Interim Results

Eurolink Managed Services PLC
5 December 2000



                        EUROLINK MANAGED SERVICES PLC



                               Interim Results

                    Chairman's statement for the six month

                        period ended 30 September 2000



Introduction and Results

It is with pleasure I, as interim chairman, present the chairman's statement
for the six month period to 30 September 2000. This has been a very active
period for the company both in internal organisation and in external
development as further outlined below. Turnover for the period was £4.03m
(1999 £4.07m) with operating profit £0.20m (1999 £0.19m). Earnings per share
were 1.16p (1999 1.29p). An interim dividend is not being recommended.

Business Review

This period has seen an increasing level of sales activity as businesses have
put the millennium date change behind them and moved on to new IT
developments, particularly new technology related. With demand in the first
three months of this financial period slower than anticipated, sales are at a
similar level to last year. However in the last three months of the period the
number of chargeable consultants grew by 26% resulting in a 23% increase in
turnover on the three months to June. This improvement has arisen from the
gradual widening of the customer base in mainframe development, a significant
order from an existing client, and the introduction of new technology
opportunities.

Encouragingly, the gross margin has increased from 20.4% to 23.5% on a level
of turnover similar to last year. This has been achieved through balancing the
mix of technical staff between permanent and contract labour depending on the
nature of client project requirements.

With the improvement in demand, the directors have increased the off-site
development facilities and made further investment in the sales and support
team.

The overhead cost of these investments in facility and staff, both this year
and last, together with a full period of costs associated with being a public
company, has resulted in an increase in administration costs when compared to
last year, but in turn provides a strong platform on which to support the
anticipated increase in new business.

Outlook

Amongst the company's existing clients there is a positive outlook for
maintaining and enhancing present levels of business. In particular a
commitment has recently been secured from a major financial institution for
continuing development and maintenance activities for the next twelve months .

Generally, for our core managed service, recent concentrated sales initiatives
have provided a pipeline of opportunities from clients, several of which we
would expect to convert into business. Many of these opportunities are in the
area of new technology and our recent investment in new technology skills
leaves us well positioned to take advantage of these.

The directors continue to remain confident that the Group is well positioned
to provide a cost effective source of managed IT professionals and see an
increasing demand for the managed service concept as offered by EMS.
Notwithstanding the investments made in infrastructure we anticipate the
profits this year to be in line with last year. The benefits of this year's
investment are expected to arise within the next financial year. With a
widening client base, strengthening of relationships with existing clients and
recently created increase in capacity, the directors consider the company to
be exceptionally well placed for growth.



David S Wood

Chairman & Managing Director



5 December 2000




GROUP PROFIT AND LOSS ACCOUNT
for the six months ended 30 September 2000
                                             Unaudited             Audited

                                           six months to       twelve months to

                                           30         30           31 March
                                        September  September
                                          2000       1999            2000
                                          £'000      £'000          £'000
Turnover                                  4,027      4,069          7,596
Cost of sales                            (3,082)    (3,238)        (5,932)
Gross profit                               945        831           1,664
Administrative expenses                   (749)      (639)         (1,287)
Operating profit                           196        192            377
Net interest payable                      (23)        (3)            (37)
Profit on ordinary activities before
tax                                        173        189            340
Tax                                       (52)       (59)           (113)
Retained profit for the period             121        130            227
Earnings per share      - Basic           1.16p      1.29p          2.21p
                        - Fully Diluted   1.16p      1.28p          2.19p

All disclosures relate to continuing operations.
There are no recognised gains or losses other than the profit for the period.


