Exhibit
      15

---



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|--------------------------------------------------------------
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|                                                              
|                                                              
|RADIANZ
      LIMITED                                         
|                                                              
|                                                              
|FINANCIAL
      STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2003
|                                                              
|                                                              
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|                                                              
|                                                              
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|                                                              
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|                                                              
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|                                                              
|                                                              
|Registered
      Number 3918478                               



---





RADIANZ LIMITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2003

---

Company Registration Number: 3918478

|Registered
    Office: | Fleet Place
    House
|---------------------- | ---------------------
|                       | 2 Fleet
    Place    
|                       | London               
|                       | England              
|                       | EC4M 7RF             



R2

---





RADIANZ
        LIMITED

FINANCIAL
      STATEMENTS

FOR
      THE YEAR ENDED 31 DECEMBER 2003

|                                                     |              | 
|---------------------------------------------------- | ------------ | 
|CONTENTS                                             | PAGE         | 
|                                                     |              | 
|Report of independent auditor                        | R4           | 
|                                                     |              | 
|Group profit and loss account                        | R5           | 
|                                                     |              | 
|Group statement of total recognised gains and losses | R6           | 
|                                                     |              | 
|Group balance sheet                                  | R7           | 
|                                                     |              | 
|Group cash flow statement                            | R8           | 
|                                                     |              | 
|Notes to the financial statements                    | R9
    - R36 | 

R3

---







Report
  of Independent Auditor

To the Board
  of Directors and Shareholders of Radianz Limited

In our opinion,
  the accompanying consolidated profit and loss account, balance sheet and statement
  of recognised gains and losses present fairly, in all material respects, the
  financial position of Radianz Limited and its subsidiaries at 31 December 2003
  and the results of their operations and their cash flows for the year ended
  31 December 2003, in conformity with accounting principles generally accepted
  in the United Kingdom. These financial statements are the responsibility of
  the Company's management; our responsibility is to express an opinion on these
  financial statements based on our audit. We conducted our audit of these statements
  in accordance with auditing standards generally accepted in the United States
  of America, which require that we plan and perform the audit to obtain reasonable
  assurance about whether the financial statements are free of material misstatement.
  An audit includes examining, on a test basis, evidence supporting the amounts
  and disclosures in the financial statements, assessing the accounting principles
  used and significant estimates made by management, and evaluating the overall
  financial statement presentation. We believe that our audit provides a reasonable
  basis for our opinion.

Accounting
    principles  generally accepted in the United Kingdom vary in certain significant
    respects from
  accounting principles generally accepted in the United States of America. The
     application of the latter would have affected the determination of consolidated

  net loss for the year ended 31 December 2003 and the determination of consolidated
     shareholders' equity at 31 December 2003 to the extent summarized in Note
    29
  to the consolidated financial statements.

/s/
  PricewaterhouseCoopers LLP
  PricewaterhouseCoopers
  LLPChartered Accountants
  and Registered Auditors 
  London, England 29
  June 2004

R4

---





RADIANZ LIMITED

GROUP PROFIT AND LOSS ACCOUNT

FOR
  THE YEAR ENDED 31 DECEMBER 2003

---

|                                                   |      |  |          |   |           |   |           |  
|-------------------------------------------------- | ---- |  | -------- | - | --------- | - | --------- | -
|                                                   | Note |  | 2003     |   | 2002      |   | 2001      |  
|                                                   |      |  |          |   | Unaudited |   | Unaudited |  
|                                                   |      |  | $000    |   | $000     |   | $000     |  
|                                                   |      |  |          |   |           |   |           |  
|Revenue                                            |      |  | 533,239  |   | 493,117   |   | 423,573   |  
|Operating
      costs                              | 3    |  | (620,293 | ) | (665,045  | ) | (601,228  | )
|                                                   |      |  |          |   |           |   |           |  
|                                                   |      |  |          |   |           |   |           |  
|Operating
      loss                               |      |  | (87,054  | ) | (171,928  | ) | (177,655  | )
|Interest
      receivable and similar income  net | 4    |  | 2,585    |   | 3,815     |   | 10,579    |  
|Loss on
      diminution in value of investment    | 9    |  | -        |   | (67,021   | ) | (64,140   | )
|                                                   |      |  |          |   |           |   |           |  
|                                                   |      |  |          |   |           |   |           |  
|Loss
      on ordinary activities before taxation  |      |  | (84,469  | ) | (235,134  | ) | (231,216  | )
|Taxation                                           | 6    |  | (1,564   | ) | (1,080    | ) | (1,072    | )
|                                                   |      |  |          |   |           |   |           |  
|                                                   |      |  |          |   |           |   |           |  
|Loss
      on ordinary activities after taxation   |      |  | (86,033  | ) | (236,214  | ) | (232,288  | )
|Preference
      Dividends                         | 7    |  | (10,270  | ) | (10,270   | ) | (10,270   | )
|                                                   |      |  |          |   |           |   |           |  
|                                                   |      |  |          |   |           |   |           |  
|Loss
      for the year                            | 18   |  | (96,303  | ) | (246,484  | ) | (242,558  | )
|                                                   |      |  |          |   |           |   |           |  

Revenue and operating loss as derive from continuing operations.

There is no difference between the loss on ordinary activities before taxation and the retained loss for the year stated above and their historical cost equivalents.

The associated notes on the following pages form part of these financial statements.

R5

---





RADIANZ LIMITED

GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

FOR
  THE YEAR ENDED 31 DECEMBER 2003

---

|                                         | Note |  | 2003    |   | 2002      |   | 2001      |  
|---------------------------------------- | ---- |  | ------- | - | --------- | - | --------- | -
|                                         |      |  |         |   | Unaudited |   | Unaudited |  
|                                         |      |  | $000   |   | $000     |   | $000     |  
|                                         |      |  |         |   |           |   |           |  
|Loss for
      the financial year        |      |  | (96,303 | ) | (246,484  | ) | (242,558  | )
|Exchange
      adjustments               | 18   |  | 6,664   |   | 571       |   | (1,463    | )
|                                         |      |  |         |   |           |   |           |  
|                                         |      |  |         |   |           |   |           |  
|Total
      recognised loss for the year |      |  | (89,639 | ) | (245,913  | ) | (244,021  | )
|                                         |      |  |         |   |           |   |           |  

The associated notes on the pages that follow form part of these financial statements.

R6

---





RADIANZ LIMITED

GROUP
BALANCE SHEET

AS
      AT 31 DECEMBER 2003

---

|                                       |      |  | 2003     |   | 2002      |  
|-------------------------------------- | ---- |  | -------- | - | --------- | -
|                                       |      |  |          |   | Unaudited |  
|                                       | Note |  | $000    |   | $000     |  
|Fixed assets                           |      |  |          |   |           |  
|Tangible fixed assets                  | 8    |  | 149,769  |   | 182,242   |  
|Investments                            | 9    |  | -        |   | -         |  
|                                       |      |  |          |   |           |  
|                                       |      |  | 149,769  |   | 182,242   |  
|Current assets                         |      |  |          |   |           |  
|Debtors                                |      |  |          |   |           |  
|- due within one year                  | 10   |  | 89,701   |   | 200,793   |  
|- due after one year                   | 10   |  | 41,793   |   | 51,249    |  
|Restricted Cash - due after one year   | 11   |  | 19,259   |   | 33,050    |  
|Cash at bank and in hand               |      |  | 9,095    |   | 44,657    |  
|                                       |      |  |          |   |           |  
|                                       |      |  |          |   |           |  
|                                       |      |  | 159,848  |   | 329,749   |  
|Creditors: amounts falling due         |      |  |          |   |           |  
|within one year                        | 12   |  | (120,854 | ) | (246,422  | )
|                                       |      |  |          |   |           |  
|                                       |      |  |          |   |           |  
|Net current assets/(liabilities)       |      |  | 38,994   |   | 83,327    |  
|                                       |      |  |          |   |           |  
|                                       |      |  |          |   |           |  
|Total assets less current liabilities  |      |  | 188,763  |   | 265,569   |  
|                                       |      |  |          |   |           |  
|Creditors: amounts falling due         |      |  |          |   |           |  
|after one year                         | 13   |  | (3,613   | ) | -         |  
|                                       |      |  |          |   |           |  
|Provisions for liabilities and charges | 15   |  | (1,433   | ) | (2,483    | )
|                                       |      |  |          |   |           |  
|                                       |      |  |          |   |           |  
|Net assets                             |      |  | 183,717  |   | 263,086   |  
|                                       |      |  |          |   |           |  
|                                       |      |  |          |   |           |  
|Capital and reserves                   |      |  |          |   |           |  
|Called up share capital                | 16   |  | 18       |   | 18        |  
|Share premium account                  | 17   |  | 878,425  |   | 878,425   |  
|Exchange difference reserve            | 17   |  | 6,211    |   | (453      | )
|Profit and loss account                | 17   |  | (700,937 | ) | (614,904  | )
|                                       |      |  |          |   |           |  
|                                       |      |  |          |   |           |  
|Total shareholders funds              | 18   |  | 183,717  |   | 263,086   |  
|                                       |      |  |          |   |           |  
|                                       |      |  |          |   |           |  
|Analysis of shareholders funds        |      |  |          |   |           |  
|                                       |      |  |          |   |           |  
|Equity                                 | 18   |  | (4,908   | ) | 84,731    |  
|Non-equity                             | 18   |  | 188,625  |   | 178,355   |  
|                                       |      |  |          |   |           |  
|                                       |      |  |          |   |           |  
|                                       |      |  | 183,717  |   | 263,086   |  
|                                       |      |  |          |   |           |  

The associated
notes on the following pages form part of these financial statements. The financial
statements and associated notes were approved by the Board of Directors on 29
June 2004 and were signed on its behalf by:

|/s/ Howard
    Edelstein | /s/
    David Granger Ure | 
|------------------------ | ------------------------- | 
|Howard
    Edelstein     | David
    Granger Ure     | 
|Director                 | Chairman                  | 



R7

---





RADIANZ LIMITED

GROUP CASH FLOW STATEMENT

---

|                                                                          | Note |  | 2003    |   | 2002      |   | 2001      |  
|------------------------------------------------------------------------- | ---- |  | ------- | - | --------- | - | --------- | -
|                                                                          |      |  |         |   | Unaudited |   | Unaudited |  
|                                                                          |      |  | $000   |   | $000     |   | $000     |  
|                                                                          |      |  |         |   |           |   |           |  
|Net cash inflow / (outflow) from operating activities                     | 19   |  | 6,228   |   | (11,116   | ) | (780      | )
|                                                                          |      |  |         |   |           |   |           |  
|Returns on investment and servicing of finance                            |      |  |         |   |           |   |           |  
|Interest received from bank deposits, investment and others               |      |  | 607     |   | 2,583     |   | 12,210    |  
|Interest paid                                                             |      |  | (170    | ) | (24       | ) | (24       | )
|Interest paid on finance leases                                           |      |  | (191    | ) | -         |   | -         |  
|                                                                          |      |  |         |   |           |   |           |  
|Taxation                                                                  |      |  | (2,092  | ) | 38        |   | (555      | )
|                                                                          |      |  |         |   |           |   |           |  
|Capital expenditure and financial investment                              |      |  |         |   |           |   |           |  
|Purchase of own shares                                                    |      |  | -       |   | -         |   | (46,261   | )
|Purchase of tangible fixed assets                                         |      |  | (38,624 | ) | (98,730   | ) | (109,416  | )
|Sale of tangible fixed assets                                             |      |  | 15      |   | 128       |   | 230       |  
|                                                                          |      |  |         |   |           |   |           |  
|                                                                          |      |  |         |   |           |   |           |  
|Net cash
       outflow from capital expenditure and financial investment |      |  | (38,609 | ) | (98,602   | ) | (155,447  | )
|                                                                          |      |  |         |   |           |   |           |  
|Management of liquid resources                                            |      |  |         |   |           |   |           |  
|Decrease in short term deposits with banks                                | 20   |  | -       |   | 140,042   |   | 90,725    |  
|                                                                          |      |  |         |   |           |   |           |  
|Financing                                                                 |      |  |         |   |           |   |           |  
|                                                                          |      |  |         |   |           |   |           |  
|Issue of ordinary share capital                                           |      |  | -       |   | -         |   | 46,261    |  
|Decrease in finance leasing                                               |      |  | (953    | ) | -         |   | -         |  
|                                                                          |      |  |         |   |           |   |           |  
|                                                                          |      |  |         |   |           |   |           |  
|Net cash (outflow)/ inflow from financing                                 |      |  | (953    | ) | -         |   | 46,261    |  
|                                                                          |      |  |         |   |           |   |           |  
|(Decrease) / Increase in cash                                             |      |  | (35,180 | ) | 32,921    |   | (7,610    | )
|                                                                          |      |  |         |   |           |   |           |  

The associated notes on the following pages form part of these financial statements.

