Preliminary Results for the year ended February 28 2007
This announcement replaces the earlier announcement released today at 7.00am, due to a formatting error in the liabilities section of the balance sheet. No other amendments have been made.

The Board of Adwalker, the AIM listed specialist in wearable media solutions, is pleased to announce its final results for the year ended 28 February 2007.

The Adwalker mobile out-of-home, interactive media platform is an advertising and media platform which is worn by its operators ('Adwalkers') as a compact body pack incorporating a LCD screen, wearable computer, touch screen and printer, enabling services and applications which include brand advertising, point-of-sale, data capture and promotions.

Highlights

* Turnover for the year up 155% to Euro1,599,645(2006: Euro 627,639);
* Adwalker makes US network television debut on 'The Apprentice';
* Two year co-marketing agreement with eMusic.com Inc;
* Appointment as an IBM Business Partner;
* May Placing raises £510,000, before expenses;
* Undertaking campaigns to sign up consumer trialists on behalf of two well known UK Music and DVD film rental companies;
* Pilot underway for Interactive Screen Network with Global FMCG Group; and
* Turnover in the first 6 months of the current fiscal year up by 64% compared with corresponding period in 2006.

Commenting on today's results Adwalker's Chairman, Padraic O'Connor, said: ' Adwalker continues to target blue chip marketing, advertising and media clients primarily within the UK and USA. In addition, the Board anticipates that the recent demand from our existing clients to develop digital consumer communication solutions beyond our wearable Adwalker platform will continue and this is an area the Company will pursue with vigour.
'Our progress in the current year is in line with management expectations and consequently the Board looks forward to the future with confidence.'

Chairman's Statement

I am pleased to report the annual results for the year ended 28 February 2007, the second set of results since the Company's shares were admitted to trading on AIM on 2 August 2005. It has been a year of growth for the Company that has seen a continued adoption of the Adwalker platform for customer campaigns across Europe and North America. The Board is encouraged by the progress made in the year and since the year end.

Financials

Turnover for the year was Euro1,599,645 (2006: Euro627,639). The diluted loss per share amounted to Euro1.80 cents (2006: Euro1.92 cents). At 28 February 2007 cash at bank amounted to Euro109,738 and on 24 May 2007 the Company raised Euro750,000, before expenses, through a placing of 5.1 million new ordinary shares.

The Company has made significant investment in the operating offices in Ireland, United Kingdom and the USA during the period.

Current Trading and Prospects

Growing the business in North America and Europe, specifically the UK and Ireland, remains the focus of the Company's medium term strategy. Turnover in the first six months of the current fiscal year has increased by 64 per cent. compared to the corresponding period in 2006. The growth in turnover in the first half of the current year was predominately derived from trading activity in the USA, the world's largest media spending marketplace. The Board believes the strategy to invest in Adwalker's USA operations over the past two years are increasingly justified as the list of clients utilising the Adwalker platform continues to grow.

The investment made in the Company's technology and people has enabled it to expand the market in which the Adwalker platform's interactive digital services and applications can be applied. As a direct result, some of our existing clients are increasingly demanding a range of solutions which include software and digital network development. The Company's recent announcements have highlighted business relationships with IBM and a major Fast Moving Consumer Goods ('FMCG') company which is a significant testimonial for the Company.

The Board believes the continued adoption of Adwalker's wearable technology and the additional requirement for other digital services and related solutions across a broader spectrum of platforms, such as fixed interactive digital screen solutions, will increase shareholder value in the medium to long term.

The Board hopes to update shareholders on the progress of the FMCG Digital Screen pilot by the end of the calendar year.

Strengthened Client List

The Board has observed strong regional variances in the adoption of the platform across Europe and the USA. In the USA 88 per cent. of Adwalker campaigns are booked through major advertising agency and media buying networks on behalf of their clients. In the UK just 29 per cent. of campaigns are booked through the same networks with the majority of turnover being generated directly with clients. In the short term the Board believes this trend will continue and the adoption of the Adwalker platform will be faster in the USA as a result.

In the first six months of the current financial year 81 per cent. of advertising agency and media buying networks that have booked the Adwalker platform on behalf of their clients have been repeat users.

The Adwalker client list over the last 18 months has included Verizon, Hasbro, Millennium Hotels, Heineken, Suzuki, Mattel Guinness, Castrol, Unilever, Telemundo, Sears, Dos Equis, Jameson, Waitrose, Muller and BT.

The Board believes the majority of results achieved from our client campaigns continue to match or exceed those of our media peer group. Recent results for a major retailer generated over USD$250,000 worth of average sales per day and the campaign spend was USD$150,000.

Technology Update

The Adwalker platform offers clients, derived predominantly from marketeers as well as advertising and media networks, the ability to connect with their consumers in an engaging and interactive way. Additional features including, content transfers to mobile devices using Bluetooth technology, Adwalker's Point of Sale solution, digital photo capture and transfer have been utilised by clients in the period under review.

