Futuremedia Plc Announces Preliminary Fiscal 2003 Results: Revenue growth 67%, Operating loss down by 45% year on year, Q4 Operating loss down 72% versus Q3

BRIGHTON, England, June 2, 2003 (PRIMEZONE) -- E-learning solutions provider Futuremedia Plc (Nasdaq:FMDAY) today announced preliminary financial results for the fiscal year and 3-month periods ending April 30, 2003.

For the fiscal year ending April 30, 2003, the Company reported revenues of 1,342,000 Pounds ($2,147,000). This represents an increase of 431,000 Pounds ($689,500) or some 67% when compared with full-year fiscal 2002.

The Company has reduced the operating loss to 915,000 Pounds ($1,464,000), an improvement of 1,113,000 Pounds or 45% compared with 2002.

For the three-month period ending April 30, 2003, the Company reported revenues of 382,000 Pounds ($611,000), an increase of 137,000 Pounds compared to Q4 2002. The operating loss for the quarter was 243,000 Pounds ($389,000), representing an improvement of 146,000 Pounds compared to Q4 2002.

Mats Johansson, CEO of Futuremedia, said: "It is now becoming clear that the stringent measures we have taken over the last 18 months together with a total focus on providing our customers with a complete service are paying off. Our revenue and gross margin trends are both firmly upward, and losses are trimmed further. The results of fiscal 2003 put us on a solid footing for the future and we enter our new fiscal year with over 1,044,000 Pounds ($1,670,000) in orders on hand and a record prospect pipeline. During this last quarter we have also undertaken the necessary actions to improve our balance sheet. We have contracted for the sales of non-productive real estate, which will reduce our debt position to nil on final completion, and have successfully concluded an equity financing exercise -- at a price above market -- in which both existing and new investors participated. At the same time, we have managed to conclude two deals that we believe will contribute positively as we now start to expand our business in Europe: the acquisition of 29.8% of the equity of Luvit of Sweden, and the acquisition of Aktivna in the UK. However, we must continue to keep very tight controls on costs."

Jan Vandamme, Chairman of the Board of Futuremedia, added "While it is true we still see very scant evidence of increased corporate IT spending, and the economic and political risks remain high, it is clear that our value proposition, allowing large companies to keep their workforce up-to-date and fully trained whilst reducing associated HR costs, has left our order book well filled. Our strategy is firmly anchored in expansion in the UK and Scandinavia, the two largest eLearning markets in Europe. The Board and myself are also very pleased with the improvements in the balance sheet, especially as shareholders' equity has virtually tripled."



In '000, except where specified

Quarter to Quarter to April 31, 2003 April 31, 2002

--All Figures in Pounds unless otherwise stated

            Quarter to Quarter to   April 31, 2003   April 31, 2002
 Revenues                              382 ($611)          245
 Operating Costs                       625 ($1,000)        534
 Operating Loss                        243 ($389)          289
 Net Loss                              249 ($398)          283

 Weighted shares                    51,358,101          29,648,374
 Loss per Share                    0.005 ($0.008)        0.009

                     (in 000's except share data)

                                              Year ended April 30,
                             2003        2003        2002       2001
                             $'000      GBP'000     GBP'000    GBP'000
 Net sales                   2,147       1,342         911        743
 Cost of sales               1,818       1,136       1,536      1,789
 Gross Profit/(loss)           329         206        (625)    (1,046)

 Operating expenses
 Sales and marketing           146          91          65        558
 General and administrative  1,577         986       1,175      2,051
 Facilities expenses            70          44          63        157

 Total operating expenses    1,793       1,121       1,403      2,766

 Operating loss             (1,464)       (915)     (2,028)    (3,812)

 Loss on sale of Assets       (189)       (118)        --        --
 Interest income                 2           1          32        120
 Interest expense              (77)        (48)        (29)       (36)
 Foreign currency gains         --          --          13         31

 Net loss                   (1,728)     (1,080)     (2,012)    (3,697)

 Loss per share
  basic and diluted         (3.72)c     (2.33)p     (6.60)p   (12.71)p

 Weighted average
  Outstanding           46,414,194  46,414,194  30,501,619  29,098,429


