Half Yearly Report

28 September 2012

Cellcast plc

(the "Company")

Interim Results for the six months ended 30 June 2012

The Board of Cellcast plc (AIM: CLTV) are pleased to announce the Group's interims results for the six months ended 30 June 2012 and to provide an update on the Group's Asia based investments , Cellcast Asia Holdings and Cellcast India.

Financial highlights

·; Revenue for the six months ended 30 June 2012 of £9.8m (H1 2011: £11.4m);

·; First half loss before tax of £119,000 (H1 2011: profit before tax of £609,000);

·; Operating costs reduced by 9.9% to £784,000 (H1 2011: £870,000), leading to improved performance compared to H2 2011.

Update on Cellcast India

·; In October 2011 additional capital raised by Cellcast India and partial sale of stake resulted in dilution of Group's ownership in Cellcast India to 12%.

·; Cellcast India's financial position deteriorates further as the effects of new regulations reducing premium mobile tariffs for key application take a toll on Cellcast India margins.

·; As a result of the above Cellcast India delays payments due the PLC under the IP Licensing agreement.

Andrew Wilson, CEO of Cellcast plc, commented:

The first half of 2012 saw a significant decline in revenue and profitability over the same period in 2011. This was largely attributable to a recession driven decline in consumer demand. On the positive side the first half of 2012 produced significantly improved results over the second half of 2011 as a result of cost cutting measures.

For further information:

CHIEF EXECUTIVE OFFICER'S STATEMENT

Half year results

The Group's performance in the first half showed a decline in revenue and operating profit when compared with the first half of 2011 but a noticeable improvement in both revenue and gross operating profit compared with the second half of 2011.

Revenue for the six months ended 30 June 2012 was £9.8 million, a decrease of 13% on the same period last year but an increase of 3% over the second half 2011 performance. Gross profit for the period was £678,000 (H1 2011: £1,601,000), again showing an improvement on the second half of 2011, which recorded a gross profit of £110,000.

Revenues in the second quarter of 2012 were up 8% compared to the first quarter with the costs at a consistent level in these two quarters.

Operating costs for the period were £784,000, which is 10% lower than the £870,000 total for the first half of 2011.

Overall, the Group's UK operations incurred an operating loss of £106,000 for the period after depreciation and amortisation costs of £301,000. This compares unfavourably to an operating profit of £732,000 in the comparative period for 2011 but amounts to a significant improvement over the second half of 2011 when the Group incurred an operating loss of £710,000

The improvement over the second half of 2011 is a direct result of significant costs cutting program implemented during that period.

After taking into account the interest charges, the loss for the period was £119,000 (30 June 2011: £570,000 profit). This represents a loss per share of (0.2)p (30 June 2011: 0.8p profit).

Cellcast Asia Holdings ("CAH")

On 7 October 2011 CAH bought back 3.2 million shares in CAH from Cellcast for a consideration of USD1.5m (£949,000), thereby reducing the Group's holding in Cellcast India to 12%.

The performance of Cellcast India deteriorated in the first half of 2012, impacted by new rules introduced by the Indian telecoms regulator, TRAI, which effectively reduced the premium tariffs applicable to Cellcast India's core services. As a result, Cellcast India has delayed payments due under the Intellectual Property assignment agreement concluded contemporaneously with the Share Buy Back Agreement mentioned above. Adequate provision was made against these amounts at 31 December 2011. No additional provision has been required in the period.

As of this date we understand that Cellcast India is exploring a repositioning and recapitalisation of the business.

Funding

The cash flow for the sixth months ended 30 June 2012 was significantly improved from the same period last year due to the timing of receipt of the proceeds on the part-disposal of the Group's Indian associate received in November 2011.

Having reviewed the forward cash flows for the foreseeable future, the directors are confident that the Company has sufficient financial resources and that the preparation of the interim accounts on a going concern basis is appropriate.

Outlook

The group continues to invest in the development of innovative products and services to meet the challenges and growth opportunities presented by the expansion of digital television and the convergence of the web, TV and telephony.

The economic situation continues to negatively impact demand for the Group's services in the UK and the Directors expect the last quarter to be a challenging one. As stated in the 2011 Annual Report, the Group has now reached saturation levels in terms of its multi channel multi platform distribution in the UK so we are increasingly focussing our efforts on identifying and developing new international markets for our products and services.

Andrew Wilson

Chief Executive Officer

28 September 2012

UNAUDITED CONDENSED CONSOLIDATED STATEMENT of comprehensive income

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

In the above tables, the amounts are attributable to the equity holders of the parent.

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the 6 months ended 30 June 2012

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the 6 months ended 30 June 2012

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION

1. General Information

Cellcast plc is a limited liability Company incorporated and domiciled in the United Kingdom. Its business address is 150 Great Portland Street, London, W1W 6QD. The address of its registered office is The Registry, 34 Beckenham Road, Beckenham, Kent, BR3 4TU. Copies of this statement are available from this address and from the Company's website www.cellcast.tv.

The Company is quoted on the AIM Market of the London Stock Exchange.

This condensed consolidated interim financial information was approved for issue on 28 September 2012.

2. Basis of preparation

This unaudited condensed consolidated interim financial information is for the six months ended 30 June 2012. This has been prepared in accordance with recognition and measurement principles of International Financial Reporting Standards (IFRS) as endorsed by the European Union and implemented in the UK. The financial information in this interim announcement does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006.

The interim financial information does not include all of the information required for full annual financial statements and accordingly, whilst the interim financial information has been prepared in accordance with the recognition and measurement principles of IFRS, it cannot be construed as being in full compliance with IFRS.

The comparative financial information for the year ended 31 December 2011 does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The statutory accounts of the Group for the year ended 31 December 2011 have been reported on by the Company's auditor and have been delivered to the Registrar of Companies. The auditor's report on those accounts was not qualified, did not contain statements under section 498(2) and (3) of the Companies Act 2006 and included an emphasis of matter relating to the uncertainties in respect to the Group's ability to continue as a going concern.

The IFRS's that will be effective in the financial statements for the year to 31 December 2012 are still subject to change and to the issue of additional interpretation(s) and therefore cannot be determined with certainty. Accordingly, the accounting policies for that annual period that are relevant to this interim financial information will be determined only when the IFRS financial statements are prepared at 31 December 2012.

Except as described above, the current and comparative periods to June have been prepared using accounting policies and practices consistent with those adopted in the annual financial statements for the year ended 31 December 2011 and are also consistent with those which will be adopted in the 31 December 2012 financial statements.

There were no other Standards and Interpretations which were in issue but not effective at the date of authorisation of this condensed interim financial information that the directors anticipate will have a material impact on the financial statements of the Group.

NOTES TO THE UNAUDITED INTERIM ACCOUNTS STATEMENT

3. (Loss) /earnings per share

Basic and diluted loss per share is based on the loss after tax and on the following weighted average number of shares in issue.