Interim Results

OMG PLC
04 June 2003



4 JUNE 2003

                                    OMG PLC

             INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2003

OMG plc, ('OMG') the group that delivers electronics and software products based
upon 3-dimensional information contained in 'the moving image' to the
entertainment, medical, scientific and engineering industries, today announces
its interim results for the six months to 31 March 2003.


Highlights

   •Sales up 8% to £5.4m (2002 - £5.0m)

   •Costs down 21% to £3.0m (2002 - £3.8m)

   •Return to operating profitability £0.6m (2002 - loss of £0.5m)

   •Cash restored to post-IPO level

   •Markets strengthening in US, but remain weak in Europe

   •Outlook improving, but still volatile

Commenting CEO, Julian Morris, said, 'Current market awareness of OMG's products
and the level of interest in them remains high. Costs and investment are now
well balanced against income and risk. OMG is in an excellent position to
continue investing in the creation of new opportunities in both current and new
markets, and is now more ambitious than ever to resume its historic pattern of
growth in sales and profits.'



For further information please contact:

Julian Morris, Chief Executive
OMG plc                                      Tel: [phone]

Tim Thompson/Bobbie Swanson
Buchanan Communications                      Tel: [phone]



CHAIRMAN & CHIEF EXECUTIVE'S JOINT STATEMENT

Financial Results

Turnover rose to £5.4m (2002: £5.0m), the highest 6 month sales figure on
record, and an increase of 8% over the same period last year, and of 79% over
the previous 6 months.

Operating profit for the period was £0.6m (2002: £0.5m loss).

Vicon and 2d3 sales to entertainment and virtual reality markets rose by 47%.

Sales of all products to the USA increased by more than 40% on the same period
last year.

Cash reserves at the period end were £4.7m, up £900k over the 6 month period,
and equal to the position at 30 Sept 2001 at the end of the year of the
company's fund-raising flotation.

Current Trading

Life Sciences

Vicon is the leading supplier of motion analysis systems for clinical, research
and sports applications, a position reflected in sustained revenues from new
system sales to these markets, despite continuing restrained trading conditions.

In addition, Vicon's installed base of several hundred gait analysis users
continues to provide a steady stream of repeat business, with upgrades of both
hardware and software components. In the 6 month period, over 20% of world-wide
Life Science sales were made to existing customers, with a higher proportion in
mature markets like the US.

Most life science markets are driven by increasing demand for lower-cost,
easy-to-use systems. Vicon Life Science sales during the period reflect this
trend with a 11% overall increase in unit sales, including a growing proportion
of newly introduced 'budget' systems designed to meet these requirements.

Hospitals and university medical schools around the world are continually
opening new movement analysis facilities for a variety of clinical applications
both in traditional gait analysis and in other areas of orthopaedics,
rehabilitation and neurology.

Visual Effects

The market for post-production tools in the entertainment market has shown once
again that it is capable of very high rates of growth, but with extreme
volatility. After leading the fall in revenues last year, Vicon sales to
entertainment markets in the first 6 months of this year have already exceeded
those in the whole of last year.

This upturn has been led by the US and Japan. Sales relating to the movie
industry have been particularly strong with Vicon and 2d3 products used in a
large number of high-profile projects, including Matrix Reloaded, X-Men2, Harry
Potter, and Die Another Day. In Japan, the driving influences are games
development and broadcast television. The European market for visual effects,
apart from a small but very active group of companies in London, is very quiet.

One sign that the visual effects industry has come of age is the ever-increasing
number of government and privately-funded educational departments established to
produce skilled personnel for the industry, offering Vicon and 2d3 excellent
sales opportunities.

Engineering

Virtual engineering, virtual workspaces, ergonomics and human factors
engineering contribute, as yet, only a small proportion of OMG's total revenues.
However, because of the very large scale of the industries - automobile,
aerospace, oil & gas - in which these new applications are used, the potential
for growth is many times larger than any of the company's existing markets.

Technology Update

Cameras

As part of its development of new applications of motion capture in engineering,
Vicon has introduced the SVCam. This progressive-scan infra-red camera has a
resolution of 640x480 pixels and operates at up to 200 frames per second, yet is
the size of a mobile phone. Its small size allows multiple cameras to be mounted
inside vehicles and in other real and simulated operator environments such as 3D
workbenches and VR CAVEs (Computer-Aided Virtual Environments).

Software

In November 2002 Vicon released iQ, a completely new software product for
generating highly realistic animations from motion capture. Using iQ, animators
are able to take the vast quantities of data captured from subtle body and
facial movements of multiple performers, and turn it into character-ready
animations. In the few months since its release, iQ has been employed in a
production by Sony Imageworks of the most advanced motion-capture-based movie
ever made. Due for release in 2004, this production required the largest motion
capture set ever installed, with 64 Vicon MCam2 cameras simultaneously tracking
up to 1,000 individual landmarks on the faces and bodies of the cast.