R8

---





RADIANZ LIMITED

NOTES TO THE FINANCIAL STATEMENTS

---



|1. | Principal
    activities and accounting policies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | Radianz
          Limited (the "Company") and its subsidiaries (collectively Radianz or Group)
          is a joint venture between Reuters Group PLC (Reuters)
          and Equant Finance BV (Equant)(collectively the parents
          (Parents)).
      Radianz
          is owned 51% by Reuters and 49% by Equant. In forming Radianz, Reuters
          contributed substantially all of its global telecommunications network
          to Radianz and Equant contributed cash and a receivable for future
          services. Control over the Radianz is joint with Reuters and Equant
          each having equal representation on the board of directors.
      Radianz
          was established to deliver a global financial extranet (RadianzNet)
          capable of providing secure and reliable networking services for transaction
          processing and content delivery to the financial services industry.
      These
          financial statements are prepared under the historical cost convention.
      The Parent
          Companies have stated their intent to continue supporting the Company
          in accordance with the terms of the shareholders agreement relating
          to the Company and accordingly each has agreed to provide financial
          support of up to fifteen million dollars to the Company, for at least
          one year from the date of these financial statements or, if shorter,
          for the period until that parent company ceases to be a shareholder
          in the Company, sufficient to enable the Company and its subsidiaries
          to meet their financial obligations as and when they fall due either
          through capital contributions, the provision of loan funding or other
          appropriate measures. The Company believes these amounts are adequate
          to enable it to meet all its financial obligations for the period noted
          above.
      The accounting
          policies set out below have been applied on a consistent basis and
          are in accordance with applicable UK accounting standards.
      Changes
            in accounting policies There
          have been no changes in accounting policies for the year ended 31 December
          2003.
      Basis
            of consolidation The Group
          profit and loss account, balance sheet and cash flow statement include
          the financial statements of the Company and its subsidiary undertakings
          up to 31 December 2003. Intra-group transactions and profits are eliminated
          fully on consolidation.
      Acquisitions
          made by the Group are included under the acquisition method of accounting
          and the Group financial statements include the results of such acquisitions
          from the relevant date of acquisition.
      Revenue Radianz
          recognises revenue when realised or realisable and earned. The Group
          considers revenue realised or realisable and earned when it has persuasive
          evidence of an arrangement, the services have been provided, the sales
          price is fixed or determinable and collectibility is reasonably assured.
          Revenue is reduced for credit notes and rebates to be paid to customers.
          In addition to the aforementioned general policy, the following are
          the specific revenue recognition policies for the Groups significant
    categories of revenue.

R9

---





|RADIANZ
    LIMITED                  
|-------------------------------------
|                                     
|NOTES
    TO THE FINANCIAL STATEMENTS
|                                     
|                                     

| | Related-Party
    Revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | Managed
            Network ServicesRadianz
      entered into a Network Service Agreement (NSA) with Reuters
      and its affiliates that require Radianz to provide telecommunications,
      managed network and other services to Reuters. The terms of the NSA allow
      Radianz to recover substantially all direct costs incurred in connection
      with services provided to Reuters. The Group is deemed to be acting as
      a principal under the terms of the NSA and therefore as a principal recognises
      the billing and recovery of such costs as revenue.
      Radianz
            Network (RxN) ServicesAs
      of 1 January 2003, the NSA agreement with Reuters was amended to allow
      Radianz to charge for services provided via RadianzNet based on a fixed
      and determinable price per service type. Prior to this time, the maximum
      prices were established at a level, which enabled Radianz to recover direct
      costs incurred when providing this service.
      Consulting
            ServicesRadianz
      provides certain services for specific projects for Reuters. These services
      are consulting in nature and are subject to acceptance by Reuters. Radianz
      recognizes associated revenue only when acceptance has been received from
      Reuters for the services rendered. As at 31 December 2003, $1.2 million
      of revenue subject to acceptance was deferred from Reuters and $1.2 million
      of related costs were deferred. As at 31 December 2002, $1.9 million of
      revenue and $1.7 million of cost had been deferred.
      Remote
            Dial-up ServicesRemote
      dial-up services are provided to Reuters directly by Equant. Group acts
      as an agent in such transactions billing Reuters on behalf of Equant. As
      the Group does not retain the significant risks and rewards of delivering
      these services, revenue for these transactions is recognised on a net basis
      thereby recognising only the commission as revenue. The value of the services
      provided to Reuters for the year ended 31 December 2003 was approximately
      $1.4 million (2002: $1.0 million) on a gross basis.
      Migration
            ServicesDuring
        2002 and 2003, Radianz migrated certain Reuters customers from
        Reuters legacy networks to RadianzNet. Radianz is entitled to recover
        all direct costs incurred in completing the migration services. Radianz
        recognised revenue monthly based on completed connections at a fixed
        and determinable price per connection.
      External
              Customer Revenue
      Radianz
            Network (RxN) ServicesRevenue
        from Radianzs telecommunication and managed network services to
        customers other than Reuters is recognised as the services are provided
        over the contractual period. Fees are charged in accordance with the
        customer contract, and, accordingly, may represent both a connection
        fee and recurring access and usage fees. Connection fees are deferred
        and recognized over the estimated life of the arrangement with the customer,
        which is generally the contractual period. Revenue from access and usage
        fees is recognized as the services are provided over the anticipated
        customer relationship period, which is generally determined based on
        the life of the contract.
      If customers
          are billed in advance or on a quarterly basis under the terms of the
          arrangement with Radianz, Radianz defers revenue accordingly until
          the services are delivered. As at 31 December 2003, Radianz had approximately
          $3.4 million (2002: $1.6 million) of deferred revenue relating to advance
    customer billings.

R10

---





|RADIANZ
    LIMITED                  
|-------------------------------------
|                                     
|NOTES
    TO THE FINANCIAL STATEMENTS
|                                     
|                                     

| | Voice
            ServicesRevenue,
      net of discounts, for the provision of point-to point voice and data circuits

    is earned as these services are delivered.
      Hosting
      ServicesRevenue
      from the Groups hosting services is recognised as the services are
      provided over the contractual period. Fees are charged in accordance with
      the customer contract, and, accordingly, may represent both a connection
      fee and a recurring monthly hosting fee. Connection fees are deferred and
      recognised over the estimated life of the arrangement with the customer,
      which is generally the contractual
  period.
      Provisions
          for losses on contracts are recognised in the period in which the loss
          is identified for the total contract.
      Foreign
            currency translationMonetary
      assets and liabilities denominated in foreign currencies are translated
      into US dollars at the rate of exchange ruling at the balance sheet date.
      Transactions in currencies other than US dollars are converted at the rates
      of exchange prevailing at the dates the transactions were made. Gains or
      losses on exchange are recognised in the profit and loss account as they
      arise.
      Profits
          and losses of subsidiaries that have currencies of operation other
          than the US dollar are translated into US dollars at average rates
          of exchange. Share capital issued by the Company, which is Sterling
          denominated, is maintained at the historical rate at the date on which
          the shares were issued.

      Exchange
          differences arising from the retranslation of the opening net assets
          of subsidiaries which have currencies of operation other than the US
          dollar are taken to reserves together with the differences arising
          when the profit and loss accounts are translated at average rates and
          compared with rates ruling at the year end.
      LeasesLeasing
      arrangements which transfer to the group substantially all the risks and
      rewards of ownership of an asset are treated as if the asset had been purchased
      outright. The assets are included in tangible fixed assets and the capital
      element of the leasing commitment is shown in creditors as obligations
      under finance leases. The lease rentals are treated as consisting of capital
      and interest elements. The capital element is applied to reduce the outstanding
      obligations and the interest element is charged against profits in proportion
      to the reducing capital element outstanding. Assets held under finance
      lease are depreciated over the shorter of the lease term and the expected
      useful economic lives of the equivalent owned assets.
      Costs
          in respect of operating lease rentals are charged to profit and loss
          in equal annual amounts over the lease term.
      Revenue
          on sublet leases is offset against the cost of the lease within the
          profit and loss account.
      Pension
            costsThe
        Group currently operates its own pension plans in three territories.
        The largest such plan is a voluntary 401 (k) savings plan for the Groups
        employees in the United States (US). The Group matches a
        percentage of each US employees contributions. The Groups
        employees in certain other territories participate in pension plans maintained
        by Reuters and Equant. The expected cost of pensions in respect of defined
        benefit plans is charged to the profit and loss account so as to spread
        the cost over the service lives of the employees affected. The cost in
        respect of defined contribution plans is charged to the profit and loss
    account as the amount accrues.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



R11

---





|RADIANZ
    LIMITED                  
|-------------------------------------
|                                     
|NOTES
    TO THE FINANCIAL STATEMENTS
|                                     
|                                     

| | The pension
        costs and disclosures in these financial statements comply with Financial
        Reporting Standard (FRS) No. 17 Retirements Benefits.
        In accordance with Financial Reporting Standard No. 17 contributions
        paid by the Group to Reuters and Equant defined benefit schemes are disclosed
        as if the pension scheme were a defined contribution pension scheme,
        as the Group is unable to identify its share of the underlying assets
    and liabilities of the pension schemes.
      DevelopmentexpenditureDevelopment
      expenditure is charged to the profit and loss account in the year in which
      it is incurred.
      Short-term
            investmentsBank
        deposits, which are not re-payable on demand, are treated as short-term
        investments in accordance with Financial Reporting Standard No. 1 (revised
        1996). Movements in such investments are included under management
        of liquid resources in the Groups cash flow statement.
      Tangible
            fixed assetsAssets
      contributed by Reuters on 30 June 2000 were capitalised at their fair values
      at the date of transfer. All other tangible fixed assets are stated at
      cost. Depreciation is calculated on a straight-line basis so as to write
      down assets to their residual value over their expected useful lives. Office,
      computer systems and network equipment are depreciated over 3 - 5 years.
      Leasehold Buildings and Improvements are depreciated over the term of the
      lease. Tangible fixed assets are reviewed for impairment whenever events
      or changes in circumstances indicate that carrying amounts may not be recoverable.
      An impairment loss is recognised in the profit and loss account to the
      extent that the carrying amount of an asset exceeds its recoverable amount,
      being the higher of its value in use and net realisable value.
      Deferred
            taxationThe
        Group has adopted Financial Reporting Standard No. 19 Deferred
        Tax which requires full provision to be made for deferred tax assets
        and liabilities arising from timing differences between the recognition
        of gains and losses in the financial statements and their recognition
        for tax purposes.
      Deferred
          tax assets are only recognised to the extent that it is regarded, as
          more likely than not that they will be recovered. The adoption of this
          accounting standard had no impact on the results of the Group.
      Share
            schemesThe
        Groups Employee Share Ownership Trust (ESOT) is a separately
        administered trust, which is funded by loans from the Group. The assets
        of the ESOT comprise shares in the Company, which were initially recorded
        at their estimated recoverable amount, being the stock option price of
        the shares payable by employees. Provision is made to the extent that
        the amounts are not expected to be recovered. The ESOT has been aggregated
        within these financial statements.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

R12

---





RADIANZ LIMITED

NOTES TO THE FINANCIAL STATEMENTS

---

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|2. | Segmental
    analysis                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | TurnoverRadianz has
      network operations in many countries throughout the world. For the purpose
      of segmental disclosure, revenue by origin is defined as the location where
      invoices are issued, while revenue by destination is defined as the location
      of the customer. For the year ended 31 December 2002 there was no material
      difference between the origin and destination of revenue. However during
      2003 changes in billing arrangements resulted in the United Kingdom (UK)
      billing throughout the world. Revenue by destination is therefore shown
    separately.

