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UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 20-F (Mark One) REGISTRATION STATEMENT PURSUANT
       TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934ORANNUAL REPORT PURSUANT TO SECTION
             13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 
For the fiscal year ended June 30, 2004ORTRANSITION REPORT PURSUANT TO
             SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 
For the transition period from _________________ to
________________ Commission file number 000-28994


(Incorporated with limited
       liability in England and Wales with registered number 2501949)(Exact name of Registrant as
  specified in its charter)

England and Wales(Jurisdiction of incorporation
 or organization)

Wimbledon Bridge House, 1 Hartfield
  Road, Wimbledon, London, SW19 3RU(Address of principal executive
  offices)

Securities registered or to
  be registered pursuant to Section 12(b) of the Act.

|Title
            of each class               |  | Name of each exchange
      on which registered
|--------------------------------------------- |  | -----------------------------------------------
|                                              |  |                                                
|American Depositary Shares, each representing |  | NASDAQNational
    Market                      
|one Ordinary Share
          of the Company,  |  |                                                
|and the underlying
          Ordinary Shares  |  |                                                

Securities registered or to
     be registered pursuant to Section 12(g) of the Act.N/a

Securities for which there is a reporting obligation
  pursuant to Section 15(d) of the Act.N/a

As at June 30, 2004, there were outstanding
  3,493,276 American Depositary Shares and 142,002,471 Ordinary Shares of the
  Company (including Ordinary Shares underlying the outstanding American Depositary
  Receipts)

Indicate by check mark whether the registrant
  (1) has filed all reports required to be filed by Section 13 or 15(d) of the
  Securities Exchange Act of 1934 during the preceding 12 months (or for such
  shorter period that the registrant was required to file such reports), and (2)
  has been subject to such filing requirements for the past 90 days.



Yes                                No

Indicate by check mark which financial statement
  item the registrant has elected to follow.

Item 17                               Item 18

Cautionary Statement with Respect to
  Forward Looking Statements

Certain statements made in this Annual Report
  on Form 20-F with respect to the plans, strategies and beliefs of Eidos plc
  (the Company) and its consolidated subsidiaries (collectively with
  the Company, the Group) and other statements that are not historical
  facts are forward-looking statements (as that term is defined in the United
  States Private Securities Legislation Reform Act of 1995) that involve risks
  and uncertainties because they relate to events and depend on circumstances
  that will occur in the future. There are a number of factors that could cause
  actual results and developments to differ materially from those expressed or
  implied by these forward-looking statements including, without limitation, general
  economic conditions in the Groups markets, particularly levels of consumer
  spending; exchange rates, particularly between the pound sterling and the U.S.
  dollar, in which the Group makes significant sales; and the Groups ability
  to continue to win acceptance of its products, which are offered in highly competitive
  markets characterized by continuous new product introductions, rapid developments
  in technology and subjective and changing consumer preferences (particularly
  in the entertainment business); and other factors identified under Item
  3 Key Information  Risk Factors in this report.

The Company undertakes no obligation to update
  any forward-looking statements contained in this Annual Report on Form 20-F,
  whether as a result of new information, future events or otherwise. No information
  contained in this Annual Report constitutes or shall be deemed to constitute
  an invitation or otherwise to deal in Ordinary Shares or ADRs of Eidos
  plc. The price of securities and income derived therefrom can go down as well
  as up.

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TABLE OF CONTENTS

|         |                |                                                                              | Page | 
|-------- | -------------- | ---------------------------------------------------------------------------- | ---- | 
|PartI    | Item3          | Key
      Information                                                        | 4    | 
|         |                |                                                                              |      | 
|         | Item
    4     | Information on the Group                                                     | 12   | 
|         |                |                                                                              |      | 
|         | Item
    5     | Operating and Financial Review
      and Prospects                           | 19   | 
|         |                |                                                                              |      | 
|         | Item
    6     | Directors, Senior Management
      and Employees                             | 31   | 
|         |                |                                                                              |      | 
|         | Item
    7     | Major Shareholders and Related
      Party Transactions                      | 40   | 
|         |                |                                                                              |      | 
|         | Item
    8     | Financial Information                                                        | 42   | 
|         |                |                                                                              |      | 
|         | Item
    9     | The Offer and Listing                                                        | 92   | 
|         |                |                                                                              |      | 
|         | Item
    10    | Additional Information                                                       | 94   | 
|         |                |                                                                              |      | 
|         | Item
    11    | Quantitative and Qualitative
      Disclosures about Market Risk             | 99   | 
|         |                |                                                                              |      | 
|Part II  | Item
    15    | Controls and Procedures                                                      | 100  | 
|         |                |                                                                              |      | 
|         | Item
    16A   | Audit Committee
      Financial Expert                                       | 101  | 
|         |                |                                                                              |      | 
|         | Item
    16B   | Code of Ethics                                                               | 101  | 
|         |                |                                                                              |      | 
|         | Item
    16C   | Principal Accountant
      Fees and Services                                 | 101  | 
|         |                |                                                                              |      | 
|         | Item
    16D   | Exemptions from Listing Standards
      for Audit Committees                 | 101  | 
|         |                |                                                                              |      | 
|         | Item
      16E | Purchases of
      Equity Securities by the Issuer and Affiliated Purchasers | 101  | 
|         |                |                                                                              |      | 
|Part III | Item
    18    | Financial Statements                                                         | 102  | 
|         |                |                                                                              |      | 
|         | Item
    19    | Exhibits                                                                     | 102  | 

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PART I

ITEM 3  KEY INFORMATION

Introduction

The Company is one of Europes largest
  developers and publishers of entertainment software. The Groups primary
  focus is on the development of its own content through its internal development
  resources, augmented by relationships with external development studios. The
  Group has a broad based publishing portfolio built around key franchises such
  as Tomb Raider, Championship Manager and Hitman, and original titles that it
  believes have franchise potential. Tomb Raider is one of the most successful
  video game franchises in the world owned by an independent publisher with total
  sales currently exceeding 31 million units.

Change of Year End

In 2002, the Group changed its year end from
  March 31 to June 30. Eidos filed an annual report on Form 20-F for the year
  ended March 31, 2002 and a transitional report on Form 20-F for the three months
  ended June 30, 2002.

Selected Financial Data

The following selected consolidated financial
  data should be read in conjunction with Item 5. Operating and Financial
  Review and Prospects and the consolidated financial statements and
  other financial information included in Item 8. The Group prepares its financial
  statements in accordance with accounting principles generally accepted in the
  United Kingdom (U.K. GAAP), which differs in certain material respects
  from accounting principles generally accepted in the United States of America
  (U.S. GAAP). These differences have a material effect on net income
  and shareholders equity and are described in Note 32 of the notes to the
  consolidated financial statements of the Company included in Item 8 of this
  report.

The selected consolidated financial data presented
  below for the Company in accordance with U.K. GAAP for the years ended March
  31, 2002, the three months ended June 30, 2002 and the years ended June 30,
  2003 and 2004, and at June 30, 2003 and 2004 are derived from the audited consolidated
  financial statements included elsewhere in this report.

The selected consolidated financial data presented
  below for the Company in accordance with U.K. GAAP for the years ended March
  31, 2000 and 2001 and at March 31, 2000, 2001 and 2002 are derived from audited
  financial statements of the Company not included in this report.

The selected consolidated financial data presented
  below for the Company in accordance with U.S. GAAP are derived from the Companys
  audited financial statements.

