INTERIM RESULTS

The Board of Adwalker, the AIM-quoted media technology company, is pleased to announce its interim results for the six-month period ended 31 August 2007.

HIGHLIGHTS

* Turnover for the period increased to Euro1,142,547 (2006: Euro937,756);

* Gross profits increased to Euro562,201 (2006: Euro445,229);

* Fundraising completed raising € £930,000, before expenses, from a Placing of 62,000,000 new ordinary shares at 1.5 pence per share;

* USA operation continues to experience strong growth; and

* Pilot underway of an interactive digital network on behalf of a blue chip
Fast Moving Consumer Goods ('FMCG') company.

Commenting on today's results, Adwalker's, Chairman, Padraic O'Connor, said:
'The Group has made good progress in the first six months of this fiscal year resulting in an increase in turnover with a particularly strong contribution from our USA operation. In addition, the Company has made significant progress with the development and pilot of an interactive digital network for a blue chip customer and the Board believes the Company is well placed to build on the progress made to date.'

CHAIRMAN’S STATEMENT

I am pleased to present the interim results of the Group for the six months ended 31 August 2007.

The Group has made good progress in the first six months of this fiscal year resulting in an increase in turnover with a particularly strong contribution from our USA operation. In addition, the Company has made significant progress with the development and pilot of an interactive digital network for a blue chip customer.

Turnover for the period was €1,142,547 (2006: €937,756) and gross profits were €562,201 (2006: €445,229). The Company generated a loss before tax of €988,917 (2006: €1,597,969). The reduction in losses over the corresponding period in 2006 is due to tighter cost controls being exercised over the period and slightly increased gross margins on client campaigns. The loss per share for the period amounted to 0.56 cents (2006: 0.95 cents).

Earlier today, the Company announced that it has raised £930,000, before expenses, from a Placing of 62,000,000 ordinary shares in the capital of the Company at 1.5p per share with institutional and other investors. The Placing provides the Company with working capital to support its expected growth, repay certain overdue trade creditors and provide working capital generally.

The Company’s USA operation continues to experience strong growth and for the period under review and the Board believes the performance in the USA will continue to drive the Adwalker wearable media business although its contribution in the second half is likely to be impacted by the weakening dollar.

In the period under review, the UK operation has concentrated on the development of a longer term strategy with rental partners and steady progress has been made in this area. The Irish operation has primarily focussed on the development of digital consumer communication solutions and supporting the operational requirements of the pilot project referred to below.

As previously announced, the Company is currently undertaking a pilot study of an interactive digital network on behalf of a major Fast Moving Consumer Goods (“FMCG”) company. The pilot study results to date have been very encouraging and the decision to implement a major roll-out of this network is expected to be made by the FMCG company in the first quarter of 2008.

In addition, the Company has received several enquiries from other Blue Chip companies and retailers to discuss the development of similar interactive digital networks and the Company will update shareholders in the event that those discussions develop further.

The adoption cycle for the Adwalker wearable media solution is shortening, as media agencies and their clients slowly move away from traditional media and into the digital arena, and the global awareness of the platform continues to grow. Increased awareness has led to a number of enquiries to licence the units for use within certain territories. The Board is actively considering these opportunities in order to increase the utilisation of its 300 Adwalker units.

The Board is encouraged with the Group’s performance in the first half of the fiscal year, in particular the pilot study results from the interactive digital network pilot and the Board believes the Company is well placed to build on the progress made to date.
PADRAIC O’CONNOR, CHAIRMAN, 30 November 2007

30 November 2007

Notes to the interim consolidated financial statements
For the six months ended 31 August 2007

1. General
Adwalker plc is a public limited company incorporated in Ireland. The company has subsidiaries located in the United Kingdom, United States and Hong Kong.  

The company and subsidiaries are principally involved in offering clients digital media solutions on the Adwalker mobile platform.

These results are presented in Euro as that is the currency in which the majority of the Group’s transactions are presently denominated.

2. Basis of Preparation of the interim financial statements

The interim financial statements have been prepared on a basis which is consistent with the accounting policies adopted for the period to 31 August 2007.

