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Hitt og þetta 15. september 2006

Interim Results

CAPITAL MANAGEMENT AND INVESTMENT PLC INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 JULY 2006

Chairman's statement

Year end results

The interim results of Capital Management and Investment PLC ("CMI") for the 6 months to 31 July 2006 show a loss before tax of £150,000 (2005 - loss £185,000). The loss is stated after accounting for interest income of £294,000 (2005 - £123,000). Loss after tax is £150,000 (2005 - profit £148,000 following a corporation tax refund of £333,000 relating to prior years).

Redemption of preference shares held in Ristretto Holdings SCA ("Ristretto")

Following a refinancing and associated restructuring of Ristretto, approximately ¤30.3m of preference shares held by CMI in Ristretto were redeemed in April. Together with associated accrued dividends of ¤2.8m, CMI received a total payment of ¤33.1m. CMI continues to hold 28% of the ordinary shares of Ristretto.

Disposal of LPR

LPR, an industrial pallets business, wholly owned by Ristretto was sold in August 2006. CMI's share of the proceeds is expected to be approximately ¤16m. ¤5.3m was received on 29th August 2006 in the form of redemption of the remaining Preference Shares in Ristretto. The balance of approximately ¤10.7m is expected in October 2006 following the passing of certain resolutions by Ristretto to return capital to its shareholders.

Cash

As at 31st July 2006, CMI had cash balances of approximately £28m. This has since increased to approximately £31.5m following the Preference Share redemption referred to above. Your board expects cash balances to be approximately £38.5m following the receipt of the balance of the sale proceeds from the disposal of LPR.

Dividend

The Board is not recommending payment of a dividend for the period under review.

Hugh Osmond Chairman

Date 15th September 2006

Consolidated Profit and loss account

Unaudited Unaudited Audited Six months Six months Twelve Ended Ended months 31 July 2006 31 July 2005 Ended 31 January 2006

Notes £'000 £'000 £'000

Income from fixed asset 264 - 1,673 investments Administrative expenses (708) (308) (889) Other operating income - - 57

Operating (loss)/profit (444) (308) 841 Interest receivable 294 123 274

(Loss)/profit on ordinary activities (150) (185) 1,115 before tax Taxation credit in respect 2 - 333 272 of prior years

(Loss)/profit on ordinary activities 3 (150) 148 1,387 after tax and retained for the financial period.

(Loss)/earnings per Ordinary share Basic (loss)/earnings per 4 (0.06p) 0.06p 0.56p Ordinary share Fully diluted (loss)/earnings per 4 (0.06p) 0.05p 0.50p Ordinary share

Consolidated Balance sheet

Unaudited Unaudited Audited Six months Six months Twelve Ended Ended months 31 July 2006 31 July 2005 Ended 31 January 2006 Notes £'000 £'000 £'000

Fixed Assets Tangible Assets 24 58 41 Investments 9,369 29,652 29,652 9,393 29,710 29,693 Current Assets Debtors 329 97 1,911 Cash at bank and in hand 27,984 6,892 6,525 28,313 6,989 8,436 Creditors: amounts falling due within one year (281) (362) (554) Net current assets 28,032 6,627 7,882 Total assets less current 37,425 36,337 37,575 liabilities

Capital and reserves Called up share capital 2,499 2,499 2,499 Merger reserve 1,693 1,693 1,693 Share premium account 38,109 38,109 38,109 Profit and loss account 3 (4,876) (5,964) (4,726)

Shareholders' funds 37,425 36,337 37,575

Consolidated Cashflow Statement

Unaudited Unaudited Audited Six months Six months Twelve Ended Ended months 31 July 2006 31 July 2005 Ended 31 January 2006 Notes £'000 £'000 £'000

Net cash inflow/(outflow) 882 74 (426) from operating activities

Return on Investments and servicing of finance Interest Received 294 123 274

Taxation UK Corporation Tax - 333 315 received Capital expenditure and financial investment

Redemption of Ristretto Holdings SCA preference 20,283 - - shares Cash inflow before 21,459 530 163 management of liquid resources & financing

Acquisitions and disposals Cash acquired on acquisition of Field - 1,819 1,819 Capital Limited

Management of liquid resources Increase in Short term (22,046) - (1,262) deposits

(Decrease)/Increase in (587) 2,349 720 cash in the Period

Notes

1. Basis of Preparation

The interim financial statements have been prepared in accordance with applicable accounting standards and on the basis of the accounting policies set out in the Annual Report and Financial Statements for the year ended 31st January 2006.

The Interim Financial Statements do not comprise Statutory Accounts for the purposes of section 240 of the Companies Act 1985. The audited results for the period ended 31 January 2006 are extracted from the full accounts for the period on which the auditors have issued an unqualified report and did not contain a statement under section 237 (2) - (3) of the Companies Act 1985. A copy of these accounts has been delivered to the Registrar of Companies and further copies are available from Capital Management and Investment PLC, 54 Baker St, London, W1U 7BU.

2. Taxation

The tax charge is calculated by applying the estimated effective tax rate for the current financial year. In the six months ended 31 July 2005, CMI received a refund of £333,000 in respect of prior years.

3. Reserves

Profit and loss account £'000

As at 31 January 2006 (4,726) Retained profit for the financial period (150)

As at 31 July 2006 (4,876)

4. Loss per Ordinary share

Loss per Ordinary share has been based on the loss for the period of £150,000 (2005: profit £148,000) and a weighted average of 249,938,158 Ordinary shares (2005: 243,427,444).

The diluted loss per Ordinary share has been based on the loss for the period of £150,000 (2005: profit £148,000) and a weighted average of 249,938,158 diluted Ordinary shares (2005: 272,638,737).

5. Interim Report

Additional copies of the interim report are available from the Company Secretary, Capital Management and Investment PLC, 54 Baker St, London W1U 7BU.

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