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Legendary Invest PLC (LEG)

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Wednesday 27 December, 2000

Legendary Invest PLC

Interim Results

Legendary Investments PLC
27 December 2000

                          LEGENDARY INVESTMENTS PLC


           Interim Results for the Six Months to 30 September 2000


Legendary Investments plc ('Legendary'), the AIM listed development capital
group, is pleased to announce its first results since flotation on the
Alternative Investment Market ('AIM') in March of this year. The initial
investments have proved successful and net assets are considerably enhanced.
The results cover the period ended 30 September 2000.

Interim Highlights

  * Net assets stand at £7.0m despite volatile markets

  * Legendary raised £4.1m in two capital raisings

  * Operating loss £323,723, including start-up costs

  * Board focuses its investments in high growth companies to which it adds
    significant value

  * Early successes indicate that this strategy will provide enhanced
    returns

  * Further public listings of investee companies expected in the year ahead

  * Board confident that its differentiated strategy will provide
    accelerated returns



Commenting, Chief Executive, Shami Ahmed:


'From the start, it has been Legendary's stated aim to provide capital to fast
growing businesses, where the Board can assist in their development. Operating
as a value-added strategic partner is the key to our investment strategy.


'The portfolio of companies in which Legendary has equity interests is making
good progress, in line with the Board's expectations.


'The deteriorating economic climate will provide the opportunity for more
lucrative returns in the future. In a period of stock market volatility, the
portfolio has performed well and accordingly your Board views the year ahead
with confidence. It believes that accelerated growth will be achieved by
pursuing its strategy with the increased resources and profile that are now
available.'

                                                              27 December 2000
ENQUIRIES:

Legendary Investments plc                       Tel: 020 7743 6010
Shami Ahmed, Chief Executive

College Hill Associates                         Tel: 020 7457 2020
Michael Padley




Chief Executive's Statement


We have pleasure in reporting Legendary Investment's ('Legendary' or the
'Company') first results since flotation on the Alternative Investment Market
('AIM') in March of this year. The results cover the period ended 30 September
2000.


Having successfully completed two separate capital raisings, both in March for
£3.1m, and a further £975,000, net assets as at 30 September 2000 are in
excess of £7.0m. Since that date Legendary has reviewed and acted upon a
number of investment opportunities. Post the period end, we have divested the
majority of our interest in Orbital Software, after it obtained a London Stock
Exchange listing in October. We would expect that a further two investee
companies will move to public markets during 2001.


Current Trading / Operations


From the start, it has been Legendary's stated aim to provide capital to fast
growing businesses, where the Board can assist in their development. Operating
as a value-added strategic partner is the key to our investment strategy.


Complemented by the Board's wide network of relationships and professional
contacts, we believe that the strategic advice and brand expertise we are able
to provide greatly assists in creating and adding value to investees. The many
lessons learnt in my Joe Bloggs business are capable of being repeated on a
'fast track' basis within some of these investees and already some pleasing
benefits are beginning to come through.


Such businesses are required to demonstrate that they have the ability to
dominate their marketplace. When looking at prospective investments,
Legendary's investment approach incorporates a range of factors including
management experience, sector expertise, competitive position within the
marketplace, the defined use of funds as well as, ultimately, the options
available to Legendary for realisation of its investment.


During this period, the two investments that demonstrate Legendary's strategy
are Legends Surf Shops and Bioprogress of which further details are outlined
below.


In addition, it has also been announced today that Legendary has invested in
The Accessory People. Further details are given in a separate release
available today.


Portfolio Highlights


The portfolio of companies in which Legendary has equity interests is making
good progress, in line with the Board's expectations.


Orbital Software, a supplier of scalable knowledge management solutions, in
which Legendary had invested £250,000 earlier this year, floated on the
Official List during October having raised £16m new money for expansion. Our
sale of shares has provided a good return.


Notable developments at some of Legendary's other investments are in prospect.
In particular, it is hoped that Bioprogress will dual list on AIM and Legends
Surf Shops will graduate from the Ofex to AIM during the coming year.


Bioprogress, which has developed a process, the X-Gel Film System, which
replaces gelatin soft capsules, is now commercialising this technology through
a licensing-model. Its world class customers currently include Peter Black
Healthcare, a Fortune 500 company, The Boots Company Plc and Nestle.
Bioprogress is in the process of applying to the London Stock Exchange and has
recently appointed Close Brothers to advise it.