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U.K. GAAP

Consolidated Statement of Operations Data:

|In
      thousands, except per share data                                                          |               | **Year ended** | ****               | ****         | **Year ended** | **** | **** | **Year ended** | **** | **** | **Three months** | **** | **** | **Year ended** | **** | **** | **Year ended** |   
|-------------------------------------------------------------------------------------------------- | ------------- | -------------- | ------------------ | ------------ | -------------- | ---- | ---- | -------------- | ---- | ---- | ---------------- | ---- | ---- | -------------- | ---- | ---- | -------------- | --
|**March 31,**                                                                                      | **March 31,** | **March 31,**  | **ended June 30,** | **June 30,** | **June 30,**  
|**2000**                                                                                           | **2001**      | **2002**       | **2002**           | **2003**     | **2004**      
|                                                                                                   |               |                |                    |              |                |      |      |                |      |      |                  |     
|                                                                                                   |               | £000          |                    |              | £000          |      |      | £000          |      |      | £000            |      |      | £000          |      |      | £000          |   
|Turnover                                                                                           |               | 194,801        |                    |              | 147,254        |      |      | 120,280        |      |      | 8,657            |      |      | 151,534        |      |      | 133,917        |   
|Cost of sales                                                                                      |               | 87,908         |                    |              | 81,722         |      |      | 48,680         |      |      | 5,144            |      |      | 62,099         |      |      | (49,877        | ) 
|                                                                                                   |               |                |                    |              |                |      |      |                |      |      |                  |      |      |                |      |      |                |   
|Gross profit                                                                                       |               | 106,893        |                    |              | 65,532         |      |      | 71,600         |      |      | 3,513            |      |      | 89,435         |      |      | 84,040         |   
|Operating expenses:                                                                                |               |                |                    |              |                |      |      |                |      |      |                  |      |      |                |      |      |                |   
|Selling and marketing                                                                              |               | 45,307         |                    |              | 41,530         |      |      | 20,554         |      |      | 5,308            |      |      | 25,747         |      |      | 26,703         |   
|Research
      and development                                                                     |               | 46,270         |                    |              | 42,541         |      |      | 39,386         |      |      | 9,179            |      |      | 32,579         |      |      | 39,190         |   
|Administrative                                                                                     |               | 39,204         |                    |              | 34,434         |      |      | 27,198         |      |      | 4,651            |      |      | 20,437         |      |      | 23,775         |   
|                                                                                                   |               |                |                    |              |                |      |      |                |      |      |                  |      |      |                |      |      |                |   
|Income/(loss) from operations                                                                      |               | (23,888        | )                  |              | (52,973        | )    |      | (15,538        | )    |      | (15,625          | )    |      | 10,672         |      |      | (5,628         | ) 
|Income from joint ventures                                                                         |               | 532            |                    |              | 876            |      |      | 1,446          |      |      | 394              |      |      | 2,950          |      |      | 2,068          |   
|Joint venture goodwill                                                                             |               | (3,475         | )                  |              | (5,192         | )    |      | (5,192         | )    |      | (1,415           | )    |      | (471           | )    |      |               |   
|Income/(loss) from sale of investments                                                             |               | 80,236         |                    |              | (36,308        | )    |      | 4,377          |      |      |                 |      |      | 1,400          |      |      |               |   
|Income from investments                                                                            |               |               |                    |              | 136            |      |      | 152            |      |      |                 |      |      |               |      |      |               |   
|Interest income/(expense), net                                                                     |               | (4,130         | )                  |              | (2,897         | )    |      | 584            |      |      | 160              |      |      | 2,803          |      |      | 1,609          |   
|                                                                                                   |               |                |                    |              |                |      |      |                |      |      |                  |      |      |                |      |      |                |   
|Profit/(Loss) before
         income taxes                                                         |               | 49,275         |                    |              | (96,358        | )    |      | (14,171        | )    |      | (16,486          | )    |      | 17,354         |      |      | (1,951         | ) 
|(Provision)/tax credit for income taxes                                                            |               | (24,072        | )                  |              | (971           | )    |      |               |      |      | (56              | )    |      | 1,851          |      |      | (962           | ) 
|                                                                                                   |               |                |                    |              |                |      |      |                |      |      |                  |      |      |                |      |      |                |   
|Net profit/(loss)                                                                                  |               | 25,203         |                    |              | (97,329        | )    |      | (14,171        | )    |      | (16,542          | )    |      | 19,205         |      |      | (2.913         | ) 
|                                                                                                   |               |                |                    |              |                |      |      |                |      |      |                  |      |      |                |      |      |                |   
|Basic earnings/(loss) per share                                                                    |               | 23.3           | p                  |              | (84.5          | p)   |      | (10.7          | p)   |      | (11.8            | p)   |      | 13.8           | p    |      | (2.1           | p)
|Diluted earnings/(loss)
      per share                                                            |               | 21.4           | p                  |              | (84.5          | p)   |      | (10.7          | p)   |      | (11.8            | p)   |      | 13.7           | p    |      | (2.1           | p)
|                                                                                                   |               |                |                    |              |                |      |      |                |      |      |                  |      |      |                |      |      |                |   
|Weighted average number
      of shares used to compute basic net earnings/(loss) per share (000) |               | 108,084        |                    |              | 115,224        |      |      | 132,514        |      |      | 139,744          |      |      | 139,637        |      |      | 140,313        |   
|                                                                                                   |               |                |                    |              |                |      |      |                |      |      |                  |      |      |                |      |      |                |   

Consolidated Balance Sheet Data:

|*In thousands*        | **March 31,****2000** |  |  | **March 31,****2001** |  |  | **March 31,****2002** |  |  | **June 30,****2002** |  |  | **June 30,****2003
      Restated(2)** |  |  | **June 30,****2004** | 
|--------------------- | --------------------- |  |  | --------------------- |  |  | --------------------- |  |  | -------------------- |  |  | -------------------------------------- |  |  | -------------------- | 
|                      |                       |  |  |                       |  |  |                       |  |  |                      |  |  |                                        |  |  |                      | 
|                      | **£000**             |  |  | **£000**             |  |  | **£000**             |  |  | **£000**            |  |  | **£000**                              |  |  | **£000**             | 
|Working capital(1)    | 54,424                |  |  | 9,540                 |  |  | 65,639                |  |  | 49,738               |  |  | 67,932                                 |  |  | 40,248               | 
|Goodwill              | 28,305                |  |  | 13,837                |  |  | 2,552                 |  |  | 1,021                |  |  | 252                                    |  |  | 25,258               | 
|Total assets          | 268,648               |  |  | 86,254                |  |  | 98,880                |  |  | 82,476               |  |  | 107,815                                |  |  | 92,653               | 
|Long-term liabilities | 2,253                 |  |  | 2,318                 |  |  | 2,999                 |  |  | 2,701                |  |  | 33                                     |  |  | 3,942                | 
|Shareholders equity  | 126,419               |  |  | 30,617                |  |  | 73,384                |  |  | 56,589               |  |  | 75,578                                 |  |  | 71,936               | 

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U.S. GAAP

Consolidated Statement of Operations Data:

