Interim Results

Brainspark PLC
30 September 2005


FOR IMMEDIATE RELEASE                                         30 SEPTEMBER 2005

                 BRAINSPARK Plc ('Brainspark' or 'the Company')

          INTERIM RESULTS FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2005

CHAIRMAN'S STATEMENT

In the six months ended 30 June 2005, the Company incurred a loss before
taxation of £551k, compared to a loss for the comparative period last year of
£556k. Of the loss of £551k, £133k principally represents operating costs and
£418k is mainly attributable to the amortization of goodwill on acquisitions.

Operating costs for the period ended 30 June 2005 of £130k represent a decrease
of £64k from the comparative period last year.

Actions for raising capital to support the first part of the above expansion
have been launched during the period and we expect these to be completed in the
second half of 2005.

Financial Summary


The consolidated net asset value at 30 June 2005 was £2,216 k - down from 
£2,767k at 31 December 2004.

The Group's cash reserves at 30 June 2005 stood at £57k compared with £28k at 
31 December 2004.

Investments Review

As of 30 June 2005 Brainspark had holdings in 8 companies, 5 in the UK, two in
Italy and one in Israel. Its stakes range from nearly 5% to 50.3% of the
relevant portfolio companies. The portfolio covers a wide range of business
sectors, including web services, application service providers and advanced IT
solutions.

Outlook

At 30 June 2005, Brainspark's mid-market price per share of 0.3p valued the
Company's issued capital at £576k against a consolidated net asset value of
£2,216k.

A convertible loan for £305k has been approved by the Board. All the convertible
loan has been subscribed and paid for in August 2005.

Moreover an agreement has been entered into with AISoftw@re SpA ('AIS'), an
Italian software company listed on the Milan Stock Exchange, which grants AIS
the right to buy Brainspark's stake in ACS, a Brainspark portfolio company; for
an amount of £1,430k. Of that amount, £300k has already been paid in settlement
of existing debts and financial commitments of the Company. The Agreement is
subject to a number of conditions including a condition that, by 31 October 2005
, Infusion 2002 Limited, the vehicle through which Brainspark holds its take in
ACS, will have no assets or liabilities other than its investment in ACS.

Mr. Alfredo Villa has been appointed Brainspark Board Member on 2nd July 2005;
we believe that his 20 year experience in Asset Management will be very valuable
for the definition and implementation of the Company's new strategy.



A Formal termination notice has been sent to the Landlord of the Company's
current office premises in order for the Company to exit the existing lease
agreement at the end of March 2006. This will result will result in annual cost
savings of £240k(1)

Finally, a Memorandum of Understanding has been signed on between Geosim Systems
Ltd (an Israeli company 50.3% owned by Brainspark) and an undisclosed US
investor. This transaction will provide, not only additional funds for Geosim,
but also a strategic partner to pursue opportunities in the US market.

While all the above actions represent an important step forward for the Company
we continue facing the future with guarded optimism.



Prof. Francesco Gardin
Chairman
29 September 2005

FINANCIAL STATEMENTS
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 30 JUNE 2005

                          Notes       Six months to  Six months to   Year ended
                                            30 June        30 June  31 December
                                               2005           2004         2004
                                        (Unaudited)    (Unaudited)    (Audited)
                                              £'000          £'000        £'000
--------------------------------------------------------------------------------

Turnover                  2a                      -             -            -
Net operating
expenses -
recurring                                      (130)         (194)        (395)
--------------------------------------------------------------------------------

Total net operating
expenses/Group
operating loss                                 (130)         (194)        (395)

Share of operating 
loss of associated
undertakings                  3                (418)         (362)      (1,186)
--------------------------------------------------------------------------------
Total operating loss: 
Group and share of
associated undertakings                        (548)         (556)      (1,581)
Profit on disposal of
associated undertakings                           -             -          558
--------------------------------------------------------------------------------

Loss on ordinary
activities before
interest                                       (548)         (556)      (1,023)
Net interest payable                             (3)           (5)         (11)
Amounts written off
investments                                       -             -          (37)
--------------------------------------------------------------------------------
Loss on ordinary
activities before
taxation                                       (551)         (561)      (1,071)

Tax on loss on ordinary                           -             -            -
activities       
--------------------------------------------------------------------------------
Loss on ordinary
activities
after taxation                                 (551)         (561)      (1,071)
--------------------------------------------------------------------------------
Retained loss for the
financial period                               (551)         (561)      (1,071)
--------------------------------------------------------------------------------
Loss per 1p
ordinary share                4               (0.29p)       (0.29p)      (0.56p)
Basic and diluted
--------------------------------------------------------------------------------

The loss for period is derived wholly from continuing activities.

The Company has no recognised gains or losses other than the loss for the
period.



