Final Results

Mission Testing PLC
17 September 2001


                             Mission Testing plc

                      ('Mission Testing' or 'the Group')

             Preliminary results for the year ended 30 June 2001

                             Financial Highlights

Mission Testing, the AIM-listed software testing consultancy and services
provider, is pleased to announce its preliminary results for the year ended 30
June 2001.


                                       Year to 30 June  Year to 30 June       %
                                                  2001             2000  change
                                                 £'000            £'000

TURNOVER                                        10,515            6,048   + 74%

PROFIT BEFORE TAX AND EXCEPTIONALS*              1,277              500  + 156%

EARNINGS PER SHARE (ADJUSTED FOR
EXCEPTIONALS)

- Adjusted Basic (pence)                          6.41             3.31   + 94%

- Adjusted Diluted (pence)                        6.22            3.31    + 88%

* Exceptional costs of £310,000 relate to the flotation of the Group on AIM
on 6 December 2000


  * Revenues up 74% to £10.5m

  * Profit before tax and exceptionals up 156% to £1.28m

  * Earnings per share before exceptionals up to 6.41p

  * Net cash of £9m (2000: £0.05m) at year end

Commenting on the results and future prospects, Tony Wells, Chief Executive
said:

'The current financial year has started positively with trading and activity
levels comfortably ahead of the corresponding period last year. The full
integration of Specialist Testing Solutions Ltd, which we acquired in August
2001, will further enhance this position.

'Mission Testing is in excellent shape: blue chip clients and prospects
continue to recognise and demand the services of this leading professional
testing consultancy, while our client base continues to grow and diversify as
our reputation for quality grows with it.

'We have set the course for building a business that will be capable of
responding to international opportunities through organic growth and continued
selective acquisition and I look forward to the future with confidence.'

For further information please contact:

Mission Testing plc                                               01293 457123
Tony Wells, Chief Executive
David Abery, Finance Director
www.missiontesting.com

Square Mile BSMG Worldwide                                       0207 601 1042
Edward Macquisten



CHAIRMAN'S STATEMENT



It is with great pleasure that I bring to you the results for the year ended
30 June 2001, the first for Mission Testing after its Admission to AIM in
December of last year. It has been a ground-breaking year with excellent
results, our first acquisition and a number of achievements in organic growth
which were laid out as intentions in the Admission document.

The revenues for the year to 30 June 2001, at £10.5 million, were 74% ahead of
last year's performance, whilst the net profit before tax and exceptional
items relating to the Admission, at £1.28 million, was a staggering 156% up on
the performance for the same period in 2000. In a year when spending on
information technology and communications made the headlines for its
retrenchment I feel this is an excellent performance from the team at Mission
Testing. I believe the results are a strong endorsement from our customer base
as well as from the market. Our goal of being the most professional and most
complete software testing organisation in the UK is the message we continue to
spread and these results are evidence that this message has begun to resonate
in the market.

In the Admission document the Board expressed a belief that a prudent dividend
policy would be adopted in the early periods post-Admission. The Board
maintains this view and so a modest final dividend of 1.5p per share has been
recommended. It will be paid on 9 November 2001 to those shareholders on the
register on 12 October 2001.

Our recent acquisition of Specialist Testing Solutions Ltd (STS), with its
emphasis on consultancy work, shows that we are following the strategy set out
at Admission. We set ourselves the task of bringing more balance between test
management and support whilst growing profitability. The integration of the
STS business will help us to do this. We welcome STS and its staff to Mission
Testing and are confident that they will add greatly to our future. We have
been active in assessing other possible acquisition opportunities but we have
set some criteria which we believe need to be met in order to add value to the
business. STS is the first opportunity that met all our criteria. We will,
however, continue to assess other opportunities as they arise.

We will continue to look at growing the business organically as well as by
acquisition including the possibility of international expansion in the
forthcoming year if conditions are suitable.

