Half Yearly Report

Ultima Networks Plc

("Ultima", "the Group" or "the Company")

Interim Results for the six months ended 30 June 2014

Ultima, the IT and Green Technology Company, is pleased to announce its unaudited interim results for the six months ended 30 June 2014.

Highlights for the period

· Turnover of £674,000 (H1 2013: £689,000)

· Operating loss of £77,000 (H1 2013: Loss £136,000)

· Cash at bank of £113,000 as at 30 June 2014 (30 June 2013: £82,000)

Ultima operates through two divisions: the IT Services division and the Green technology division.

The IT Services division develops and supplies computer based application software and services to the legal profession.

The Green technology division is responsible for the development and supply of electric powered bicycles and specialist electrical goods and provides renewable energy solutions for the development of clean power generation through solar and other renewable power sources with installations in the United Kingdom and in Spain.

Professor Humayun Mughal, Chairman and CEO, commented:

"During the six months ended 30 June 2014, Ultima made a Group operating loss of £77,000 (H1 2013: Loss £136,000). The Group maintained its policy of investing in research and product development to ensure it retains the ability to be competitive and react to market opportunities."

Enquiries:

Chairman and Chief Executive's Statement

Operational Review

Ultima continued its investment in the IT Services product portfolio and the development of new products in the Green Technology division in order to generate future growth in revenues.

The IT Services division has continued the roll out of the FiLos legal software suite. The division has a programme of continuous product development which has proved an essential tool in maintaining demand and competitiveness and providing a platform for organic growth.

The Green Technology division saw a substantial reduction in sales of its electronic bicycles into mainland Europe resulting in a first half loss.

The opportunity for growth in the global renewable energy market remains positive with opportunities to provide innovative solutions.

The short term economic outlook remains uncertain however the Group remains positive and considers itself well positioned to take advantage of any upturn.

The Board of Ultima remains committed to its programme of research, design and development and expect this will provide the platform for future growth opportunities.

Financial Summary

In the six months to 30 June 2014 the Group achieved sales of £674,000 (H1 2013: £689,000) with an operating loss of £77,000 (H1 2013 £136,000).

The IT Services division made a profit at the operating level of £163,000 (H1 2013: £100, 000) on sales of £375,000 (H1 2013: £414,000). This division comprises Cognito Software, a provider of application software and services to the legal profession.

The Green Technology division made an operating loss of (£153,000) (H1 2013: operating loss of £157,000) on sales of £299,000 (H1 2013: £275,000). This division comprises the green technology products and the green energy parts of Ultima's business.

The Group central overheads for the six months to 30 June 2014 were £87,000 (H1 2013: cost of £79,000).

As a result of the expected availability of brought forward losses there has been no adjustment for taxation in the period.

Prof. Humayun Akhter Mughal,

Chairman and Chief Executive Officer

September 2014

Consolidated Statement of Comprehensive Income

Six Months ended 30June 2014

Consolidated Statement of financial position

Consolidated statement of cash flows

Consolidated statement of changes in equity

(i) Six months ended 30 June 2014 - unaudited

(ii) Six months ended 30 June 2013 - unaudited

(iii) Year ended 31 December 2013 - Audited

1. Segmental reporting

The Group operates in the United Kingdom, Italy and Spain.

As at 30 June 2014, the Group is organised into two principal business segments:

· IT services division (comprising legal and publishing application software)

· Green technology division (comprising electric bicycles, energy saving lamps and educational electronic kits and development and installation of renewable energy solutions)

The segmental results for the half year ended 30 June 2014 are as follows:

2 Basis of preparation

The consolidated interim financial statements have been prepared in accordance with the AIM Rules for Companies and prepared on a basis consistent with International Financial Reporting Standards ("IFRS") as adopted by the EU and the accounting policies set out in the Group's financial statements for the year ended 31 December 2013.

The interim financial statements do not constitute statutory accounts within the meaning of section 435 of the Companies Act 2006.

The consolidated interim financial statements are unaudited and include all adjustments which management considers necessary for a fair presentation of the Group's financial position, operating results and cash flows for the 6 month periods ended 30 June 2014 and 30 June 2013.

The Group has chosen not to adopt IAS 34 'Interim Financial Statements' in preparing these interim financial statements and therefore the interim financial information is not in full compliance with IFRS disclosure.

The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.

These interim financial statements have been prepared under the historical cost convention.

3 Taxation

Due to expected availability of brought forward losses, no provision has been made for application of tax for the period under review.

4 Dividends

The Company has not proposed or declared an interim dividend.

5 Earnings per share

Basic earnings per share has been calculated based on the profit/ (loss) on ordinary activities after taxation and the weighted average number of shares in issue for the period of 279,176,538 (June 2013: 279,176,538 and December 2013: 279,176,538). There are no options having a dilutive impact on earnings per share.

6 Other information

This interim statement was approved by the Board on 26th September 2014 and has not been audited by the Company's auditors Hills Jarrett. The comparatives for the full year ended 31 December 2014 are not the Company's full statutory accounts for that year. A copy of the statutory accounts for that year, which were prepared under IFRS, has been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

No adjustments have been made for any changes in estimates made at the time of approval of the 2014 accounts.

A copy of this interim statement will be available shortly at the Company's registered office at Ultima Networks plc, Akhter House, Perry Road, Harlow, CM18 7PN and on the Company's website, www.ultima-networks.co.uk.