Epic Group plc ("Epic")

(The UK’s leading e-learning company)

INTERIM RESULTS FOR THE SIX MONTHS TO

30 NOVEMBER 2000

• Interim Results for the Six Months to 30 November 2000
• Chairman’s Statement
• Summary Consolidated Profit and Loss Account
• Consolidated Balance Sheet
• Consolidated Cash Flow Statement

DEMAND FOR E-LEARNING SOLUTIONS CONTINUES TO GROW

Epic Group, leaders in e-learning and developers of internet related services, announces interim results for the six months ended 30 November 2000.

• Record order book

• New clients won include: Lloyds TSB, Barclays, Credit Suisse, and Chartered Institute of Bankers

• New e-Government team wins e-learning work from: DSS, LearnDirect, Scottish Enterprise and the British Educational Communications and Technology Agency

• £4.6 million in cash

• Looking forward to further growth

For further information:

Background note:

Market data on the e-learning market

IDC estimate that the e-learning market will grow to $14.4billion by the year 2004. The estimate for 2000 is a market of $2.0billion. In Europe, IDC estimate that the market will grow to $4.0 billion in 2004. The market will be dominated by the UK, Sweden and Netherlands. In a separate survey Datamonitor estimate the size of the European market in 2002 as $0.7 billion.

EPIC’S CLIENTS:

Epic have worked with Royal Bank of Scotland, Lloyds TSB, Barclays, Credit Suisse and the Chartered Institute of Bankers. In the government sector, they have undertaken work for the DSS, LearnDirect, Scottish Enterprise, the DETR, Inland Revenue and Customs & Excise. British Airways, BOC, PricewaterhouseCoopers, Video Arts, Linguaphone and the Industrial Society are also clients.

Trading results to 30 November 2000

I am very pleased to report substantial increases in both turnover and profits for the six months to 30 November 2000. Turnover has increased by 95% to £3,712,000 (1999: £1,904,000), operating profits by 139% to £498,000 (1999: £208,000) and profit before taxation by 163% to £567,000 (1999: £216,000). Basic earnings per share rose by 151% to 2.33p (1999: 0.93p).

As the UK’s leading e-learning company, our growth and record order book are being fuelled by demand for e-learning solutions from existing and new customers. We are pleased to see a high level of repeat business that demonstrates the success of Epic’s e-learning solutions. Just as importantly, we have won new clients and greatly increased our presence in the public sector.

e-learning

Our core business is the delivery of e-learning solutions to major organisations. This outsourcing covers; consultancy, content development, testing, localisation and maintenance.

During the period we have won significant new clients in the financial sector including Lloyds TSB, Barclays, Credit Suisse and Chartered Institute of Bankers. Repeat business continues with The Royal Bank of Scotland. In a sector that is consolidating and subject to regulatory compliance and rapid change in products, cost savings through e-learning give these organisations competitive advantage.

Repeat and new business have also been won in other market sectors including services, manufacturing, retail and telecommunications. PricewaterhouseCoopers has used Epic on both internal and external projects. We are working with QA Training (Skillsgroup), Video Arts and The Industrial Society, who are all established training providers, to help them take their content online.

In the period we have recruited an e-government team and opened up the government sector winning e-learning work with the DSS, LearnDirect, Scottish Enterprise and the British Educational Communications and Technology Agency. In partnership with a specialist consultancy, Epic is developing online content for the public sector which offers the potential of future royalty earnings. The first courses will provide training on local government finance, best practice and e-government and are being developed with the Institute of Public Finance. Other prestigious wins include the development of the UK Parliament portal, and work for the DETR.

Investments

We have taken small equity investments in companies involved with mobile device and kiosk technology. While these investments have grown in value, the purpose of the investments was to identify new technology that take the internet to the masses which we can leverage back into our core business. This is being achieved in all three cases.

People

Management has been strengthened to sustain growth and our skills-base continues to develop. During the last 12 months, headcount has doubled and a government division has been established.

I am pleased that we have been recognised by three major awards in three months. At the Personnel Today Awards 2000 our work with The Royal Bank of Scotland, reaching some 20,000 staff in 650 branches, won the award for the best e-learning application. It was described as ‘the most successful example so far of the application of e-learning to UK business.’ Epic also won Sussex Business of the Year and Shares Magazine Best AIM Company Achievement Award. All three are a tribute to the quality and skills of our employees and their output.

In January 2001 we appointed Altium Capital as our brokers and nominated advisers. We look forward to working with them.

Future Prospects

Epic is the leading e-learning company in the UK and will continue to reinvent learning, guiding organisations and producing quality content that is engaging, effective and easy to use. In August 2000, in response to market demand and to fund future growth, we raised £3.5 million by placing one million ordinary shares.

Sustainable, profitable growth continues to be our basic business strategy. This is built on strong management, high staff retention, sound processes, a strong client base and a focus on e-learning.

I look forward to further success in the second half of the year.

Michael Inwards - Chairman

6 February 2001

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Summary Consolidated Profit and Loss Account

The comparative figures for the financial year ended 31 May 2000 are not the company’s statutory accounts for that financial year. Those accounts have been reported on by the company’s auditors and delivered to the registrar of companies. The report of the auditors was unqualified and did not contain a statement under section 237(2) or (3) of the Companies Act 1985.

Earnings per share have been calculated using the weighted average number of shares in issue during the period of 24,366,994 (1999:23,320,256). Diluted earnings per share have been calculated using the average number of shares in issue of 26,164,998 (1999: 25,496,326).

Copies of this announcement will be posted to shareholders and are available from the company’s registered office, 52 Old Steine, Brighton, East Sussex, BN1 1NH.

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Consolidated Balance Sheet

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Consolidated Cash Flow Statement