Final Results

PipeHawk PLC
18 November 2002


                               PIPEHAWK PLC

                           PRELIMINARY STATEMENT

                          Year ended 30 June 2002



CHAIRMAN'S STATEMENT



The year to 30th June 2002 was in line with our expectations with the second
half pre-tax losses reducing to £366,098 compared to £646,698 at the interim
stage. The year benefited both from the NYGAS and EU land mine development
contracts which provided revenues of £734,151 and sales of PipeHawk being
stronger in the second half.



As has previously been announced the Company is moving towards the provision of
high technology services utilising core ground probing radar technology. The
first stage of this programme was implemented by the acquisition of Adien
Limited in July 2002. Adien provides a high-quality, unique service based upon
the PipeHawk radar system and Antony Norton, Managing Director of Adien and
previously its controlling shareholder, joined the PipeHawk board at the date of
the acquisition of Adien. The demand for radar assisted surveying services
continues to increase and we believe that Adien is uniquely positioned to take
advantage of this opportunity.



SUMO Limited, our joint venture with two other partners, successfully launched
its franchise programme at the NEC Franchise Exhibition held in October. A high
level of interest was shown by potential franchisees and we expect to convert a
sufficient number of these during the current financial year to ensure that the
growth plans of SUMO are achieved. Each franchise outlet will purchase a
PipeHawk machine and it is expected that this will be the single most
significant outlet for the sale of PipeHawk units in the future.



The Company has continued its efforts to exploit the US market and a number of
favourable evaluations have been reported by US gas companies leading to a rise
in the number of prospective new customers. This positive news however coincided
with the issuing of a draft document earlier this year by the FCC, the US
regulator, regarding the licensing of ultra-wideband devices (UWB), which
included GPR. The uncertainty that the document created in the US market
affected the GPR industry generally as customers deferred orders until such time
as the draft regulations were settled. Recently the regulations were finalised
(subject to measurement details) and have now become mandatory; this requires
that the PipeHawk product be tested in accordance with the new regulations and
then approved by the FCC. We are taking the necessary measures to comply and we
currently anticipate that deferred potential orders will be reinstated given our
compliance with the regulations now in place.



Concurrent with the finalisation of the FCC regulations the European
Telecommunications Standards Institute, ETSI, is drafting UWB regulations for
Europe. The Company has been involved, with others, in negotiations with the
Radiocommunications Agency of the UK and ETSI; we do not anticipate that the new
standards, when introduced, will cause difficulties for future sales of PipeHawk
either in the UK or Europe.



The advantage of these regulations being finalised is that uncertainty as to
product compliance has now been clarified. This is particularly important in
relation to the recently agreed extension to the NYGAS contract relating to the
development of a Hand Held Radar. This contract totalling US$275,000, which will
fully commence in January 2003 and run for approximately seven months, is aimed
at producing a concept demonstrator. The Company is in discussion with potential
commercial partners who have an interest in the manufacture and marketing of the
proposed product.



CHAIRMAN'S STATEMENT (CONTINUED)


The LOTUS project, part of the EU land mine programme has now ended. The Company
recently received a highly complimentary technical review of its work but the EU
has now advised us, and others working in this field, that they will not be
inviting new proposals for their consideration until June 2003 with any new
contracts that may be awarded not commencing until January 2004. As a
consequence of the EU decision we have reduced the Technical Division of the
Company and will be closing the Church Crookham facility with staff being
re-located to our Alton premises.



A number of the factors mentioned above will adversely impact the first half of
the current year.  However, the removal of the uncertainties relating to
licensing regulations and the substantially reduced cost base of the Company are
expected to benefit the second half as will the NYGAS contract and the
anticipated growth in the Adien and SUMO operations. It remains the intention of
the Company to seek to acquire other high technology service based companies
when this is appropriate.







D A  Mahony

Chairman




SUMMARISED CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the year ending  30 June 2002


                                                                       Year ended          Year ended
                                                                     30 June 2002        30 June 2001
                                                                      Note  £'000               £'000

Group turnover           - continuing operations                            1,146                 652
                         - less share of  joint venture turnover           (17)                    -

                                                                            1,129                 652
Total operating loss - continuing operations                                (935)                (955)
                         - share of operating loss in joint                 (41)                    -
                           venture

                                                                            (976)                (955)

Interest payable less interest receivable                                   (37)                  (17)

Loss on ordinary activities before taxation                                 (1,013)              (972)
Tax on profit on ordinary activities                                   2    -                       -

Loss on ordinary activities after taxation                                  (1,013)              (972)

Loss for financial year                                                     (1,013)              (972)
Dividends                                                                   -                       -

Retained loss for the year                                                  (1,013)              (972)


Loss per share                                                         3       p                   p
Basic and diluted                                                            (7.0)               (8.2)








SUMMARISED CONSOLIDATED CASH FLOW STATEMENT
for the year ended 30 June 2002
                                                                     Year ended           Year ended
                                                                   30 June 2002         30 June 2001
                                                                          £'000                £'000

Net cash outflow from operating activities                                (785)               (1,281)
Returns on investment and servicing of finance                            (37)                (17)
Taxation paid                                                             -                   -
Capital expenditure and financial investment                              (128)               (324)
Acquisitions and disposals                                                (33)                -
Management of liquid resources                                            750                 (750)
Financing                                                                 21                  2,487

Increase/(decrease) in cash                                               (212)               115





SUMMARISED CONSOLIDATED BALANCE SHEET
at 30 June 2002


                                                                            2002                2001
                                                                           £'000               £'000

Fixed assets
Intangible assets                                                            194                 277
Tangible assets                                                              251                 234
Joint Venture                                                                12                  -

                                                                             457                 511
Current assets
Stocks                                                                       406                 265
Debtors due within one year                                                  553                 558
Cash at bank and in hand                                                     2                   915

                                                                             961                 1,738
Creditors: Amounts falling due within one year                               (1,121)             (596)

Net current assets/(liabilities)                                             (160)               1,142

Total assets less current liabilities                                        297                 1,653

Creditors: Amounts falling due after more than one year                      (45)                (393)

Net assets/(liabilities)                                                     252                 1,260

Capital and reserves                                                         252                 1,260





NOTES TO THE PRELIMINARY STATEMENT
30 June 2002



1.         BASIS OF ACCOUNTING

The financial statements are prepared in accordance with applicable accounting
standards under the historical cost convention. The financial statements
consolidate those of PipeHawk plc and of its subsidiary undertaking, which are
made up to the year end. Investments in joint ventures are dealt with by the
gross equity method of accounting.



2.          TAXATION

There is no corporation tax charge as a result of losses arising in the year.



3.          LOSS PER SHARE

These have been calculated on a loss of £1,013,000 (2000: loss £972,000).

The weighted average number of shares used was:
                                                                           2002             2001

Basic                                                                14,471,470       11,868,407



Options in issue do not dilute earnings per share for the years
ended 30 June 2002 and 30 June 2001 because there were losses in both periods.



4.          PRELIMINARY STATEMENT


This preliminary statement, which has been agreed with the auditors,
was approved by the Board on 15th November 2002.  It is not the Company's
statutory accounts.  The statutory accounts for the period ended 30 June 2001
have been delivered to the Registrar of Companies and received an audit report
which was unqualified and did not contain statements under s237(2) or (3) of the
Companies Act 1985.  The statutory accounts for the year ended 30 June 2002 have
not yet been approved, audited or filed.






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