Final Results

Symphony Plastic Technologies PLC
23 March 2005



                       SYMPHONY PLASTIC TECHNOLOGIES PLC


                              PRELIMINARY RESULTS
                      FOR THE YEAR ENDED 31 DECEMBER 2004



Symphony Plastic Technologies plc, the degradable plastics company, is pleased
to announce its preliminary results for the year ended 31 December 2004.


HIGHLIGHTS

   •   Turnover up 16% to £8.86m (2003: £7.63m)
   •   Operating loss after exceptional costs down 80% to £0.60m (2003: £2.92m)
   •   Operating loss before exceptional costs down 59% to £0.50m (2003: £1.22m)
   •   Gross profits increased by 55% to £1.84m (2003: £1.19m)
   •   Loss per share decreased to 1.31 pence from 7.09 pence
   •   Success in the High Court



Commenting on the results, Nirj Deva, Chairman of Symphony, said:

'I am pleased to report good turnover growth and a material reduction in the
operating loss of the Group during a year that was overshadowed by litigation in
the High Court.  The second half of the year was also affected by global
increases in energy and raw material costs.

Environmental and public pressure on governments and corporations around the
world continues to increase, raising awareness of the problems of plastic waste
and therefore the importance of the introduction of degradable plastics.
Symphony is well positioned internationally and technologically to capitalise on
these opportunities as they arise.'



For further information, please contact:


Symphony                                           Tel: [phone]
Michael Laurier, CEO

Ian Bristow, FD


Citigate Dewe Rogerson                             Tel: [phone]
Patrick Toyne-Sewell

Ged Brumby



Further information on Symphony Plastic Technologies plc

Symphony develops and markets environmentally responsible plastic packaging
products and additives, which are distributed primarily to the retail, local
authority and health related sectors. The Group's main technology, d2w(R),
allows plastic to degrade, leaving only water, a minimal amount of carbon
dioxide and trace amounts of non-toxic biomass over a controlled time period.
The current d2w(R) product range now includes degradable additives, carrier
bags, refuse and waste sacks, mailing wrap, stretch film, aprons, and packaging
films.  Further information on Symphony can be found at www.degradable.net.




CHIEF EXECUTIVE'S REVIEW

The year under review has been particularly challenging as raw material costs
nearly doubled and a large part of management time in the second half of the
year was occupied with defending litigation which was aimed at affecting our
core technology and business. I am pleased to report that despite these
distractions we have continued to increase sales and have significantly reduced
losses from the previous year.

Symphony has continued to expand its international distribution network for its
finished polythene products and additives. To date we have 8 distributors and
our d2w(R) products can be found in more than 20 countries.


TRADING RESULTS

Total group sales increased by 16% to £8.86m. Group gross profits increased by
55% from £1.19m to £1.84m. The Group continued to allocate most of its marketing
and sales efforts to the further development of d2w(R) product sales, whilst
also maintaining and increasing the level of non-degradable business.

The operating loss in 2004 was reduced significantly to £0.6m from £2.92m in
2003. In 2003, £1.7m was written off due to the termination of our licence with
EPI Environmental Products Inc ('EPI') and the estimated cost of the case in the
High Court. As the case is going to appeal, a further £100,000 provision has
been made in 2004 in respect of anticipated non-recoverable legal fees.

Research and development tax credits totalling £105,000 were received during
2004 and these are included in tax on loss on ordinary activities in the profit
and loss account.

The operating loss before exceptional costs was £0.5m, having reduced
significantly from £1.22m in 2003. Administrative expenses before exceptional
costs were £2.05m, which is 12% down from last year, as a result of tight cost
control. Gross profits increased by 33% before exceptional costs, from £1.39m to
£1.84m.

The loss per share decreased significantly to 1.31 pence from 7.09 pence.


Dispute between Symphony and EPI


As announced on 21 December 2004, Symphony was successful in the High Court on
the major points of the action taken by EPI. In January 2005, EPI completed
payment of a total of £670,000 into Court and was subsequently granted
permission to Appeal. The costs will remain in Court until the Appeal process
has been exhausted. We remain confident that the action is unmeritorious and
that the Appeal Court will reaffirm the judgment that was made in our favour
last December.


International Markets

Symphony has continued to expand its international sales activities with a
growing product range. The d2w(R) degradable products and additives are being
distributed in Brazil, the Caribbean, Middle East, New Zealand and South Africa.
In addition other new overseas markets have started to buy our products and
additives. The Group has completed significant distribution agreements for North
America, Saudi Arabia and Columbia in 2005, which further extends the geographic
reach of the d2w(R) range of products and additives.

Sales prospects are being encouraged by changes in legislation and increasing
environmental concerns over plastic pollution.


UK Sales

Symphony continued to target viable sectors where d2w(R) products will
strategically fit.

In particular the retail sector consumes large volumes of plastic and last year
we supplied over 1 billion d2w(R) carrier bags.

We also supplied products into the private health, local government and
industrial films sectors, but most of the work achieved last year was in product
trials and developing further relationships.


Financing

During the year £0.6m was raised by way of share issues in July and November.
Since the year end, and subject to an extraordinary general meeting on 31 March
2005, £1.7m has been placed. This new funding places Symphony in a strong
financial position with a strengthened balance sheet and the working capital
required to take full advantage of the opportunities in our markets.


Legislation

Increasingly legislators and officials around the world are realising that they
will never be able to collect and process all their plastic waste, and policies
are needed to encourage a move to degradability. They are also realising that
oxo-biodegradable plastic can be recycled and can itself be made from recycled
plastics. Oxo-biodegradable plastics also have a lower cost base than
starch-based biodegradable materials and have a wider range of applications.