Vicon is also pioneering the use of advanced mathematical modelling (non-linear
optimisation) to improve the accuracy and reliability of biomechanical analysis.
To determine the movement of the human skeleton, all current methods depend upon
measurement of the external surface of the body. Even in a simple action like
walking, the wobbling of muscle, fat and skin severely reduce the reliability of
external estimates of the positions of the skeletal and joints. The software,
which is currently undergoing multi-centre clinical trials, allows the motion of
the skeleton and soft tissues to be identified and separated.

Analysis

By any measure, and following last year's first loss in 18 years' trading, the
results announced here reveal a remarkable and rapid turnaround in the company's
fortunes. In the first half of the current year, the order rate has more than
recovered the decline suffered last year. Will this trend be sustained in the
short and longer term?

The US market is making an increasingly important contribution to the company's
success, vindicating OMG's long-term financial and managerial support for its
wholly-owned US operation in California. This growth comes despite the fact that
OMG's main competitor is US-based. Japan, where OMG recently appointed a second
distributor to focus on the entertainment sector, also performed very strongly
during the period. However the rest of the global market, including Europe, as
yet shows few signs of recovery.

Despite the general trend towards higher volumes of lower-priced systems, the
first half year saw several record-sized individual Vicon sales to entertainment
customers in the US and Japan. Such sales are large enough to have a significant
influence on company performance in the reporting period in which they occur.
However they are also exceptional and unpredictable. Similar sales may occur in
future but not necessarily in the second half of the current year.

At the end of last year the company implemented cuts in expenditure, mainly in
marketing, capital purchases, payroll restraint, and with a company-wide
reduction in staff. These savings, together with the recovery in sales and lower
manufacturing costs, have resulted in a healthy profit for the period. The
company's balance sheet is as strong as at any time since its flotation.

Outlook

Although OMG entered the year with a clear plan to reduce losses, the growth in
revenues was neither predicted nor predictable. The company did show, however,
that it was able to respond rapidly to opportunities as they arose. The second
half revenues remain uncertain with some areas returning strong forecasts but no
clear indication of a return to growth in all markets.

The second half of the year will also see higher costs, largely due to modest
increases in payroll, and the timing of a number of international exhibitions.

Current market awareness of OMG's products and the level of interest in them
remains high. Costs and investment are now well balanced against income and
risk. OMG is in an excellent position to continue investing in the creation of
new opportunities in both current and new markets, and is now more ambitious
than ever to resume its historic pattern of growth in sales and profits.

Dividend Policy

The directors are not declaring a dividend in relation to these results, but the
issue of dividend policy will be kept under review.

Shareholder, Employee and Director Support

We should like to thank all shareholders, employees and directors for their
continuing support and hope that they will enjoy a long association with the
company.

Further Information

Further information on OMG plc, its markets and products is available from the
company's Web sites at www.omg3d.com, www.vicon.com, and www.2d3.com.

Anthony Simonds-Gooding, Chairman            Julian Morris, Chief Executive

3 June 2003


RESIGNATION OF DIRECTOR

The company announces the resignation of Malcolm Lewin as Finance Director, with
effect from 30 June 2003.

Malcolm joined OMG in May 2000 and almost immediately became closely involved in
the decision, planning and process of raising external investment to fund the
company's already rapid growth , leading to a successful flotation on AIM in
April 2001.

Malcom has decided to pursue new career and personal interests and, on behalf of
his fellow directors and colleagues, I thank him for his many contributions to
OMG and wish him well for the future.

The Company will be seeking to appoint a new Finance Director and an
announcement will be made once the process is complete.

Julian Morris, Chief Executive



GROUP PROFIT AND LOSS ACCOUNT
For the six months ended 31 March 2003

                              Unaudited       Unaudited         Twelve
                          Six months to   Six months to      months to
                               31 March        31 March   30 September
                                   2003            2002           2002
                                  £'000           £'000          £'000


Turnover                          5,430           5,009          8,041

Cost of sales                     1,872           1,748          2,629


Gross profit                      3,558           3,261          5,412

Administrative expenses          (2,989)         (3,824)        (7,480)
Grants receivable                    48             109            140


Operating profit/ (loss)            617            (454)        (1,928)


Interest receivable and              58              74            133
similar income


Profit/ (loss) on                   675            (380)        (1,795)
ordinary activities
before taxation


Tax on profit on ordinary           (39)            102            201
activities


Retained profit/ (loss)             636            (278)        (1,594)
for the period


Basic earnings per share           1.27p          (0.56)p        (3.22)p
(Note 3)


Diluted earnings per               1.07p              -              -
share (Note 3)



GROUP BALANCE SHEET AT 31 MARCH 2003

                            Unaudited at   Unaudited at     Audited at
                                31 March       31 March   30 September
                                    2003           2002           2002
                                   £'000          £'000          £'000

Fixed assets
Tangible assets                      462            668            469


Current assets
Stocks                             1,177          1,703          1,609
Debtors                            2,655          2,936          1,598
Corporation tax                      164              -            166
Cash and short term                4,717          4,286          3,823
deposits
                                   8,713          8,925          7,196