During the year I assumed the Chairman's role from Mike McLaren. I am
delighted that Mike has been able to stay on the Board as my fellow
Non-executive Director. I thank Mike for his considerable efforts leading up
to and during the Admission process and look forward to his ongoing
contribution to the Board.

I should like to thank and congratulate all my colleagues on the Board for
their positive contributions since I joined the Board in February of this year
and, in particular, Tony Wells for his leadership of the executive team. I
also pay tribute to all the staff of Mission Testing and thank them most
sincerely for their contribution to the results the team has produced. I am
confident that the Board and the staff will reward shareholders for their
support and investment.

Graham Pooley

Chairman

17 September 2001


Chief Executive's Review

A Year of Achievement

The past 12 months have been a year of achievement for Mission Testing:
turnover up 74% to £10.5m; profit before tax up 156% to £1.28m; the Group's
successful admission to AIM in December and the acquisition of a fast-growing,
complementary software testing consultancy in August 2001. These achievements
are testimony to our highly focused approach to building a profitable
specialist testing group.

The business has delivered strong organic turnover growth which I expect to
continue due to our focus on the successful management and delivery of our
software testing solutions and services. The flotation in December 2000
provided the financial resources to fuel our strategic objective to become the
independent consultancy of choice within the growing global market for
software testing.

The acquisition of Specialist Testing Solutions Ltd (STS) in August is the
first step in our strategy of selectively consolidating the fragmented testing
marketplace, further enhancing the well managed organic growth which we have
demonstrated to date.



The Demand for Testing

Testing is a key part of every software and systems development project. It is
not an optional extra. Testing consultancy is fundamental in today's business
environment, which focuses on risk management, corporate governance, flexible
cost control and return on investment.

Through the effective deployment of our skills and resources, we help our
clients to manage risk by building quality assurance and control processes
into the programmes that design, develop, integrate and maintain the systems
that run their businesses.

We have a portfolio of blue chip clients that we are proud of, including Royal
Bank of Scotland, Cap Gemini Ernst & Young and Railtrack amongst many others.
Not only have we continued to win assignments from new clients during the year
but the level of repeat business from existing clients has also increased as
companies have seen the tangible benefits generated by utilising our
independent testing solutions.

In a marketplace that has seen a weakening in the demand for IT solutions and
services, we have bucked the trend and grown our revenues and profits by
demonstrating time and again to our clients that our solutions add value to
their businesses. It is now increasingly commonplace amongst our clients for
the testing budget to be incorporated into the project plan at its outset,
rather than added as an afterthought towards the end of the development cycle.



Solutions & Services

Our software testing services encompass Strategic Testing Consultancy,
Outsourcing, Test Management and Support.

Last year's results and growth flowed from the widespread and rapidly growing
demand for our services in functional testing and in performance testing.
Projects typically have a duration of between 2 months and a year or more with
an average duration of 5 months. All projects are won on a time and materials
basis and we have no fixed price contracts.

Functional testing, which evaluates system build quality against design
specification, continues to represent the majority of our revenue. This
expertise is equally important to organisations basing their business on
bespoke systems or packaged solutions. Either way, there is a clear need to
test both the quality of the application and its end-to-end integration with
other systems.

Performance testing, which ascertains the scalability of the system with
regard to increasing numbers of users, is a growing specialist area within
software testing. Relying heavily upon the expert use of performance testing
tools to 'hit' the user interface, it identifies weaknesses throughout the
network, middleware and back-end database architecture.

Security testing is crucial for systems used by the military, police and
government and also for systems transacting data of a highly confidential
nature, such as financial, personal or medical records. It requires highly
trained specialists to test software security and to try to break this
security through 'penetration' testing. It is an area of increasing importance
as more confidential information becomes available over the internet. We see
opportunities in the security testing area which we are well-positioned to
exploit.