Legendary purchased 320,000 Common Stock of BioProgress at a total cost of £
504,534, currently quoted on the 'over-the-counter' NASDAQ market. This was
originally Series B Convertible Redeemable Preferred Stock and was converted
(at a conversion rate of 2.5 shares of Common Stock) for each Preference Share
held on 30 June; the conversion plus accrued interest of US$7539 was converted
into 807,539 ordinary shares of Common Stock. As at 15 December, the quoted
price was US$2.1 per share giving a notional profit at that price of 110 per
cent.


As payment for provision of certain brand expertise services Legendary has
also been granted an option over new shares in Bioprogress. More details will
be released to shareholders after Bioprogress has established some competitive
advantage.


We also have strong expectations for Legends Surf Shops. Legends is a leading
design led extreme sports and leisurewear retailer. Legendary holds 10 million
ordinary shares (18% of the equity) plus an option to increase the stake to
30%.


Now operating from 18 stores and 52,000 sq ft, trading at Legends is ahead of
internal projections and its off-pitch out-of-town format is capable of
supporting considerable expansion. In particular, there has been very strong
performances from upsized retail locations as a direct result of the fact that
Legends can display a wider product range. Legendary's Directors will assist
in adding to Legends already substantial strategic and brand strengths, by
developing relationships and sourcing content and own-brand product.


Outlook


Further progress, as indicated above, continues to be made in our current
portfolio of investments. In addition, Legendary continues to attract a strong
deal flow of potential business. As with existing investee companies, the
Board expects to add value through its own business development expertise. In
a period of stock market volatility, the portfolio has performed well and
accordingly your Board views the year ahead with confidence. It believes that
accelerated growth will be achieved by pursuing its strategy with the
increased resources and profile that are now available.


PROFIT AND LOSS ACCOUNT

30 September 2000

                                                              Period ended
                                                             30 September 2000

                                                                (Unaudited)
                                                                                
                                                                     £
Turnover                                                             -
Direct costs                                                      (47,289)
Gross loss                                                        (47,289)
Administrative expenses                                          

- Normal costs                                                   (171,532)

- National Insurance Contributions on Share                      (104,902)
  Options

Operating loss                                                   (323,723)
Investment income and losses                                      (54,925)
Loss on ordinary activities before interest and
tax                                                              (378,648)
Interest receivable                                                72,512
Interest payable                                                     (167)      
            
Loss on ordinary activities before taxation                      (306,303)
Tax                                                                  -
Retained loss                                                    (306,303)
Basic loss per ordinary share                                       0.006

Continuing Operations

None of the company's activities were acquired or discontinued during the
current period.

Total Recognised Gains and Losses

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

BALANCE SHEET

as at 30 September 2000




                                                              30 September 2000
                                                                    (Unaudited)
                                                         £                £

Tangible fixed assets                                    

Tangible assets                                          9,360
Investments                                          5,755,334
                                                                      5,764,694

Current assets                                         

Debtors                                                223,245
Cash at bank and in hand                             1,804,234
                                                     2,027,479
Creditors: amounts falling due within one year        (755,770)
Net current assets                                                    1,271,709

Total assets less current liabilities                                 7,036,403

Capital and reserves                                   511,097

Called up share capital
Share premium account                                6,831,609
Profit and loss account                               (306,303)
                                                      
Total capital and reserves                                            7,036,403


NOTES TO THE INTERIM ACCOUNTS

30 September 2000


       1     Accounting policies

             The accounts have been prepared in accordance with applicable
             accounting standards under the historical cost accounting rules.

 2. Investments

    The listed investments are stated at cost unless, in the opinion of the
    Directors, there has been impairment. None of the listed investments were
    considered to have been impaired during the period.


 3. Earnings per share


        The average number of shares in issue during the period was 51.1
        million (fully diluted number of shares 89.3 million).

        4     Post balance sheet events

             There has today a release issued following the acquisition of a
             stake in The Accessory People.

        5     Interim report

        Copies of this statement will be sent to all shareholders. The
        statement will also be available on written application to the Company
        Secretary, Legendary Investments plc, 4th Floor, Wembley Point, 1
        Harrow Road, Wembley, Middlesex, HA9 6DE. This statement has not been
        subject to an audit.




                                                                                
                                                                                
                                                     

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