|                                                                                             | **Year ended** |      | **Year ended** |      | **Year ended** |      | **Three months**   |      | **Year ended** |      | **Year ended** |  
|-------------------------------------------------------------------------------------------- | -------------- | ---- | -------------- | ---- | -------------- | ---- | ------------------ | ---- | -------------- | ---- | -------------- | -
|                                                                                             | **March 31,**  |      | **March 31,**  |      | **March 31,**  |      | **ended June 30,** |      | **June 30,**   |      | **June 30,**   |  
|In thousands, except per share data                                                          | **2000**       |      | **2001**       |      | **2002**       |      | **2002**           |      | **2003**       |      | **2004**       |  
|                                                                                             |                |      |                |      |                |      |                    |      |                |      |                |  
|                                                                                             | **£'000**      | **** | **£000**      | **** | **£000**      | **** | **£000**          | **** | **£000**      | **** | **£000**      |  
|                                                                                             |                |      |                |      |                |      |                    |      |                |      |                |  
|Turnover                                                                                     | 201,677        |      | 156,871        |      | 134,273        |      | 12,433             |      | 171,552        |      | 156,654        |  
|Cost of sales                                                                                | 93,310         |      | 88,185         |      | 57,591         |      | 7,744              |      | 76,826         |      | 65,530         |  
|                                                                                             |                |      |                |      |                |      |                    |      |                |      |                |  
|Gross profit                                                                                 | 108,367        |      | 68,686         |      | 76,682         |      | 4,689              |      | 94,726         |      | 91,124         |  
|Operating expenses:                                                                          |                |      |                |      |                |      |                    |      |                |      |                |  
|Selling and marketing                                                                        | 46,291         |      | 42,750         |      | 22,161         |      | 5,822              |      | 28,306         |      | 29,159         |  
|Research and development                                                                     | 46,270         |      | 42,541         |      | 39,386         |      | 9,179              |      | 32,579         |      | 39,190         |  
|General and administrative                                                                   | 44,285         |      | 40,617         |      | 33,331         |      | 6,286              |      | 21,086         |      | 23,223         |  
|                                                                                             |                |      |                |      |                |      |                    |      |                |      |                |  
|Income/(loss) from operations                                                                | (28,479        | )    | (57,222        | )    | (18,196        | )    | (16,598            | )    | 12,755         |      | (448           | )
|Income/(loss) from sale of investments
      or termination of operations                    | 82,242         |      | (36,308        | )    | 4,173          |      |                   |      | 1,400          |      | 488            |  
|Income from investments                                                                      |               |      | 136            |      | 148            |      | 63                 |      | 308            |      | 224            |  
|Interest income/(expense), net                                                               | (4,142         | )    | (1,658         | )    | (479           | )    | 170                |      | 2,830          |      | 1,646          |  
|                                                                                             |                |      |                |      |                |      |                    |      |                |      |                |  
|Income/(loss) before income taxes and
        minority interests                             | 49,621         |      | (95,052        | )    | (14,354        | )    | (16,365            | )    | 17,293         |      | 1,910          |  
|Provision for income taxes                                                                   | (26,142        | )    | (1,033         | )    | (149           | )    | (106               | )    | 1,513          |      | (1,180         | )
|Minority interests                                                                           | (87            | )    | (219           | )    | (319           | )    | (71                | )    | (569           | )    | (434           | )
|                                                                                             |                |      |                |      |                |      |                    |      |                |      |                |  
|Net income/(loss)                                                                            | 23,392         |      | (96,304        | )    | (14,822        | )    | (16,542            | )    | 18,237         |      | 296            |  
|Goodwill amortization                                                                        | 13,448         |      | 16,107         |      | 12,098         |      | 1,486              |      |               |      |               |  
|                                                                                             |                |      |                |      |                |      |                    |      |                |      |                |  
|Net income/(loss) before
         goodwill amortization*                                     | 36,840         |      | (80,197        | )    | (2,724         | )    | (15,056            | )    | 18,237         |      | 296            |  
|Earnings/(loss) per share                                                                    | 21.7           | p    | (83.6          | )p   | (11.2          | )p   | (11.8              | )p   | 13.1           | p    | 0.2            | p
|Earnings/(loss) per share
      before goodwill amortization*                                | 34.1           | p    | (69.6          | )p   | (2.1           | )p   | (10.8              | )p   | 13.1           | p    | 0.2            | p
|Diluted earnings/(loss) per share                                                            | 19.9           | p    | (83.6          | )p   | (11.2          | )p   | (11.8              | )p   | 13.0           | p    | 0.2            | p
|Diluted earnings/(loss)
      per share before goodwill amortization*                        | 31.0           | p    | (69.6          | )p   | (2.1           | )p   | (10.8              | )p   | 13.0           | p    | 0.2            | p
|                                                                                             |                |      |                |      |                |      |                    |      |                |      |                |  
|Weighted average number
      of shares used to compute net earnings/(loss) per share (000) | 108,084        |      | 115,224        |      | 132,514        |      | 139,744            |      | 139,637        |      | 140,313        |  
|                                                                                             |                |      |                |      |                |      |                    |      |                |      |                |  

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Consolidated Balance Sheet Data:

|                      | **March 31,** |      | March 31, |      | March 31, |      | June 30,  |      | June 30,  |      | June 30,  | 
|--------------------- | ------------- | ---- | --------- | ---- | --------- | ---- | --------- | ---- | --------- | ---- | --------- | 
|                      | **2000**      |      | 2001      |      | 2002      |      | 2002      |      | 2003      |      | 2004      | 
|                      |               |      |           |      |           |      |           |      |           |      |           | 
|                      | **£000**     | **** | **£000** | **** | **£000** | **** | **£000** | **** | **£000** | **** | **£000** | 
|Working capital(1)    | 39,122        |      | 9,249     |      | 69,529    |      | 52,694    |      | 69,869    |      | 42,871    | 
|Goodwill              | 28,773        |      | 13,972    |      | 2,552     |      | 1,025     |      | 1,021     |      | 26,076    | 
|Total assets          | 312,655       |      | 103,914   |      | 102,967   |      | 86,358    |      | 112,860   |      | 96,905    | 
|Long-term liabilities | 2,253         |      | 3,014     |      | 3,490     |      | 3,212     |      | 622       |      | 871       | 
|Shareholders equity  | 154,489       |      | 41,198    |      | 73,384    |      | 56,589    |      | 74,644    |      | 73,738    | 
|                      |               |      |           |      |           |     

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Exchange Rates

The following table sets forth certain information
  with respect to the Noon Buying Rate for Pounds Sterling expressed in U.S. Dollars
  per pound sterling. These translations should not be construed as a representation
  that the Pound Sterling amounts actually represent such U.S. Dollar amounts
  or could be converted into U.S. Dollars at such rate. Such rates are not used
  by the Company in the preparation of its Consolidated Financial Statements included
  elsewhere herein.

|**Fiscal Year Ended**            | **Average (1)** | 
|-------------------------------- | --------------- | 
|                                 |                 | 
|                                 |                 | 
|Fiscal year ended March 31, 2000 | $1.61           | 
|Fiscal year ended March 31, 2001 | $1.47           | 
|Fiscal year ended March 31, 2002 | $1.43           | 
|Three months to June 30, 2002    | $1.48           | 
|Fiscal year ended June 30, 2003  | $1.59           | 
|Fiscal year ended June 30, 2004  | $1.74           | 

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|                                                                     |          |  |         | 
|-------------------------------------------------------------------- | -------- |  | ------- | 
|**Monthly average exchange rates
      for the previous six months** | **High** |  | **Low** | 
|                                                                     |          |  |         | 
|April 2004                                                           | $1.86    |  | $1.77   | 
|May 2004                                                             | $1.84    |  | $1.76   | 
|June 2004                                                            | $1.84    |  | $1.81   | 
|July 2004                                                            | $1.87    |  | $1.82   | 
|August 2004                                                          | $1.84    |  | $1.79   | 
|September 2004                                                       | $1.81    |  | $1.77   | 

On September 15, 2004 the Noon Buying Rate
  was $1.77 for each £1.00.

Risk Factors

In addition to the other information contained
    in this report, the following risk factors should be considered carefully
    in evaluating the Group and its business.

Your particular attention is also drawn to
    the Cautionary Statement with Respect to Forward-Looking Statements on
    the cover page of this report.

Changing product platforms and formats
        may lead to consumer uncertainty and reduced demand.

The entertainment software market has evolved
    rapidly in recent years, primarily as a result of significant ongoing technological
    development. This is particularly true of the market for proprietary video
    game hardware and software, which has historically operated on a four to
    six year cycle, and which has undergone a major transition with the introduction
    of next generation consoles such as the Sony PlayStation 3 and Microsoft
    Xbox 2. The introduction of new technologies and new hardware platforms can
    create instability in the market for entertainment software as a result of
    consumer uncertainty and fluctuations in demand for software for both old
    and new hardware systems. This in turn may lead to a deterioration in competitiveness
    and consequential losses.

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As more technological advances are made,
    the Group will have to plan its development activities to ensure that it
    has what it believes to be an appropriate mix of software available to publish
    as further new hardware platforms or technologies come to market. In order
    to do this the Group must predict certain key factors over which it exercises
    little or no control, such as the timing of the launch of new consoles and
    technologies, the pricing models which the new hardware and software markets
    will sustain and the levels of market share and penetration which may be
    achieved. If these projections prove to be inaccurate, the Group might not
    realize the full potential of its product development program and may fail
to recoup its investment in new product development.

The predicted levels of market growth
        associated with the successful introduction of new hardware platforms
  may not be achieved.

All of the current range of consoles have
    now been launched in all of the major commercial markets in which the Group
    operates. Many commentators continue to forecast a period of significant
    growth for the industry as these new hardware platforms achieve mass market
    penetration. There remains however some uncertainty as to what degree these
    platforms will achieve the forecast levels of sales penetration either collectively
    or individually. In addition to the above, the next generation of consoles
    is expected to be launched over the next two years. The Group has invested
    considerable sums in developing games for these new platforms and the financial
    performance of the Group may be adversely affected if these platforms do
  not achieve the degrees of market acceptance that the Group has forecast.

New product releases may fail to achieve
  market acceptance.