During the second half-year we opened an office in the City to provide a
dedicated platform from which to support our London-based clients. Given our
model of recruiting the most experienced people, it also provides access to a
larger pool of business development and test consultancy talent. The STS
acquisition added a third UK office in Manchester which will be used to
support local clients and to build our business in the North of England.

A solid infrastructure underpins our business and we have continued to invest
in systems and processes that help us to win, deliver and support sustained
growth.



Focused on Vertical Markets - Delivering Repeatable Solutions

During the year we continued to enjoy a high level of repeat business from
existing corporate clients and won an encouraging number of major new clients.
Our clients appreciate the benefits of using a specialist test consultancy,
which adds real value through independence from systems suppliers or in-house
development teams. Our track record of servicing existing clients and at the
same time winning new business in difficult market conditions demonstrates the
ability of our teams and the strength of our service offering.

In order to leverage our knowledge of key business areas and to give us a
scalable platform upon which to grow our sales teams, we have now based our
approach to business development upon distinct vertical markets.



- Finance, Banking & Insurance

We enjoy excellent business relationships with many blue chip financial
services groups, including two of the largest investment banks and the four
largest high street banks. The acquisition of STS, which brings Abbey
National, Toyota Financial Services and others will augment our client base
further. Our market position has recently been further enhanced by some post
year-end client wins.

- Telecoms, Utilities & Energy

We have worked with many of the major telecoms providers over the last year
including One2One, BT and Telewest. The testing of billing systems, which have
to reflect relentless changes in tariffs and services, represents the bulk of
our projects but the performance testing of internet-enabled wireless devices
has added a new dimension. Whilst there has been evidence of a slowdown in
demand from certain operators, we believe that the fundamentals for servicing
this sector remain good and that we are well-placed to increase our presence
in the market when demand strengthens. In the year ahead we will be looking at
opportunities to develop our presence in the Energy and Utilities markets.

- Systems Integrators & Technology

Our success in this sector in 2000/1 proved our track record of working with
systems integrators. With limited exceptions, software testing has not
featured as a marketed, core competency of the large systems integrators or
consultancies. Instead, we continue to support several leading firms in this
sector on a number of large, high-profile projects, working in partnership
with companies such as Avanade (a joint venture between Accenture and
Microsoft). Once we have delivered against a substantial project, we then aim
to be the 'in-house' supplier of testing services for those firms so that they
can partner with Mission Testing for reliable delivery of testing solutions.
Our independence is a factor that has been successfully positioned with the
end client as adding credibility to the overall solution. Working closely with
the customers of systems integrators has also proven to be an excellent way of
embracing additional business opportunities outside of our core vertical
markets.

Our work with technology companies, such as Microsoft and Network Associates,
involves testing mass market or niche applications before they come to market,
therefore avoiding potentially costly re-work and user dissatisfaction.

- Public Sector

During the current financial year, we are looking closely at opportunities
within the Public Sector, as the e-government initiatives begin to have
significant impact on IT programmes across Local Authorities and Central
Government departments. The benefit of engaging an independent assessor of
quality is compelling within this sector, which has suffered from many
ill-fated, politically damaging IT failures. The STS acquisition will help us
to accelerate our presence in this sector where we have been appointed by
Birmingham City Council as the preferred supplier for testing services. We are
a supplier of testing services to other Public Sector departments, including
the Audit Commission and the Office of National Statistics and I am excited
about the opportunities that present themselves in this market.



- Strategic Partners

We continue to nurture strong working relationships and partnerships with
leading, global test tool vendors including Rational Software, Mercury
Interactive, Compuware and Segue Software. Whilst directly contributing to
less than 5% of total revenue, our relationships help to develop our deep
understanding of automated test tools, which is a pre-requisite to successful
consultancy in an increasingly complex software testing environment. During
the coming year we will leverage these relationships with joint value
propositions, partnered consultancy engagements and by training organisations
in the best use of test tools.



