Interim Results

31 March 2011

Earthport plc (the "Company" or the "Group")

Interim Results

Earthport plc, the global payments utility, announces its interim results for the six months ended 31 December 2010.

Highlights

·; Revenue increased by 35.6% to £1,317,000 (2009/10 H1: £971,000).

·; Gross profit increased by 47.9% to £1,049,000 (2009/10 H1: £709,000).

·; Gross margin improved to 79.6% from 73.0%.

·; Operating loss reduced by 37.9% to £2,078,000 (2009/10 H1: £3,341,000).

·; Raised £7.5m through an equity placing to provide growth and working capital and to strengthen the balance sheet in October 2010.

·; Senior hires made to strengthen the management team.

·; Post period end, Paul Thomas appointed to the Board as an Executive Director.

·; Post period end, awarded Best Alternative Payments Programme at the Annual Cards and Payments Awards.

Revenue for the six months ended 31 December 2010 was £1,317,000 compared with £971,000 for the prior period, an increase of 35.6%. The increase in recurring revenue (including transaction and foreign exchange revenue) accounted for 59.8% of the increase, with the remainder accounted for by non-recurring revenue (including setup and integration fees). The number of transactions processed in the period increased by 30.0% on the prior period.

Gross profit was £1,049,000 compared with £709,000 for the prior period, an increase of 47.9%. Gross margin improved to 79.6% compared with 73.0% for the prior period. This was due to an increase in one-off revenue items.

Administrative expenses, excluding exceptional items and share based payment credits/charges were £2,872,000 compared to £2,761,000 for the prior period. Within operating costs certain costs, primarily staff costs, were reduced. These reductions were offset by certain one-off costs, primarily comprised of legal and professional fees, and a rise in other ongoing costs.

Operating loss was £2,078,000 compared with £3,341,000 for the prior period, a fall of 37.9%. These figures include non-cash share based payment charges. Excluding these, operating loss for the period would have been £1,823,000 compared with £2,052,000 for the prior period, a fall of 11.2%.

Financing costs fell to £28,000 compared to £269,000 for the prior period. This fall was due to an absence of a charge for warrants and the reduction of debt in the period compared to the prior period.

Overall, net loss fell to £2,106,000 from £3,610,000 for the prior period, a decrease of 41.7%. These figures include non-cash share based payment charges. Excluding these, net loss for the six months ended 31 December 2010 was £1,851,000 compared with £2,321,000 for the prior period, a fall of 20.3%.

Review of the Period

The period was characterised by continuing stabilisation and strengthening of the business. Following demonstrable traction from existing and new clients, £7.5m of equity was raised via an oversubscribed funding round in October, thereby strengthening the Company's balance sheet. In November, Mike Harrison and Lance Brown stepped down from the Board. At the same time, Phil Hickman joined the Board as Non-Executive Chairman and Terry Williams joined as a Non-Executive Director.

In the latter part of the period, further senior hires were made to strengthen the management team, and post the period end, Paul Thomas, Head of Sales and Marketing, was appointed to the Board as an Executive Director.

In February, at the Annual Cards and Payments Awards dinner, Earthport was a finalist in three different awards categories and was the winner of the "Best Alternative Payments Programme."

Outlook

The above and on-going changes continue to strengthen and prepare the Company for growth. The team is being expanded, particularly in sales, client implementation and compliance.

The Company is working closely with a number of new clients, some of whom have entered into formal contracts with us and the implementation process is under way. Due to the variability in the elapsed time from contract to revenue which is based on client priorities and resources, the Company typically expects to announce significant contracts only when integrations are complete and revenue generation has commenced. Currently, the number of new clients being integrated will increase the number of revenue generating clients by 50%.The Banking network is also being expanded to increase coverage for existing and new countries. The implementations currently underway are expected to add to the network in terms of destinations and robustness.

With the growth in the sales team, the pipeline of potential clients is growing rapidly though the path from potential to contract to revenue can take many months depending on the size and complexity of clients.

