DA Group plc (“DA Group”) is pleased to announce its preliminary results for the year ended 31 March 2004.

Financial Highlights:
- Turnover £0.69m (2003 - £1.54m)
- 15% reduction in Loss after Tax to £2.31m
  (2003 - £2.72m)
- 23% reduction in administrative costs at £3.06m   (2003 - £3.99m)

Key Points:
- Mobile messaging deals secured in Hong Kong, -   Singapore and Philippines
- Well positioned to take advantage of projected   growth in mobile messaging market
- Customer service agents continuing to gain   customers in government and financial sector
- Major step forward with commercialisation   programme
- Further improvements to core technology

FINANCIAL REVIEW
The results for the year ended 31 March 2004 show a turnover of £693,080 (2003 - £1,542,220). This decrease reflects the impact of our strategic shift from one-off consultancy projects to our core technology business. Our focus on the mobile sector with its revenue sharing model has had little impact on turnover during the second half of the year whilst the costs of this have been borne in the period. We expect to see the benefits of this investment by way of revenue in future years.

Administration costs in the year have reduced to £3,058,674 (2003 - £3,990,081).This reduction includes the impact of our cost reduction programme together with some one-off costs in the previous year namely the impairment and amortisation of goodwill of £432,677 and an exceptional loss in respect of compensation for loss of office and related costs of £259,047. The Group continues its scheduled programme of investment in research and development and costs this year amounted to
£687,978 (2003- £929,528). These costs are charged to the Profit and Loss account as incurred.

An operating loss of £1,949,278 (2003 loss - £1,333,686) has resulted before research and development expenditure of £687,978 (2003 - £929,528). Overall results show a loss for the year of £2,306,865 (2003 loss - £2,720,304). This represents a loss per share of 10.56p (2003 loss - 8.53p).

Dividend
Dividend policy continues to be as previously stated, with no dividend being paid.

Paul McCaffrey
Finance Director
8 June 2004

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CHAIRMANS' STATEMENT

CHIEF EXECUTIVES' STATEMENT

GROUP PROFIT AND LOSS ACCOUNT
for the year ended 31 March 2004

GROUP BALANCE SHEET at 31 March 2004

GROUP STATEMENT OF CASHFLOWS
for the year ended 31 March 2004

NOTES