Access Agreements

Adwalker has exclusive access to key locations within the USA and UK. Landlord deals with key USA shopping malls have been strengthened over the period as the number of client campaigns has increased, particularly in Simon Malls properties, the largest shopping mall owner in the USA.

The Board anticipates that the number of clients seeking to undertake campaigns utilising these access deals in retail locations, in the UK and USA, will continue to increase in the current year.

The Company still retains exclusive access to certain BAA Airports and premiership rugby and football grounds across the UK.

Marketing

In February 2007 the Adwalker platform was successfully featured in an episode of the USA version of The Apprentice, hosted by Donald Trump.

The success of the Adwalker platform, in generating ticket sales for NBC Universal Theme Parks, within the programme, exposed the Company to around 18 million American viewers and the Board believe this has directly contributed to
our increased success in the USA.

Other Developments

In February 2007 Adwalker conducted research which determined that consumers were willing to access music and film content with digital devices beyond laptops and PC's. Since the completion of this research and the introduction of Adwalker's solution whereby customers can be provided with instant music and video downloads direct to their portable digital audio and video players from an Adwalker unit, the Company have been developing the service on behalf of a number of clients.

Adwalker is currently undertaking specific campaigns to sign up consumer trialists on behalf of two well known Music and DVD film rental companies in the UK. The Board anticipates this campaign will generate significant revenues in the last quarter of 2007 and the first quarter of 2008.

Outlook

Adwalker continues to target blue chip marketing, advertising and media clients> primarily within the UK and USA. In addition, the Board anticipates that the recent demand from our existing client's to develop digital consumer communication solutions beyond our wearable Adwalker platform will continue and this is an area the Company will pursue with vigour.

The Board continues to believe that Adwalker is still working with clients who represent innovators and early adopters within their respective business disciplines.

Our progress in the current year is in line with management expectations and consequently the Board looks forward to the future with confidence.

PADRAIC O'CONNOR, CHAIRMAN, 31 AUGUST 2007

Consolidated Balance Sheet at 28 February 2007

28th February 2007
Assets

Non-current assets

Plant and equipment 609,973 1,081,117

Intangible assets 339,642 470,370

949,615 1,551,487

Current assets

Inventories - 5,390

Trade and other receivables 234,552 516,604

Bank and cash balances 109,738 1,892,892

344,290 2,414,886

Total assets 1,293,905 3,966,373

Equity and liabilities

Capital and reserves

Share capital 3,372,664 3,372,664

Capital reserves 5,392,689 5,392,689

Other reserve (8,519) -

Share Options 493,410 434,684-

Accumulated losses (9,188,848) (6,010,316)

Total equity 61,396 3,189,721

Non current liabilities

Obligations under finance leases - due 63,509 101,405
after one year

63,509 101,405

Current liabilities

Trade and other payables 886,296 584,413

Bank overdrafts and loans- due within 98,139 28,805
one year

Tax liabilities 145,829 23,511

Obligations under finance leases - due 38,736 38,815
within one year

1,169,000 675,247

Total equity and liabilities 1,293,905 3,966,373

Consolidated Income Statement for the year ended 28 February 2007

Notes Year ended Year ended 28th February 2006

Revenue - continuing operations 1,599,645 627,639

Cost of sales (1,149,190) (328,608)

Gross profit 450,455 299,031

Distribution costs (24,727) (14,265)

Administrative and other operating (3,624,733) (3,154,575)
expenses

Loss from operations - continuing (3,199,005) (2,869,809)
operations

Finance costs (3,832) (6,175)

Income from investments 36,448 8,006

Exchange (loss)/profit (20,756) 25,368

Loss before tax - continuing operations (3,187,145) (2,842,610)

Income tax expense 8,613 -

Net loss for the year - continuing (3,187,145) (2,842,610)
operations

Loss per share

Basic loss per share (1.88 cent) (1.92 cent)

Diluted loss per share (1.80 cent) (1.92 cent)

Consolidated Statement of Changes in Equity for the year ended 28 February 2007

Share Share Share Accumulated Total equity
Capital Premium Options Losses

Euro Euro Euro Euro Euro

Balance at 1 March 2,372,664 1,366,304 - 2,941,334 797,634
2005 (as reported)

Share Options Granted - - 226,372 226,372 -

Balance at March 2005 2,372,664 1,366,304 226,372 (3,167,706) 797,634

(as restated)

Net loss for the year - - - (2,842,610) (2,842,610)

Share Options Granted - - 208,312 - 208,312

Shares Issued 1,000,000 4,026,385 - - 5,026,385

Balance at 1 March 3,372,664 5,392,689 434,684 (6,010,316) 3,189,721)
2006 (as reported)