Acquisitions

The breadth of reach of our sales force is complemented by the depth of
knowledge of our software testing consultants. The acquisition of STS in
August 2001 gives us a combined total of 160 software testing consultants
currently working on client projects. STS also brings a set of proprietary
software utilities that will help us to exploit the value of introducing test
automation in client projects. This acquisition is in line with Mission
Testing's stated strategy of enhancing organic growth through selective,
complementary acquisitions and I believe that this acquisition will be
earnings enhancing in the year ending 30 June 2002.

We shall continue to consider acquisitions that will enhance our testing
services and deliver real earnings growth to shareholders.



Employees

As a service business, people are ultimately the key to our success. Our
future is totally dependent upon the skills, quality and commitment of our
staff and management teams. I would like to thank everyone at Mission Testing
for the considerable efforts they have made in meeting the demands of clients
and shareholders alike.



Current Trading and Outlook

The current financial year has started positively with trading and activity
levels comfortably ahead of the corresponding period last year. The full
integration of STS will further enhance this position.

Mission Testing is in excellent shape: blue chip clients and prospects
continue to recognise and demand the services of this leading professional
testing consultancy; our client base continues to grow and diversify and our
reputation for quality grows with it; our competitive advantage flourishes as
we employ the best specialists with niche skills and continue to augment their
expertise through quality practical experience and training; our corporate
infrastructure develops inline with the rest of the business and our financial
position is strong with over £8m of cash.

We have set the course for building a business that will be capable of
responding to international opportunities through organic growth and continued
selective acquisition and I look forward to the future with confidence.

Tony Wells

CEO

17 September 2001





Financial Review

Mission Testing, in its first year as a public company, has met all of the
financial aims that it set for itself at the time of its admission to AIM. The
Group has achieved an excellent set of results for the year, with future
financial indicators looking strong and the completion of our first
acquisition in August 2001.

Results

Mission Testing continued its rapid organic growth in the current year,
building on the trend of previous periods as shown below.


                                       Year to    Year to  15 months to 30 June
                                          2001       2000                  1999

                                          £000       £000                  £000

Turnover                                10,515      6,048                 2,220

Gross profit                             2,713      1,350                   434

GP %                                     25.8%      22.3%                 19.5%

Administrative expenses                (1,609)      (747)                 (228)

Operating profit before interest         1,104        603                   206
& tax
(pre exceptionals)

Operating margin                         10.5%      10.0%                  9.3%
(pre-exceptionals)

PBT (pre-exceptionals)                   1,277        500                   162

PBT margin (pre-exceptionals)            12.1%       8.3%                  7.3%


Exceptionals                             (310)          -                     -

Profit after tax                           630        371                   128

Turnover increased organically by 74% to £10.5m reflecting strong demand for
our services, despite a general tightening of markets. The entire turnover is
generated from the supply of testing services.

Gross profit increased by 101% to £2.7m. The underlying increase in gross
profit percentage of 3.5% to 25.8% is in line with our strategy and this is a
trend that we would expect to continue as Group turnover increases by the
growing contribution from high-margin consultancy services.

Administrative expenses have been well controlled and have increased in line
with our investment in the sales, fee earning and support people required to
grow the business still further. The Group has increased its investment in
sales and fee earning employees, focusing on the delivery of services across
focused market sectors.

Operating profit (pre-exceptionals) increased by 83% to £1.1m from £0.6m,
while the operating margin (pre-exceptionals) grew from 10.0% in 2000 to 10.5%
in 2001. The PBT margin (pre-exceptionals) grew from 8.3% in 2000 to 12.1% in
2001.

The exceptional costs of £310,000 relate to the flotation of the Group on the
Alternative Investment Market of the London Stock Exchange on 6 December 2000,
that have not been written off against the share premium account.

Fee earners

It is the Group's strategy to utilise contractors where appropriate, due to
management of fixed overhead risk that comes from this structure; contractors,
often referred to as 'associates' on consultancy projects, are not paid by the
company when they are not contracted on billable projects. We will increase
the full time headcount of fee earning testing specialists in line with the
demand for our services.