CONSOLIDATED BALANCE SHEET AT 30 JUNE 2005

                       Notes     Six months to     Six months to   Year ended
                                       30 June           30 June  31 December
                                          2005              2004         2004
                                   (Unaudited)       (Unaudited)    (Audited)
                                         £'000             £'000        £'000
--------------------------------------------------------------------------------

Fixed assets
Tangible assets                             26                62           44
Investments in
associated
undertakings               5             1,059             2,277        1,451
Other
investments                6             1,549             1,567        1,549
--------------------------------------------------------------------------------
                                         2,634             3,906        3,044
--------------------------------------------------------------------------------

Current assets
Debtors                                    402               219          462
Cash at bank
and in hand                                 57                41           28
--------------------------------------------------------------------------------
                                           459               260          490
Creditors: amounts
falling due within 
one year                                  (755)             (767)        (645)
--------------------------------------------------------------------------------
Net current 
liabilities                               (296)             (507)        (155)
--------------------------------------------------------------------------------
Total assets less 
current liabilities                      2,338             3,399        2,889
Provisions for
liabilities
and charges                               (122)             (122)        (122)
--------------------------------------------------------------------------------
Net assets                               2,216             3,277        2,767
--------------------------------------------------------------------------------

Capital and reserves
Called up
share capital                            1,923             1,923        1,923
Share premium
account                                 28,562            28,562       28,562
Other reserves                           6,813             6,813        6,813
Profit and loss 
account (deficit)                      (35,082)          (34,021)     (34,531)
--------------------------------------------------------------------------------
Total equity 
shareholders'
funds                                    2,216             3,277        2,767
--------------------------------------------------------------------------------







RECONCILIATION OF MOVEMENTS IN GROUP SHAREHOLDERS' FUNDS
FOR THE PERIOD ENDED 30 JUNE 2005

--------------------------------------------------------------------------------
                       Notes     Six months to     Six months to   Year ended
                                       30 June           30 June  31 December
                                          2005              2004         2004
                                   (Unaudited)       (Unaudited)    (Audited)
                                         £'000             £'000        £'000
--------------------------------------------------------------------------------
Loss for the period                       (551)             (561)      (1,071)
--------------------------------------------------------------------------------

Net reduction in
shareholders'
funds                                     (551)             (561)      (1,071)
Opening 
shareholders'
funds                                    2,767             3,838        3,838
--------------------------------------------------------------------------------
Closing
shareholders'
funds                                    2,216             3,277        2,767
--------------------------------------------------------------------------------


CONSOLIDATED CASH FLOW STATEMENT
FOR THE PERIOD ENDED 30 JUNE 2005

--------------------------------------------------------------------------------
                              Notes    Six months    Six months to   Year ended
                                       to 30 June     30 June 2004  31 December
                                             2005      (Unaudited)         2004
                                      (Unaudited)                     (Audited)
                                            £'000           £'000         £'000
--------------------------------------------------------------------------------

Net cash flow from 
operating activities             7             -              47         (240)

Returns on investments and
servicing of finance
Interest paid on 5%
Convertible bond                               -               -           (2)
--------------------------------------------------------------------------------
Net cash outflow from
returns on investments
and servicing
of finance                                      -               -           (2)
--------------------------------------------------------------------------------

Acquisitions and disposals
Sale of investments in
associated undertakings                        55               -          360
Purchase of investments 
in associated undertaking                       -            (147)         (70)
Loans to associated
undertakings                                  (26)              -         (110)
--------------------------------------------------------------------------------
Net cash inflow (outflow) 
from acquisitions
and disposals                                  29            (147)         180
--------------------------------------------------------------------------------
Net cash inflow (outflow)
before financing                               29            (100)         (62)
--------------------------------------------------------------------------------
Financing
--------------------------------------------------------------------------------
Repayment of 5% 
Convertible bond issue                          -               -          (50)
--------------------------------------------------------------------------------
Loan from major
shareholder                                     -               -          110
--------------------------------------------------------------------------------
Partial repayment of
loan to major shareholder                       -               -          (38)
--------------------------------------------------------------------------------
Short term loans                                -             110            -
--------------------------------------------------------------------------------
Repayment of short 
term loans                                      -             (37)           -
--------------------------------------------------------------------------------
Net cash inflow 
from financing                                  -              73           22
--------------------------------------------------------------------------------
Increase (decrease) 
in net cash for
the period                                     29             (27)         (40)
--------------------------------------------------------------------------------
Reconciliation of cash flow
to movement in net funds
Net cash at beginning 
of period                                      28              68           68
Increase (decrease) in
net cash in the period                         29             (27)         (40)
--------------------------------------------------------------------------------
Net cash at end of period                      57              41           28
30 June


NOTES TO THE FINANCIAL STATEMENTS

1. Basis of preparation

Principal accounting policies

The financial statements have been prepared under the historical cost convention
modified to include certain investments at valuation, and in accordance with
applicable accounting standards. Fixed annual charges are appointed to the
interim period on the basis of time elapsed and other expenses are accrued in
accordance with the same principles used in the preparation of the annual
accounts. The financial information contained in this interim statements is
unaudited and does not constitute statutory accounts as defined in Section 240
of the Companies Act 1985.