| |                   |           |  |                |   |          |  |         |  |          |   |          | 
| | ----------------- | --------- |  | -------------- | - | -------- |  | ------- |  | -------- | - | -------- | 
| | Turnover          |           |  |                |   |          |  |         |  |          |   |          | 
| |                   |           |  |                |   |          |  |         |  |          |   |          | 
| | 2003              | by Origin |  | by Destination |  
| |                   |           |  |                |   |          |  |         |  |          |   |          | 
| |                   | Total     |  | Inter-         |   | External |  | Total   |  | Inter-   |   | External | 
| |                   |           |  | segment        |   |          |  |         |  | segment  |   |          | 
| |                   | $000     |  | $000          |   | $000    |  | $000   |  | $000    |   | $000    | 
| |                   |           |  |                |   |          |  |         |  |          |   |          | 
| | United Kingdom    | 387,138   |  | (1,277         | ) | 385,861  |  | 550,768 |  | (188,747 | ) | 362,021  | 
| | United States     | 212,264   |  | (115,076       | ) | 97,188   |  | 112,534 |  | (748     | ) | 111,786  | 
| | Rest of the World | 123,861   |  | (73,671        | ) | 50,190   |  | 59,961  |  | (529     | ) | 59,432   | 
| |                   |           |  |                |   |          |  |         |  |          |   |          | 
| |                   | 723,263   |  | (190,024       | ) | 533,239  |  | 723,263 |  | (190,024 | ) | 533,239  | 
| |                   |           |  |                |   |          |  |         |  |          |   |          | 
| |                   |           |  |                |   |          |  |         |  |          |   |          | 
| | 2002 Unaudited    | by Origin |  | by Destination |  
| |                   |           |  |                |   |          |  |         |  |          |   |          | 
| |                   | Total     |  | Inter-         |   | External |  | Total   |  | Inter-   |   | External | 
| |                   |           |  | segment        |   |          |  |         |  | segment  |   |          | 
| |                   | $000     |  | $000          |   | $000    |  | $000   |  | $000    |   | $000    | 
| |                   |           |  |                |   |          |  |         |  |          |   |          | 
| | United Kingdom    | 377,670   |  | (6,749         | ) | 370,921  |  | 564,850 |  | (193,929 | ) | 370,921  | 
| | United States     | 205,410   |  | (126,341       | ) | 79,069   |  | 84,357  |  | (5,288   | ) | 79,069   | 
| | Rest of the World | 110,714   |  | (67,587        | ) | 43,127   |  | 44,587  |  | (1,460   | ) | 43,127   | 
| |                   |           |  |                |   |          |  |         |  |          |   |          | 
| |                   | 693,794   |  | (200,677       | ) | 493,117  |  | 693,794 |  | (200,677 | ) | 493,117  | 
| |                   |           |  |                |   |          |  |         |  |          |   |          | 
| |                   |           |  |                |   |          |  |         |  |          |   |          | 
| | 2001 Unaudited    | by Origin |  | by Destination |  
| |                   |           |  |                |   |          |  |         |  |          |   |          | 
| |                   | Total     |  | Inter-         |   | External |  | Total   |  | Inter-   |   | External | 
| |                   |           |  | segment        |   |          |  |         |  | segment  |   |          | 
| |                   | $000     |  | $000          |   | $000    |  | $000   |  | $000    |   | $000    | 
| |                   |           |  |                |   |          |  |         |  |          |   |          | 
| | United Kingdom    | 324,050   |  | (2,162         | ) | 321,888  |  | 489,018 |  | (167,130 | ) | 321,888  | 
| | United States     | 171,685   |  | (109,697       | ) | 61,988   |  | 63,605  |  | (1,617   | ) | 61,988   | 
| | Rest of the World | 97,130    |  | (57,433        | ) | 39,697   |  | 40,242  |  | (545     | ) | 39,697   | 
| |                   |           |  |                |   |          |  |         |  |          |   |          | 
| |                   | 592,865   |  | (169,292       | ) | 423,573  |  | 592,865 |  | (169,292 | ) | 423,573  | 
| |                   |           |  |                |   |          |  |         |  |          |   |          | 

R13

---





RADIANZ LIMITED

NOTES TO THE FINANCIAL STATEMENTS

---

| | Operating loss                                                                                                                                                                                                                            | 2003    |   | 2002      |   | 2001      |  
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------- | - | --------- | - | --------- | -
| |                                                                                                                                                                                                                                           |         |   | Unaudited |   | Unaudited |  
| |                                                                                                                                                                                                                                           | $000   |   | $000     |   | $000     |  
| | United Kingdom                                                                                                                                                                                                                            | (69,987 | ) | (171,405  | ) | (158,355  | )
| | United States                                                                                                                                                                                                                             | (21,764 | ) | (4,466    | ) | (14,021   | )
| | Rest of the World                                                                                                                                                                                                                         | 4,697   |   | 3,943     |   | (5,279    | )
| |                                                                                                                                                                                                                                           |         |   |           |   |           |  
| |                                                                                                                                                                                                                                           | (87,054 | ) | (171,928  | ) | (177,655  | )
| | Net Interest /                                                                                                                                                                                                                            |         |   |           |   |           |  
| | Interest Bearing Assets                                                                                                                                                                                                                   | 2,585   |   | 3,815     |   | 10,579    |  
| |                                                                                                                                                                                                                                           |         |   |           |   |           |  
| |                                                                                                                                                                                                                                           | (84,469 | ) | (168,113  | ) | (167,076  | )
| |                                                                                                                                                                                                                                           |         |   |           |   |           |  
| | Net Operating assets                                                                                                                                                                                                                      | 2003    |   | 2002      |   | 2001      |  
| |                                                                                                                                                                                                                                           |         |   | Unaudited |   | Unaudited |  
| |                                                                                                                                                                                                                                           | $000   |   | $000     |   | $000     |  
| | United Kingdom                                                                                                                                                                                                                            | 87,116  |   | 102,231   |   | 263,092   |  
| | United States                                                                                                                                                                                                                             | 68,900  |   | 88,646    |   | 46,456    |  
| | Rest of the World                                                                                                                                                                                                                         | (653    | ) | (5,498    | ) | 11,382    |  
| |                                                                                                                                                                                                                                           |         |   |           |   |           |  
| |                                                                                                                                                                                                                                           | 155,363 |   | 185,379   |   | 320,930   |  
| | Net Interest /                                                                                                                                                                                                                            |         |   |           |   |           |  
| | Interest Bearing Assets                                                                                                                                                                                                                   | 28,354  |   | 77,707    |   | 177,799   |  
| |                                                                                                                                                                                                                                           |         |   |           |   |           |  
| |                                                                                                                                                                                                                                           | 183,717 |   | 263,086   |   | 498,729   |  
| |                                                                                                                                                                                                                                           |         |   |           |   |           |  
| |                                                                                                                                                                                                                                           |         |   |           |   |           |  
| | The UK operating
      loss includes the Group goodwill amortisation expense of $nil million (2002:
    $104.3 million, 2001: $104.3 million).                                                                                            |        
| |                                                                                                                                                                                                                                           |         |   |           |   |           |  
| | Interest
      bearing assets consist of restricted cash, current asset investments and
      cash balances, which are held mainly within UK entities but have been shown
    separately above as they are used to fund group operations. |        
| |                                                                                                                                                                                                                                           |         |   |           |   |           |  

R14

---





RADIANZ LIMITED

NOTES TO THE FINANCIAL STATEMENTS

---

|   |                                                   
|-- | --------------------------------------------------
|3. | Loss
    On Ordinary Activities Before Taxation   
|   |                                                   
|   | Loss before
    taxation is stated after charging:

|   |                                                  |  |         |   |           |   |           |  
|-- | ------------------------------------------------ |  | ------- | - | --------- | - | --------- | -
|   |                                                  |  | 2003    |   | 2002      |   | 2001      |  
|   |                                                  |  |         |   | Unaudited |   | Unaudited |  
|   |                                                  |  | $000   |   | $000     |   | $000     |  
|   | Staff costs (note 5)                             |  | 113,901 |   | 98,108    |   | 81,870    |  
|   | Depreciation of tangible assets (note 8)         |  | 67,798  |   | 65,051    |   | 55,055    |  
|   | Impairment (note 8)                              |  | 15,345  |   | 833       |   | -         |  
|   | Depreciation from related parties                |  | 7,458   |   | 6,610     |   | 9,033     |  
|   | Amortisation of goodwill                         |  | -       |   | 104,349   |   | 104,349   |  
|   | Loss on disposal of fixed assets                 |  | 146     |   | 905       |   | 3,266     |  
|   | Operating lease rentals  land & buildings       |  | 11,324  |   | 10,743    |   | 4,736     |  
|   | Foreign currency translation  net gain          |  | (745    | ) | (57       | ) | (4,649    | )
|   | Auditors remuneration                           |  |         |   |           |   |           |  
|   | Group audit fees                                 |  | 1,352   |   | 980       |   | 750       |  
|   | Other services                                   |  | 940     |   | 892       |   | 173       |  
|   |                                                  |  |         |   |           |   |           |  
|   |                                                  |  |         |   |           |   |           |  
|   | Cost by function:                                |  |         |   |           |   |           |  
|   | Operations and communications costs              |  | 546,767 |   | 498,007   |   | 423,518   |  
|   | Sales and marketing expense                      |  | 17,761  |   | 16,947    |   | 34,061    |  
|   | Administration expense                           |  | 55,765  |   | 150,091   |   | 143,649   |  
|   |                                                  |  |         |   |           |   |           |  
|   |                                                  |  |         |   |           |   |           |  
|   | Total operating costs                            |  | 620,293 |   | 665,045   |   | 601,228   |  
|   |                                                  |  |         |   |           |   |           |  
|   |                                                  |  |         |   |           |   |           |  
|4. | Interest
    receivable and similar income  net |  |         |   |           |   |           |  
|   |                                                  |  |         |   |           |   |           |  

| |                                               |  | 2003  |   | 2002      |   | 2001      |  
| | --------------------------------------------- |  | ----- | - | --------- | - | --------- | -
| |                                               |  |       |   | Unaudited |   | Unaudited |  
| |                                               |  | $000 |   | $000     |   | $000     |  
| |                                               |  |       |   |           |   |           |  
| | Interest receivable from bank deposits        |  | 602   |   | 2,197     |   | 9,737     |  
| | Discount on receivable from parent            |  | 2,367 |   | 1,642     |   | 866       |  
| |                                               |  |       |   |           |   |           |  
| |                                               |  |       |   |           |   |           |  
| | Total interest receivable                     |  | 2,969 |   | 3,839     |   | 10,603    |  
| |                                               |  |       |   |           |   |           |  
| | Interest payable on finance leases            |  | (201  | ) | -         |   | -         |  
| | Interest payable on bank loans and overdrafts |  | (183  | ) | (24       | ) | (24       | )
| |                                               |  |       |   |           |   |           |  
| |                                               |  |       |   |           |   |           |  
| | Interest receivable and similar income - net  |  | 2,585 |   | 3,815     |   | 10,579    |  
| |                                               |  |       |   |           |   |           |  

R15

---





RADIANZ LIMITED

NOTES TO THE FINANCIAL STATEMENTS

---

|   |                                                                    
|-- | -------------------------------------------------------------------
|5. | Employees                                                          
|   |                                                                    
|   | The average
    number of employees during the year was as follows:



| |                                                                          |         |  |           |  |           | 
| | ------------------------------------------------------------------------ | ------- |  | --------- |  | --------- | 
| |                                                                          | 2003    |  | 2002      |  | 2001      | 
| |                                                                          |         |  | Unaudited |  | Unaudited | 
| | Operations and Engineering                                               | 609     |  | 607       |  | 492       | 
| | Sales and marketing                                                      | 76      |  | 81        |  | 83        | 
| | Administration                                                           | 237     |  | 142       |  | 112       | 
| |                                                                          |         |  |           |  |           | 
| |                                                                          |         |  |           |  |           | 
| | Total                                                                    | 922     |  | 830       |  | 687       | 
| |                                                                          |         |  |           |  |           | 
| |                                                                          |         |  |           |  |           | 
| | Staff costs incurred during the year in respect of these employees were: |        
| |                                                                          |         |  |           |  |           | 
| |                                                                          | 2003    |  | 2002      |  | 2001      | 
| |                                                                          |         |  | Unaudited |  | Unaudited | 
| |                                                                          | $000   |  | $000     |  | $000     | 
| |                                                                          |         |  |           |  |           | 
| | Wages and Salaries                                                       | 99,137  |  | 85,851    |  | 72,865    | 
| | Social Security Costs                                                    | 9,303   |  | 7,135     |  | 5,564     | 
| | Other Pension Costs                                                      | 5,461   |  | 5,122     |  | 3,441     | 
| |                                                                          |         |  |           |  |           | 
| |                                                                          |         |  |           |  |           | 
| | Total                                                                    | 113,901 |  | 98,108    |  | 81,870    | 
| |                                                                          |         |  |           |  |           | 

|   |         
|-- | --------
|6. | Taxation

| |                                      |       |   |           |  |           | 
| | ------------------------------------ | ----- | - | --------- |  | --------- | 
| |                                      | 2003  |   | 2002      |  | 2001      | 
| |                                      |       |   | Unaudited |  | Unaudited | 
| |                                      | $000 |   | $000     |  | $000     | 
| | UK corporation tax at 30%            |       |   |           |  |           | 
| | Current tax on income for the year   | -     |   | -         |  | -         | 
| | Adjustments in respect of prior year | 997   |   | -         |  | 190       | 
| |                                      |       |   |           |  |           | 
| |                                      | 997   |   | -         |  | 190       | 
| |                                      |       |   |           |  |           | 
| | US corporate income tax              |       |   |           |  |           | 
| | Current tax on income for the year   | 81    |   | 528       |  | 228       | 
| | Adjustments in respect of prior year | (69   | ) | -         |  | 171       | 
| |                                      |       |   |           |  |           | 
| |                                      | 12    |   | 528       |  | 399       | 
| |                                      |       |   |           |  |           | 
| | Other overseas corporate income tax  |       |   |           |  |           | 
| | Current tax on income for the year   | 859   |   | 552       |  | 407       | 
| | Adjustments in respect of prior year | 157   |   | -         |  | 70        | 
| |                                      |       |   |           |  |           | 
| |                                      | 1,016 |   | 552       |  | 477       | 
| |                                      |       |   |           |  |           | 
| | Deferred taxation                    | (461  | ) | -         |  | 6         | 
| |                                      |       |   |           |  |           | 
| |                                      |       |   |           |  |           | 
| | Total corporation tax charge         | 1,564 |   | 1,080     |  | 1,072     | 
| |                                      |       |   |           |  |           | 

