Final Results

Symphony Plastic Technologies PLC
7 May 2002


For Immediate Release                                      Tuesday 7th May 2002


                       SYMPHONY PLASTIC TECHNOLOGIES PLC

                              PRELIMINARY RESULTS
                      FOR THE YEAR ENDED 31 DECEMBER 2001

Symphony Plastic Technologies plc ('Symphony' or 'the Group'), a company
specialising in fully degradable plastics and other related products, is pleased
to announce its results for the year ended 31st December 2001.

HIGHLIGHTS

-        SPI-Tek sales up 77% to £2.10m (2000: £1.18m)
-        Overall turnover up over 20% to £3.85m (2000: £3.20m) with a widely
         anticipated decrease in the sale of non-degradable products to £1.75m 
         (2000: £2.02m)
-        SPI-Tek gross profit up 97% to £504,788 (2000: £256,752)
-        SPI-Tek gross margins up 11%
-        Operating losses reduced to £1.46m (2000: £1.49m)
-        Increase of 100% in number of UK local authorities using SPI-Tek
         products
-        New contract won from Nisa Today's to supply refuse sacks and bin
         liners for up to 5000 stores
-        Commercial agreement with CIBA Speciality Chemicals Inc., to develop
         degradable agriculture products.

Commenting on the results, Christopher Littmoden, Chairman of Symphony, said:

'These results reflect Symphony's commitment to establishing its SPI-Tek
degradable products into the market place.  Owing to difficult market conditions
we were only partially successful in our fund raising although we did complete
the transition to AIM. We are now in a better position to compete against
non-degradable plastic manufacturers but with the unique advantage of having a
fully degradable product, which compares favourably in terms of both price and
quality. Worldwide there is a growing concern for the protection of the
environment. This is recognised by consumers and is increasingly been legislated
for by governments. Therefore my Board remains confident about the prospects for
the Company.'

For further information, please contact:

Symphony                                               On the day: 020 7466 5000
Christopher Littmoden, Chairman                        Thereafter: 020 8207 5900
Michael Laurier, CEO

Buchanan Communications                                Tel: [phone]
Bobby Morse / Louise Bolton

Attached: Chief Executives' review; Consolidated Profit and Loss Account;
Consolidated Balance Sheet; Consolidated Cash Flow Statement; Notes to the
Preliminary Statement.

CHIEF EXECUTIVE'S REVIEW

We have had a successful year although our growth plans were impacted by the
delayed flotation and fund raising.

Symphony offers a unique technological solution to the problem of global plastic
waste, a fully degradable plastic product that is priced favourably against
non-degradable plastic and is scientifically proven. Environmentally responsible
packaging is increasingly becoming a serious global issue and the concept of
fully degradable plastics is still relatively new. Our aim is to make SPI-TekTM
the UK brand leader for fully degradable plastic packaging products.

TRADING RESULTS

As stated at the time of the flotation and fund raising last year, it has been
Symphony's intention to focus its business resources on SPI-Tek plastic products
that totally degrade as a plastic material to water and CO2.  We have achieved a
77% increase in sales of SPI-Tek products from £1.2m to £2.1m. As anticipated
sales of non-degradable products reduced by 13.4% to £1.75m from £2.02m.  Total
group sales increased by 20.4% to £3.8m from £3.2m.  Our aim is to allocate all
of our marketing and sales efforts to the further development of SPI-Tek product
sales, whilst maintaining the non-degradable business where possible.

The operating loss was £1.46m in 2001, which is marginally down from the 2000
results of £1.49m.  Administrative expenses, excluding depreciation and
amortisation, were £1.76m in 2001, which is 2% down from the 2000 results of
£1.8m. Gross profits from SPI-Tek sales increased by 97% to £505K from £257K.
Group gross profits in 2001 was £603K and in 2000 at £531K which represents an
increase of 13.5%.

Operating losses in the first half were increased by the high cost of buying
product from Abu Dhabi. This was caused by the initial start-up cost.

The loss per share decreased to 6.56 pence from 8.14 pence.

SALES

With our limited resources we have focussed in the following three markets.

1 - Retail

The grocery retail market is estimated to be worth over £600 million for
flexible plastic packaging products. This sector is mainly divided into two
areas. Goods for resale (GFR), products that are sold to the consumer such as
refuse sacks and bin liners, and goods not for resale (GNFR), plastic carrier
bags that are issued at supermarket checkout desks. The UK market potential for
the plastic carrier bag segment is estimated at £250 million.

We announced last year a significant carrier bag contract with Musgraves, one of
Irelands largest retail outlets and we are presently in discussions to expand
the range of products into the GFR segment. We continue to negotiate with many
of the major retailers in both the UK and Ireland. The fact that we have
products in Tesco, Safeways and Poundstretcher in addition to a significant
carrier bag contract proves that the ethical, environmental and commercial
aspects of SPI-Tek are both relevant to the increase in environmentalism and
provides an economically and viable solution.

Post the year end, we won a significant contract with Nisa, the UK's largest
buying group for independent retail and wholesale companies.  The contract is to
supply refuse sacks and bin liners.