A key aspect of the Groups strategy
    is to focus on a relatively small number of high quality entertainment software
    products based around a number of existing franchise properties and the development
    of new properties with franchise potential. Due to this dependence on a limited
    number of products, the Group may be adversely affected if one or more principal
    entertainment software products fail to achieve anticipated results. Furthermore,
    whilst the focus on franchise properties, if successful, results in extending
    product life cycles, there can be no assurance that the Groups existing
    franchise titles can continue to be exploited as successfully as in the past.
    In addition, new products that the Group believes will have potential value
    as franchise properties may not achieve market acceptance and therefore may
  not be a basis for future releases.

The
    Groups success depends on the
    timely introduction of new products and new iterations of franchise titles
    of sufficiently high quality to replace declining revenues from older products.
    Notwithstanding the Groups strategy of focusing on franchise and high
    quality original titles with future franchise potential, few entertainment
    software products achieve sustained market acceptance and there can be no
    assurance that new products will be introduced on schedule or that they will
    achieve widespread market acceptance or generate significant revenues. Due
    to the highly seasonal nature of the entertainment software market and the
    substantial revenues that can be generated in the initial months after a
    new title launch, it is important to choose and achieve an appropriate launch
    date. A poorly timed launch could affect the potential success of a title
    and thus the results of the Group. If the Group is unable to develop and
    publish titles that are capable of achieving market acceptance then it may
    continue to report operating losses and its prospects for future growth may
be limited.

Product release dates are frequently
  difficult to predict.

The Groups success depends on the
    timely introduction of new products to replace declining revenues from older
    products. The bulk of revenues generated from entertainment software products
    are generally realized in the first few months following release. Consequently
    because of the boost to revenues typically associated with the initial shipments
    of a new product, delaying a product introduction beyond the end of a financial
    reporting period may have a materially adverse effect on the operating results
  for that period.

The process of developing entertainment
    software products such as those offered by the Group is complex and is becoming
    more so as new hardware platforms and technologies are introduced. In the
    past, the Group has experienced significant delays in the introduction of
    certain new products. Whilst every effort has been made by the Group to minimize
    delays in intended release dates through significant improvements made to
    the development process, there remains a risk that such delays will occur
    again in the future and that this might have an adverse impact on the Groups
  financial results.

Financial forecasting is difficult.

There is a degree of inherent uncertainty
    in certain key factors in the forecasting process. These include but are
    not limited to, the degree to which consumers will continue their interest
    in both new hardware platforms and the Groups own new software releases,
    the timing of new software releases and the general economic conditions in
    the major markets in which the Group operates. As a consequence, financial
    forecasting is difficult and there is a risk that the Group may fail to meet
    its financial forecasts for any given reporting period. There is also a risk
  that the Group may fail to accurately estimate its working capital requirements.

The Groups business is highly
  seasonal.

The market for entertainment software is
    highly seasonal. As a consequence, any slippage in new product release dates
    may mean that titles fail to reach their revenue and profitability forecasts
    and that the Groups reported results as a whole, may be adversely affected.
    The Group reports its results at the half year and year-end. Failure to meet
    new product release dates may also mean that the Group falls short of analysts expectations
  for these reporting periods.

The seasonal nature of the entertainment
    software industry and the Groups release schedule, together with the
    terms on which the Group carries on its business, gives rise at certain times
    to a pronounced working capital requirement. If the Group does not have access
    to sufficient working capital during such periods, it may not be able to
  take full advantage of the commercial opportunities available to it.

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The Group operates in a highly competitive
  market.

The entertainment software market is highly
    competitive and is characterized by rapidly changing technology, evolving
    industry standards and frequent new product introductions. Accordingly, the
    Group is always at risk from competitors achieving product selection, price,
    shelf access, marketing support, distribution or other selling advantages.
    There is a possibility that market forces, over which the Group has little
    or no control, may result in an unanticipated fall in the retail price of
    entertainment software. This could have a materially adverse effect on the
  Groups projected profit margins.

Unexpected levels of returns may be
  experienced.

The Group accepts returns and provides markdowns
    or other credits in the event that a retailer holds excess inventory of the
    Groups entertainment software products. When entertainment software
    is dispatched into the retail channel, the Group establishes reserves, which
    estimate future potential returns, based on historical return rates, seasonality
    of sales, retailer and distributor inventories and other factors. The Group
    believes that it maintains adequate reserves. However there can be no assurance
  that actual returns or price reductions will not exceed such reserves.

The unauthorized copying and piracy
  of software is becoming more commonplace.

The entertainment software industry suffers
    increasingly from the effects of unauthorized copying and piracy. Whilst
    the Group takes such measures as it believes are appropriate to protect its
    entertainment software products, it cannot be certain that these measures
  will be sufficient, and this may result in a loss of revenue.

Complex entertainment software products
  may contain undetected errors.

Entertainment software products as complex
    as those offered by the Group may contain undetected errors when first introduced
    or when new versions are released. The Group has in the past discovered errors
    in certain of its product offerings after their introduction and has experienced
    delays or lost revenues during the period required to correct those errors.
    In particular, the PC hardware environment is characterized by a wide variety
    of non-standard peripherals (such as sound cards and graphics cards) and
    configurations that make pre-release testing for programming or compatibility
    errors very difficult. There can be no assurance that, despite testing by
    the Group, programming or compatibility errors will not be found in new products
    or releases after commencement of commercial shipments. Any such errors could
    result in the loss of, or delay in, achieving market acceptance, which could
    have a material adverse effect on the Groups business, results of operations
  and financial condition.

The effect of on-line gaming on the
  entertainment software business is difficult to predict.

The Group has adopted a cautious approach
    to on-line gaming. It does not currently derive any material revenue streams
    from on-line gaming and it has taken a selective approach to investing in
    the development of the software and infrastructure required to support on-line
    gaming. Although the Group believes that the market for online gaming is
    not sufficiently mature or predictable to warrant significant levels of investment,
    a number of the Financial Year 2005s releases will include an online
    component. It is not clear what effect any increase in the demand for on-line
    gaming will have on the demand for the conventionally packaged software that
    the Group currently sells through its existing retail channels.

The Group is dependent upon the protection
        of its intellectual property and proprietary rights, and could become
  subject to costly and time-consuming intellectual property litigation.

The Group relies primarily on a combination
    of patent, copyright, trademark and trade secret laws, employee and third
    party non-disclosure and non-competition agreements and other methods to
    protect its proprietary rights. Although the Group is not currently the subject
    of any intellectual property litigation, which would have a material effect
    on the Group, there has been substantial litigation regarding copyright,
    trademark and other intellectual property rights involving computer software
  companies.

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There can be no assurance that third parties
  will not assert infringement claims in the future with respect to current or
  future products of the Group. Any claims or litigation, with or without merit,
  could be costly and could require a significant amount of managements
  attention and result in adverse determinations, each of which could have a material
  adverse effect on the Groups business, results of operations and financial
  condition. Policing unauthorized use of the Groups products and trademarks
  is difficult and, while the Group is unable to determine the extent to which
  infringement of its proprietary products and marks occurs, software piracy and
  trademark infringement can be expected to be persistent problems.

The Group relies on hardware manufacturers
  that are also the Groups competitors.

The Group publishes products subject to master
  license agreements with console manufacturers including Sony, Nintendo and Microsoft.
  Pursuant to these agreements the Group is permitted to use the proprietary information
  of the manufacturers in connection with the development of products for their
  platforms.

Although the Group has successfully negotiated
  agreements for the publication of its products in the past, there can be no
  assurance that it will be able to obtain publishing rights for all of its products
  in the future.

Prior to release for manufacturing, the hardware
  manufacturer has the right to review, evaluate and approve, under standards
  established by it, each title for its proprietary platform and the right to
  inspect and evaluate all promotional materials in connection with such title.
  The inability of the Group to obtain timely approvals or the rejection by the
  hardware manufacturer of titles or related promotional materials could materially
  adversely affect its future results of operations or result in variations in
  operating results if a product scheduled for release in any quarter is delayed.

Changes in international regulatory
  regimes may restrict the Groups operations.

Recent developments in the U.S. and elsewhere
  have led the authorities to consider introducing tighter legislation against
  so-called violent videos. Any such regulations could
  have an impact on the Group, in common with other publishers of video games,
  which is difficult to measure accurately.

The Group is heavily reliant on key
  personnel.