R16

---





RADIANZ LIMITED

NOTES TO THE FINANCIAL STATEMENTS

---

| |                                                                                                                                                                                                                                                                                                                                                                                        |         |   |           |   |           |  
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------- | - | --------- | - | --------- | -
| |                                                                                                                                                                                                                                                                                                                                                                                        | 2003    |   | 2002      |   | 2001      |  
| |                                                                                                                                                                                                                                                                                                                                                                                        |         |   | Unaudited |   | Unaudited |  
| |                                                                                                                                                                                                                                                                                                                                                                                        | $000   |   | $000     |   | $000     |  
| | Factors
    affecting tax charge for the year                                                                                                                                                                                                                                                                                                                                          |         |   |           |   |           |  
| | Loss on
    ordinary activities before tax                                                                                                                                                                                                                                                                                                                                             | (84,469 | ) | (235,134  | ) | (231,216  | )
| | Loss
       on ordinary activities before tax multiplied by the standard rate of corporation
    tax in the UK of 30% (2002:
	  30%, 2001:30%)                                                                                                                                                                                                                                         | (25,341 | ) | (70,540   | ) | (69,365   | )
| |                                                                                                                                                                                                                                                                                                                                                                                        |         |   |           |   |           |  
| | Effects of:                                                                                                                                                                                                                                                                                                                                                                            |         |   |           |   |           |  
| | Adjustments
       for foreign tax  taxable at different rates                                                                                                                                                                                                                                                                                                                        | (2,898  | ) | 341       |   | (273      | )
| | Timing differences                                                                                                                                                                                                                                                                                                                                                                     | 14,933  |   | (2,136    | ) | (240      | )
| | Permanent differences                                                                                                                                                                                                                                                                                                                                                                  | 610     |   | 51,192    |   | 50,783    |  
| | Depreciation
    for the year in excess of capital allowances                                                                                                                                                                                                                                                                                                                          | -       |   | 4,620     |   | 1,335     |  
| | Tax losses carried forward                                                                                                                                                                                                                                                                                                                                                             | 13,973  |   | 17,448    |   | 18,415    |  
| | Utilisation of tax losses                                                                                                                                                                                                                                                                                                                                                              | (504    | ) | (181      | ) | (90       | )
| | Adjustments
       to tax charge in respect of previous periods                                                                                                                                                                                                                                                                                                                        | 1,134   |   | 147       |   | 431       |  
| | Minimum taxes                                                                                                                                                                                                                                                                                                                                                                          | 118     |   | 189       |   | 226       |  
| | Foreign tax credits                                                                                                                                                                                                                                                                                                                                                                    | -       |   | -         |   | (156      | )
| |                                                                                                                                                                                                                                                                                                                                                                                        |         |   |           |   |           |  
| | Current tax charge for the year                                                                                                                                                                                                                                                                                                                                                        | 2,025   |   | 1,080     |   | 1,066     |  
| |                                                                                                                                                                                                                                                                                                                                                                                        |         |   |           |   |           |  
| |                                                                                                                                                                                                                                                                                                                                                                                        |         |   |           |   |           |  
| | Radianz previously
      sold tax losses to an associated undertaking in respect of the year 2000
      for the consideration of $895,000. Subsequently, these losses were not
      utilised by the associate undertaking and returned to Radianz. As a result
      Radianz repaid the consideration of $997,000, the difference being due
    to move foreign exchange differences. |        
| |                                                                                                                                                                                                                                                                                                                                                                                        |         |   |           |   |           |  
| | The Group
      has an unrecognised deferred tax asset of approximately $76,829,000 (2002:
    $35,235,000, 2001: $16,676,000) that relates to the following:                                                                                                                                                                                                                          |        
| |                                                                                                                                                                                                                                                                                                                                                                                        |         |   |           |   |           |  

| |                                                                                                                                            | 2003   |  | 2002      |  | 2001      | 
| | ------------------------------------------------------------------------------------------------------------------------------------------ | ------ |  | --------- |  | --------- | 
| |                                                                                                                                            |        |  | Unaudited |  | Unaudited | 
| |                                                                                                                                            | $000  |  | $000     |  | $000     | 
| |                                                                                                                                            |        |  |           |  |           | 
| | Accelerated capital allowances                                                                                                             | 21,394 |  | 10,312    |  | 2,402     | 
| | Tax losses carried forward                                                                                                                 | 51,247 |  | 24,923    |  | 14,274    | 
| | Other                                                                                                                                      | 4,188  |  | -         |  | -         | 
| |                                                                                                                                            |        |  |           |  |           | 
| | Unprovided deferred tax                                                                                                                    | 76,829 |  | 35,235    |  | 16,676    | 
| |                                                                                                                                            |        |  |           |  |           | 
| |                                                                                                                                            |        |  |           |  |           | 
| | A deferred
      tax asset has not been recognised since it is not certain that this asset
    will crystallise in the foreseeable future. |       

R17

---





RADIANZ LIMITED

NOTES TO THE FINANCIAL STATEMENTS

---

|   |          
|-- | ---------
|7. | Dividends

| |                                   |        |  |           |  |           | 
| | --------------------------------- | ------ |  | --------- |  | --------- | 
| |                                   | 2003   |  | 2002      |  | 2001      | 
| |                                   |        |  | Unaudited |  | Unaudited | 
| |                                   | $000  |  | $000     |  | $000     | 
| |                                   |        |  |           |  |           | 
| | 6.5% cumulative preference shares | 10,270 |  | 10,270    |  | 10,270    | 
| |                                   |        |  |           |  |           | 

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The preference
        shares were issued by Radianz Inc., a wholly owned US subsidiary of Radianz
        Limited, and are held equally by Reuters and Equant, the ultimate shareholders
        of Radianz Limited (see note 16). Radianz Inc. has appropriated through
        its profit and loss account preference share dividends for the year on
        these 6.5% cumulative preference shares of $10.27 million. However, in
        accordance with the provisions of Financial Reporting Standard No. 4,
        as Radianz Inc. does not have sufficient distributable reserves in order
        to pay such preference share dividends, these dividends have been credited
    back within profit and loss account reserves (note 18).
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | In 2000,
        the preference share dividends of $5.135 million were not credited back
        within profit and loss account reserves but were included within creditors:
        amounts falling due after more than one year. These dividends had
        been credited back within profit and loss account reserves in 2001 (note
    18).                                                                                                                                                                                                                                                                                                                                                                                                   

R18

---





|RADIANZ
      LIMITED                    
|-----------------------------------------
|                                         
|NOTES
        TO THE FINANCIAL STATEMENTS
|                                         
|                                         

|   |                            
|-- | ---------------------------
|8. | Tangible
      fixed assets
|   |                            

|         |                               |           | Leasehold |       |  | Leasehold |   |  | Network |   |  | Computer
      and |   |  | Total   |  
|-------- | ----------------------------- | --------- | --------- | ----- |  | --------- | - |  | ------- | - |  | ------------------ | - |  | ------- | -
|Property | Improvements                  | Equipment | Office    |      
|         |                               |           | Equipment |      
|$000    | $000                         | $000     | $000     | $000
|         | Cost                          |           |           |       |  |           |   |  |         |   |  |                    |   |  |         |  
|         | At 1 January
      2003       |           | 32,600    |       |  | 4,807     |   |  | 276,378 |   |  | 13,487             |   |  | 327,272 |  
|         | Translation
      differences |           | -         |       |  | 136       |   |  | 10,421  |   |  | 343                |   |  | 10,900  |  
|         | Additions                     |           | 1,333     |       |  | 196       |   |  | 44,326  |   |  | 1,067              |   |  | 46,922  |  
|         | Reclassification              |           | (374      | )     |  | 1,125     |   |  | 396     |   |  | (1,147             | ) |  | -       |  
|         | Disposals                     |           | -         |       |  | (20       | ) |  | (11,562 | ) |  | (1,733             | ) |  | (13,315 | )
|         |                               |           |           |       |  |           |   |  |         |   |  |                    |   |  |         |  
|         |                               |           |           |       |  |           |   |  |         |   |  |                    |   |  |         |  
|         | At
      31 December 2003     |           | 33,559    |       |  | 6,244     |   |  | 319,959 |   |  | 12,017             |   |  | 371,779 |  
|         |                               |           |           |       |  |           |   |  |         |   |  |                    |   |  |         |  
|         | Depreciation                  |           |           |       |  |           |   |  |         |   |  |                    |   |  |         |  
|         | At 1 January
      2003       |           | 3,376     |       |  | 513       |   |  | 135,085 |   |  | 6,056              |   |  | 145,030 |  
|         | Translation
      differences |           | -         |       |  | 34        |   |  | 5,708   |   |  | 197                |   |  | 5,939   |  
|         | Charged
      in the year     |           | 3,918     |       |  | 779       |   |  | 59,667  |   |  | 3,434              |   |  | 67,798  |  
|         | Impairment                    |           | 13,043    |       |  | -         |   |  | 2,302   |   |  | -                  |   |  | 15,345  |  
|         | Reclassification              |           | (58       | )     |  | 474       |   |  | 499     |   |  | (915               | ) |  | -       |  
|         | Disposals                     |           | -         |       |  | (20       | ) |  | (10,413 | ) |  | (1,669             | ) |  | (12,102 | )
|         |                               |           |           |       |  |           |   |  |         |   |  |                    |   |  |         |  
|         |                               |           |           |       |  |           |   |  |         |   |  |                    |   |  |         |  
|         | At
      31 December 2003     |           | 20,279    |       |  | 1,780     |   |  | 192,848 |   |  | 7,103              |   |  | 222,010 |  
|         |                               |           |           |       |  |           |   |  |         |   |  |                    |   |  |         |  
|         | Net
      Book Value          |           |           |       |  |           |   |  |         |   |  |                    |   |  |         |  
|         | At
      31 December 2003     |           | 13,280    |       |  | 4,464     |   |  | 127,111 |   |  | 4,914              |   |  | 149,769 |  
|         |                               |           |           |       |  |           |   |  |         |   |  |                    |   |  |         |  
|         |                               |           |           |       |  |           |   |  |         |   |  |                    |   |  |         |  
|         | At 31 December
      2002     |           | 29,224    |       |  | 4,294     |   |  | 141,293 |   |  | 7,431              |   |  | 182,242 |  
|         |                               |           |           |       |  |           |   |  |         |   |  |                    |   |  |         |  

| |                                                                                                                                                                                                                                                                                                                                                                              
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | During the
      year a fixed asset verification exercise was completed. This resulted in
      a number of asset reclassifications and assets costing approximately $13.3
      million (NBV $1.2 million) being written off or retired. The resultant profit
      and loss change of $0.1 million is net of a provision relating to fixed
      assets no longer required.
| |                                                                                                                                                                                                                                                                                                                                                                              
| | An impairment
      review based on the future discounted cash flows resulted in an additional
      depreciation charge of $15.3 million relating to assets utilised in Radianzs
      hosting operations.                                                                                                                                                                 
| |                                                                                                                                                                                                                                                                                                                                                                              
| | Analysis
      of assets held under finance lease at 31 December 2003                                                                                                                                                                                                                                                                                                        
| |                                                                                                                                                                                                                                                                                                                                                                              

| |                                                                                                | Leasehold |  | Leasehold    |  | Network   |   | Computer
      and |  | Total  |  
| | ---------------------------------------------------------------------------------------------- | --------- |  | ------------ |  | --------- | - | ------------------ |  | ------ | -
| |                                                                                                | Property  |  | Improvements |  | Equipment |   | Office             |  |        |  
| |                                                                                                |           |  |              |  |           |   | Equipment          |  |        |  
| |                                                                                                | $000     |  | $000        |  | $000     |   | $000              |  | $000  |  
| |                                                                                                |           |  |              |  |           |   |                    |  |        |  
| | Cost                                                                                           | -         |  | -            |  | 6,335     |   | -                  |  | 6,335  |  
| | Accumulated
      depreciation                                                                 | -         |  | -            |  | (1,070    | ) | -                  |  | (1,070 | )
| |                                                                                                |           |  |              |  |           |   |                    |  |        |  
| |                                                                                                |           |  |              |  |           |   |                    |  |        |  
| | At
           31 December 2003                                                                 | -         |  | -            |  | 5,265     |   | -                  |  | 5,265  |  
| |                                                                                                |           |  |              |  |           |   |                    |  |        |  
| |                                                                                               
| | The
      Group did not own any assets under finance lease agreements at 1 January
      2003.
| |                                                                                               