Share Options Granted - - - - -

Balance at 1 March 3,372,664 5,392,689 434,684 (6,010,316) 3,189,721
2006 (as restated)

Net loss for the year - - - (3,178,532) (3,178,532)

Share Options Granted - - 58,726 - 58,726

Shares Issued - - - - -

Balance at 28 February 3,372,664 5,392,689 493,410 (9,188,848) 69,915
2006

Consolidated Cash Flow Statement for the year ended 28 February 2007

Year ended Year ended 28 February 2006

Operating activities

Net loss for the year (3,178,532) (2,842,610)

Adjustments for:

Income taxation expense recognised (8,613) -

Depreciation 553,255 384,061

Share options 58,726 208,312

Amortisation of ACOMS systems and patent 152,633 124,262

Investment income (36,448) (8,006)

Foreign exchange gain (20,756) (25,368)

Interest expense 3,832 6,175

Operating cash flows before movements in working (2,475,903) (2,153,174)
capital

Decrease/(Increase) in inventories 5,390 (1,134)

Decrease/(Increase) in receivables 282,052 (442,506)

Increase in payables 423,044 311,199

Cash generated by operations (1,765,417) (2,285,615)

Interest paid (3,832) (6,175)

Income taxation 1,251 -

Net cash outflow from operating activities (1,767,998) (2,291,790

Investing activities

Interest received 36,448 8,006

Purchases of plant and equipment and ACOMS (82,111) (1,214,000)

Purchases of patents and trademarks (21,905) (27,892)

Net cash used in investing activities (67,568) (1,233,886)

Financing activities

Shares issued - 5,026,385

(Decrease)/Increase in finance leases (37,678) 139,923

Net cash (outflow)/inflow from financing (37,678) 5,166,308
activities

Net (decrease)/(increase) in cash and cash (1,873,244) 1,040,632
equivalents

Cash and cash equivalents at beginning of period 1,864,087 198,087

Effects of exchange rate changes 20,756 25,368

Cash and cash equivalents at end of year 11,599 1,864,087

Operating activities

Net loss for the year (2,587,044) (3,204,639)

Adjustments for:

Income taxation expense recognised (8,613) -

Depreciation 532,285 374,329

Share options 58,726 208,312

Provision 542,117 1,264,069

Amortisation of ACOMS system and patents 152,633 124,262

Investment income (35,111) (7,884)

Interest expense 3,832 6,175

Operating cash flows before movements in working (1,341,175) (1,235,376)
capital

Decrease/(Increase) in inventories 5,390 (1,134)

Decrease/(Increase) in receivables (466,308) (1,248,152)

Increase in payables 77,214 117,667

Cash generated by operations (1,724,879) (2,366,995)

Interest paid (3,832) (6,175)

Income tax refunded 1,251 -

Net cash outflow from operating activities (1,727,460) (2,373,170)

Interest received 35,111 7,884

Purchases of plant and equipment (78,347) (1,136,970)

Purchases of patents and trademarks (21,905) (27,894)

Net cash used in investing activities (65,141) (1,156,980)

Financing activities

Shares issued - 5,026,385

(Decrease)/Increase in finance leases (37,678) 139,923

Net cash from financing activities (37,678) 5,166,308

Net increase/(decrease) in cash and cash (1,830,279) 1,636,158
equivalents

Cash and cash equivalents at end of year 1,833,748 197,590

Bank balances and cash 3,469 1,833,748

Notes to the preliminary Results

1. PUBLICATION OF NON-STATUTORY ACCOUNTS

The financial information set out in this preliminary announcement does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985.

The consolidated balance sheet at 28 February 2007 and the consolidated income statement, consolidated cash flow statement and associated notes for the year then ended have been extracted from the Company's financial statements. Those financial statements, on which the auditors have reported an unqualified opinion, have not yet been delivered to the Companies Registration Office.

2. Income tax expense

Domestic income tax is calculated at 12.5% of the estimated assessable profit for the year.

Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions.

Year ended 28 year ended 28
February 2007 February 2006

Income tax expense (8,613) -

3. LOSS PER ORDINARY SHARE

Basic loss per share is based on a loss of Euro3,178,532 (2006: Euro2,842,610) and a weighted average number of shares in issue of 168,633,087 (2005: 147,799,754).

In 2006 the diluted loss per share has been calculated on the same basis as basic loss per share because the effect of the potential ordinary shares (share options) reduces the net loss per share and is therefore anti-dilutive.

4. DIVIDENDS

The Directors are not proposing the payment of a dividend in respect of the year ended 28 February 2007.

5. Copies of REPORT AND ACCOUNTS

Copies of the Report and Accounts will be sent to shareholders today and will be available to members of the public from the Company's registered office, Crescent Building, Northwood, Santry, Dublin 9.