Interest

Interest income was £258,000 (2000: £1,000). This increase is due to interest
earned on the funds received from the placing that took place with the
flotation in December 2000. The funds, net of float costs, of £8.8m have been
on deposit with our principal bankers.



Taxation

The taxation charge of £337,000 represents an effective tax rate of 34.8%
compared to 25.8% for the previous year. This is mainly due to disallowable
float related expenses.

Earnings per share

Basic earnings per share (pre-exceptionals) increased by 94% from 3.31p in
2000 to 6.41p in 2001, while fully diluted earnings per share
(pre-exceptionals), increased by 88% from 3.31p in 2000 to 6.22p in 2001.

Dividend and shareholder returns

The Directors propose a final dividend of 1.5p per share, which is the first
dividend payable to shareholders since the company's admission to AIM in
December 2000. This dividend is covered 4.3 times by adjusted basic earnings
per share.

Balance Sheet

The balance sheet was strengthened by the float proceeds of £8.8m, net of
float costs. Cash at 30 June 2001 was £9m with no borrowings. Shareholders
funds at 30 June 2001 were £9.7m (2000: £0.3m).

Whilst we have, as required by the steep organic growth during year, used a
modest amount of cash to finance working capital needs, the balance of these
funds is available for our acquisition plans. £700,000 was utilised in the
acquisition of Specialist Testing Solutions Ltd in August.

Acquisitions

On 24 August 2001 the Group acquired the entire issued share capital of
Specialist Testing Solutions Ltd for an aggregate consideration of £3.7
million which was satisfied by £700,000 of cash on completion and 1,600,000
new ordinary shares in Mission Testing plc. Of these shares 1,350,000 were
issued on completion and a further 250,000 will be issued following Mission
Testing's AGM to be held on 7 November 2001.

Summary

The Group is in a very healthy financial position. The strong organic growth
together with the acquisition of Specialist Testing Solutions ensures that the
Group is well placed to enjoy future growth prospects.



David Abery

Finance Director

17 September 2001





Group Profit and Loss Account

for the year ended 30 June 2001
                                                          Note     2001    2000
                                                                   £000    £000

Turnover                                                         10,515   6,048

Cost of sales                                                   (7,802) (4,698)


Gross profit                                                      2,713   1,350

Administrative expenses                                         (1,609)   (747)

Exceptional administrative expenses - flotation costs             (310)       -


Operating profit on ordinary activities before interest             794     603
and taxation

Operating profit on ordinary activities before interest
and taxation - excluding exceptional administration
expenses                                                          1,104     603

Interest receivable and similar income                              258       1
Interest payable and similar charges                               (85)   (104)


Profit on ordinary activities before taxation                       967     500
Tax on profit on ordinary activities                              (337)   (129)


Profit on ordinary activities after taxation                        630     371
Dividends paid and proposed                                2      (305)   (208)


Retained profit for the year                                        325     163


Earnings per share (pence)

Adjusted basic earnings per share (excluding exceptional   3      6.41     3.31
costs)
                                                                  
Basic earnings per share                                   3       4.56    3.31

Diluted earnings per share                                 3       4.43    3.31

The Group had no recognised gains or losses, in either the current or prior
years, other than those dealt with in the profit and loss account. All of the
results derive from continuing operations.



