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Vianet Group PLC (VIA)

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Monday 25 June, 2001

Vianet Group PLC

Interim Results

Vianet Group PLC
25 June 2001



                 VIANET GROUP PLC ('VIANET' OR 'THE COMPANY')

        Unaudited Interim Results for the six months to 31 March 2001



The six months ending 31 March 2001 have seen a number of developments both of
the Vianet technology and product offering and in its markets.



There has been increasing interest in remote data management systems within
our target vending market, where there is a growing awareness of both the
strategic potential and practical complexity of installing telemetry
solutions. We have seen encouraging results from evaluation tests and made
further investment in people and the resources necessary to establish Vianet
as a leading provider of remote monitoring services and technology.



We have increased our focus on prospective customers, who are significant
vending operators seeking cost efficiencies, and on major new entrants into
the vending market, who have taken the strategic decision to incorporate
telemetry into their business plans. This focus on these operators and the
further development of the relationship with these companies from pilot to
roll out will form the basis of Vianet's future growth.



Results, in terms of revenues generated during the period, have been lower
than the original expectations. This is a reflection of underestimating the
amount of product development work required by the Company and the timescales
needed for prospective customers to feel confident about making the long-term
strategic commitment to telemetry.



The loss before tax for the half year ending 31 March 2001 was £858,541 (31
March 2000 £453,858 loss) on sales of £6575 (31 March 2000, £76). The
resultant loss per share was 4.6p (31 March 2000 loss per share 3.1p). The
Company had approximately £2,150,000 of net cash on deposit at 31 March 2001.
The comparative period's results have been extracted from the audited accounts
for the year ending 30 September 2000.  No dividend is payable.



The Company remains focused on providing remote data monitoring services to
the vending market to generate recurring revenues under long-term agreements
and is pleased to report further progress with the installation of pilot
programmes with major vending network operators, which it is hoped will lead
to a full roll-out in the future. In the period under review, 106 Vianet
evaluation units were installed across three pilot projects in the field, and
since that date evaluation has commenced in a further five pilot projects.
These pilots have confirmed that Vianet provides technology that delivers a
technically viable and economic service. Increased spend in sales, marketing
and promotion in the period, created considerable interest in Vianet's market
proposition across a wide range of vending applications. This was confirmed at
the AVEX trade show in May, which generated a large number of enquiries
including some European opportunities.



The Company has invested in the recruitment of customer services expertise and
software engineering and technical staff including an IT manager to complement
the existing design team. In addition, the Company made a substantial
investment in the period in developing the Vianet customer service database.
This data processing and management information system is the critical service
component and tool for customers, which helps differentiate Vianet's long term
service offering from other remote monitoring systems.



Andrew Mill joined the Board in December 2000 as Customer Operations Director,
bringing relevant commercial and project experience gained at senior levels
within the energy sector.   We have also announced today the resignation as
Chief Executive of Geoff Taylor.  My Board colleagues and I believe that the
Company is now well positioned to make real commercial progress with the
existing management team and additional resources available to the Company.



The Company remains confident in the opportunities for the provision of remote
data monitoring systems within the vending market. The recent experience with
pilot projects and market feedback indicate that Vianet has already achieved
an encouraging level of market credibility. Vianet's business model and its
strategy and approach to the evolving vending market are currently being
refined in the light of this experience. The operational cash burn rate seen
over the period has since been reduced by careful management of outgoings.
Staff and management are committed to the successful transition from pilot
studies to product and service sales over the coming months.



Having completed the technical and market development phases, and with a
motivated team, I am confident that Vianet can now make progress commercially.



John May

Chairman



For further information:

JP Burgun/Caroline Evans-Jones

ICIS

Tel: +44 (0) 20 7628 1114



                               Vianet Group plc

                     Consolidated Profit and Loss Account

                    For the six months ended 31 March 2001




                                     Six months to Six months to       Year to
                                          31 March      31 March  30 September
                                              2001          2000          2000
                                       (unaudited)   (unaudited)     (audited)
                                                 £             £             £


Turnover                                     6,575            76        34,547



Operating (loss)                         (945,427)     (455,109)   (1,189,416)


Net interest                                86,886         1,251        69,319
                                 --------------- --------------- ---------------
Loss on ordinary activities before       (858,541)     (453,858)   (1,120,097)
taxation


Taxation on loss on ordinary                     -             -             -
activities
                                 --------------- --------------- ---------------
Loss on ordinary activities after        (858,541)     (453,858)   (1,120,097)
taxation

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


Basic loss per share (pence)                (4.6p)        (3.1p)        (6.7p)
                                 --------------- --------------- ---------------



The notes shown below form an integral part of these accounts.



Notes:


1.  The basic loss per share has been calculated based on the loss for the
    period on 18,781,997 (six months ended 31 March 2000 : 14,680,934; year
    ended 30 September 2000 : 16,737,498) shares, being the weighted average
    number of shares in issue during the period.
2.  The financial information for the year ended 30 September 2000 has been
    extracted from the statutory accounts of the Company which have been filed
    with the Registrar of Companies and contain an unqualified report from the
    auditors.
3.  The financial information set out above does not constitute statutory
    accounts as referred to in Section 240 of the Companies Act 1985.
4.  No dividends were proposed or paid in the six months ended 31 March 2001.
5.  The accounting policies remain as stated in the Annual Report for the year
    ended 30 September 2000.
6.  Copies of this interim report are being sent to shareholders.
7.  Copies of this interim report will be available to the public free of
    charge from the offices of Vianet Group plc, Unit 5, Belleknowes Industrial
    Estate, Inverkeithing, Fife, KY11 1HY.
8.  The interim financial statements have been reviewed by the Company's
    auditors.



                               Vianet Group plc

                         Consolidated Balance Sheets

                             As at 31 March 2001




                                                      31 March    30 September
                                                          2001            2000
                                                   (unaudited)       (audited)
                                                             £               £

Fixed assets

Tangible assets                                        651,584         211,096
                                               --------------- ---------------

Current assets

Stock                                                   86,829          45,970
Debtors                                                158,261         125,364
Bank and cash                                        2,149,692       3,509,933
                                               --------------- ---------------
                                                     2,394,782       3,681,267
                                               --------------- ---------------

Creditors : amounts falling due within one           (425,918)       (359,820)
year

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


Net current assets                                   1,968,864       3,321,447

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

Total assets less current liabilities                2,620,448       3,532,543



Creditors : amounts falling due after one year       (210,117)       (263,671)

                                               --------------- ---------------
                                                     2,410,331       3,268,872
                                               --------------- ---------------


Capital and reserves

Called up share capital                                939,100         939,100
Share premium account                                4,199,985       4,199,985
Other Reserves                                       1,077,026       1,077,026
Profit and loss account                            (3,805,780)     (2,947,239)
                                               --------------- ---------------
Shareholders' funds                                  2,410,331       3,268,872

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