R19

---







|RADIANZ
      LIMITED                    
|-----------------------------------------
|                                         
|NOTES
        TO THE FINANCIAL STATEMENTS
|                                         
|                                         

|   |            
|-- | -----------
|9. | Investments
|   |            

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $000   | 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------- | 
| | Interests
      in own shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |         | 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |         | 
| | Cost                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |         | 
| | At 1 January
      2003                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 238,261 | 
| | Additions
      in the year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | -       | 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |         | 
| | At
      31 December 2003                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 238,261 | 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |         | 
| | Provision
      for diminution in value of investment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |         | 
| | At 1 January
      2003                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 238,261 | 
| | Charged
      in the year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | -       | 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |         | 
| | At
      31 December 2003                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 238,261 | 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |         | 
| | Net
      Book Value                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |         | 
| | At
      31 December 2003                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | -       | 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |         | 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |         | 
| | At 31 December
      2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | -       | 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |         | 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | Investment
      in own shares represents the Group cost of 35,000,000 shares (nominal value
      £175) held by the Groups ESOT. The Group established the ESOT
      to acquire shares in the Company for the benefit of employees and directors
      of the Group. On 3 July 2000, the Company provided $192 million for this
      purpose by way of a loan. On the same date the ESOT subscribed at market
      value for 28,206,850 of the Companys C ordinary shares.
      In March 2001 the Company issued a further 6,793,150 of the Companys
      ordinary C shares to Reuters and Equant for $46.3 million in
      cash. The Company provided a loan to the ESOT in this amount which the
      ESOT used to purchase these ordinary C shares for issuance
      to employees. The option scheme does not allow employees or directors to
      purchase shares at a discount to the market value at the date of grant
      of the options, therefore, no charge to the profit and loss account arises.
      The cost of funding and administering the scheme are charged to the profit
      and loss account of the Group in the period to which they relate.                                                                                                             
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | In
      October 2001 the Group permitted employees to cancel stock options granted
      up to 30 September 2001 in exchange for an equal number of new stock options
      to be awarded in three phases in 2002. The first phase replacement stock
      options (April 2002) have a vesting schedule that closely approximates that
      of the cancelled stock options. The second and third phase replacement stock
      options each have three-year annual vesting schedules. All three phases
      of replacement stock options have expiration dates of seven years from date
      of grant in accordance with the Plan. Of the 29.0 million stock options
      with an exercise price of $6.81, which were cancelled in October 2001, 19.3
      million replacement stock options were issued at an exercise price of $2.13
      per share in April 2002 and two further grants of 4.8 million replacement
      stock options were issued in July and October 2002 at an exercise price
      of $1.92 and $1.75 per stock option, respectively. During 2003, the Company
      issued 4.7 million options at an exercise price of $1.85. Additionally,
      7.4 million options were cancelled during 2003 due to employees who resigned
      or were terminated during the year.
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | A
      valuation of the Group is performed by a third party consultancy firm on
      a quarterly basis in accordance with the terms of the employee stock option
      agreement. The quarterly valuations continued to decrease in 2002 and the
      valuation of the Group as of 31 December 2002 was $435 million. As a result
      of a continuous decrease in the valuation of the Group during 2002, implying
      a reduced share price compared to the exercise price of the stock options,
      the receivable for shares held by the ESOT at 31 December 2002 have been
      written down to nil resulting in a charge for diminution in value of the
      investment of $67.0 million in 2002 (2001:$64.1 million).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

R20

---





|RADIANZ
      LIMITED                    
|-----------------------------------------
|                                         
|NOTES
        TO THE FINANCIAL STATEMENTS
|                                         
|                                         

|    |        
|--- | -------
|10. | Debtors
|    |        

| |                                                      | 2003   |  | 2002      | 
| | ---------------------------------------------------- | ------ |  | --------- | 
| |                                                      |        |  | Unaudited | 
| |                                                      | $000  |  | $000     | 
| | Amounts
      falling due within one year:           |        |  |           | 
| | Trade debtors                                        | 11,549 |  | 10,825    | 
| | Amounts
      owed by associated undertakings        |        |  |           | 
| | -trading
        balances                            | 35,706 |  | 156,802   | 
| | -loan                                                | 9,456  |  | 10,133    | 
| | Other debtors                                        | 13,548 |  | 14,669    | 
| | Prepayments
      and accrued income                 | 19,442 |  | 8,364     | 
| |                                                      |        |  |           | 
| |                                                      |        |  |           | 
| |                                                      | 89,701 |  | 200,793   | 
| |                                                      |        |  |           | 
| | Amounts
      falling due after one year:            |        |  |           | 
| | Amounts
      owed by associated undertakings  loan | 41,793 |  | 51,249    | 
| |                                                      |        |  |           | 
| |                                                      |        |  |           | 
| |                                                      | 41,793 |  | 51,249    | 
| |                                                      |        |  |           | 
| |                                                      |        |  |           | 

|11. | Restricted
      cash
|--- | ---------------------
|    |                      

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2003   |  | 2002      | 
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------ |  | --------- | 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |        |  | Unaudited | 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $000  |  | $000     | 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |        |  |           | 
| | Restricted
      cash                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 19,259 |  | 33,050    | 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |        |  |           | 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | Restricted
      cash represents certificates of deposit at banks which are held as collateral
      for cash management facilities provided to Group companies, security for
      certain of the Groups third-party operating lease agreements and the
      related letters of guarantee, and as security over letters of credit guaranteeing
      payments to the Groups major suppliers. As a result, restricted cash
      is not available for general business purposes.
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

R21

---





|RADIANZ
    LIMITED                  
|-------------------------------------
|                                     
|NOTES
    TO THE FINANCIAL STATEMENTS
|                                     
|                                     

|    |                                                   
|--- | --------------------------------------------------
|12. | Creditors:
    amounts falling due within one year

| |                                       |    |         |  |           | 
| | ------------------------------------- | -- | ------- |  | --------- | 
| |                                       |    | 2003    |  | 2002      | 
| |                                       |    |         |  | Unaudited | 
| |                                       |    | $000   |  | $000     | 
| |                                       |    |         |  |           | 
| | Trade creditors                       |    | 19,221  |  | 11,318    | 
| | Amounts owed to group undertakings    |    | -       |  | -         | 
| | Amounts owed to joint venture parents |    | 35,247  |  | 165,661   | 
| | Overseas taxation                     |    | 1,298   |  | 705       | 
| | Other taxation and social security    |    | 13,598  |  | 25,449    | 
| | Other creditors                       |    | 3,068   |  | 1,806     | 
| | Accruals and deferred income          |    | 46,543  |  | 41,483    | 
| | Obligations under finance Leases      | 14 | 1,879   |  | -         | 
| |                                       |    |         |  |           | 
| |                                       |    |         |  |           | 
| |                                       |    | 120,854 |  | 246,422   | 
| |                                       |    |         |  |           | 

|    |                                                                                                                              
|--- | -----------------------------------------------------------------------------------------------------------------------------
|    | Amounts
        due to group undertakings and joint venture parents are unsecured, interest
    free and repayable on demand.
|    |                                                                                                                              
|13. | Creditors:
    amounts falling due after one year                                                                            

| |                                  |    |       |  |           | 
| | -------------------------------- | -- | ----- |  | --------- | 
| |                                  |    | 2003  |  | 2002      | 
| |                                  |    |       |  | Unaudited | 
| |                                  |    | $000 |  | $000     | 
| |                                  |    |       |  |           | 
| | Obligations under finance leases | 14 | 3,503 |  | -         | 
| | Other Creditors                  |    | 110   |  | -         | 
| |                                  |    |       |  |           | 
| |                                  |    | 3,613 |  | -         | 
| |                                  |    |       |  |           | 

|    |                                                                                                                                                                                              
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|14. | Finance
    leases                                                                                                                                                                           
|    |                                                                                                                                                                                              
|    | During
        the year the Group entered into a number of finance leases with Equant.
        The maturity profile of the financial liabilities excluding other creditors
    is as follows:

| |                          |       |  |           | 
| | ------------------------ | ----- |  | --------- | 
| |                          | 2003  |  | 2002      | 
| |                          |       |  | Unaudited | 
| |                          | $000 |  | $000     | 
| |                          |       |  |           | 
| | Within one year          | 1,879 |  | -         | 
| | Within two to five years | 3,503 |  | -         | 
| | After five years         |       |  |           | 
| |                          |       |  |           | 
| |                          |       |  |           | 
| | Total                    | 5,382 |  | -         | 
| |                          |       |  |           | 

R22

---





|RADIANZ
          LIMITED                  
|-------------------------------------------
|                                           
|NOTES
          TO THE FINANCIAL STATEMENTS
|                                           
|                                           

|    |                                                |              |   |               |   |        |  
|--- | ---------------------------------------------- | ------------ | - | ------------- | - | ------ | -
|15. | Provisions
    for liabilities and charges     |              |   |               |   |        |  
|    |                                                |              |   |               |   |        |  
|    |                                                |              |   | Employee      |   |        |  
|    | Group                                          | Deferred tax |   | related costs |   | Total  |  
|    |                                                | $000        |   | $000         |   | $000  |  
|    |                                                |              |   |               |   |        |  
|    | At 1 January 2003                              | 647          |   | 1,836         |   | 2,483  |  
|    | Currency translation adjustments               | -            |   | 85            |   | 85     |  
|    | Utilised in the year                           | -            |   | (2,295        | ) | (2,295 | )
|    | (Released)/ charged to profit and loss account | (461         | ) | 1,621         |   | 1,160  |  
|    |                                                |              |   |               |   |        |  
|    |                                                |              |   |               |   |        |  
|    | At 31 December 2003                            | 186          |   | 1,247         |   | 1,433  |  
|    |                                                |              |   |               |   |        |  

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | The $1,247,000
        (2002: $1,836,000) provision for employee related costs primarily arises
        in respect of the pension cost for current employees in the USA and Italy.
        The deferred tax provision of $647,000 as at 1 January 2003, which arose
        in respect of fixed assets contributed by Reuters in the US was released
        back to the profit and loss in the year. The deferred tax provision of
        $186,000 at 31 December 2003 is in respect of timing differences for
    fixed assets owned in Singapore. The provision was created in 2003.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|16. | Called
    up share capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

| |                                             |        |  |           | 
| | ------------------------------------------- | ------ |  | --------- | 
| |                                             | 2003   |  | 2002      | 
| |                                             |        |  | Unaudited | 
| |                                             | $      |  | $         | 
| | Authorised                                  |        |  |           | 
| | 15,800 6.5% cumulative preference shares of |        |  |           | 
| | $1 each                                     | 15,800 |  | 15,800    | 
| | 510 ordinary A shares of £1 each          | 750    |  | 750       | 
| | 490 ordinary B shares of £1 each          | 720    |  | 720       | 
| | 35,000,000 ordinary C shares of           |        |  |           | 
| | £0.000005 each                              | 257    |  | 257       | 
| |                                             |        |  |           | 
| |                                             |        |  |           | 
| |                                             | 17,527 |  | 17,527    | 
| |                                             |        |  |           | 

| |                                                  |        |  |           | 
| | ------------------------------------------------ | ------ |  | --------- | 
| | Allotted,
    called up and fully paid           |        |  |           | 
| |                                                  |        |  |           | 
| |                                                  | 2003   |  | 2002      | 
| |                                                  |        |  | Unaudited | 
| |                                                  | $      |  | $         | 
| |                                                  |        |  |           | 
| | 510 ordinary A shares (Reuters) of £1 each     | 750    |  | 750       | 
| | 490 ordinary B shares (Equant) of £1 each      | 720    |  | 720       | 
| | 35,000,000 ordinary C shares of £0.000005 each | 257    |  | 257       | 
| | 15,800 6.5% cumulative preference shares of      |        |  |           | 
| | $1 each                                          | 15,800 |  | 15,800    | 
| |                                                  |        |  |           | 
| |                                                  |        |  |           | 
| |                                                  | 17,527 |  | 17,527    | 
| |                                                  |        |  |           | 

R23

---





|RADIANZ
          LIMITED                  
|-------------------------------------------
|                                           
|NOTES
          TO THE FINANCIAL STATEMENTS
|                                           
|                                           

| |                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | --------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The
        rights relating to each class of share in issue at 31 December 2003 are
    as follows:
| |                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | (a)                                                                                                 | The ordinary A and B shares
        have no rights to dividends other than those that may be recommended
        by directors. In the event of winding up the Company they rank pari passu
        with the other classes of shares. They carry one vote per share. No A share
        shall confer any right to vote upon a resolution for the removal from
        office of a B Director (appointed by Equant) and no B share
        shall confer any right to vote upon a resolution for the removal from
    office of an A Director (appointed by Reuters).                                                                                                                                                                                                          
| |                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | (b)                                                                                                 | The ordinary C shares
        have no rights to dividends other than those that may be recommended
        by directors. In the event of winding up the Company they rank pari passu
        with the other classes of shares. They do not carry any voting rights,
    other than in resolutions on the variation of their rights.                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | (c)                                                                                                 | The 6.5%
        preference shares were issued by Radianz Inc., a wholly owned US subsidiary
        of Radianz Limited, and are held equally by Reuters and Equant, the ultimate
        shareholders of Radianz Limited. The 6.5% preference shares carry a fixed
        cumulative preferential dividend at the rate of 6.5% per annum, payable
        on 30 June. The shares have no redemption entitlement. On a winding up
        the holders have priority before all other classes of shares to receive
        payment of capital plus any arrears of dividend. Each preference share
        carries 0.275 votes. 75% approval of the preference shareholders is required
        for matters directly affecting the number and voting rights of the preference
    shares.