The continued success of the Group depends,
  to a significant extent, upon the performance and contribution of its senior
  management, together with its ability to continue to attract, motivate and retain
  highly qualified and creative employees. The loss of key management and employees,
  or the failure by the Group to attract additional qualified employees or to
  retain the services of key personnel, could materially adversely affect the
  Groups business, results of operations or financial condition.

The results of the Groups international
        operations are subject to currency fluctuations.

Currently, the Groups products and services
  are marketed in over 35 countries, covering primarily Europe and the U.S. Sales
  of the Groups products in such markets are subject to risks inherent in
  international business activities, including general economic conditions in
  each country, overlap of differing tax structures, management of an organization
  spread over various jurisdictions, unexpected changes in regulatory requirements,
  compliance with a variety of foreign laws and regulations and varying accounts
  receivable cycles.

The Company publishes its consolidated financial
  statements in Pounds Sterling. A significant portion of the Groups assets
  and net revenues are generated in foreign currencies, primarily Euros and U.S.
  Dollars. In translating the results of its overseas operations the Group is
  subject to fluctuations in the exchange rates between pound sterling and the
  overseas currency.

Accordingly, depreciation in the weighted average
  value of the overseas currency against pound sterling could decrease reported
  revenues and appreciation in the weighted average value of the overseas currency
  against pound sterling could increase reported revenues. As a result of the
  foregoing, results of operations can be expected to fluctuate significantly
  from period to period.

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World events.

Events such as the terrorist attacks of September
  11, 2001 may trigger un-foreseen economic conditions and cause the demand for
  computer entertainment software to fluctuate in an un-predictable manner.

Our stock price has been volatile
  and may continue to fluctuate.

As a result of the factors discussed in this
  report and other factors that may arise in the future, the market price of our
  Ordinary Shares historically has been, and may well continue to be, subject
  to fluctuations. These fluctuations may be due to factors specific to us, to
  changes in market estimates, or to factors affecting the computer, software,
  Internet, entertainment, media or electronics business.

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ITEM 4  INFORMATION ON THE GROUP

History and development of the Group

The legal and commercial name of the Company,
  which was incorporated on May 14, 1990 under the laws of England and Wales,
  is Eidos plc. The Companys Ordinary Shares are traded on the London Stock
  Exchange and in the form of American Depositary Shares (each representing one
  Ordinary Share) are traded on the NASDAQ National Market.

The Companys registered office is located
  at Wimbledon Bridge House, 1 Hartfield Road, Wimbledon, London SW19 3RU, United
  Kingdom and its main telephone number + (0) 44 20 8636 3000.

The Group develops and publishes advanced entertainment
  software products.

The Group was formed in May 1990 to develop
  video editing systems and subsequently expanded its activities to include developing
  proprietary, software-based video compression technology to be used in CD-ROM
  and video telephony applications. Sales of video compression products were not
  significant, and the Company broadened its strategic focus to include developing
  and publishing entertainment software. To implement this strategy, the Group
  effected a number of acquisitions, which resulted in a substantial expansion
  of the Groups operations. In October 1995, the Group acquired three entertainment
  software companies (Domark Group Limited, Simis Limited and The Big Red Software
  Company Limited) for aggregate consideration, including costs, of £13.8
  million. In April 1996, the Group acquired CentreGold plc, an entertainment
  software company, for consideration, including costs, of £17.6 million.
  The consideration for each of these acquisitions consisted primarily of newly
  issued Eidos shares. As contemplated at the time of the CentreGold acquisition,
  in June 1996 the Company disposed of CentreSoft Limited and PDQ Limited, the
  distribution arms of CentreGold, for £7.5 million in cash, the net book
  value of such companies at the date of acquisition by the Group. Subsequently
  CentreSoft Limited was acquired by Activision, Inc. resulting in an additional
  £0.5 million deferred consideration recognized in fiscal 1999.

In November 1998 the Group acquired Crystal
  Dynamics, Inc. for $49.1 million including costs. During the year ended March
  31, 2000, the Group acquired 75% and 25% holdings in Proein SL and Pyro Studios
  SL, respectively. During the same year the Group licensed certain of its video
  compression technologies to Forbidden Technologies plc, a company formed by
  one of the Groups original founders. The Group divested itself of its
  remaining non core activities during the year ended March 31, 2001 to concentrate
  on developing and publishing high quality entertainment software.

In June 2001 the Group took its holding in
  Ion Storm LP to 89.6% of the issued partnership units for a nominal sum. The
  89.6% holding has been built up over a series of piece-meal acquisitions for
  which the fair value of the total consideration paid was $536.

In July 2001 the Group successfully completed
  a 1 for 3 Rights Issue raising £51.6 million, net of costs, to finance
  the development of its next generation of video games consoles.

In March 2004, the Group entered into an agreement
  to acquire the entire share capital of IO Interactive for an initial consideration
  of £23.0 million, which was satisfied by £21.0 million in cash and
  £2 million in Eidos shares. Contingent consideration of up to £5.0
  million in cash is payable dependent upon the number of new game units released in excess of 2.1
  million units per annum over the four year period following completion.

The Groups future success is dependent
  upon its ability to develop and publish new entertainment software titles that
  are capable of achieving widespread market acceptance and driving sustainable
  growth in revenues and operating profits. The Group currently derives a significant
  proportion of its revenues from the market for videogames. This market went
  through a period of transition as consumers waited for the next generation of
  videogame consoles to be released into the market. In common with many other
  publishers of entertainment software the Group has experienced fluctuating and
  un-predictable levels of demand for its titles during this period, which contributed
  significantly to its poor operating results during the years ended March 31,
  2000 and 2001, and the 15 months ended June 30, 2002.

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Acquisitions, investments and disposals
  in the last three fiscal years

Vision Park Entertainment AB

The Group had a 39.54% investment in Innerloop
  Technologies AS, an entertainment software developer. On September 1, 2000,
  the whole of the share capital of Innerloop Technologies AS was acquired by
  Vision Park Entertainment AG (publ.), conditional upon the subsequent listing
  of Vision Park Entertainment AB (publ.) in Sweden. As part of the acquisition,
  the Groups 39.54% holding was converted at the ratio of 1 to 12 into 585,198
  Vision Park shares. Vision Park Entertainment AB (publ.) subsequently listed
  its share on OM Stockholmborsens O-lista in November 2000.

Within the Group accounts, this investment
  was carried at nil. In November 2000, the Group sold 206,000 shares in Vision
  Park Entertainment AB (publ.) for £519,000. The Group sold its remaining
  shares in October 2001 for £122,900.

Opticom

In 1998, the Group made a series of investments
  in Opticom for a total of £11.2 million. Opticom is a Norwegian based
  company listed on the Norwegian stock exchange and is a leader in the research
  and development of polymer based storage and processing devices and has significant
  interests in internet technologies. In March 2000, the Group sold the majority
  of its holding in Opticom for £91.5 million, excluding costs. The Group
  sold its remaining stake in the company in a series of open-market transactions
  during November and December 2001, for net proceeds of £11.0 million.

Ion Storm Inc

In June 2001, the Group took its holding in
  Ion Storm LP to 89.6% of the issued partnership units for a nominal sum. The
  89.6% holding has been built up over a series of step acquisitions for which
  the fair value of the total consideration was $536.

Pyro Studios SL

During the year ended June 30, 2003, the Group
  increased its joint venture interest in Pyro Studios SL from 25.1% to 26.7%
  at a cost of £19,000. No additional goodwill was generated.

Sports Interactive Limited

On September 4, 2003, Eidos and Sports Interactive
  Limited announced an agreement to end their existing relationship for the development
  of the Companys highly successful Championship Manager football management
  series. Eidos agreed to sell its 25% interest in Sports Interactive for a cash
  consideration of £488,000, generating no profit/loss following the transfer
  of attributable goodwill from reserves.

IO Interactive A/S

On March 3, 2004, the Company entered into
  an agreement to acquire the entire issued and outstanding share capital of IO
  Interactive A/S, a Danish studio responsible, together with the Company, for
  the development of the highly successful Hitman franchise. The acquisition of
  a 90% controlling interest was declared unconditional on April 1, 2004 and following
  the compulsory acquisition of the remaining interest, the Company completed
  the acquisition on May 4, 2004. The total consideration of £23.0 million
  was satisfied as to £21.0 million in cash and the issue of 1,511,509 new
  Eidos Ordinary Shares. A further deferred cash payment (not to exceed £5.0
  million) is payable over the four year period ending March 31, 2008, dependent
  upon the number of new game units released by the studio in excess of £2.1
  million units per annum.

