Half Yearly Report

21st Century Technology plc

("21st Century", "the Company" or "the Group")

Half Year Results for the six months ended 30 June 2012

21st Century, a leading supplier of public transport CCTV and other monitoring systems, including their award winning EcoManager, today announces its half year unaudited figures for the six months to 30 June 2012.

Financial Highlights

·; Total revenue for the six months of £7m (2011: £7.8m, including one off contract income of £4.7m)

·; Revenue from the Group's three main UK customers up 80% to £5m (2011: £2.8m)

·; Profit before tax of £0.7m equivalent to 9.7% of revenue (2011: £0.7m and 9.3%)

·; Underutilised freehold property sold for £2.4m

·; Cash at bank at 30 June 2012 up to £4.2m (2011, net debt: £0.6m)

·; Return of capital to shareholders of 3.5p per Ordinary Share paid in July 2012

·; Board to consider year end dividend

Operational Highlights

·; £3.3m CCTV bus contract awarded by Arriva Sweden

·; First on train CCTV contract worth £1m awarded by CrossCountry Trains

·; Arriva UK Bus extend the Group's Preferred Supplier Contract for two years

·; EcoManager sales continue to be value enhancing for the Group

·; Significant order book and potential pipeline business boosts confidence for H2 prospects

Post-Period Events

·; Resignation of Group CEO, Nick Grimond, with effect on 28 September 2012

·; Appointment of Wilson Jennings as new Group CEO 28 September 2012

Commenting on the results, Jan Holmstrom, Chairman of 21st Century, said:

"We are currently trading in line with management's profit expectations. The full year profit expectation is weighted toward the second half of the year and, while the Group's current order book and sales prospects support management's expectations for the full year, achievement of these forecasts will depend upon a number of potential contracts being confirmed and fulfilled before the year end. Regardless of this we expect that the profit for the current year will exceed that achieved last year."

A copy of this half year results announcement is available on the Company's website: www.21stplc.com

Notes to editors:

21st Century Technology plc (AIM: C21), a leading supplier of public transport CCTV and other monitoring systems, was admitted to trading on AIM, a market operated by the London Stock Exchange, in 2005.

21st Century is the preferred supplier of on-board CCTV systems for Arriva UK Bus, the Go-Ahead Group, FirstGroup UK Bus and Keolis Sverige AB in Stockholm.

The Company has pioneered the use of WiFi with on-board CCTV systems and Transport for London commissioned the Company to undertake a trial of 'LiveView' - a system which transmits live CCTV pictures from on board the bus to a public transport and police control centre. 21st Century was also the first company to successfully launch Automatic Video Downloads and a bus CCTV monitoring system (HeartbeatTM) which allow the CCTV manager to remotely download CCTV footage from the bus to his computer and check that all the CCTV systems fitted to his buses are fully operational, without leaving his desk. The Company's passenger counting systems utilise active infrared sensors at every exit/entry point or overhead cameras linked to the ticket machine to enable bus operators to analyse specific bus route ticket sales and passenger numbers.

21st Century's EcoManager product has made a significant contribution to sales since its launch in July 2008. The EcoManager black-box system is aimed at cutting fuel and maintenance costs, reducing emissions and improving safety for bus operators by monitoring individual driving styles. Following a successful trial in 2009, Arriva UK committed to install the device on all their new buses and to retrofit a large proportion of their existing fleet. Later that year Arriva North West and Merseytravel won the industry recognised Alexander Dennis Award for Innovation following their installation of the EcoManager system which yielded fuel savings of up to 12%, associated CO2 emission reductions and a 62% reduction in accidents. This was followed in 2010 with a driver safety award for EcoManager presented by the road safety charity, Brake and in 2011; Arriva Wirral was presented with the Environmental Award by Wirral Investment Network in recognition of the environmental benefits achieved by the company as a result of the installation of EcoManager to its fleet of buses. For further information go to www.getecomanager.com.

21st Century Technology plc

Chairman's statement

Results overview

21st Century is a leading supplier of CCTV and other monitoring systems to the public transport market. The Group currently has three platform technologies: the supply, installation and maintenance of mobile (on vehicle) and fixed (on premises) CCTV, EcoManager driver monitoring and passenger counting systems.

The financial information contained within this interim report is based upon the Group's unaudited results for the six months to 30 June 2012.

Turnover at £7.0m compares to £7.8m achieved in the first half of the prior year. However sales for the first six months of last year included £4.7m from a large one off contract with Keolis in Stockholm and the Group has achieved significant sales growth in other areas in the first half of the current year. Combined revenue from the Company's three main UK customers (Arriva UK Bus, FirstGroup UK Bus and The Go-Ahead Group UK) was up by 80% at £5m (2011: £2.8m) in the first half of the year.

At the end of June 2012 we were delighted to announce that Arriva UK Bus extended the Company's Preferred Supplier contract for a further two years.

We continue to see a benefit from our investment in international sales staff to support the expansion outside of the UK. In March 2012, the Board announced the award of a £3.3m contract to supply on board CCTV, passenger counting and maintenance within a multi-modal (bus, train and tram) transport system operated by Arriva in Stockholm. Under the terms, £2.7m of the contract value will be delivered in the current year of which £1.2m has been delivered in the first half.