|    |                                            |         |  |            |   |          |  
|--- | ------------------------------------------ | ------- |  | ---------- | - | -------- | -
|17. | Reconciliation
    of movement in reserves |         |  |            |   |          |  
|    |                                            |         |  |            |   |          |  
|    |                                            | Share   |  | Exchange   |   | Profit & |  
|    |                                            | premium |  | difference |   | loss     |  
|    |                                            | account |  | reserve    |   | account  |  
|    | Group                                      | $000   |  | $000      |   | $000    |  
|    |                                            |         |  |            |   |          |  
|    | At 1 January 2003                          | 878,425 |  | (453       | ) | (614,904 | )
|    | Retained loss for the financial year       | -       |  | -          |   | (96,303  | )
|    | Preference share appropriations for year   |         |  |            |   |          |  
|    | ended 31 December 2003 (note 7)            | -       |  | -          |   | 10,270   |  
|    | Other gains and losses                     | -       |  | 6,664      |   | -        |  
|    |                                            |         |  |            |   |          |  
|    |                                            |         |  |            |   |          |  
|    | At 31 December 2003                        | 878,425 |  | 6,211      |   | (700,937 | )
|    |                                            |         |  |            |   |          |  

R24

---





RADIANZ LIMITED

NOTES TO THE FINANCIAL STATEMENTS

---

|18. | Reconciliation
    of movement in shareholders funds
|--- | -----------------------------------------------------
|    |                                                      

| |                                                      |  | 2003     |   | 2002      |   | 2001      |  
| | ---------------------------------------------------- |  | -------- | - | --------- | - | --------- | -
| |                                                      |  |          |   | Unaudited |   | Unaudited |  
| |                                                      |  | $000    |   | $000     |   | $000     |  
| |                                                      |  |          |   |           |   |           |  
| | Loss on ordinary activities after taxation           |  | (86,033  | ) | (236,214  | ) | (232,288  | )
| | Accrued
       preference dividends payable (note 7) |  | (10,270  | ) | (10,270   | ) | (10,270   | )
| |                                                      |  |          |   |           |   |           |  
| | Loss for the year                                    |  | (96,303  | ) | (246,484  | ) | (242,558  | )
| | Other recognised gains and losses                    |  | 6,664    |   | 571       |   | (1,463    | )
| | New ordinary share capital issued                    |  | -        |   | -         |   | 46,261    |  
| | Cumulative dividend not yet declared                 |  |          |   |           |   |           |  
| | for period ended 31 December 2000 (note 7)           |  | -        |   | -         |   | 5,135     |  
| | Cumulative dividend not yet declared                 |  |          |   |           |   |           |  
| | for year ended 31 December (note 7)                  |  | 10,270   |   | 10,270    |   | 10,270    |  
| | Opening shareholders funds                          |  | 263,086  |   | 498,729   |   | 681,084   |  
| |                                                      |  |          |   |           |   |           |  
| |                                                      |  |          |   |           |   |           |  
| | Closing shareholders funds                          |  | 183,717  |   | 263,086   |   | 498,729   |  
| |                                                      |  |          |   |           |   |           |  
| |                                                      |  |          |   |           |   |           |  
| | Total shareholders funds                            |  |          |   |           |   |           |  
| |                                                      |  | 2003     |   | 2002      |   | 2001      |  
| |                                                      |  |          |   | Unaudited |   | Unaudited |  
| |                                                      |  | $000    |   | $000     |   | $000     |  
| | Equity share capital                                 |  |          |   |           |   |           |  
| | (including premium)                                  |  | 725,763  |   | 725,763   |   | 725,763   |  
| | Non-equity share capital                             |  |          |   |           |   |           |  
| | (including premium)                                  |  | 152,680  |   | 152,680   |   | 152,680   |  
| | Exchange difference reserve                          |  | 6,211    |   | (453      | ) | (1,024    | )
| | Profit and loss account                              |  | (700,937 | ) | (614,904  | ) | (378,690  | )
| |                                                      |  |          |   |           |   |           |  
| |                                                      |  |          |   |           |   |           |  
| | Total shareholders funds                            |  | 183,717  |   | 263,086   |   | 498,729   |  
| |                                                      |  |          |   |           |   |           |  
| |                                                      |  |          |   |           |   |           |  
| | Shareholders funds allocated to non-equity          |  |          |   |           |   |           |  
| |                                                      |  | 2003     |   | 2002      |   | 2001      |  
| |                                                      |  |          |   | Unaudited |   | Unaudited |  
| |                                                      |  | $000    |   | $000     |   | $000     |  
| | Non-equity share capital                             |  |          |   |           |   |           |  
| | (including premium)                                  |  | 152,680  |   | 152,680   |   | 152,680   |  
| | Cumulative dividend not paid                         |  | 35,945   |   | 25,675    |   | 15,405    |  
| |                                                      |  |          |   |           |   |           |  
| |                                                      |  |          |   |           |   |           |  
| | Total non-equity shareholders funds                 |  | 188,625  |   | 178,355   |   | 168,085   |  
| |                                                      |  |          |   |           |   |           |  

R25

---





RADIANZ LIMITED

NOTES TO THE FINANCIAL STATEMENTS

---

| | Shareholders funds allocated to equity                |          |   |           |   |           |  
| | ------------------------------------------------------ | -------- | - | --------- | - | --------- | -
| |                                                        | 2003     |   | 2002      |   | 2001      |  
| |                                                        |          |   | Unaudited |   | Unaudited |  
| |                                                        | $000    |   | $000     |   | $000     |  
| | Difference between total shareholders funds           |          |   |           |   |           |  
| | and the
       amount allocated to non-equity interest | (4,908   | ) | 84,731    |   | 330,644   |  
| | Made up as follows                                     |          |   |           |   |           |  
| | Equity share capital (including premium)               | 725,763  |   | 725,763   |   | 725,763   |  
| | Exchange difference reserve                            | 6,211    |   | (453      | ) | (1,024    | )
| | Profit and loss account reserve                        | (700,937 | ) | (614,904  | ) | (378,690  | )
| | Cumulative dividends due to non-equity                 |          |   |           |   |           |  
| | Shareholders (note7)                                   | (35,945  | ) | (25,675   | ) | (15,405   | )
| |                                                        |          |   |           |   |           |  
| |                                                        |          |   |           |   |           |  
| | Total equity shareholders funds                       | (4,908   | ) | 84,731    |   | 330,644   |  
| |                                                        |          |   |           |   |           |  

|    |                                                                                   
|--- | ----------------------------------------------------------------------------------
|19. | Reconciliation
    of operating loss to net cash outflow from operating activities
|    |                                                                                   

| |                                                     | 2003     |   | 2002      |   | 2001      |  
| | --------------------------------------------------- | -------- | - | --------- | - | --------- | -
| |                                                     |          |   | Unaudited |   | Unaudited |  
| |                                                     | $000    |   | $000     |   | $000     |  
| | Operating loss                                      | (87,054  | ) | (171,928  | ) | (177,655  | )
| | Depreciation charge                                 | 67,798   |   | 65,051    |   | 55,055    |  
| | Impairment charge                                   | 15,345   |   | 833       |   | -         |  
| | Loss on sale of tangible fixed assets               | 146      |   | 905       |   | 3,266     |  
| | Amortisation of goodwill                            | -        |   | 104,349   |   | 104,349   |  
| | Unwinding of the discount on related party loan     | 2,367    |   | 1,642     |   | 866       |  
| | Decrease/ (Increase) in debtors                     | 123,349  |   | (43,973   | ) | (34,383   | )
| | Decrease /(Increase) in restricted cash             | 13,791   |   | (6,191    | ) | (19,904   | )
| | Increase /(Decrease) in trade creditors             | 7,611    |   | (1,330    | ) | 6,414     |  
| | (Decrease)/ Increase in accruals, deferred income   |          |   |           |   |           |  
| | and other creditors                                 | (136,553 | ) | 39,793    |   | 60,563    |  
| | Others                                              | (572     | ) | (267      | ) | 649       |  
| |                                                     |          |   |           |   |           |  
| |                                                     |          |   |           |   |           |  
| | Net cash inflow/(outflow) from operating activities | 6,228    |   | (11,116   | ) | (780      | )
| |                                                     |          |   |           |   |           |  

| |                                                                                         
| | ----------------------------------------------------------------------------------------
| | The 2002
    and 2001 comparatives have been restated to reflect current year treatment.
| |                                                                                         

|20. | Reconciliation
    of net cash flow to movement in net funds
|--- | ------------------------------------------------------------
|    |                                                             

| |                                                                                          | 2003    |   | 2002      |   | 2001      |  
| | ---------------------------------------------------------------------------------------- | ------- | - | --------- | - | --------- | -
| |                                                                                          |         |   | Unaudited |   | Unaudited |  
| |                                                                                          | $000   |   | $000     |   | $000     |  
| | Decrease / (increase) in cash in the year                                                | (35,180 | ) | 32,921    |   | (7,610    | )
| | Cash flow movement from lease financing                                                  | (953    | ) | -         |   | -         |  
| | Cash inflow from sale of short term investments                                          | -       |   | (140,042  | ) | (90,725   | )
| | Currency Translation Adjustments                                                         | (382    | ) | 838       |   | (197      | )
| |                                                                                          |         |   |           |   |           |  
| | Net funds at 1 January                                                                   | 44,657  |   | 150,940   |   | 249,472   |  
| |                                                                                          |         |   |           |   |           |  
| |                                                                                          |         |   |           |   |           |  
| | Net funds at 31 December                                                                 | 8,142   |   | 44,657    |   | 150,940   |  
| |                                                                                          |         |   |           |   |           |  
| |                                                                                          |         |   |           |   |           |  
| | The 2002
    and 2001 comparatives have been restated to reflect current year treatment. |        

R26

---





RADIANZ LIMITED

NOTES TO THE FINANCIAL STATEMENTS

---

| |                                      | Cash    |   | Obligations   |   | Net Funds |  
| | ------------------------------------ | ------- | - | ------------- | - | --------- | -
| |                                      |         |   | under finance |   |           |  
| |                                      |         |   | leasing       |   |           |  
| |                                      | $000   |   | $000         |   | $000     |  
| |                                      |         |   |               |   |           |  
| | At 1 January 2003                    | 44,657  |   | -             |   | 44,657    |  
| | New obligations under finance Leases | -       |   | (6,335        | ) | (6,335    | )
| | Cash flow                            | (35,180 | ) | 953           |   | (34,227   | )
| | Currency Translation Adjustments     | (382    | ) | -             |   | (382      | )
| |                                      |         |   |               |   |           |  
| |                                      |         |   |               |   |           |  
| | At 31 December 2003                  | 9,095   |   | (5,382        | ) | 3,713     |  
| |                                      |         |   |               |   |           |  

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | No obligation
    under finance leases existed 2002 and 2001.                                                                                                                                                                                                                                                                                                                                                                                               
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|21. | Pensions                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | The pension
        charge, representing contributions paid in the year by the Group to various
        plans operated by Reuters, Equant and the Group itself to which the Groups
        employees belong, amounted to $5.5 million (2002: $5.1 million, 2001:
        $3.4 million). Approximately $1.5million (2002: $1.9 million) of pension
        contributions were payable at the year end to the Groups scheme
    in relation to US employees.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                             

| | 2003                      | Reuters |  | Equant |  | Radianz |  | Total | 
| | ------------------------- | ------- |  | ------ |  | ------- |  | ----- | 
| |                           | $000   |  | $000  |  | $000   |  | $000 | 
| |                           |         |  |        |  |         |  |       | 
| | Defined Contribution      | 1,381   |  | 43     |  | 1,567   |  | 2,991 | 
| | Defined Benefit           | 2,081   |  | 369    |  | 20      |  | 2,470 | 
| |                           |         |  |        |  |         |  |       | 
| |                           |         |  |        |  |         |  |       | 
| | Total Pension charge 2003 | 3,462   |  | 412    |  | 1,587   |  | 5,461 | 
| |                           |         |  |        |  |         |  |       | 



| | 2002                      | Reuters |  | Equant |  | Radianz |  | Total | 
| | ------------------------- | ------- |  | ------ |  | ------- |  | ----- | 
| | Unaudited                 | $000   |  | $000  |  | $000   |  | $000 | 
| |                           |         |  |        |  |         |  |       | 
| | Defined Contribution      | 1,216   |  | 379    |  | 1,951   |  | 3,546 | 
| | Defined Benefit           | 1,499   |  | -      |  | 77      |  | 1,576 | 
| |                           |         |  |        |  |         |  |       | 
| |                           |         |  |        |  |         |  |       | 
| | Total Pension charge 2002 | 2,715   |  | 379    |  | 2,028   |  | 5,122 | 
| |                           |         |  |        |  |         |  |       | 



| | 2001                      | Reuters |  | Equant |  | Radianz |  | Total | 
| | ------------------------- | ------- |  | ------ |  | ------- |  | ----- | 
| | Unaudited                 | $000   |  | $000  |  | $000   |  | $000 | 
| |                           |         |  |        |  |         |  |       | 
| | Defined Contribution      | 810     |  | 40     |  | 845     |  | 1,695 | 
| | Defined Benefit           | 1,400   |  | 346    |  | -       |  | 1,746 | 
| |                           |         |  |        |  |         |  |       | 
| |                           |         |  |        |  |         |  |       | 
| | Total Pension charge 2001 | 2,210   |  | 386    |  | 845     |  | 3,441 | 
| |                           |         |  |        |  |         |  |       | 

| |                                                                                            
| | -------------------------------------------------------------------------------------------
| | New employees
    are eligible to join the defined contribution plans.                     
| |                                                                                            
| | The Group
    has no significant exposure to any other post-retirement benefit obligations.