2 - Local Authorities

We have substantially increased the number of councils to whom we sell
degradable green waste bags to 41, an increase of 21 councils during the period.

Under EC Directive 99/31/EC Landfill Directive councils are obligated to reduce
by 75% the amount of municipal waste (based on the 1995 figures) going in to
landfills by 2010. To comply with the Landfill Directive, the government has
established national targets for recovery of municipal waste mainly by recycling
and composting household waste. Councils will be compelled to consider the use
of degradable sacks as a viable option for the collection of this particular
type of waste.

Industry figures estimate that there is an annual potential of 6 million tons of
Municipal Solid Waste (MSW) that can be composted.

Basildon, Epping Forest District Council and Watford Council continue to use our
SPI-Tek products and in ever increasing volumes. Supplies also continue to all
the councils mentioned in our listing Prospectus from last year.

We continue to sell non-degradable 'black and grey' sacks to local authorities
in what is a very competitive and price driven market. These councils include
The North East Purchasing Organisation (NEPO), Waltham Forest, and Westminster.
More recent contract awards have included Fife Council and West Mercia. Growth
in this sector of the market will be considered on an opportunistic basis and
where there is potential to convert the product to SPI-Tek.

Our main growth strategy in this sector remains with green waste bags.

3 - Overseas

Barbados

Our distributor in Barbados, Loramark Marketing Inc, experienced working capital
difficulties during the year as reported in our Prospectus. We have maintained a
controlled position in terms of debt.

The business is presently being reorganised with the help of accountants
PricewaterhouseCoopers. A fund raising program is expected to be completed by
the end of July 2002, which will resolve the short-term working capital problems
for the Barbados market as described above.

In addition, agreement has been reached (subject to contract) to set up a new
venture named Symphony Environmental Caribbean Inc (SEC) with Loramark Marketing
Inc. and other local investors.

Barbados has in the past been a successful market place for SPI-Tek  products,
however because of the financial problems the sales this year have decreased by
more than 50%. Recent orders have included such customers as government
departments and Woolworths and we anticipate that trading in this territory will
soon recover to previous sales levels.

The import duty for non-degradable plastic bags is 60% and for degradable
plastic bags is nil. This position obviously gives SPI-Tek products a
significant price advantage and market opportunity. We believe that other
Caribbean Islands will follow this example in order to reduce the plastic
pollution problems that are currently considered to be a visible and
environmental blemish, an issue that is of considerable importance in view of
the Caribbean's exposure to tourism.

The intention for SEC is to rapidly expand SPI-Tek products throughout the
Caribbean and into the banana growing areas of Latin America.

Fyffes

The development of business with Fyffes was severely hampered by a hurricane
striking one of their tropical growing regions for their produce where important
trials with our products were subsequently curtailed. However, the evidence up
to that point indicated that our product trials were a success. We will shortly
set up local production under license to cut down lead times and anticipate
that, subject to finalising various production quality criteria, to have product
in local production by the third quarter of 2002.

Other Markets

Programmes released by BBC World News and the Discovery Channel Beyond 2000,
have created interest for our products from many countries including the U.S.A.,
Mexico, Singapore, Australia, New Zealand and South Africa.

We are close to finalising a new distribution agreement with an Icelandic
distributor resulting in an initial order for SPI-Tek refuse sacks.  In South
Africa the Government has introduced legislation effective from January 2003 to
restrict the use of polythene carrier bags.  Our agents, together with leading
supermarkets, have been making representations to the Government with regard to
using SPI-Tek products as the most viable and effective way of removing plastic
pollution from the environment.  The action is ongoing.

We are pleased to announce a commercial agreement with CIBA Speciality Chemicals
Inc., to develop a new range of totally degradable agriculture products for
distribution in overseas market. Details of this development will be announced
to the market in due course.

Symphony Bin Hilal Plastics Llc - Abu Dhabi

In October 2000 the first phase of equipment was installed giving a capacity of
up to 70 tons per month, although the output in the first few months varied
between 50 tons and 65 tons.

The remaining UK equipment was shipped and installed in December 2001 and the
production output capacity reached 165 tons in April 2002. This capacity is
expected to reach the maximum of 200 tons per month by end of June.

A new site has been acquired to build a factory that is capable of accommodating
the next phase of expansion to 1000 tons per month. Our local partners are
aiming to start construction, subject to funding, in the second half of this
year for occupation by the middle of 2003. The present aim is to increase the
current facility to a production level of between 350 and 500 tons monthly by
the end of this year, thus allowing our cost to decrease further. We had
anticipated a monthly production output level of 1000 tons by the end of this
current year, however start-up problems were greater than anticipated resulting
in a further delay.

The cost of goods from the Abu Dhabi operation was exceptionally high during the
first half of 2001 and the second half saw a reduction as the monthly output
volume increased. We are now benefiting from prices which compare more
favourably to the market in general and look forward to further improvements as
output volumes increase towards the optimum efficiency target of 1000 tons per
month.

Sales of SPI-Tek products into the local market have started to increase and the
forward sales projections look encouraging. Local laws and a commitment to
remove plastic waste from the environment have been the reason for increased
sales.