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Business Overview

The Group is one of Europes largest independent
  developers and publishers of entertainment software. The Groups publishing
  activities date from 1995 when it acquired the Domark Group Ltd with the Championship
  Manager franchise. The following year it acquired CentreGold Group plc, which
  included Core Design Limited, the original developer of the Tomb Raider franchise.

Tomb Raider is one of the most successful entertainment
  software franchises in the world owned by an independent publisher. With six
  iterations to date, total unit sales currently exceed 31 million. In addition
  to Tomb Raider, the Group has developed a broadly based publishing portfolio,
  which includes a number of other key franchise titles such as Championship Manager,
  Deus Ex and Hitman.

The Groups market share amongst all
    independent  publishers in the calendar year 2003, based on independent data
    supplied by
  ChartTrack in the U.K., GfK in France, Media Control in Germany and TRST in
     the U.S., was 4% in the U.K., 3% in Germany, 3% in France and 2% in the
    U.S.

The Groups core activity of publishing
  entertainment software has become increasingly orientated towards the creation
  and development of its own content. Historically, the particular publishing
  strengths of the Group have been in the action adventure, strategy and sports
  management genres and the Directors expect this will continue to be the case
  in the short to medium-term based on the titles currently in development.

The Directors have promoted a developer
  friendly culture within the business and currently the Group has
  over 400 development staff working within 13 teams in 5 studios, which are wholly-owned
  or partly-owned. This resource is augmented by an external development programme.
  Of total sales of £133.9 million in the year ended June 30, 2004, 67%
  was derived from internally-generated product.

The Group has focused on becoming a pure development
  and publishing house. Unlike a number of other independent entertainment software
  publishers, the Group does not seek to own its channel to market since the Directors
  consider this to be a low margin activity. The Group maintains close contact
  with the retail channel. In Europe the Group has direct relationships with over
  500 retailers operating approximately 17,000 outlets in three countries and
  in the U.S. with 50 retailers and distributors with approximately 10,600 outlets.
  Distribution to the retail channel is primarily undertaken through fulfilment
  houses.

The Group sells its products mainly in the
  United States and Europe. See Item 8, Note 3 for a full breakdown of revenues
  and profits by activity and geographic market.

The Group markets its products by targeting
  the retail and end-user customers through a marketing strategy, which includes
  retail promotions, public relations campaigns, consumer advertising, web-based
  marketing and direct marketing.

Retail promotions include sending product
    information  to major industry buyers and selected retail store managers.
    The mailings include
  game descriptions, preliminary pricing information, ordering information, product
     merchandise and available press coverage. The Group also carries out co-operative
  marketing campaigns with major retailers to improve store presence and participate
   in the retailers own advertising. Public relations campaigns include
   personal  visits to magazine publishers, trade show appearances, and weekly
   and monthly
  mailings to the video game press, on-line publications, lifestyle and sports
  press, national dailies and broadcast media.

Consumer advertising generally begins two to
  three months prior to launch of a product. The advertising may include: print,
  television, radio, outdoor, on-line advertising, cinema advertising, direct
  mail, co-marketing ventures and creative packaging. In-store promotions may
  include videos, window displays, product signage and/or product demonstrations.
  Current Web exposure is focused on bringing the Group closer to its customers
  by the provision of technical support on its web-site and by providing samples
  to stimulate interest in products. In relation to direct marketing, the Group
  holds a considerable database of customers built from the return of warranty
  cards. The database is used for profiling exercises and segmented direct marketing
  campaigns. Campaigns are extended via physical mailings and, wherever possible,
  electronic mailing. The Group also participates in direct marketing activities
  using databases built by retailers loyalty schemes.

The Group publishes products subject to master
  license agreements with console manufacturers, including Sony, Nintendo and
  Microsoft. Pursuant to these agreements the Group is permitted to use the proprietary
  information of the manufacturers in connection with the development of products
  for their platforms. The Company considers that the platform license agreements
  entered into with Sony U.S., Sony Europe and Microsoft are material to the results
  of the business as revenue from games released on these platforms represented
  69% of total revenue in the year ended June 30, 2004.

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Organizational structure

The Company is the holding company of the Group.
  The Company has the following principal subsidiaries and joint ventures:

|                                                   |  |                       |  | % Share      |        |                     |  |                               
|-------------------------------------------------- |  | --------------------- |  | ------------ | ------ | ------------------- |  | ------------------------------
|Name                                               |  | Date of incorporation |  | capital held |        | Nature of Business  |  | Registered Office             
|                                                   |  |                       |  |              |        |                     |  |                               
|Principal Subsidiaries ofthe
      Company         |  |                       |  |              |        |                     |  |                               
|                                                   |  |                       |  |              |        |                     |  |                               
|Incorporated and operatein
      England and Wales |  |                       |  |              |        |                     |  |                               
|Eidos Interactive Limited                          |  | 03/24/84              |  | 100          |        | Developer
      and |  | Wimbledon
      Bridge House, 
|                                                   |  |                       |  |              |        | publisher
      of  |  | 1 Hartfield
      Road,       
|                                                   |  |                       |  |              |        | entertainment       |  | Wimbledon,                    
|                                                   |  |                       |  |              |        | software            |  | London
      SW19 3RU,        
|                                                   |  |                       |  |              |        |                     |  | United
      Kingdom          
|                                                   |  |                       |  |              |        |                     |  |                               
|Core Design Limited                                |  | 05/13/88              |  | 100          | (1)    | Developer of        |  | 2 Roundhouse Road,            
|                                                   |  |                       |  |              |        | entertainment       |  | Pride Park,                   
|                                                   |  |                       |  |              |        | software            |  | Derby DE24 8JE,               
|                                                   |  |                       |  |              |        |                     |  | United Kingdom                
|                                                   |  |                       |  |              |        |                     |  |                               
|Incorporated and operatein
      the United States |  |                       |  |              |        |                     |  |                               
|Eidos, Inc.                                        |  | 08/15/92              |  | 100          | (1)    | Publisher
      of  |  | 651 Brannan
      Street,     
|                                                   |  |                       |  |              |        | entertainment       |  | 4th Floor,                    
|                                                   |  |                       |  |              |        | software            |  | San Francisco,                
|                                                   |  |                       |  |              |        |                     |  | California
      94107,       
|                                                   |  |                       |  |              |        |                     |  | United
      States of America
|                                                   |  |                       |  |              |        |                     |  |                               
|Crystal Dynamics, Inc.                             |  | 07/08/92              |  | 100          | (1)    | Developer of        |  | 2468 Embarcadero Way,         
|                                                   |  |                       |  |              |        | entertainment       |  | Palo Alto,                    
|                                                   |  |                       |  |              |        | software            |  | California 94025-3691,        
|                                                   |  |                       |  |              |        |                     |  | United States of America      
|                                                   |  |                       |  |              |        |                     |  |                               
|Ion Storm LLP                                      |  | 12/03/96              |  | 89           | (1)(2) | Developer of        |  | CT Corporation System,        
|                                                   |  |                       |  |              |        | entertainment       |  | 350 North St Paul Street,     
|                                                   |  |                       |  |              |        | software            |  | Dallas,                       
|                                                   |  |                       |  |              |        |                     |  | Texas, TX 75021               
|                                                   |  |                       |  |              |        |                     |  | United States of America.     
|                                                   |  |                       |  |              |        |                     |  |                               
|Incorporated and operatesin
      France           |  |                       |  |              |        |                     |  |                               
|Eidos France SARL                                  |  | 12/10/85              |  | 100          | (1)    | Publisher of        |  | 8th Floor,                    
|                                                   |  |                       |  |              |        | entertainment       |  | 6 Boulevard du General        
|                                                   |  |                       |  |              |        | software            |  | Leclerc,                      
|                                                   |  |                       |  |              |        |                     |  | 92115 Clichy,                 
|                                                   |  |                       |  |              |        |                     |  | France                        