R27

---





RADIANZ LIMITED

NOTES
  TO THE FINANCIAL STATEMENTS

---

Defined
  Contribution Plans A number of Radianz
  employees participate in a defined contribution plan in Australia. The Group
contributes a fixed percentage of each employees salary.

Reuters operates 32 defined contribution plans of which Radianz staff are members. Members of these plans contribute 6% of basic salaries and Radianz is required to make an annual contribution of 9.525% of members basic salaries regardless of the funding status of the plan. The Group does not have the ability to recover assets held by the plan, nor can it be required to make additional payments to the plan over and above the annual contributions referred to above. Custodial responsibility for the assets of the plan rests with two substantial independent UK investment managers.

The Group currently operates its own pension plans in three territories. The largest such plan is a voluntary 401 (k) savings plan for the Groups employees in the United States. The Group matches a percentage of each employees contributions. In certain territories the Group contributes a fixed percentage of each employees salary to local schemes based on local requirements in that country.

Defined
  Benefit Plans A number of Radianz
  employees participate in Reuters and Equant defined benefit plans.

Equant Plan benefits are primarily based on the employees compensation during the last three to five years before retirement and the number of years of service. The two largest defined benefit arrangements are in the United Kingdom and Japan.

Reuters operates 33 defined benefit plans of which a number of Radianz staff are members. They are subject to regular valuations based on the accepted actuarial practices and standards within the country in which the plan is established. The largest plans are directly invested and others are invested in insurance contracts. The remainder are internally funded in accordance with local practice with provisions in the subsidiary undertakings to recognise the pension obligations. Where necessary, additional provisions have been established for Reuters plans in accordance with UK Statement of Standard Accounting Practice 24 based on independent actuarial advice.

The contributions paid by the Group to Reuters and Equant defined benefit schemes are accounted for as if the schemes were defined contribution schemes, as the Group is unable to identify its share of the underlying assets and liabilities in the schemes. This exemption is in accordance with Financial Reporting Standard No. 17. The cost of contributions to these pension schemes is based on pension costs across the respective Reuters and Equant group companies as a whole.

Actuarial valuations of the Reuters Group PLC scheme were carried out at various dates between 31 December 2001 and 31 December 2002 and updated to 31 December 2003 by independent qualified actuaries in accordance with FRS17. As at 31 December 2003 a deficit of $49 million was identified. There was a deficit of $9.7 million on the Equant schemes as at 31 December 2001. The annual amount of contributions to these schemes is agreed with the trustees annually.

R28

---





RADIANZ LIMITED

NOTES
  TO THE FINANCIAL STATEMENTS

---

|22. | Operating
      lease commitments                                                                                                                                         
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                           
|    | At 31 December
      2003 and 2002 the Group had annual commitments under non-cancellable operating
      lease agreements, in respect of properties, expiring as follows:

|    |                                     |                            |  |                          | 
|--- | ----------------------------------- | -------------------------- |  | ------------------------ | 
|    |                                     | 2003                       |  | 2002                     | 
|    |                                     | Land
        and buildings |  | Land
      and buildings | 
|    |                                     |                            |  | Unaudited                | 
|    |                                     | $000                      |  | $000                    | 
|    | Annual
      commitments under non- |                            |  |                          | 
|    | cancellable
      operating leases  |                            |  |                          | 
|    | expiring:                           |                            |  |                          | 
|    | Within one
      year               | 90                         |  | 114                      | 
|    | Within two
      to five years      | 1,690                      |  | 4,047                    | 
|    | After five
      years              | 9,783                      |  | 6,851                    | 
|    |                                     |                            |  |                          | 
|    | Total                               | 11,563                     |  | 11,012                   | 
|    |                                     |                            |  |                          | 
|    |                                     |                            |  |                          | 
|23. | Capital
      commitments           |                            |  |                          | 

| |                                                 |       |  |           | 
| | ----------------------------------------------- | ----- |  | --------- | 
| |                                                 | 2003  |  | 2002      | 
| |                                                 |       |  | Unaudited | 
| |                                                 | $000 |  | $000     | 
| | Contracts
      placed for future capital       |       |  |           | 
| | expenditure
      not provided in the financial |       |  |           | 
| | statements                                      | 1,306 |  | -         | 
| |                                                 |       |  |           | 

R29

---





RADIANZ LIMITED

NOTES
  TO THE FINANCIAL STATEMENTS

---

|24. | Other
      commitments                                                                                                                                                                                                                                             
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                     
|    | Future minimum
      purchase commitments of the Group with telecommunication providers for various
      telecommunications, networking and voice services with contractual terms
      of more than one year as of 31 December 2003 are as follows (in thousands):
|    |                                                                                                                                                                                                                                                                     

| |                                                                                                                              | Minimum     | 
| | ---------------------------------------------------------------------------------------------------------------------------- | ----------- | 
| | Years
      ending 31 December,                                                                                              | Commitments | 
| |                                                                                                                              |             | 
| | 2004                                                                                                                         | 41,568      | 
| | 2005                                                                                                                         | 35,047      | 
| | 2006                                                                                                                         | 21,847      | 
| |                                                                                                                              |             | 
| |                                                                                                                              |             | 
| | Total
      future purchase commitments                                                                                      | 98,462      | 
| |                                                                                                                              |             | 
| |                                                                                                                              |             | 
| | The Group
      incurred expenses of $80.0 million and $76.5 million in 2003 and 2002, respectively
      for such services. |             | 

|25. | Related
      party transactions                                                 
|--- | ---------------------------------------------------------------------------------
|    |                                                                                  
|    | Related
      party transactions with related parties in the year are as follows:
|    |                                                                                  

| |                            | 1
        January |  | Amounts  |  | Amounts        |   | 31
        December | 
| | -------------------------- | ----------------- |  | -------- |  | -------------- | - | ------------------- | 
| |                            | 2003              |  | Invoiced |  | (collected)    |   | 2003                | 
| | Group                      |                   |  |          |  | /
        paid |   |                     | 
| |                            | $000             |  | $000    |  | $000          |   | $000               | 
| | Amounts
      receivable   |                   |  |          |  |                |   |                     | 
| | Reuters
       trading    | 154,595           |  | 521,436  |  | (642,874       | ) | 33,157              | 
| | Equant 
      trading     | 2,207             |  | 2,342    |  | (2,000         | ) | 2,549               | 
| | Equant loan                | 61,382            |  | -        |  | (10,133        | ) | 51,249              | 
| |                            |                   |  |          |  |                |   |                     | 
| | Total amount receivable    | 218,184           |  | 523,778  |  | (655,007       | ) | 86,955              | 
| |                            |                   |  |          |  |                |   |                     | 
| |                            |                   |  |          |  |                |   |                     | 
| | Amounts
      payable      |                   |  |          |  |                |   |                     | 
| | Reuters                    | 121,521           |  | 125,912  |  | (222,232       | ) | 25,201              | 
| | Equant                     | 44,140            |  | 96,061   |  | (130,155       | ) | 10,046              | 
| |                            |                   |  |          |  |                |   |                     | 
| | Total amount
      payable | 165,661           |  | 221,973  |  | (352,387       | ) | 35,247              | 
| |                            |                   |  |          |  |                |   |                     | 

| | Revenue
      from related parties relate primarily to the supply of network services.                                                                                                                                                                                                   
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                          
| | Purchases
      from related parties relate to the provision of network operating services
      and other business support services.                                                                                                                                                    
| |                                                                                                                                                                                                                                                                                          
| | The Group
      has extensive transactions and relationships with its parent companies and
      their subsidiary companies, under the terms agreed in the Network Services
      Agreement with Reuters (NSA), and shareholder Agreements relating to Radianz,
      Reuters and Equant.

R30

---





|RADIANZ
    LIMITED                  
|-------------------------------------
|                                     
|NOTES
    TO THE FINANCIAL STATEMENTS
|                                     
|                                     
|                                     
|                                     
|                                     
|                                     
|                                     
|                                     
|                                     
|                                     

|26. | Litigation                                                                                                                                                                                                                                                                                                                                                              
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                         
|    | During
        2003, Radianz received written notification that a number of formal charges,
        alleging employment discrimination based on race had been filed by a
        number of current and former employees of Radianz against Radianz with
        the U.S. Equal Employment Opportunity Commission and/or the New York
    State Division of Human Rights.
|    |                                                                                                                                                                                                                                                                                                                                                                         
|    | As of
        19 May, 2004, Radianz has settled the majority of the outstanding claims
        and has fully provided for any costs that may arise as a result of the
        remaining claims. These costs are recorded in the Administration expenses
    in the profit and loss account.                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                         

|27. | Post
    Balance Sheet Event                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    | Subsequent
        to 31 December 2003 as part of Radianzs strategy to provide continued
        focus on its core Extranet business, Radianz made the decision
        to sell the Voice Services line of business, which is currently being
        marketed. The revenue of this business was approximately $17 million
        during the year ended 31 December 2003 and the net asset value of this
        business was approximately $2.5 million at 31 December
2003.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    | In March
        2004, as part of a review of its business and operational strategy, Radianz
        announced a voluntary redundancy program. It is expected that this program
        will result in a reduction of approximately 10% in the 2004 Company headcount.
    Redundancy costs in 2004 are expected to amount to approximately $5 million.                                                                                                                         

R31

---





|RADIANZ
    LIMITED                  
|-------------------------------------
|                                     
|NOTES
    TO THE FINANCIAL STATEMENTS
|                                     
|                                     

|28. | Subsidiary
    undertakings                                                                                                                                                                                
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                            
|    | The principal
        subsidiary undertakings at 31 December 2003, all of which are included
    in the consolidated financial statements, are shown below.                                                
|    |                                                                                                                                                                                                            
|    | A proportion
        of shares in Radianz France SA, Radianz Italia Srl, Radianz Voice Services
        Limited and Radianz Hong Kong Limited are held by wholly owned subsidiaries
    of Radianz Limited.
|    |                                                                                                                                                                                                            
|    | 3% of
        shares in Radianz Switzerland SA are held by directors on Radianz Limiteds
    behalf.                                                                                                      
|    |                                                                                                                                                                                                            

| | Name of              | Country
    of     | Description of shares /     | Proportion    | Principal 
| | -------------------- | ------------------ | --------------------------- | ------------- | ----------
| | undertaking          | incorporation      | interest held               | of nominal    | activity  
| |                      |                    |                             | value of      |           
| |                      |                    |                             | issued shares |           
| |                      |                    |                             | held          |           
| |                      |                    |                             |               |           
| | Radianz Global       | England            | Ordinary £1 shares          | 100%          | Trading   
| | Limited              |                    |                             |               |           
| | (formerly Radianz    |                    |                             |               |           
| | Europe Limited)      |                    |                             |               |           
| |                      |                    |                             |               |           
| | Radianz Global       | Jersey             | Ordinary £1 shares          | 100%          | Inactive  
| | Network Operations   |                    |                             |               |           
| | Limited              |                    |                             |               |           
| |                      |                    |                             |               |           
| | Radianz Global       | England            | Ordinary £1 shares          | 100%          | Inactive  
| | Sales Limited        |                    |                             |               |           
| |                      |                    |                             |               |           
| | Radianz US Inc       | USA                | Ordinary 1 cent shares      | 100%          | Management
| |                      |                    |                             |               |           
| | Radianz Americas     | USA                | Ordinary 1 cent shares      | 100%          | Trading   
| | Inc                  |                    |                             |               |           
| |                      |                    |                             |               |           
| | Radianz Australia    | Australia          | Ordinary AUD$1 shares       | 100%          | Trading   
| | Pty Limited          |                    |                             |               |           
| |                      |                    |                             |               |           
| | Radianz GmbH         | Austria            | Sole ownership interest     | 100%          | Trading   
| |                      |                    |                             |               |           
| | Radianz Italia Srl   | Italy              | Ordinary shares of EUR 1    | 100%          | Trading   
| |                      |                    |                             |               |           
| | Radianz France SA    | France             | Ordinary shares of FRF 50   | 100%          | Trading   
| |                      |                    |                             |               |           
| | Radianz Germany      | Germany            | Sole ownership interest     | 100%          | Trading   
| | GmbH                 |                    |                             |               |           
| |                      |                    |                             |               |           
| | Radianz Hong Kong    | Hong Kong          | Ordinary
    shares of HK$1 | 100%          | Trading   
| | Limited              |                    |                             |               |           
| |                      |                    |                             |               |           
| | Radianz Japan K.K.   | Japan              | Ordinary shares of 50,000   | 100%          | Trading   
| |                      |                    | Yen                         |               |           
| |                      |                    |                             |               |           
| | Radianz Asia Pte Ltd | Singapore          | Ordinary
    shares of S$1  | 100%          | Trading   
| |                      |                    |                             |               |           
| | Radianz Switzerland  | Switzerland        | Ordinary shares of CHF      | 100%          | Trading   
| | SA                   |                    | 1,000                       |               |           
| |                      |                    |                             |               |           
| | Radianz Proton       | Cayman
    Islands | Ordinary
    shares of US$1 | 100%          | Trading   
| | Limited              |                    |                             |               |           
| |                      |                    |                             |               |           
| | Radianz Connect      | England            | Ordinary shares of £1       | 100%          | Trading   
| | Services Limited     |                    |                             |               |           
| |                      |                    |                             |               |           
| | Radianz Portugal     | Portugal           | Sole ownership interest     | 100%          | Trading   
| | Lda                  |                    |                             |               |           
| |                      |                    |                             |               |           
| | Radianz Belgium      | Belgium            | Sole ownership interest     | 100%          | Trading   
| | Sprl                 |                    |                             |               |           