The comparative information for the year ended 31 December 2004 is an abridged
version of the statutory accounts for that year and those accounts, upon which
the auditors issued an unqualified opinion.

2. Profit and Loss

                                Six months to  Six months to        Year ended
                                 30 June 2005   30 June 2004  31 December 2004
                                  (Unaudited)     (Unaudited)        (Audited)
                                        £'000           £'000            £'000

Turnover
Group turnover including 
share of associated                       238             206              669
undertakings
Less: share of
associated                               (238)           (206)            (669)
undertakings       

--------------------------------------------------------------------------------                                        
                                            -               -                -
--------------------------------------------------------------------------------


3. Share of operating loss of associated undertakings


                                 Six months to  Six months to     Year ended to
                                  30 June 2005   30 June 2004  31 December 2004                   
                                   (Unaudited)    (Unaudited)         (Audited)
                                         £'000          £'000             £'000

Share of operating loss of 
associated Undertakings                      -            (39)              (11)
Amortisation of goodwill 
on acquisition                            (418)          (323)             (836)
Impairment of goodwill                       -              -              (339)
--------------------------------------------------------------------------------
                                          (418)          (362)           (1,186)
--------------------------------------------------------------------------------



4. Basic and diluted loss per 1p ordinary share


                                 Six months to  Six months to        Year ended
                                  30 June 2005   30 June 2004  31 December 2004
                                   (Unaudited)     (Unaudited)        (Audited)
                                         £'000          £'000             £'000

Loss attributable to
ordinary shareholders                    (551)          (561)           (1,071)
--------------------------------------------------------------------------------
Adjusted loss                            (551)          (561)           (1,071)
--------------------------------------------------------------------------------
Weighted average number of 
ordinary shares                       192,273        192,273           192,273
Adjusted weighted average 
number of ordinary shares             192,273        192,273           192,273
Basic loss per share                    (0.29p)        (0.29p)           (0.56p)
Diluted loss per share                  (0.29p)        (0.29p)           (0.56p)
--------------------------------------------------------------------------------


5. Investments in associated undertakings

                                Six months to  Six months to        Year ended
                                 30 June 2005   30 June 2004  31 December 2004
                                  (Unaudited)    (Unaudited)         (Audited)
                                        £'000          £'000             £'000
Share of net assets
At beginning of period                     28             61                61
Disposal                                    -              -               (22)
Share of loss for the period                -            (39)              (11)
--------------------------------------------------------------------------------
At period end                              28             22                28
--------------------------------------------------------------------------------
Goodwill
At beginning of period                  1,313          2,578             2,578
Adjustment                                  -              -               (90)
Amortisation of goodwill                 (418)          (323)           (1,175)
--------------------------------------------------------------------------------
At period end                             895          2,255             1,313
--------------------------------------------------------------------------------
Loans to associated
undertakings
At beginning of period                    410            300               300
Further advances in the
period                                     26              -               110
Provisions against loans and
disposal                                 (300)          (300)             (300)
--------------------------------------------------------------------------------
At period end                             136              -               110
--------------------------------------------------------------------------------
Net book amount at period end           1,059          2,277             1,451
--------------------------------------------------------------------------------


6. Other investments

                               Six months to       Six months to    Year ended
                                30 June 2005        30 June 2004   31 December
                                 (Unaudited)         (Unaudited)          2004
                                       £'000               £'000     (Audited)
                                                                         £'000
At beginning of period                 1,549               1,567         1,567
Additions                                  -                   -            19
Amounts written off in
the year                                   -                   -           (37)
--------------------------------------------------------------------------------
At period end                          1,549               1,567         1,549
--------------------------------------------------------------------------------


7. Reconciliation of operating loss to net cash inflow from operating activities

                                Six months to       Six months to   Year ended
                                 30 June 2005        30 June 2004  31 December
                                  (Unaudited)         (Unaudited)         2004
                                        £'000               £'000    (Audited)
                                                                         £'000

Operating loss                           (133)               (194)        (395)
Depreciation charge                        18                  18           36
Rental income converted 
into shares in
investments                                 -                   -          (19)
Decrease in debtors                         5                  76           53
Increase in creditors                     110                 147           85
--------------------------------------------------------------------------------
Net cash flow from 
operating activities                        -                  47         (240)
--------------------------------------------------------------------------------


8. Ultimate controlling party

The group has no ultimate controlling party.


9. Availability of Interim Results

Copies of the interim results will be available from The Lightwell, 12-16
Laystall Street, London EC1R 4PF.



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