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|Incorporated and operatesin
      Germany |  |          |  |     |     |               |  |                              
|----------------------------------------- |  | -------- |  | --- | --- | ------------- |  | -----------------------------
|Eidos (Deutschland) GmbH                  |  | 02/08/96 |  | 100 | (1) | Publisher of  |  | Grosse Elbstrasse
      145d,
|                                          |  |          |  |     |     | entertainment |  | 22767, Hamburg,              
|                                          |  |          |  |     |     | software      |  | Germany                      
|                                          |  |          |  |     |     |               |  |                              
|Incorporated and operates
      in Japan  |  |          |  |     |     |               |  |                              
|Eidos KK                                  |  | 07/30/98 |  | 100 |     | Publisher of  |  | Etsuzan LK Building 4F,      
|                                          |  |          |  |     |     | entertainment |  | 1-10-4, Hiroo, Shibuya-Ku,   
|                                          |  |          |  |     |     | software      |  | Tokyo 150-0012,              
|                                          |  |          |  |     |     |               |  | Japan                        
|                                          |  |          |  |     |     |               |  |                              
|Incorporated and operates in Australia    |  |          |  |     |     |               |  |                              
|Eidos Interactive Pty Limited             |  | 06/13/03 |  | 100 |     | Publisher of  |  | Level 11, 90 Alexander       
|                                          |  |          |  |     |     | entertainment |  | Street Crows Nest 2065       
|                                          |  |          |  |     |     | software      |  | Australia                    
|                                          |  |          |  |     |     |               |  |                              
|Incorporated and operatesin
      Denmark |  |          |  |     |     |               |  |                              
|IO Interactive A/S                        |  | 11/01/90 |  | 100 | (1) | Developer of  |  | Kalvebod Brygge 35-37        
|                                          |  |          |  |     |     | entertainment |  | 1560 Copenhagen V            
|                                          |  |          |  |     |     | software      |  | Denmark                      
|                                          |  |          |  |     |     |               |  |                              
|Joint Ventures                            |  |          |  |     |     |               |  |                              
|                                          |  |          |  |     |     |               |  |                              
|Incorporated and operatein
      Spain    |  |          |  |     |     |               |  |                              
|Proein SL                                 |  | 08/12/76 |  | 75  | (1) | Publisher of  |  | Euromor Building,            
|                                          |  |          |  |     |     | entertainment |  | Avenida de Burgos 16-D,      
|                                          |  |          |  |     |     | software      |  | Madrid,                      
|                                          |  |          |  |     |     |               |  | Spain                        
|                                          |  |          |  |     |     |               |  |                              
|Pyro Studios SL                           |  | 03/11/97 |  | 27  | (1) | Developer of  |  | Euromor Building,            
|                                          |  |          |  |     |     | entertainment |  | Avenida de Burgos 16-D,      
|                                          |  |          |  |     |     | software      |  | Madrid,                      
|                                          |  |          |  |     |     |               |  | Spain                        

|                                                                                                                                                                                                                                                                                                                                                                                           
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                           
|With the exception of the companies marked(1),
          the share capital of the above companies is held directly by the Company.
          In the case of Ion Storm(2), the holding is in the form
          of partnership units rather than Ordinary Shares. The share capital
          of the companies marked(1) is held by one of the wholly-owned
    subsidiaries of the Company.

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Property, plant and equipment

The Group maintains an aggregate of approximately
  230,976 square feet of office and commercial studio space in London and Derby,
  England, in Hamburg, Germany, in Paris, France, in Copenhagen, Denmark, in San
  Francisco and Palo Alto, California, and Austin, Texas, U.S., in Tokyo, Japan,
  in Madrid, Spain and in Sydney, Australia.

Details of the principal establishments of
  the Group are as follows:

|Property                                                                                      |  | Tenure                                                                                                                                   |  | Description |  | ApproximateArea Occupied(square feet)
|--------------------------------------------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------- |  | ----------- |  | -------------------------------------
|                                                                                              |  |                                                                                                                                          |  |             |  |                                      
|Eidos plc2nd floorWimbledon Bridge HouseHartfield RoadLondon SW19 3RU                         |  | Leasehold 10 years
      fromNovember 22, 1996                                                                                           |  | Office      |  | 19,000                               
|Eidos Interactive Limited2nd floorWimbledon Bridge HouseHartfield RoadLondon SW19 3RU         |  | Leasehold from December 25,2002
         to
      September 26, 2014                                                                     |  | Office      |  | 4,000                                
|Eidos Interactive Limited(Beautiful Game Studio)United HouseNorth RoadLondon N7 9DP           |  | Licence (licence period of
      oneyear from
      May 1, 2003 with twomonths
      notice
      required fromeither party thereafter) |  | Office      |  | 1,436                                
|Core Design Limited2 Roundhouse RoadPride ParkDerby DE24 8JE                                  |  | Leasehold 15 years from October15, 1999                                                                                                  |  | Office      |  | 12,320                               
|Eidos Inc.651 Brannan Street4th Floor,San Francisco, California94107United States of America  |  | Leasehold 5 years from May
         12,2002                                                                                              |  | Office      |  | 15,000                               
|Crystal Dynamics, Inc.64 Willow PlaceMenlo Park, California94025-3691United States of America |  | Leasehold from January 1, 1999to
      March 31, 2007                                                                                    |  | Office      |  | 26,788                               
|Eidos France SARL8th Floor6 Boulevard du GeneralLeclercClichyFrance                           |  | Leasehold from July 1, 1999 toJune 30, 2008                                                                                              |  | Office      |  | 8,547                                
|Eidos (Deutschland) GmbH145d Grosse Elbstrasse22767 HamburgGermany                            |  | Leasehold from October 15, 2002to
      September 30, 2005                                                                               |  | Office      |  | 11,970                               
|                                                                                              |  |                                                                                                                                          |  |             |  |                                      

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|
|
|
|
|
|
|
|
|
|
|
|
|

The principal place of business of each of the
  above companies is the first relevant address shown above.

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ITEM 5  OPERATING AND FINANCIAL
  REVIEW AND PROSPECTS

The following discussion of the financial condition
  and results of operations of the Group (under U.K. GAAP) should be read in conjunction
  with the Groups Consolidated Financial Statements and Notes included elsewhere
  in this report. The following discussion contains forward-looking statements
  that involve risks and uncertainties. See Cautionary Statement with
  Respect to Forward-Looking Statements at the beginning of this report.

Overview

The Groups future success is dependent
  upon it developing and publishing additional entertainment software titles and
  such titles achieving significant market acceptance. The Group maintains its
  accounting records and reports its results in Pounds Sterling in accordance
  with U.K. GAAP. There are material differences between U.K. GAAP and U.S. GAAP
  (these are discussed in Note 32 of the Consolidated Financial Statements in
  Item 8).

The Group has experienced, and expects to continue
  to experience, significant fluctuations in operating results due to a variety
  of factors including, among others: (i) the timing and success of product introductions;
  (ii) market acceptance of the Groups products; (iii) delays in product
  completion; (iv) higher than expected product returns; (v) projected and actual
  changes in platforms; (vi) changes in pricing policies by the Group and its
  competitors; (vii) costs associated with development projects; (viii) development
  and promotional expenses relating to the introduction of new products or new
  versions of existing products; and (ix) the size and rate of growth of the consumer
  software market. In response to competitive pressures, the Group may take certain
  pricing or marketing actions that could materially adversely affect the Groups
  business, results of operations and financial condition. Products are generally
  shipped as orders are received; accordingly, the Group operates with little
  backlog. The Groups expense levels are based, in part, on its expectations
  regarding future sales, and, as a result, operating results would be disproportionately
  and adversely affected by a decrease in sales or a failure to meet the Groups
  sales expectations. Furthermore, the entertainment software business is highly
  seasonal. Net revenues vary significantly as a result of new product introductions
  and other factors. Consequently results of operations can be expected to fluctuate
  significantly from period to period. See Item 3  Risk Factors
   The Groups business is highly seasonal.

