Comparing the first six months of 2005 and 2004:

Consumer transactions processed up 23% at 139 million with strong growth in all sectors.
Operating margins ^4,5 increased to 38% from 28%.
PayPoint terminal outlets have increased to over 14,000 up 17% on September 2004 and up 7% on March 2005.
The new terminal roll out to agents which started in October 2004, will be substantially complete by year end.

David Newlands, Chairman of PayPoint, said "These results show strong continuing growth and demonstrate the excellent operational gearing of PayPoint's business. Increased market share from our competitive service proposition, our new branding and the larger terminal estate have driven growth in mobile and bill and general payments. Within this sector, bill payments remain key to delivering substantial additional volumes. Our network expansion is well on the way to our target of 15,000 terminal sites by the end of the current financial year and we plan to continue the expansion next year. Our ATM roll out continues, with the emphasis on good quality sites. We have announced today, an important contract with Western Union, the world's premier brand in money transfer and a number of transport contracts, laying the groundwork for future revenue growth. Finally, I am pleased to report that trading in the second half of the current financial year has started well."

1          Net revenue is revenue less commissions paid to retail agents and the cost of e-vouchers for mobile top-ups where PayPoint is the principal.
2          Exceptional items relate to flotation and bid defence costs incurred in the prior period – see note 3 to the accounts.
3          Adjusted earnings per share are based on profit before exceptional items after taxation - see note 6 to the accounts.
4          Operating margins are calculated as operating profit before exceptional items as a percentage of net revenue.
5          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 the income statement and in notes 2,3 and 9 to the accounts_.

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 14,000 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 500 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.

You can read the full press release by clicking here.

Download the Interim Results presentation.

Read the full Interim Results for 6 months ended 30 September 2005.