Ulster Television plc                                                          
                                                                               
Interim Statement                                                              
                                                                               
For the 6 months to 30 June 2003                                               

Financial Highlights

  * Group turnover up 13.9% at �25.7million
   
  * Group operating profit maintained at �7.0million before goodwill
    amortisation
   
  * Dividend increased by 3.8% to 4.10p
   
  * Radio operating profit up 32% at �1.04million
   
  * New Media operating profit increased substantially to �0.53million
   
Operational Highlights

  * Television advertising revenue up 1% compared with 5% decrease for ITV
   
  * Record share of ITV advertising market at 2.37% up from 2.25%
   
  * UTV's peaktime share of viewing was 34.5% versus BBC N.I. at 22.6%
   
  * Radio like-for-like advertising revenues up 4.3%
   
  * New media revenues increased substantially, rising by more than 70% to �
    1.6million
   
Commenting on the results, John B McGuckian, Chairman, UTV said:

"We are pleased to report another good set of financial results despite what
has been a challenging environment. UTV has continued to outperform the ITV
network, reporting improved advertising revenues and a record share of the ITV
advertising market. Our other businesses have also performed well and our
strategy of diversification into radio and new media has further strengthened
our position as one of the most successful media groups in Ireland.

"ITV advertising is witnessing some improvement in September, and October is
also looking stronger. This improvement is encouraging and engenders cautious
optimism for the second half when we would expect to again outperform ITV."

A presentation to analysts will be held at 9:30am today. To register for the
presentation please contact Rachel Jones at Tulchan Communications on 020 7353
4200.

For further information:

Tulchan Communications

David Trenchard/Andrew Honnor

0207 353 4200

UTV

Orla McKibbin

028 9026 2188

Chairman's Statement

Introduction

The six months under review witnessed the continuation of the two recurring
themes which have characterised your company's reporting over the last three
years - outperformance of peer groups in difficult market conditions and
continued development of new profit streams. We achieved another record share
of ITV advertising revenue, we successfully integrated our new Dublin station,
Lite FM with our other key radio assets to create an effective national selling
proposition, and we significantly improved internet operating profits.

Results

Profit on ordinary activities before interest and amortisation of goodwill was
maintained at �7.0M (2002 : �7.0m) despite a decrease in television operating
profit to �5.5m (2002 : �6.0m). Radio operating profit was �1.0m (2002 : �0.8m)
while new media operating profit more than doubled to �0.5m (2002 : �0.2m).
With net interest payable of �0.7m (2002 : �0.2m), the group profit before tax
and amortisation of goodwill was �6.3m (2002 : �6.7m).

Interim Dividend

Your Board has declared an interim dividend of 4.10p (2002 : 3.95p) which
represents a 3.8% increase over last year. The dividend will be paid on 21
October 2003 to all shareholders on the Register at the close of business on 26
September 2003.

Television

Our television operations again significantly outperformed the ITV network. Net
advertising revenue was up by 1% compared to a 5% decrease for ITV as a whole,
giving us a record share of 2.37% (2002 : 2.25%). Our outperformance, however,
continued to impact upon costs, with payments for network programmes up by �
0.5m in the period. Contributions to our pension scheme recommenced in the half
year under review, resulting in a charge for the period of �0.4m (2002 : �NIL).
Excluding these two significant cost increases, all other television operating
costs decreased in total by �0.1m.

Radio

The results of both Live 95FM in Limerick, acquired on 24 June 2002, and Lite
FM in Dublin, acquired on 20 December 2002, are consolidated in these accounts.
Lite FM incurred a small loss in the period while Live 95FM helped lift total
radio operating profit before goodwill amortisation in the six months to 30
June 2003 to �1.0m (2002: �0.8m). Radio advertising revenues on a like-for-like
basis were up by 4% in the period. The selling of national airtime for Lite FM
in Dublin has now been fully integrated into the operations of Broadcast Media
Sales Ltd., our wholly owned sales house, which also sells national airtime for
our stations in Cork and Limerick and for an independently owned station in
Galway.