Legislation that has been passed in countries such as Barbados, Malta,
Mauritius, Bangladesh, India and Taiwan, includes: use of non-biodegradable
plastic bags being a punishable offence; having lower taxation charges on bags
made from degradable plastic; split import duty levels for degradable and
non-degradable bags, with higher levels on the latter; and the banning of
plastics completely.  These actions have all encouraged interest in degradable
materials.

In November a major international conference was held in Brussels at which
scientists acknowledged the benefits of oxo-biodegradable plastic and recognised
that a European Standard was needed for plastics which degrade by a process of
oxidation.  This conference was attended by Symphony's technical team, and
Symphony is at the forefront of discussions with the EU Commission and the
European Standard Organization.

In the UK, farmers and growers can burn or bury plastic waste on farm, but this
will have to stop in June 2005 when the draft Waste Management Regulations are
expected to come into force.  This could potentially open up further markets for
our range of d2w(R) films and additives.


Outlook

We have continued to make progress in passing on raw material price increases to
our customers and have succeeded in recovering most of the additional costs. 
Recent price increases are being implemented at a much faster pace as the
markets are more prepared to accept these changes than before.

The 2005 year has started well with new orders and distribution agreements being
confirmed. In recent months deliveries of d2w(R) products have been made to some
large international companies in the leisure sector, which will allow our brand
to have further exposure to a large retail consumer base.

Symphony's d2w(R) products can be found in more than 20 countries throughout the
World. Our strategy is to expand the international distribution network and our
established partners are reporting good levels of activity in terms of product
enquiry, trials and order negotiation.

The UK sales activities are focussed on developing closer relationships with 
'key' customers and to expand the reach of d2w(R) into new sectors and products.
The health care, local authority, supermarket and mailing film sectors are
expected to expand as we negotiate for product extensions within the current
supply arrangements.

Legislation is moving at a steady pace and the focus is on changing the habits
of governments and consumers of all types of plastic packaging products. Our
view is that Symphony is well placed to supply the solutions to the problems
that governments are now starting to tackle, and with d2w(R) products available
at either zero or little 'on-cost', there is no commercial reason not to make
the change to degradable plastics.


Michael Laurier
Chief Executive




CONSOLIDATED PROFIT AND LOSS ACCOUNT

For the year ended 31 December 2004
                                                               Year ended          Year ended
                                                         31 December 2004    31 December 2003

                                                        £'000       £'000     £'000     £'000


Turnover                                                            8,855               7,628

Cost of sales - other                                 (7,013)               (6,243)
Cost of sales - exceptional item                            -                 (196)
Cost of sales                                                     (7,013)             (6,439)

Gross profit                                                        1,842               1,189

Distribution costs                                                  (283)               (281)

Administrative expenses - other                       (2,054)               (2,325)
Administrative expenses - exceptional item              (100)               (1,501)
Administrative expenses                                           (2,154)             (3,826)

Operating loss                                                      (595)             (2,918)

Net interest                                                        (132)                (91)

Loss on ordinary activities before taxation                         (727)             (3,009)

Tax on loss on ordinary activities                                    105                   -

Loss for the financial year transferred from                        
reserves                                                            (622)             (3,009)

Basic and diluted loss per share in pence                         (1.31)p             (7.09)p



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




CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2004

                                                                                   2004              2003
                                                                                  £'000             £'000
Fixed assets
Intangible assets                                                                    15                 1
Tangible assets                                                                     203               209
Investments                                                                          16                16

                                                                                    234               226

Current assets
Stocks                                                                              380               593
Debtors                                                                           3,397             2,111
Cash at bank and in hand                                                              1               170

                                                                                  3,778             2,874

Creditors: amounts falling due within one year                                  (2,763)           (1,828)

Net current assets                                                                1,015             1,046

Total assets less current liabilities                                             1,249             1,272

Creditors: amounts falling due after more than one year                            (41)              (25)

                                                                                  1,208             1,247

Capital and reserves
Called up share capital                                                             513               453
Share premium account                                                             9,116             8,593
Other reserves                                                                      822               822
Profit and loss account                                                         (9,243)           (8,621)

Shareholders' funds                                                               1,208 1           1,247





CONSOLIDATED CASH FLOW STATEMENT

For the year ended 31 December 2004

                                                                                      2004              2003
                                                                                     £'000             £'000

Net cash outflow from operating activities                                         (1,049)           (1,435)

Returns on investments and servicing of finance
Interest received                                                                        -                 4
Interest paid                                                                        (128)              (91)
Interest element of finance leases and hire purchase                                   (5)               (4)

Net cash outflow from returns on investments and servicing of finance                (133)              (91)

Taxation                                                                               105                 -

Capital expenditure and financial investment
Payments to acquire intangible fixed assets                                           (15)                 -
Payments to acquire tangible fixed assets                                              (8)              (57)
Receipts from sale of fixed assets                                                       4                18

Net cash outflow from capital expenditure and financial investment                    (19)              (39)
Cash outflow before financing                                                      (1,096)           (1,565)

Financing
Issue of equity share capital                                                           60               111
Share premium on issue of equity share capital                                         565             1,889
Share issue expenses                                                                  (42)             (192)
Capital element of finance leases and hire purchase                                   (22)              (58)

Net cash inflow from financing                                                         561             1,750

(Decrease)/increase in cash                                                          (535)               185




NOTES TO THE PRELIMINARY STATEMENT

Preliminary Results for year ended 31 December 2004


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 2004.


2    LOSS PER SHARE

     The calculation of basic loss per share is based on a loss for the year of
     £622,000 (2003: £3,009,000) divided by the weighted average number of 
     shares in issue during the year of 47,526,432 (2003: 42,421,388).


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 2004 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.

     The 2003 financial statements have been filed with the Registrar of 
     Companies, but the 2004 financial statements are not yet filed.



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