R32

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|RADIANZ
    LIMITED                  
|-------------------------------------
|                                     
|NOTES
    TO THE FINANCIAL STATEMENTS
|                                     
|                                     

| | Name
        of     | Country
    of | Description
        of shares / | Proportion    | Principal
| | ------------------- | -------------- | ------------------------------- | ------------- | ---------
| | undertaking         | incorporation  | interest held                   | of nominal    | activity 
| |                     |                |                                 | value of      |          
| |                     |                |                                 | issued shares |          
| |                     |                |                                 | held          |          
| |                     |                |                                 |               |          
| | Radianz Netherlands | Netherlands    | Sole ownership interest         | 100%          | Trading  
| | BV                  |                |                                 |               |          
| |                     |                |                                 |               |          
| | Radianz Spain SL    | Spain          | Sole ownership interest         | 100%          | Trading  
| |                     |                |                                 |               |          
| | Radianz             | Luxembourg     | Sole ownership interest         | 100%          | Trading  
| | Luxembourg          |                |                                 |               |          
| |                     |                |                                 |               |          
| | Radianz Sweden AB   | Sweden         | Sole ownership interest         | 100%          | Trading  
| |                     |                |                                 |               |          
| | Radianz US          | USA            | Ordinary 1 cent shares          | 100%          | Inactive 
| | Holdings            |                |                                 |               |          
| |                     |                |                                 |               |          
| | Radianz Canada Inc  | Canada         | Common
    share of CAN$1       | 100%          | Inactive 
| |                     |                |                                 |               |          

|29. | Summary
          of differences between UK and US General Applied Accounting Principles
    (GAAP)
|--- | ---------------------------------------------------------------------------------------------------

Accounting Principles

These consolidated financial statements have been prepared in accordance with UK GAAP, which differ in certain significant respects from US GAAP. A description of the relevant accounting principles, which differ materially, is given below.

|a. | Revenue
    recognition
|-- | -----------------------

Upon formation of the company, Equant Finance BV (Equant) agreed to transfer certain existing Equant customer contracts to Radianz Limited (the Company) and its subsidiaries (collectively Radianz or the Group). Under the terms of the agreement between Equant and Radianz, when Equant is unable to obtain the customers consent to transfer the contracts, and Equant continues to provide service, Equant is required to contribute to Radianz the equivalent annual economic interest that, notionally, would have accrued to Radianz had the contract been transferred. Under US GAAP this contribution is treated as a capital contribution from Equant. Under UK GAAP, this is recognised as revenue.

|b. | Employee
    costs
|-- | ------------------

Some Radianz employees, who transferred from Reuters and Equant at the time the Company was established, retained the rights to certain unvested share options granted by the Parents at the time of the employees transfer to Radianz. Under US GAAP, the share option expense relating to the fair value of these options is recognised as non cash compensation over the vesting periods of the grants. Under UK GAAP, no expense is recognised.

|c. | Goodwill
|-- | --------

Under UK GAAP, the estimated excess fair value of the shares issued upon formation of the Company over the estimated fair value of the assets and cash contributed was recorded as goodwill on the balance sheet. Goodwill is amortised over its estimated useful economic life. Under US GAAP, the value of shares issued is recorded by reference to the fair value of the net assets contributed.

R33

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RADIANZ LIMITED

NOTES
  TO THE FINANCIAL STATEMENTS

---

|d. | Shares
      held by employee share ownership trust (ESOT)
|-- | ----------------------------------------------------------

Under UK GAAP,
  shares held by the ESOT are recorded as fixed asset investments at cost less
  any impairments. As at 31 December 2002, a full provision had been recorded
  against such amounts in the financial statements prepared under UK GAAP. Under
  US GAAP, those shares held by the ESOT areregarded
  as treasury stock and recorded at cost as a deduction from shareholders
  equity, with no provision for impairment recorded.

|e. | Discounted
      Equant Receivable
|-- | ----------------------------------

Upon formation
  of the company, Radianz entered into a contractual agreement with Equant, which
  entitles Radianz to $125 million of telecommunications, and general and administrative
  services over a period of up to 10 years. Radianz is entitled to utilise up
  to $12.5 million of these services annually from Equant under certain conditions.
  Under UK GAAP, this asset was recorded as a receivable within current assets
  at its net present value of $90 million, using a discount rate of 6.9% and the
  annual entitlement is expensed as the services are received. Interest is recognised
  in the profit and loss account as the discount on the receivable is unwound.
  Under US GAAP, the discounted receivable was recorded as a capital contribution
  and the unwinding of the discount credited to additional paid in capital, and
  the annual entitlement expensed as the services are received.

|f. | Taxation
|-- | --------

Under the terms
    of the joint venture agreement, Reuters agreed to reimburse Radianz for
  any share of the tax loss incurred by Radianz subsequently utilized by Reuters.
    Under UK GAAP, this is offset in the taxation charge for Radianz. Under US
    GAAP,
  this is shown as additional paid in capital of the company.

|Adjustments
      to net loss                      | 2003    |   | 2002      |   | 2001      |  
|-------------------------------------------------- | ------- | - | --------- | - | --------- | -
|                                                   |         |   | Unaudited |   | Unaudited |  
|                                                   | $000   |   | $000     |   | $000     |  
|                                                   |         |   |           |   |           |  
|Net
      loss in accordance with UK GAAP          | (86,033 | ) | (236,214  | ) | (232,288  | )
|                                                   |         |   |           |   |           |  
|                                                   |         |   |           |   |           |  
|a.  Revenue
      recognition                      | (2,000  | ) | (2,000    | ) | (2,200    | )
|b.  Employee
      costs                           | 1       |   | 1,996     |   | (2,871    | )
|c.  Goodwill                                       | -       |   | 104,349   |   | 104,349   |  
|d.  Impairment
      of ESOT shares                | -       |   | 67,021    |   | 64,140    |  
|e.  Interest
      - Equant receivable             | (2,367  | ) | (1,642    | ) | (866      | )
|f.  Taxation                                       | 895     |   | -         |   | 190       |  
|                                                   |         |   |           |   |           |  
|Net
      loss in accordance with US GAAP          | (89,504 | ) | (66,490   | ) | (69,546   | )
|                                                   |         |   |           |   |           |  
|                                                   |         |   |           |   |           |  
|Statement
      of comprehensive loss              | 2003    |   | 2002      |   | 2001      |  
|                                                   |         |   | Unaudited |   | Unaudited |  
|                                                   | $000   |   | $000     |   | $000     |  
|                                                   |         |   |           |   |           |  
|Net loss
      in accordance with US GAAP          | (89,504 | ) | (66,490   | ) | (69,546   | )
|Other comprehensive
      income:                  |         |   |           |   |           |  
|Foreign
      currency translation adjustment, net | 6,662   |   | 571       |   | (1,463    | )
|                                                   |         |   |           |   |           |  
|Comprehensive
      loss in accordance with US     |         |   |           |   |           |  
|GAAP                                               | (82,842 | ) | (65,919   | ) | (71,009   | )
|                                                   |         |   |           |   |           |  

R34

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RADIANZ LIMITED

NOTES
  TO THE FINANCIAL STATEMENTS

---

|Adjustments
      to shareholders equity   | 2003    |   | 2002      |   | 2001      |  
|------------------------------------------- | ------- | - | --------- | - | --------- | -
|                                            |         |   | Unaudited |   | Unaudited |  
|                                            | $000   |   | $000     |   | $000     |  
|                                            |         |   |           |   |           |  
|Net
      assets in accordance with UK GAAP | 183,717 |   | 263,086   |   | 498,729   |  
|                                            |         |   |           |   |           |  
|                                            |         |   |           |   |           |  
|c.  Goodwill                                | -       |   | -         |   | (104,349  | )
|d.  Investment
      in own shares/ESOT     | -       |   | -         |   | (67,021   | )
|e.  Discounted
      Equant receivable      | (51,249 | ) | (61,382   | ) | (72,240   | )
|                                            |         |   |           |   |           |  
|Net
      assets in accordance with US GAAP | 132,468 |   | 201,704   |   | 255,119   |  
|                                            |         |   |           |   |           |  

Cash flow statement

The principal
  differences between the cash flow prepared in conformity with UK GAAP and the
  cash flow statements presented in accordance with US GAAP are as follows:

|1. | Under
        UK GAAP, net cash flow from operating activities is determined before
        considering
      cash inflows from (a) returns on investments and servicing of finance (2003:
        $0.2 million, 2002: $2.6 million, 2001: $12.1 million), (b) taxes paid
        or
      received (2003: $2.1 million paid, 2002: $0.38 million received, 2001:
        $0.6 million paid). Under US GAAP, net cash flow from operating activities
        is
      determined after these items.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|2. | Under
         UK GAAP, the purchase of Radianz shares by an ESOT (2003: $nil, 2002:
        $nil,
      2001: $46.3 million) is classified as investing activities whereas under
         US GAAP, this is classified as financing activities.                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|3. | Under
      UK GAAP, movements in short- term investments (2003: $nil, 2002: $140.0
      million, 2001:
      $90.7 million) are not included in cash, but classified as management of
      liquid resources. Under US GAAP, short-term investments with maturity of
      three months or less at the date of acquisition are included in cash and
      cash equivalents.                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

|                                                     | Notes |  | 2003    |   | 2002      |   | 2001      |  
|---------------------------------------------------- | ----- |  | ------- | - | --------- | - | --------- | -
|                                                     |       |  |         |   | Unaudited |   | Unaudited |  
|                                                     |       |  |         |   |           |   |           |  
|                                                     |       |  | $000   |   | $000     |   | $000     |  
|                                                     |       |  |         |   |           |   |           |  
|Net cash inflow/ (outflow) from operating activities | 1     |  | 4,382   |   | (8,519    | ) | 10,851    |  
|Net cash outflow from investing activities           | 2     |  | (38,609 | ) | (98,602   | ) | (109,186  | )
|Net cash inflow/ (outflow) from financing activities |       |  | (953    | ) | -         |   | -         |  
|                                                     |       |  |         |   |           |   |           |  
|Net (decrease)/increase in cash and cash equivalents |       |  |         |   |           |   |           |  
|under US GAAP                                        | 3     |  | (35,180 | ) | (107,121  | ) | (98,335   | )
|                                                     |       |  |         |   |           |   |           |  
|Net (decrease)/increase in cash under UK GAAP        |       |  | (35,180 | ) | 32,921    |   | (7,610    | )
|                                                     |       |  |         |   |           |   |           |  

R35

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RADIANZ LIMITED

NOTES
  TO THE FINANCIAL STATEMENTS

---

Recent
  Accounting pronouncements

In January 2003,
the FASB issued Interpretation 46, Consolidation of Variable Interest Entities.
A variable interest entity is a legal entity (a) whose equity interest holders
as
a
group lack the characteristics of a controlling financial interest, including:
decision making ability and an interest in the entitys residual risks and
rewards or (b) where the equity holders have not provided sufficient equity investment
to permit the entity to finance its activities without additional subordinated
financial support. Interpretation 46 requires a variable interest entity to be
consolidated if any of its interest holders are entitled to a majority of the
entitys residual return or are exposed to a majority of its expected losses.
This party is referred to as the primary beneficiary.

In December 2003,
the FASB issued FASB Interpretation 46(R), Consolidation of Variable Interest
Entities. FIN 46(R) replaces FIN 46 and clarifies the accounting for interests
in variable interest entities. The company will begin to apply FIN 46 (R) to
entities considered to be variable interest entities as of the first date of
its first US GAAP balance sheet presented for periods ended after December 31,
2003. The Company does not expect that the adoption of FIN 46(R) will have a
material
affect on its financial statements.

In November 2002, the EITF reached a consensus on Issue 00-21 Revenue Arrangements with Multiple Deliverables (EITF 00-21), providing further guidance on how to account for multiple element contracts. EITF 00-21 is effective for all arrangements entered into on or after January 1, 2004. The Company does not anticipate a material impact on its accounting treatment of multiple element contracts under US GAAP.

R36

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