New Media

Internet revenues increased substantially, rising by more than 70% in the
period to �1.6m (2002: �0.9m). Our internet customer base continued to grow
strongly, particularly in the Republic of Ireland where we were first to the
market with a new range of flat rate products. With overhead costs relatively
stable, margins increased from 17% to 24%, delivering a significant improvement
in profitability.

Bocom Ltd., the plasma screen-based content and advertising platform, in which
we hold a 54% stake, delivered a small profit.

Prospects

ITV advertising revenue experienced difficult market conditions throughout July
and August but some improvement is evident in September. In the quarter to 30
September 2003, ITV advertising revenue is expected to be down by about 6% and
we would anticipate that our television advertising revenue for the quarter
would decrease by 1%, giving a further increase in our market share. October is
also looking stronger for ITV with the Rugby World Cup providing some further
stimulus. This improvement is encouraging and engenders cautious optimism for
the second half when we would expect to again outperform ITV.

We are experiencing good revenue growth in radio advertising revenues which are
expected to be up by 12% in the quarter to 30 September 2003. The radio market
is very short-term but we would anticipate continuing growth for the rest of
the year.

Our launch of new flat-rate and broadband products in the Republic of Ireland
which was supported by an extensive marketing campaign, has drawn a strong
consumer response. These new products will stimulate further revenue growth but
the costs associated with their introduction will trim margins in the second
half compared to the six month period to 30 June 2003. Nevertheless, UTV
Internet is expected to show good profit growth for the year as a whole.

John B McGuckian

Chairman

15 September 2003

Group Profit and Loss Account

For the six months ended 30 June 2003

                                                       Unaudited        Audited
                                                                               
                                                      Six months     Year ended
                                                           ended               
                                                                    31 December
                                                         30 June               
                                                                               
                                  Notes       2003          2002           2002
                                                                               
                                             �'000         �'000          �'000
                                                                               
Turnover                                                                       
                                                                               
Group and share of joint                    25,842        22,679         47,632
ventures' turnover                                                             
                                                                               
Less share of joint ventures'                (168)         (143)          (338)
turnover                                                                       
                                                                               
                                            ______        ______         ______
                                                                               
Group turnover - continuing         2       25,674        22,536         47,294
operations                                                                     
                                                                               
                                            ======        ======         ======
                                                                               
Operating profit before goodwill             7,038         6,935         14,613
amortisation                                                                   
                                                                               
Amortisation of goodwill            3      (1,727)       (1,021)        (2,298)
                                                                               
                                            ______        ______         ______
                                                                               
Group operating profit -            2        5,311         5,914         12,315
continuing operations                                                          
                                                                               
Share of operating (loss)/profit             (100)            45           (42)
in joint ventures                                                              
                                                                               
Amortisation of goodwill arising    3        (270)          (91)          (368)
from investment in joint venture                                               
                                                                               
                                            ______        ______         ______
                                                                               
Profit on ordinary activities                4,941         5,868         11,905
before interest and taxation                                                   
                                                                               
Net interest payable                4        (672)         (166)          (624)
                                                                               
                                            ______        ______         ______
                                                                               
Profit on ordinary activities                4,269         5,702         11,281
before taxation                                                                
                                                                               
Taxation on profit on ordinary      5      (1,693)       (2,023)        (3,951)
activities                                                                     
                                                                               
                                            ______        ______         ______
                                                                               
Profit on ordinary activities                2,576         3,679          7,330
after taxation                                                                 
                                                                               
Minority interest                             (62)             -              -
                                                                               
                                            ______        ______         ______
                                                                               
Profit for the period                        2,514         3,679          7,330
attributable to the group                                                      
                                                                               
Ordinary dividends                         (2,193)       (2,076)        (5,060)
                                                                               