OUTLOOK

The volume of plastic packaging within the UK was recorded at approximately 1.7
million tons per year (DTI report). Out of this less than 15% or 240,000 tons
will be recycled. The remaining 1.4 million tons of plastic waste has nowhere to
go other than into landfill or perhaps littered in the environment. Consumers
and governments now have what we believe to be a viable and commercially
acceptable option by using SPI-Tek totally degradable plastic products. The
opportunities to develop SPI-Tek degradable products are substantial and we are
well placed to take advantage of this.

Significant progress has been achieved in all sectors of the degradable plastics
business and we expect this momentum to increase in the coming months. Our
management efforts are totally focussed on increasing sales and profitability by
increasing market awareness and by persuading governments to legislate in favour
of degradable plastics.

We are encouraged by the significant increase in interest in our product, not
just in the UK but in international markets, and subsequently the Board remains
confident about our future prospects.

Michael Laurier
Chief Executive



PROFIT AND LOSS ACCOUNT

For the year ended 31 December 2001


                                                                            31 December      31 December
                                                                                   2001             2000
                                                                                      £                £

Turnover                                                                      3,849,499        3,198,000

Cost of sales                                                               (3,246,094)      (2,666,151)

Gross profit                                                                    603,405          531,489

Distribution costs                                                            (146,953)        (104,929)

Administrative expenses                                                     (1,915,499)      (1,918,862)

Operating loss                                                              (1,459,047)      (1,491,942)

Net interest                                                                   (84,053)         (59,519)

Loss on ordinary activities before taxation                                 (1,543,100)      (1,551,461)

Tax on loss on ordinary activities                                                    -                -

Loss for the financial year transferred from reserves                       (1,543,100)      (1,551,461)

Basic and diluted earnings per share in pence                                    (6.56)           (8.14)



There were no recognised gains or losses other than the loss for the financial
year.



CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2001


                                                                                   2001             2000
                                                                                      £                £
Fixed assets
Intangible assets                                                             1,681,614        1,756,113
Tangible assets                                                                 184,208          186,704
Investments                                                                      15,525           15,525

                                                                              1,881,347        1,958,342

Current assets
Stocks                                                                          637,484          454,994
Debtors                                                                       1,142,132        1,358,457
Cash at bank and in hand                                                        465,943           31,052

                                                                              2,245,559        1,844,503

Creditors: amounts falling due within one year                                (809,406)        (999,330)

Net current assets                                                            1,436,153          845,173

Total assets less current liabilities                                         3,317,500        2,803,515

Creditors: amounts falling due after more than one year                        (44,605)         (40,181)

                                                                              3,272,895        2,763,334

Capital and reserves
Called up share capital                                                         307,343          225,126
Share premium account                                                         6,075,939        4,105,495
Other reserves                                                                  822,539          822,539
Profit and loss account                                                     (3,932,926)      (2,389,826)

Shareholders' funds                                                           3,272,895        2,763,334



CONSOLIDATED CASH FLOW STATEMENT

For the year ended 31 December 2001


                                                                                   2001             2000
                                                                                      £                £

Net cash outflow from operating activities                                  (1,383,598)      (1,400,395)

Returns on investments and servicing of finance
Interest received                                                                     9            7,103
Interest paid                                                                  (70,202)         (56,360)
Finance lease interest paid                                                    (13,860)         (10,262)

Net cash outflow from returns on investments and servicing of finance          (84,053)         (59,519)

Capital expenditure and financial investment
Purchase of intangible fixed assets                                            (42,990)         (31,513)
Purchase of tangible fixed assets                                              (12,417)        (108,178)
Purchase of investments                                                               -         (15,525)

Net cash outflow from capital expenditure and financial investment             (55,407)        (155,216)

Financing
Issues of shares                                                              2,623,742        2,974,846
Receipts from borrowings                                                         51,856                -
Repayment of borrowings                                                               -         (49,096)
Capital element of finance lease rentals                                       (40,845)        (123,357)
Expenses paid in connection with issue of shares                              (571,081)        (294,225)

Net cash inflow from financing                                                2,063,672        2,508,168

Increase in cash                                                                540,614          893,038



NOTES TO THE PRLIMINARY STATEMENT

Preliminary Results for year ended 31 December 2001

1       BASIS OF PREPARATION 

        The preliminary announcement has been prepared on the basis of 
        accounting policies consistent with the audited financial statements for
        the year ended 31 December 2000.

2       LOSS PER SHARE 

        The calculation of basic loss per share is based on a loss for the year 
        of £1,543,100 (2000: £1,551,461) divided by the weighted average number 
        of shares in issue during the year of 23,530,676 (2000: 19,061,380).

3       PUBLICATION OF NON-STATUTORY ACCOUNTS 

        The financial information set out in this preliminary announcement does 
        not constitute statutory accounts as defined in section 240 of the 
        Companies Act 1985.

        The balance sheet at 31 December 2001 and the profit and loss account 
        for the year then ended have been extracted from the Group's financial 
        statements upon which the auditors opinion is unqualified.

                      This information is provided by RNS
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