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Interim Results for Six Months Trading to September 30, 2004


WEBWIRE

ACQUISITION AND ORGANIC GROWTH DRIVE BUSINESS SERVE’S PROFIT UP BY 341%

Business Serve plc, one of the UK’s leading converged communication providers, offering both traditional ISP products and telecommunications services including Voice Over Internet Protocol (VoIP), announces its Interim Results for the six months to 30 September 2004.

Financial Highlights

-Turnover increased by 67% to £6.8 million (2003 H1: £4.0 million)

-Operating profit before goodwill up 341% to £353,000 (2003 H1:£80,000)

-Pre-tax profit £103,000 (2003 H1: loss £7,000)

-Underlying* earnings per share 1.16p (2003 H1: 0.47p)

* Underlying earnings per share is earning per share before goodwill

Operating Highlights

-Three further acquisitions completed during the period

-Increased automation of products and services

-Expanded portfolio of services to include CBC Broadband

-Re-seller agreement signed with BT’s Framestream Leased Line Product

-Recent acquisition of PipeMedia, Business Serve now offers VoIP telecommunications

Simon Cleaver, Business Serve, Chief Executive, said:

“Since flotation we have completed six acquisitions, which have increased our annualised revenues to over £17.5 million"

“The enhanced product range has enabled the Group to capitalise on the organic growth in the ISP and Telecoms marketplaces, and will enable us to accelerate new customer acquisition and cross-selling opportunities across the customer base. "

“In October 2004 we acquired Pipemedia, a UK market leader in VoIP. This acquisition will enable Business Serve to exploit the opportunities which exist within the fast emerging VoIP market"



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