                                            ______        ______         ______
                                                                               
Transfer to reserves                           321         1,603          2,270
                                                                               
                                            ======        ======         ======
                                                                               
Earnings per share                  6                                          
                                                                               
Diluted                                      4.76p         6.92p         13.64p
                                                                               
Basic (FRS 14)                               4.77p         7.00p         13.94p
                                                                               
Adjusted                                     8.55p         9.12p         19.01p
                                                                               
Diluted adjusted                             8.42p         8.97p         18.51p
                                                                               
                                            ======        ======         ======
                                                                               
Dividend per share                           4.10p         3.95p          9.60p
                                                                               
                                            ======        ======         ======
                                                                               

Group Statement of Total Recognised Gains and Losses

                                              �'000         �'000         �'000
                                                                               
Profit for the financial year                 2,619         3,668         7,414
excluding joint ventures                                                       
                                                                               
Share of joint ventures' (loss)/              (105)            11          (84)
profit for the period                                                          
                                                                               
                                             ______        ______        ______
                                                                               
Profit for the period                         2,514         3,679         7,330
attributable to the group                                                      
                                                                               
Exchange difference on                        3,478         1,780         1,308
retranslation of net assets of                                                 
subsidiary undertakings                                                        
(excluding borrowings)                                                         
                                                                               
Exchange difference on                      (2,144)       (1,047)         (475)
retranslation of borrowings                                                    
                                                                               
                                             ______        ______        ______
                                                                               
Total recognised gains and losses             3,848         4,412         8,163
for the period                                                                 
                                                                               
                                             ======        ======        ======

Group Balance Sheet

At 30 June 2003

                                  Notes Unaudited      Unaudited        Audited
                                                                               
                                           30 June       30 June    31 December
                                                                               
                                              2003          2002           2002
                                                                               
                                             �'000         �'000          �'000
                                                                               
Fixed Assets                                                                   
                                                                               
Intangible assets - goodwill        3       49,249        37,890         47,943
                                                                               
Tangible assets                              9,123         8,248          8,839
                                                                               
Investment in joint ventures                   419         1,427          1,010
                                                                               
Other investments                                1             1              1
                                                                               
                                            ______        ______         ______
                                                                               
                                            58,792        47,566         57,793
                                                                               
                                            ______        ______         ______
                                                                               
Current assets                                                                 
                                                                               
Stocks                                       2,688         2,624          2,986
                                                                               
Debtors                                     10,927         9,614         10,375
                                                                               
Short-term cash deposits                     5,179         7,156          4,720
                                                                               
Cash at bank and in hand                       723         1,141          3,860
                                                                               
                                            ______        ______         ______
                                                                               
                                            19,517        20,535         21,941
                                                                               
                                            ______        ______         ______
                                                                               
Creditors - due within one year                                                
                                                                               
Creditors                                 (12,756)      (12,590)       (17,234)
                                                                               
Debentures                                       -      (15,375)              -
                                                                               
Loans                               8      (6,255)       (2,088)        (2,803)
                                                                               
                                            ______        ______         ______
                                                                               
                                          (19,011)      (30,053)       (20,037)
                                                                               
                                            ______        ______         ______
                                                                               
Net current assets/(liabilities)               506       (9,518)          1,904
                                                                               
                                            ______        ______         ______
                                                                               
Total assets less current                   59,298        38,048         59,697
liabilities                                                                    
                                                                               
Creditors - due after one year                                                 
                                                                               
Convertible loan notes              7      (3,362)       (3,750)        (3,362)
                                                                               
Amounts due for film rights                  (159)         (268)          (292)
                                                                               
Loans                               8     (27,838)       (9,035)       (29,840)
                                                                               
Provision for liabilities and                (332)         (288)          (341)
charges                                                                        
                                                                               