GROUP BALANCE SHEET
At 30 September 2000
                                                     Unaudited         Audited
                                                   30         30      31 March
                                                September  September
                                                  2000       1999       2000
                                                  £'000      £'000      £'000
Fixed assets
Tangible assets                                    453        277        300
Current assets
Debtors                                           1,578      1,408      1,186
Cash at bank                                        6         163        193
                                                  1,584      1,571      1,379
Creditors - amounts falling
due within one year
Borrowings                                        (129)      (41)       (47)
Other creditors                                  (1,067)    (1,217)     (957)
                                                 (1,196)    (1,258)    (1,004)
Net current assets                                 388        313        375
Total assets less current liabilities              841        590        675
Creditors - amount falling
due after one year
Borrowings                                        (128)      (87)       (83)
                                                   713        503        592
Capital and reserves
Share capital                                      208        208        208
Share premium                                      122        130        122
Profit and loss account                            383        165        262
Shareholders' funds                                713        503        592

GROUP CASH FLOW
for the six months ended 30 September 2000
                                                       Unaudited        Audited
                                                                        twelve
                                                     six months to      months
                                                                          to
                                                     30         30        31
                                                 September   September   March
                                                    2000       1999      2000
                                                   £'000       £'000     £'000
Net cash (outflow)/inflow from operating
activities                                          (34)        111       481
Returns on investments and servicing of finance
Interest paid                                       (23)        (3)      (37)
Net capital expenditure and financial investment   (197)       (119)     (173)
UK corporation tax                                  (61)         -       (246)
Net cash (outflow)/inflow before
financing                                          (315)       (11)       25
Financing
Issue of ordinary shares less cost                   -          138       130
Capital element of finance leases
and hire purchase contracts                          75         73        75
Net cash inflow from financing                       75         211       205
(Decrease)/Increase in cash                        (240)        200       230
Reconciliation of operating profit to net
cash flow from operating activities
Operating profit                                    196         192       377
Depreciation charges                                 34         30        61
Loss on sale of tangible fixed assets                10          -         1
(Increase)/Decrease in debtors                     (392)       (73)       149
Increase/(Decrease) in creditors                    118        (38)      (107)
Net cash (outflow)/inflow from
operating activities                                (34)        111       481
Reconciliation of net cash flow to
movement in net debt
Opening net funds/(debt)                             63        (92)      (92)
(Decrease)/Increase in cash in year                (240)        200       230
Capital element of finance leases and hire
Purchase contracts                                  (75)       (73)      (75)
Closing net (debt)/funds                           (252)        35        63



NOTES TO THE INTERIM STATEMENT



 1. Preparation of interim report

    The financial information for the six month period ended 30 September 2000
    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 Group's statutory accounts for the
    period ended 31 March 2000.

    The financial information for the period ended 31 March 2000 has been
    extracted from the statutory accounts of Eurolink Managed Services plc
    which contained an unqualified audit report and which have been filed with
    the Registrar of Companies.


 2. Tax

    The tax charge for the six months ended 30 September 2000 has been
    calculated using the 'discrete' approach and represents the charge
    applicable for the six month period.


 3. Earnings per share

    The calculation of earnings per share is based on the profit on ordinary
    activities after tax for each period and the weighted average number of
    ordinary shares in issue during the period being 10,400,000 (1999:
    10,111,475). The number of shares used for the diluted earnings per share,
    after taking account of share options, is 10,432,695 (1999: 10,126,614).


 4. Share options

    Notional gains on options in issue under the companies share option scheme
    are subject to National Insurance costs. At 30 September 2000 no provision
    was required.


 5. Copies of results


        The Interim Results will be posted to all shareholders and will be
        available on request from the Company Secretary, Queen Square House,
        15 Queen Square, Brighton, BN1 3FD.





INDEPENDENT REVIEW REPORT TO EUROLINK MANAGED SERVICES PLC



Introduction

We have been instructed by the company to review the financial information set
out on pages 3 to 6 and we have read the other information contained in the
interim report and considered whether it contains any apparent misstatements
or material inconsistencies with the financial information.



Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The Listing
Rules of the Financial Services Authority require that the accounting policies
and presentation applied to the interim figures should be 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 issued by the Auditing Practices Board. 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 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 30 September 2000.



BDO Stoy Hayward, Chartered Accountants, Brighton

5 December 2000