The interim report, including the financial information contained therein, is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the interim report in accordance with the AIM Rules of the London Stock Exchange which require that the accounting policies and presentation applied to the interim figures should be consistent with those applied in preparing the preceding annual accounts except where any changes, and the reasons for them, are disclosed.

The interim accounts which are abridged and unaudited, do not include all the information required for full annual financial statements. The financial information contained in the interim statements does not constitute statutory accounts as defined within the meaning of the Companies Act 1963 to 2006. Comparative figures for the year to 28 February 2007 have been extracted from the latest financial statements on which the report of the independent auditors was unqualified.

The interim financial statements have been prepared in accordance with the International Financial Reporting Standards.

Revenue
An analysis of the Group’s revenue is as follows:

	Six months ended 31 August 2007 Unaudited	Six months ended 31 August 2006 Unaudited	Year ended 28 February 2007 Audited
	€	€	€
Media services	1,142,547	937,756	1,599,645
Revenue is derived from the following geographic regions
Ireland	78,972	248,630	193,900
United Kingdom	53,970	556,461	853,180
United States of America	1,009,605	132,665	552,565
	1,142,547	937,756	1,599,645

4. Loss per share
Basic loss per share is based on a loss of €988,917, (Six months ended 31 August 2006: €1,597,969) (Year ended 28 February 2007: €3,178,532) and a weighted average number of shares in issue of 177,880,340 (Six months ended 31 August 2006: 168,633,087) (Year ended 28 February 2007: 168,633,087).
In 2007 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.

5. Plant and equipment

	Adwalker Packs	Fixtures & Fittings	Computer Equipment	Leasehold Improve-ments	Total
	€	€	€	€	€
Cost or valuation
At 1 March 2007	1,334,619	131,256	178,555	89,174	1,733,604
Reclassification	650	(1,714)	1,670	(606)	-
Exchange	-	(1,462)	(629)	(165)	(2,256)
Additions	-	-	41,938	-	41,938
At 31 August 2007	1,335,269	128,080	221,534	88,403	1,773,286
Accumulated depreciation and impairment
At 1 March 2007	915,600	41,652	139,218	27,161	1,123,631
Exchange	-	(522)	(295)	(71)	(888)
Charge for the period	178,844	13,529	14,443	9,060	215,876
At 31 August 2007	1,099,511	55,896	147,569	35,643	1,338,620
Carrying amount
At 28 February 2007- Audited	419,019	89,604	39,337	62,013	609,973
At 31 August 2007 – Unaudited	235,758	72,184	73,965	52,759	434,666

6. intangible assets

	Patents and Trademark	ACOMS System	Goodwill	Total
	€	€	€	€
Cost
At 1 March 2007	88,894	527,643	1,959,567	2,576,104
Additions	22,665	-	-	22,665
At 31 August 2007	111,559	527,643	1,959,567	2,598,769
Accumulated amortisation
At 1 March 2007	33,057	243,838	1,959,567	2,236,462
Charge for the period	13,505	65,955	-	79,460
At 31 August 2007	46,562	309,793	1,959,567	2,315,922
Carrying amount
At 28 February 2007 - Audited	55,837	283,850	-	339,642
At 31 August 2007 - Unaudited	64,997	217,850	-	282,847

The impairment of goodwill arose on Adwalker (IP) Limited.  The company ceased trading on acquisition and the directors wrote down the goodwill relating to this subsidiary by €1,959,567 in the period ended 28 February 2005

7. Share Capital

	31 August 2007 Unaudited	31 August 2006 Unaudited	28 February 2007 Audited
	€	€	€
Authorised share capital
1,200,000,000 ordinary shares of €0.02 each	24,000,000	24,000,000	24,000,000
Issued share capital
At 1 March 2007
168,633,087 ordinary shares of €0.02 each	3,372,664	3,372,664	3,372,664
Issued in the period 17,000,000 ordinary shares of €0.02 each	340,000	-	-
	3,712,664	3,372,664	3,372,664

8. Dividends
The Directors are not proposing the payment of a dividend in respect of the six months ended 31 August 2007.

9. Copies of the Interim Results
Copies of the interim results will be sent out to shareholders shortly and will also be available at the Company’s registered office, The Crescent Building, Northwood, Santry