                                            ______        ______         ______
                                                                               
                                            27,607        24,707         25,862
                                                                               
Minority interest                              (8)             -              -
                                                                               
                                            ______        ______         ______
                                                                               
Net assets                                  27,599        24,707         25,862
                                                                               
                                            ======        ======         ======
                                                                               
Shareholders' funds                                                            
                                                                               
Called-up equity share capital               2,638         2,627          2,636
                                                                               
Share premium account                          584           125            504
                                                                               
Revenue reserves                            24,377        21,955         22,722
                                                                               
                                            ______        ______         ______
                                                                               
Equity shareholders' funds          9       27,599        24,707         25,862
                                                                               
                                            ======        ======         ======

Group Statement of Cash Flows

For the six months ended 30 June 2003

                                                       Unaudited        Audited
                                                                               
                                                      Six months     Year ended
                                                           ended               
                                                                    31 December
                                                         30 June               
                                                                               
                                  Notes       2003          2002           2002
                                                                               
                                             �'000         �'000          �'000
                                                                               
Net cash inflow from operating     10        5,854         7,304         18,019
activities                                                                     
                                                                               
Returns on investments and                   (258)         (197)          (730)
servicing of finance                                                           
                                                                               
Taxation paid                              (2,496)       (1,917)        (4,445)
                                                                               
Capital expenditure and financial          (1,042)         (619)        (1,656)
investment                                                                     
                                                                               
Acquisitions                               (1,206)      (11,577)       (21,454)
                                                                               
Equity dividends paid                      (2,978)       (2,838)        (4,920)
                                                                               
                                            ______        ______         ______
                                                                               
Cash outflow before use of liquid          (2,126)       (9,844)       (15,186)
resources and financing                                                        
                                                                               
Decrease in cash on deposit                    471           627          3,091
                                                                               
Financing                                    (763)         7,150         12,742
                                                                               
                                            ______        ______         ______
                                                                               
(Decrease)/increase in cash in             (2,418)       (2,067)            647
the period                                                                     
                                                                               
                                            ======        ======         ======
                                                                               
Reconciliation of net cash flow                                                
to movement in net debt                                                        
                                                                               
                                             �'000         �'000          �'000
                                                                               
(Decrease)/increase in cash in             (2,418)       (2,067)            647
the period                                                                     
                                                                               
Cash inflow from decrease in cash            (471)         (627)        (3,091)
on deposit                                                                     
                                                                               
Cash inflow from increase in                     -      (10,372)       (31,440)
loans                                                                          
                                                                               
Cash outflow from repayment of                 763         3,222         18,698
loans and debentures                                                           
                                                                               
                                            ______        ______         ______
                                                                               
Change in net debt arising from            (2,126)       (9,844)       (15,186)
cash flows                                                                     
                                                                               
Net debt acquired on acquisition             (111)         (794)          (715)
                                                                               
Financial liability waived by                  144             -              -
third party                                                                    
                                                                               
Conversion of loan notes                         -             -            388
                                                                               
Translation difference                     (2,035)         (687)        (1,234)
                                                                               
                                            ______        ______         ______
                                                                               
Movement in net debt in the                (4,128)      (11,325)       (16,747)
period                                                                         
                                                                               
Opening net debt                          (27,425)      (10,678)       (10,678)
                                                                               
                                            ______        ______         ______
                                                                               
Closing net debt                          (31,553)      (22,003)       (27,425)
                                                                               
                                            ======        ======         ======

Notes to the Unaudited Financial Information

At 30 June 2003

1. Basis of preparation

The interim financial information have been prepared on the basis of the
accounting policies set out in the Company's 2002 statutory accounts.

Although the interim results are unaudited, the auditors have carried out a
review of this Interim Statement. The results for the year ended 31 December
2002 are an abridged extract of the Company's full accounts which have been
filed with the registrar of Companies and on which the auditors have issued an
unqualified report. The financial information contained in this Statement does
not constitute full accounts within the meaning of Article 262 of the Companies
(Northern Ireland) Order 1986.

2. Segmental analysis

The group operates in three principal areas of activity - commercial
television, radio and new media. Turnover is generated principally from the UK
and Ireland with all radio activity generated in the Republic of Ireland.