We were also pleased to announce in May 2012 the award of a £1m contract by CrossCountry Trains. This contract has now commenced and most of the related income is expected to come through in the second half of the year. The train CCTV market complements our existing bus CCTV business and represents a significant new growth opportunity for the Group.

Sales in our fuel saving product, EcoManager, continue to be value enhancing for the Group, with deployment in eight countries across Europe and major trials of EcoManager currently running with new customers in Europe and in the Middle East.

Board changes

As announced separately today, Nick Grimond has decided to resign as Chief Executive Officer and the Board wishes to thank Nick for his contribution over the seven year period since the Company repositioned itself from an in-car entertainment and security business to a leading public transport CCTV integrator.

Nick Grimond will leave the company on 28 September 2012.

Wilson Jennings, who has been an Executive Director with the Company for twelve years, will take over as Managing Director of the Group's main trading company 21st Century Technology Solutions Limited ("Solutions") with immediate effect and as Group CEO from the date of Nick's departure.

The Board remains committed to the future of 21st Century and its shareholders and is focused on creating and then realising value in line with the Group strategy.

Land and buildings

Following the disposal of the Company's legacy distribution businesses at the end of 2009, the Group's freehold head office site was significantly underutilised and the Company marketed the property for sale from that time. On 6 January 2012 the Company completed the sale of its premises for a cash consideration of £2,350,000. The net amount realised after costs was £2,292,000 and the carrying value of the property at 31 December 2011 was written down to this amount and included under Assets Classified As Held For Sale in the Consolidated Statement of Financial Position. Currently the Company is leasing back part of the site on a short term basis with a view to moving to more suitable leasehold premises in the locality in the second half of the current year.

Return of capital and dividend

Following approval by shareholders at the Annual General Meeting held on 30 May 2012 and the subsequent approval of the High Court, a return of capital of approximately £3.3m in cash, representing 3.5 pence per Ordinary Share was paid to shareholders in early July 2012.

The Board will consider a further distribution by way of dividend shortly after the year end.

Cash flow

Cash at bank stood at £4.2m at 30 June 2012 (i.e. before the return of capital of £3.3m referred to above) and this compared to net debt of £0.6m at 30 June 2011 and cash of £2.8m at 31 December 2011.

Current trading and outlook

We have a clear objective in creating value for shareholders, through our international partnerships in the road and rail markets. As well as providing a focused way forward for 21st Century in the roll out of our core CCTV technologies, momentum in EcoManager and passenger counting represent significant value drivers of the business.

We are currently trading in line with management's profit expectations. The full year profit expectation is weighted toward the second half of the year and, while the Group's current order book and sales prospects support management's expectations for the full year, achievement of these forecasts will depend upon a number of potential contracts being confirmed and fulfilled before the year end. Regardless of this we expect that the profit for the current year will exceed that achieved last year.

Jan G Holmstrom

Chairman

Consolidated statement of comprehensive income

Consolidated statement of changes in equity shareholders' funds

Notes

(i) The new 10p Ordinary Shares were issued following the exercise of 1,011,150 employee share options during the period:

(ii) Following approval by shareholders at the Annual General Meeting held on 30 May 2012 and the subsequent confirmation of the High Court on 27 June 2012, a return of capital of £3,263,387 in cash, representing 3.5 pence per Ordinary Share was paid to shareholders in early July 2012. This reduction in the share capital of the company became effective on 27 June 2012 and the nominal value of the Ordinary Shares was reduced from 10p per share to 6.5p per share at that date. Consequently, in the Consolidated Statement of Financial Position at 30 June 2012 the amount returned to shareholders in early July has been transferred from share capital to other payables

Consolidated statement of financial position

Consolidated statement of cash flows

.Notes

1. Basis of preparation and approval of interim statement

The financial information for the six months ended 30 June 2012 and for the six months ended 30 June 2011 is unaudited.

The interim financial statement for the six months to 30 June 2012 does not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements for the year ended 31 December 2011.

The financial information has been prepared on the basis of IFRSs that the directors expect to be applicable as at 31 December 2012.

The accounting policies adopted in the preparation of the interim financial statements are consistent with those set out in the Group's Annual Report and Financial Statements 2011, which were prepared in accordance with IFRSs.

This interim financial statement does not comprise statutory accounts within the meaning of section 435 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2011 were approved by the Board on 27 March 2012 and delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498(2) or section 498(3) of the Companies Act 2006.

The interim financial statement was approved by the Board of Directors on 28 August 2012.

2. International Financial Reporting Standards

The Group follows the Standards and Interpretations issued by the International Accounting Standards Board ("IASB") and the International Financial Reporting Interpretations Committee of the IASB and endorsed by the EU that are relevant to its operations.

3. Earnings per ordinary share

Details of the weighted average number of ordinary shares used as the denominator in calculating the basic and diluted earnings per ordinary share are given below:

4. Cash generated from operations