                                               April 30,
                                       2003       2003        2002
                                      ($'000)   (GBP'000)  (GBP'000)
 Current assets
 Cash and cash equivalents               639       437       445
 Accounts receivable,
  less allowance of GBP Nil
  (($Nil) in 2003 and
   GBP59,000 in 2002 for
   doubtful accounts)                    485       303       112
 Amounts recoverable on
  contracts                               70        44        15
 Other current assets                    407       254         3
 Inventories - finished goods              3         2         2
 Prepaid expenses                        631       394       393
 Total current assets                  2,295     1,434       970
 Property held for Sale                  719       450       908

 Property and equipment
  Land and buildings                    --        --          59
 Audio visual and computer
  equipment                              681       426       414
 Office equipment                        114        71        71
                                         795       497       544
 Accumulated depreciation                669       418       386
                                         126        79       158
 Other assets
 Intangible assets and Goodwill          447       279        53
 Investments                           1,510       944      --

 Total assets                          5,097     3,186     2,089


                                                    April 30,
                                          2003       2003       2002
                                       ($'000)    (GBP'000)  (GBP'000)
  Current liabilities
  Fees received in advance                 714        446        696
  Accounts Payable                         744        465        196
  Other taxes and
   social security costs                   149         93         82
  Other accounts payable                   176        110         19
  Other accrued expenses                   302        189        119
  Convertible Loan                        --         --          410
  Bank Mortgage                            480        300       --

  Total current
   liabilities                           2,565      1,603      1,522
  Long-term debt
   less current portion                   --         --         --
     Total liabilities                   2,565      1,603      1,522

 Shareholders' equity
  Ordinary shares of 1 1/9p each
  Authorized - 125,000,000
  Issued and outstanding-
   78,194,456 at April 30, 2003,
   29,648,374 at April 30, 2001          1,387        867        329
  Shares to be issued
   10,346,979 at April 30, 2002           --         --          506
  Preference shares of 2p each
  Authorized - 2,000,000
  None issued                             --         --         --
  Additional paid-in capital            27,075     16,924     14,822
  Retained deficit                     (25,762)   (16,103)   (15,023)

  Other comprehensive loss-
   cumulative translation
   adjustment                             (168)      (105)       (67)

  Total shareholders' equity             2,532      1,538        567

  Total liabilities and
   shareholders' equity                  5,097      3,186      2,089

About Futuremedia PLC

Futuremedia plc (est. 1983) is a Solutions Provider in the growing e-learning market with 20 years experience in the interactive media field supplying products and services to industrial and commercial business sectors and government, mainly in the UK and Continental Europe.

The Company has a proven track record in providing knowledge and training via Solstra, its proprietary Learning Management System which in its largest application has a capacity for 240,000 users.

Incorporated within its principal operation headquartered in the UK, Futuremedia's Professional Services team identify and specify client requirements and Futuremedia's Content Studio then design and develop custom content for clients' needs. The Futuremedia Library unit specifies and administers any content required from its comprehensive range of third party products. The Solstra Team deploy Futuremedia's own Learning Management System enabling training to be rapidly administered, delivered and progress tracked.

Futuremedia's customers include Royal Mail, Syngenta, BUPA and BT. Training content from partners SmartForce, Centra Software, SkillSoft and NETg is supplied and supported.

Futuremedia can be found on the Web at www.futuremedia.co.uk .

This earnings release can be found online at http://www.huginonline.com/try/plsql/pressreleases.queryview?P_IDENTIFIER=906128&Z_CHK=31547&p_la=5

"Safe Harbor" Statement under Section 21E of the Securities Exchange Act of 1934 This press release contains forward-looking statements related to future results and speaks only of the Company's expectations as of the date hereof. Such statements include discussions concerning the Company's financial performance and the performance of its products. Such statements involve known and unknown risks and uncertainties that may cause actual results to differ materially from expectations. The risks and uncertainties include the early stage of the e-learning market, the management of growth, the ability of the Company to continue to attract new funds if and when needed, the ability of the Company to develop and successfully market new products, the ability of the Company to integrate acquisitions, the ability of the Company to maintain compliance with NASDAQ's continued listing regulations, rapid technological change and competition, and other factors detailed in the Company's filings with the US Securities and Exchange Commission. The Company expressly disclaims any obligation to release publicly any updates or revisions to any such statement to reflect any change in expectations or in information on which any such statement is based.

All product names and trademarks mentioned herein are trademarks of Futuremedia or their respective owners.


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