During the period the Company acquired further shares in Bocom International
Limited, a data broadcasting company which is resident in the Republic of
Ireland, such that 54.3% of the equity of Bocom International Limited is now
held within the group. This acquistion was effected through a holding company
Revandy Limited which is owned 100% by the Company.

The results of Bocom International Limited are now consolidated with those of
UTV Internet Limited under the heading of "New Media".

Turnover, group operating profit on ordinary activities before tax and net
assets are analysed as follows:

(a)  Turnover                               Total   Inter-segmental   Sales to  
                                                              Sales   Third     
                                            Sales                     Parties   
                                                              �'000             
                                            �'000                          �'000
                                                                                
     Six months ended 30 June 2003                                              
                                                                                
     Television                            19,511             (121)       19,390
                                                                                
     Radio                                  4,723              (30)        4,693
                                                                                
     New Media                              1,621              (30)        1,591
                                                                                
                                           ______            ______       ______
                                                                                
     Total                                 25,855             (181)       25,674
                                                                                
                                           ======            ======       ======
                                                                                
     Six months ended 30 June 2002                                              
                                                                                
     Television                            19,114              (55)       19,059
                                                                                
     Radio                                  2,563                 -        2,563
                                                                                
     New Media                                944              (30)          914
                                                                                
                                           ______            ______       ______
                                                                                
     Total                                 22,621              (85)       22,536
                                                                                
                                           ======            ======       ======
                                                                                
     Year ended 31 December 2002                                                
                                                                                
     Television                            39,194             (166)       39,028
                                                                                
     Radio                                  6,307              (23)        6,284
                                                                                
     New Media                              2,042              (60)        1,982
                                                                                
                                           ______            ______       ______
                                                                                
     Total                                 47,543             (249)       47,294
                                                                                
                                           ======            ======       ======

                                                        Unaudited        Audited
                                                                                
                                                       Six months     Year ended
                                                            ended               
                                                                     31 December
                                                          30 June               
                                                                                
(b)  Group Operating Profit                    2003          2002           2003
                                                                                
                                              �'000         �'000          �'000
                                                                                
     Group operating profit before                                              
     amortisation of goodwill                                                   
                                                                                
     Television                               5,466         5,994         12,263
                                                                                
     Radio                                    1,041           791          2,049
                                                                                
     New Media                                  531           150            301
                                                                                
                                             ______        ______         ______
                                                                                
     Total                                    7,038         6,935         14,613
                                                                                
                                             ======        ======         ======
                                                                                
     Amortisation of goodwill                                                   
                                                                                
     Television                                   -             -              -
                                                                                
     Radio                                  (1,421)         (805)        (1,865)
                                                                                
     New Media                                (306)         (216)          (433)
                                                                                
                                             ______        ______         ______
                                                                                
     Total                                  (1,727)       (1,021)        (2,298)
                                                                                
                                             ======        ======         ======
                                                                                
     Group operating profit                                                     
                                                                                
     Television                               5,466         5,994         12,263
                                                                                
     Radio                                    (380)          (14)            184
                                                                                
     New Media                                  225          (66)          (132)
                                                                                
                                             ______        ______         ______
                                                                                
     Total                                    5,311         5,914         12,315
                                                                                
                                             ======        ======         ======

(c)  Net Assets                          30 June          30 June    31 December
                                                                                
     As at                                     2003          2002           2003
                                                                                
                                              �'000         �'000          �'000
                                                                                
     Television                               9,868        10,730          8,598
                                                                                
     Radio                                    3,123         1,216          2,472
                                                                                
     New Media                                   90           236            155
                                                                                
                                             ______        ______         ______
                                                                                
                                             13,081        12,182         11,225
                                                                                
     Unallocated Net Assets                  14,518        12,525         14,637
                                                                                
                                             ______        ______         ______
                                                                                
     Total                                   27,599        24,707         25,862
                                                                                
                                             ======        ======         ======

Unallocated net assets comprise cash, short term cash deposits, investments,
loans, loan notes, debentures, taxation, acquisition accruals, goodwill,
minority interest and proposed dividends.