Creditors - amounts falling
due within one year
Trade and other creditors          1,754          1,405            880
Corporation tax                        -             99              -

                                   1,754          1,504            880


Net current assets                 6,959          7,421          6,316


Total assets less current          7,421          8,089          6,785
liabilities


Capital and reserves
Share capital                        125            123            125
Share premium account              5,269          5,249          5,269
Merger reserve                         1              1              1
Profit and loss account            2,026          2,716          1,390

                                   7,421          8,089          6,785



GROUP CASH FLOW STATEMENT
For the six months ended 31 March 2003

                              Unaudited       Unaudited         Twelve
                          six months to   six months to      months to
                               31 March        31 March   30 September
                                   2003            2002           2002
                                  £'000           £'000          £'000


Net cash inflow/                    983            (184)          (551)
(outflow) from operating
activities


Returns on investments
and servicing of
finance
Interest received                    58              74            133


Taxation                            (37)            (12)          (178)


Capital expenditure
Purchase of tangible               (152)           (281)          (451)
fixed assets
Sale of tangible fixed               42               3            162
assets


Financing
Issue of share capital                -               -             22


Increase/(reduction) in             894            (400)          (863)
cash



NOTES TO THE INTERIM STATEMENT
For the six months ended 31 March 2003

 1. PREPARATION OF THE INTERIM FINANCIAL INFORMATION

    The financial information for each of the six month periods ended 31 March
    2002 and 31 March 2003 is unaudited and does not constitute statutory
    accounts within the meaning of the Companies Act 1985. It has been prepared
    using accounting policies consistent with those set out in the statutory
    accounts of OMG plc for the year ended 30 September 2002.

    The interim financial statements have been reviewed by the group's auditors.
    A copy of the auditors' review report is attached to this interim report.

 2. TAX ON PROFIT ON ORDINARY ACTIVITIES

    The tax charge for the six month period ended 31 March 2003 is lower than
    the standard rate of corporation tax in the UK due to the anticipated use of
    unrelieved tax losses.

 3. EARNINGS PER SHARE

    The calculation of the basic earnings per share is based on the earnings
    attributable to ordinary shareholders divided by the weighted average number
    of shares in issue during the period. The calculation of diluted earnings
    per share is based on the basic earnings per share, adjusted to allow for
    the issue of shares on the assumed conversion of all dilutive options.

 4. RECONCILIATION OF OPERATING PROFIT TO NET CASH OUTFLOW FROM OPERATING
    ACTIVITIES
                                                              (Note 1)
                              Unaudited       Unaudited         Twelve   
                          six months to   six months to      months to
                               31 March        31 March   30 September
                                   2003            2002           2002
                                  £'000           £'000          £'000

    Operating profit/               617            (454)        (1,928)
    (loss)

    Depreciation                    129             152            355

    Profit/ (loss) on               (12)              2              -
    sale of tangible
    fixed assets

    Reduction/ (increase)           432            (366)          (272)
    in stock

    (Increase)/ reduction        (1,057)            221          1,559
    in debtors

    Increase/ (reduction)           874             261           (265)
    in creditors



    Net cash inflow/                983            (184)          (551)
    (outflow) from
    operating
    activities



 5. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS

                                                               (Note 1)
                              Unaudited       Unaudited         Twelve 
                          six months to   six months to      months to
                               31 March        31 March   30 September
                                   2003            2002           2002
                                  £'000           £'000          £'000


Increase/(reduction) in             894            (400)          (864)
cash for the period

Currency movements                    -               -              1

Change in net funds for             894            (400)          (863)
the period

Opening net funds                 3,823           4,686          4,686

Closing net funds                 4,717           4,286          3,823


COPIES OF THE INTERIM STATEMENT

Copies of the interim statement will be sent to shareholders. Further copies
will be available from the company's registered office at 14 Minns Business
Park, West Way, Oxford OX2 0JB for one month from today.



INDEPENDENT REVIEW report to OMG PLC

Introduction

We have been instructed by the company to review the financial information for
the six months ended 31 March 2003 which comprises the profit and loss account,
the balance sheet, the cash flow statement and the related notes 1 to 5. We have
read the other information contained in the interim report, which comprises only
the Chairman and Chief Executive's Joint Statement and the announcement
regarding the resignation of a director, and considered whether it contains any
apparent misstatements or material inconsistencies with the financial
information. Our responsibilities do not extend to any other information.

This report is made solely to the company, in accordance with guidance contained
in APB Bulletin 1999/4 'Review of Interim Financial Information'. Our review
work has been undertaken so that we might state to the company those matters we
are required to state to it in a review report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume responsibility to
anyone other than the company, for our review work, for this report, or for the
conclusion we have formed.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. They are
responsible for preparing the interim report and ensuring that the accounting
policies and presentation applied to the interim figures are consistent with
those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999/4
'Review of Interim Financial Information' issued by the Auditing Practices Board
for use in the United Kingdom. A review consists principally of making enquiries
of 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.

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 31 March 2003.

Grant Thornton
Chartered Accountants
Oxford

3 June 2003









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