Group Balance Sheet

at 30 June 2001
                                           2001                  2000
                                         £000       £000       £000       £000
Fixed assets
Tangible assets                                      121                    44


Current assets
Debtors                                 2,092                 1,558
Cash at bank and in hand                8,985                    47

                                       11,077                 1,605

Creditors; amounts falling due        (1,545)               (1,372)
within one year


Net current assets                                 9,532                   233


Total assets less current                          9,653                   277
liabilities


Capital and reserves
Called up share capital                            1,581                 1,123
Share premium account                              8,493                     -
Merger reserve                                   (1,123)               (1,123)
Other reserve                                        100                     -
Profit and loss account                              602                   277


Equity shareholders' funds                         9,653                   277

Group Cash Flow Statement
for the year ended 30 June 2001
                                       Note     2001     2001     2000     2000
                                                £000     £000     £000     £000

Net cash inflow from operating          4                  96               383
activities

Net cash flow on returns on                               173             (103)
investments and servicing of finance

Taxation
Corporation tax paid                                    (129)              (34)

Capital expenditure
Payments to acquire tangible fixed                      (112)              (42)
assets

Equity dividends paid                                    (66)             (209)



Cash outflow before management of                        (38)               (5)
liquid resources and financing
Financing
Issue of ordinary shares                       9,051                 -
(Decrease)/increase in debenture loans          (75)                11


Net cash inflow from financing                          8,976                11


Increase in cash in the year                            8,938                 6

Note 1 - Basis of preparation

On 24 November 2000 Mission Testing Limited acquired the entire issued share
capital of Mission Testing Europe Limited (which was in exchange for the issue
of shares in Mission Testing Limited). On 27 November 2000 Mission Testing
Limited was re-registered as a public limited company, Mission Testing plc.
The group reconstruction has been accounted for using merger accounting.

The financial information set out above does not constitute statutory accounts
as defined in section 240 of the Companies Act 1985. The financial information
for the full preceding year is based on the statutory accounts of Mission
Testing Europe Limited for the financial year ended 30 June 2000, modified
under the principles of merger accounting. Those accounts, upon which the
auditors issued an unqualified opinion and did not contain a statement under
section 237 (2) or (3) Companies Act 1985, have been delivered to the
Registrar of Companies. The statutory accounts for the year ended 30 June 2001
will be finalised on the basis of the financial information presented by the
directors in this preliminary announcement and will be delivered to the
Registrar of Companies following the Company's Annual General Meeting.

Note 2 - Dividends

                                                    2001                   2000
                                                    £000                   £000
Equity shares
                                                      
    Interim dividend paid                             48                    190

                                                     
    Final dividend proposed                          257                     18


                                                     305                    208


The interim dividend paid for 2001 and all dividends for 2000 are those paid
to the shareholders of Mission Testing Europe Ltd (now the wholly owned
subsidiary of Mission Testing plc) for the periods prior to the Group's
flotation on AIM.

A final dividend of 1.5pence per share is proposed for the year to 30 June
2001 amounting to £257,357.

Note 3 - Earnings per share

The calculation of basic earnings per share is based on attributable profit of
£630,643 (2000: £371,289), divided by the weighted average number of shares in
issue during the year of 13,824,792 shares (2000: 11,227,625). The adjusted
basic earnings per share is based on the attributable profit of £885,731,
which is after adjusting for exceptional costs of £309,568 (2000; £nil) and
the tax effect thereon of £54,480 (2000; £nil) . The diluted earnings per
share is based on 14,232,216 (2000: 11,227,625) ordinary shares and reflects
the exercise of all share options granted.




Note 4 - Reconciliation of operating profit to net cash inflow from operating
activities


                                                          2001             2000
                                                          £000             £000

Operating profit before exceptional expenses             1,104              603
Exceptional items                                        (310)                -

                                                           794              603

Depreciation                                                35               10
Increase in debtors                                      (534)            (618)
(Decrease)/increase in creditors                         (199)              388


Net cash inflow from operating activities                   96              383




Note 5 - Post balance sheet events

On 24 August 2001 the Group acquired the entire issued share capital of
Specialist Testing Solutions Ltd, a UK based company engaged in the supply of
software testing consultancy services. The aggregate consideration of £3.7
million was satisfied by £700,000 of cash on completion and 1,600,000 new
ordinary shares in Mission Testing plc. Of these shares 1,350,000 were issued
on completion and a further 250,000 will be issued following Mission Testing's
AGM to be held on 7 November 2001.