3. Goodwill

Goodwill is being amortised as follows:-

  * goodwill arising from the purchase of County Media Limited, Treaty Radio
    Limited and City Broadcasting Limited is being amortised over estimated
    useful lives of 20 years.
   
  * goodwill arising from the purchase of UTV Internet Limited is being
    amortised over an estimated useful life of 10 years.
   
  * goodwill arising from the purchase of Bocom International Limited is being
    amortised over an estimated useful life of 2 years.
   
4. Net interest payable

                                                        Unaudited        Audited
                                                                                
                                                       Six months     Year ended
                                                            ended               
                                                                     31 December
                                                          30 June               
                                                                                
                                               2003          2002           2002
                                                                                
                                              �'000         �'000          �'000
                                                                                
     Interest payable - group                 (740)         (309)          (875)
                                                                                
                - share of joint                (3)           (4)            (9)
                ventures                                                        
                                                                                
     Interest receivable                         71           147            260
                                                                                
                                             ______        ______         ______
                                                                                
                                              (672)         (166)          (624)
                                                                                
                                             ======        ======         ======

5. Taxation

                                                        Unaudited        Audited
                                                                                
                                                       Six months     Year ended
                                                            ended               
                                                                     31 December
                                                          30 June               
                                                                                
                                               2003          2002           2002
                                                                                
                                              �'000         �'000          �'000
                                                                                
     Current tax                                                                
                                                                                
     UK Corporation tax                       1,483         1,824          3,686
                                                                                
     Corporation tax overprovided in              -             -           (80)
     previous years                                                             
                                                                                
                                             ______        ______         ______
                                                                                
                                              1,483         1,824          3,606
                                                                                
     ROI Corporation tax                        204           113            213
                                                                                
     Adjustment in respect of                     -            25             25
     previous years                                                             
                                                                                
     Share of joint ventures' current             2            30             33
     tax                                                                        
                                                                                
                                             ______        ______         ______
                                                                                
                                              1,689         1,992          3,877
                                                                                
     Deferred tax                                                               
                                                                                
     Origination and reversal of                  4            31             74
     timing differences                                                         
                                                                                
                                             ______        ______         ______
                                                                                
                                              1,693         2,023          3,951
                                                                                
                                             ======        ======         ======

6. Earnings per share

Basic earnings per share, in accordance with Financial Reporting Standard No14
(FRS 14), is calculated on the weighted average number of shares in issue
during the period being 52,736,067 (June 2002 : 52,546,600) and is based on the
profit for the financial period after taxation of �2,514,000 (June 2002: �
3,679,000).

Diluted earnings per share is calculated on 54,482,806 shares (June 2002 :
54,177,035 shares) reflecting the dilutive potential of the convertible loan
notes of 1,461,739 shares (June 2002: 1,630,435 shares) and the share option
schemes of 285,000 shares (June 2002: Nil). The calculation is based on profit
for the period of �2,592,000 (June 2002 : �3,749,000) reflecting an adjustment
for net interest payable on convertible loan notes of �78,000 (June 2002 : �
70,000).

An adjusted earnings per share has been calculated to exclude the impact of
goodwill amortisation. The adjusted earnings per share is based on operating
profits and is intended to provide a comparable measure of historical
performance.

