Deposits and cash                                                   4,093,805

                                                                    4,108,581

CREDITORS: amounts falling due
within one year                                                      (90,066)

NET CURRENT ASSETS                                                  4,018,515

TOTAL ASSETS                                                        4,733,551


CAPITAL AND RESERVES
Called up share capital                                             1,855,000
Distributable reserve                                               3,827,925
Profit and loss account                                             (949,374)


                                                                    4,733,551


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