Comparing the first six months of 2004 and 2003:

• Turnover of £39.9 million up 35%
• Consumer transactions processed up 29% at 112 million with strong growth in all sectors
• Net revenues up 33% with operating margins^{3, 4} increased to 28%
• Operating profit before exceptional items of £4.7 million up 277%
• Adjusted earnings per share were 6.1p up 249%
• PayPoint outlets have increased to over 14,600 up 11% on March 2004
• New terminal roll out to agents started in October — progressing well

David Newlands, Chairman of PayPoint, said: “Our first set of results as a listed company is strong and shows growth in all sectors. We are delighted to see further expansion in the range of payments for which we are able to cater and remain excited about the prospects for continued growth.”

1. Net revenue is turnover net of the deduction of commissions paid to retail agents.
2. Adjusted earnings per share are based on profits before exceptional items after taxation.
3. Operating margins are calculated as operating profit before exceptional items as a percentage of net revenue.
4. Net revenue, operating profit before exceptional items, adjusted earnings per share and operating margins are measures which the directors believe assist with a better understanding of the underlying performance of the group. The reconciliation to statutory amounts can be found in notes 2, 3, 6 and on the face of the profit and loss account.

Enquiries:
PayPoint plc                                                              01707 600 300           
Dominic Taylor, Chief Executive
George Earle, Finance Director

Finsbury                                                                     020 7251 3801
Rollo Head
James Leviton
Don Hunter

There will be a presentation today to analysts at 11.00am at Cazenove & Co Limited, 20 Moorgate, London EC2R 6DA.

This announcement is available on the PayPoint plc website: www.paypoint.co.uk.

About PayPoint
PayPoint is a leading branded payment collection network used, primarily, for the cash payment of bills and services and prepayments for mobile telephones and energy meters. There are over 12,000 retail outlets using PayPoint’s payment terminals.

PayPoint began trading in 1996 and initially collected payments through its network of retail agents for its founder client investors, who included British Gas, BT, BBC TV Licensing, London Electricity (now part of EDF Energy) and four water companies.

It now has more than 400 clients including many of the UK and Ireland’s major energy, cable, mobile and fixed line telephony companies. Its blue chip client list also extends to numerous water companies, local authorities and housing associations and a growing transport and travel base.

Please click here to download the full results.

Please click here to download the presentation of Interim Results for the 6 months ended 30 September 2004.