                                                        Unaudited        Audited
                                                                                
                                                       Six months     Year ended
                                                            ended               
                                                                     31 December
                                                          30 June               
                                                                                
                                               2003          2002           2002
                                                                                
                                                  p             p              p
                                                                                
     Diluted earnings per share                4.76          6.92          13.64
                                                                                
     Adjustments:                                                               
                                                                                
     To reflect the dilutive                 (0.01)          0.08           0.14
     potential of the convertible                                               
     loan lotes                                                                 
                                                                                
     To reflect the dilutive                   0.02             -           0.16
     potential of the share option                                              
     schemes                                                                    
                                                                                
                                             ______        ______         ______
                                                                                
     Basic (FRS 14) earnings per               4.77          7.00          13.94
     share                                                                      
                                                                                
     Adjustments:                                                               
                                                                                
     Goodwill amortisation                     3.78          2.12           5.07
                                                                                
     Taxation relating to the above               -             -              -
     item                                                                       
                                                                                
                                             ______        ______         ______
                                                                                
     Adjusted earnings per share               8.55          9.12          19.01
                                                                                
     Adjustments:                                                               
                                                                                
     To reflect the dilutive                 (0.08)        (0.15)         (0.19)
     potential of the convertible                                               
     loan notes                                                                 
                                                                                
     To reflect the dilutive                 (0.05)             -         (0.31)
     potential of the share option                                              
     schemes                                                                    
                                                                                
                                             ______        ______         ______
                                                                                
     Diluted adjusted earnings per             8.42          8.97          18.51
     share                                                                      
                                                                                
                                             ======        ======         ======

7. Convertible loan notes

In the year 2000, convertible loan notes were issued as part consideration for
the acquisition of UTV Internet Limited. These loan notes bear interest at
Northern Bank base rate plus 0.45% up until 28 February 2003 and thereafter at
Northern Bank base rate plus 0.25%. The loan notes are convertible into
ordinary shares of 5p each fully paid in the Company on the basis of one
ordinary share for each �2.30 of nominal value of loan notes.

8. Loans

The Company has two multi option loan facilities totalling Euro49m, both of
which are drawn down in full. These facilities each bear interest at Euribor
plus 0.8%.

9. Reconciliation of movements in shareholders' funds

                                                        Unaudited        Audited
                                                                                
                                                       Six months     Year ended
                                                            ended               
                                                                     31 December
                                                          30 June               
                                                                                
                                               2003          2002           2002
                                                                                
                                              �'000         �'000          �'000
                                                                                
     Opening balance                         25,862        22,371         22,371
                                                                                
     Exercise of share options                   82             -              -
                                                                                
     Conversion of loan notes                     -             -            388
                                                                                
     Profit for the period                    2,514         3,679          7,330
                                                                                
     Dividends                              (2,193)       (2,076)        (5,060)
                                                                                
     Exchange difference on                   3,478         1,780          1,308
     retranslation of net assets of                                             
     subsidiary undertaking                                                     
                                                                                
     Exchange difference on loans           (2,144)       (1,047)          (475)
                                                                                
                                             ______        ______         ______
                                                                                
     Closing Balance                         27,599        24,707         25,862
                                                                                
                                             ======        ======         ======

10. Reconciliation of operating profit to net cash flow from operating
activities

                                                        Unaudited        Audited
                                                                                
                                                       Six months     Year ended
                                                            ended               
                                                                     31 December
                                                          30 June               
                                                                                
                                               2003          2002           2002
                                                                                
                                              �'000         �'000          �'000
                                                                                
     Group operating profit                   5,311         5,914         12,315
                                                                                
     Depreciation charges                       819           729          1,498
                                                                                
     Amortisation of goodwill                 1,727         1,021          2,298
                                                                                
     Profit on sale of tangible fixed          (13)           (4)           (22)
     assets                                                                     
                                                                                
     Decrease/(increase) in stocks              298            46          (316)
                                                                                
     (Increase)/decrease in debtors           (180)           466            497
                                                                                
     (Decrease)/increase in creditors       (2,095)         (863)          1,701
                                                                                
     (Decrease)/increase in                    (13)           (5)             48
     provisions                                                                 
                                                                                
                                             ______        ______         ______
                                                                                
     Net cash inflow from operating           5,854         7,304         18,019
     activities                                                                 
                                                                                
                                             ======        ======         ======



END