With the addition of resources and upgrading of systems, operating costs are expected to increase in the current period and profitability is not expected to be achieved this financial year. The clients undergoing implementation and those in the pipeline are expected to add meaningfully to revenues in the 2011/12 financial year. While there can be no certainty, the Board and management currently expect to achieve a cash flow positive run rate during the 2011/12 financial year.

Whilst much progress has been made, there is much more work required to achieve Earthport's full potential. The Board and management remain confident of Earthport's future and look forward to updating shareholders of progress in due course.

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the period ended 31 December 2010

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

at 31 December 2010

CONSOLIDATED STATEMENT OF CASH FLOWS

for the period ended 31 December 2010

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Six months ended 31 December 2010 (Unaudited)

Six months ended 31 December 2009 (Unaudited)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Year ended 30 June 2010 (Audited)

notes to the INTERIM results

for the period ended 31 December 2010

1. GENERAL INFORMATION

Earthport plc is a public limited company incorporated and domiciled in the England and Wales under the Companies Act 2006. The address of its principal place of business and registered office is 21 New Street, London EC2M 4TP.

2. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The interim financial information has been prepared on the assumption that the Group is a going concern.

When assessing the foreseeable future the directors have looked at a period of twelve months from the date of approval of the financial statements. The forecast cash-flow requirement of the business is contingent upon the ability of the Group to generate future sales. The directors believe that the Group has demonstrated progress in achieving its objective of positioning the Group as an infrastructure supplier to the global payments industry, and therefore consider that it is appropriate to prepare the Group's financial statements on a going concern basis, which assumes that the Company is to continue in operational existence for the foreseeable future.

3. ACCOUNTING POLICIES

Basis ofpreparation

The interim financial information is prepared using accounting policies consistent with International Financial Reporting Standards ("IFRS'') as adopted by the European Union.

The financial statements have been prepared under the historical cost convention and the principal accounting policies are set out in the 30 June 2010 financial statements.

4. FINANCE COSTS

5. LOSS PER SHARE

Loss per share is calculated by dividing the loss attributable to equity holders of the company by the weighted average number of ordinary shares in issue during the period.

The loss attributable to ordinary shareholders and weighted average number of ordinary shares for the purposes of calculating the diluted loss per share are identical to those used for basic loss per ordinary share. This is because the exercise of share options and other benefits would have the effect of reducing loss per share and is therefore not dilutive under the terms of IAS33.

6. TRADE AND OTHER RECEIVABLES

7. TRADE AND OTHER PAYABLES

Trade payables and accruals principally comprise amounts outstanding in respect of operating costs. The directors consider that the carrying amounts for trade and other payables approximate their fair value.

8. BORROWINGS

9. SHARE CAPITAL

Deferred shares carry no rights to receive any dividend nor other distribution. The holders of the deferred shares have no rights to receive notice, nor attend, speak or vote at any general meeting of the Company. On a return of capital on liquidation or otherwise, the holders of the deferred shares are entitled to receive the nominal amount paid up on the deferred shares after the repayment of £10,000,000 per ordinary share.

The Articles of Association were amended on 24 March 2010. The Company now has no authorised share capital limit.

10. SHARE PREMIUM

11. OWN SHARES RESERVE

12. RECONCILIATION OF LOSS BEFORE TAX TO NET CASH OUTFLOW FROM

OPERATING ACTIVITIES

Group

13. PUBLICATION OF NON-STATUTORY FINANCIAL STATEMENTS

The results for the six months ended 31 December 2010 and 31 December 2009 are unaudited and have not been reviewed by the auditor. The results for the year ended 30 June 2010 do not constitute statutory financial statements as defined in section 434 of the Companies Act 2006, but have been derived from the full audited financial statements for the year ended 30 June 2010. The report of the auditor on the financial statements for the year ended 30 June 2010 was unqualified.