AGM Statement, May 2002

At today's AGM, Vic Steel, Chairman of Forbidden Technologies plc which is creating new technology for video distribution over the Internet, demonstrated live video streaming over a Java mobile phone and colour video streaming on a Compaq iPAQ, and made the following comments:

"Recent months have seen accelerating progress against our two key business goals of bringing VHS video quality within the reach of the widest possible audience and applying our compression skills to an increasing variety of existing delivery vehicles.

We have extended our reach, developing our technology to a point where we can now provide video, not only on the latest PCs but also on PDAs (such as iPAQ) and on the latest models of Java mobile phones. Our improving codecs facilitate a much wider content of video with greater flexibility, various picture sizes, additional graphics and language sub-titles.

The application of these developments is now translating into commercial relationships in our key initial target market segments; for example in Entertainment and Advertising we have established agreements for sales development, with Unanimis in advertising and with Travel TV in the holiday market, with Reed Elsevier in Corporate Communications and with the Fleming Forum in Health Care. Further agreements are anticipated in the near future and these are expected to lead to accelerating levels of sales over the next year.

The combination of our ability to provide a broader range of content over multiple devices, continuous improvement in picture quality and our focus on driving down the data rates provides us with confidence in our ability to deliver videos to a broad audience cost effectively.

The pace of our development continues to increase and we are confident that the commercial future of the business is very attractive and will be rewarding for our shareholders."