The Group has historically recorded a significant
  proportion of its costs in Pounds Sterling. The Groups sterling/non-sterling
  trading profile has not changed significantly from 2003. In the year ended June
  30, 2004, 41% of the Groups total costs (including goodwill amortization)
  were in sterling (year ended June 30, 2003: 46%) and 59% in currencies other
  than sterling. As in previous years, a high proportion of turnover, 67% in the
  year ended June 30, 2004 (year ended June 30, 2003: 66%), was denominated in
  non-sterling currencies, primarily U.S. Dollars and Euros. The Group reports
  its results in sterling. As a result, changes in the value of the pound sterling
  in relation to other currencies will affect the Groups turnover and operating
  margins. The impact of future exchange rate fluctuations between the pound sterling
  and other currencies on the Groups turnover and operating margins cannot
  be accurately predicted. Over the past several years, the Group has taken steps
  to reduce its exposure to currency fluctuation through foreign exchange management.
  This is aimed at protecting margins and fixing future pound sterling cash flows.
  In particular, the Group has adopted
  a policy of hedging against the devaluation of a portion of its short-term foreign
  currency cash flows using forward contracts and currency swaps issued by the
  Companys bankers.

At June 30, 2004, unhedged currency net liabilities
  totalled £24.7 million (June 30, 2003: £21.3 million) (predominantly
  U.S. Dollars and Euros), and there were £1.2 million open derivative positions
  as at this date (June 30, 2003: £nil).

Exceptional Items

Under U.K. GAAP, exceptional items are those
  material items which derive from events or transactions within the ordinary
  activities of the entity. There is no concept of exceptional items
  under U.S. GAAP. Under U.S. GAAP, events and transactions that are distinguished
  by both their unusual nature and their infrequency of occurrence are classified
  as extraordinary items. The exceptional items discussed below do
  not meet the definition of Extraordinary items under
  U.S. GAAP and therefore would not be separately identified in the U.S. GAAP
  consolidated financial statements as extraordinary or unusual.

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Year ended June 30, 2004

There were no exceptional items in the year
  ended June 30, 2004.

Year ended June 30, 2003

Litigation settlement

The Group received a £1.4 million litigation
  settlement, net of costs, in respect of its former investment in Express.com.
  The Group took an exceptional charge against the full carrying value of this
  investment in the year to 31 March 2001 and Express.com subsequently filed for
  Chapter 11 bankruptcy protection.

Year ended March 31, 2002

Exceptional income on sale of investments

The Group disposed of its remaining shareholding
  in Opticom during the year ended March 31, 2002 realising net proceeds of £11.0
  million and a net profit of £8.5 million. This profit was partially off-set
  by write downs and losses on other disposals of £4.1 million, which occurred
  following a review of the Groups other investments in the period.

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Results of Operations (U.K. GAAP)

The following table sets forth the actual selected
  statements of operations data of the Group as a percentage of turnover for the
  periods presented:

Consolidated Statements of Operations Data:

|                                                                                                              | Year ended |             | Three months |          | Year ended |    | Year ended |   | Year  |   
|------------------------------------------------------------------------------------------------------------- | ---------- | ----------- | ------------ | -------- | ---------- | -- | ---------- | - | ----- | --
|March 31,                                                                                                     | ended      | June 30,    | June 30,     | ended   
|                                                                                                              | June 30,   | (unaudited) |              | June 30,
|                                                                                                              |            |             |              |         
|As a percentage of turnover                                                                                   | 2002       |             | 2002         |          | 2002       |    | 2003       |   | 2004  |   
|                                                                                                              |            |             |              |          |            |    |            |   |       |   
|Turnover                                                                                                      | 100.0      | %           | 100.0        | %        | 100.0      | %  | 100.0      | % | 100.0 | % 
|Cost of sales                                                                                                 | 40.5       |             | 59.4         |          | 41.7       |    | 41.0       |   | 37.2  |   
|                                                                                                              |            |             |              |          |            |    |            |   |       |   
|Gross profit                                                                                                  | 59.5       |             | 40.6         |          | 58.3       |    | 59.0       |   | 62.8  |   
|Operating expenses:                                                                                           |            |             |              |          |            |    |            |   |       |   
|Selling and marketing                                                                                         | 17.1       |             | 61.3         |          | 18.9       |    | 17.0       |   | 19.9  |   
|Research and development                                                                                      | 32.7       |             | 106.1        |          | 33.4       |    | 21.5       |   | 29.3  |   
|Goodwill amortization                                                                                         | 5.7        |             | 0.8          |          | 3.6        |    | 0.1        |   | 1.2   |   
|Other administrative                                                                                          | 16.9       |             | 52.9         |          | 17.1       |    | 13.3       |   | 16.6  |   
|                                                                                                              |            |             |              |          |            |    |            |   |       |   
|Income/(loss) from operations                                                                                 | (12.9      | )           | (180.5       | )        | (14.7      | )  | 7.1        |   | (4.2  | ) 
|Income from joint ventures                                                                                    | 1.2        |             | 4.6          |          | 1.5        |    | 1.9        |   | 1.5   |   
|Joint Venture goodwill
      amortization                                                                     | (4.3       | )           | (16.3        | )        | (4.6       | )  | (0.3       | ) |      |   
|Income/(loss) from sale of investments
        or  termination of operations    and write down of investments | 3.6        |             |             |          |           |    |           |   |      |   
|Income from investments                                                                                       | 0.1        |             |             |          | 0.2        |    | 0.9        |   |      |   
|Interest income (expense), net                                                                                | 0.5        |             | 1.8          |          | 0.7        |    | 1.9        |   | 1.2   |   
|(Provision)/credit for
      income taxes                                                                     | 0.0        |             | (0.6         | )        | 0.0        |    | 1.2        |   | (0.7  | ) 
|                                                                                                              |            |             |              |          |            |    |            |   |       |   
|Net income/(loss)                                                                                             | (11.8      | %)          | (191.0       | %)       | (13.1      | %) | 12.7       | % | (2.2  | %)
|                                                                                                              |            |             |              |          |            |    |            |   |       |   

Operating Review and Prospects (U.K.
  GAAP)

Overview

While the results reported for the full year
     are disappointing, the Company continues to make good progress with its
    new
  development methodology and its increased focus of leveraging owned intellectual
     property. Recognising that a number of game releases did not live up to
    managements
  sales targets (specifically Hitman: Contracts,
  Commandos 3, Legacy of Kain: Defiance and Whiplash), the Companys financial
  performance this year was  materially impacted by two key events, both of which
  occurred in the second
  half. Firstly, the unexpected softness in the games market, particularly in
   the US, which started back in May (as illustrated by the 17% year-on-year
  fall
  in US games software sales for that month(1).
  Consequently, the previously anticipated c 700,000 units of re-orders for our
  biggest title release of the year, Hitman:

  Contracts, did not materialise. This was despite the game both heading the
  charts  and then maintaining a strong chart position in both Europe and the
  US from
  its launch in April. Secondly, in view of the prevailing weakness in the games
   market, the Board decided in June to defer the launch of the ready-to-release

  ShellShock: Nam 67 game until September 2004 to give this new franchise
  a better opportunity to deliver on its true potential. As a consequence, its
  operating profit contribution moved out of the 2004 financial year and into
  the 2005 financial year.

1Source: US NPD Data, May 2004

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Review of Operations

In the year to June 30, 2004, the Group achieved
  a turnover of £133.9 million (2003: £151.5 million) and recorded
  a loss after tax of £2.9 million compared to a profit of £19.2 million
  in the year to June 30, 2003. While the total number of units shipped in both
  2003 and 2004 were the same at 12.5 million units, gross margins improved in
  the year to 62.8% (2003: 59.0%). During the year, and for the first time, the
  Company had all of its 14 titles (22 skus) available for release on schedule.
  Of these titles, Backyard Wrestling: Dont Try This At Home; Deus Ex: Invisible
  War; Championship Manager: Season 03/04 and Legacy of Kain: Defiance, each sold
  between 500,000 and one million units. In addition, Hitman: Contracts, while
  performing below managements expectations, has sold 1.7 million units
  to date. The period also included a further one million unit sales of Tomb Raider:
  The Angel of Darkness together with back catalogue sales which represented 15.7%
  of turnover (2003: 11.0%). The Company continued to make operational improvements
  throughout the year: the European Development and Publishing divisions were
  restructured and the Companys global marketing initiative was refocused
  on brand management and direction. Investment in R&D increased by 20% to
  £39.2 million in the year and is expected to continue to increase, reflecting
  the Companys commitment to invest in developing top quality titles in
  future.

Intellectual Property (IP) Management

The Company has again made good progress in
  its objective of securing owned IP supported by stringent cost and development
  controls. This is reflected by the improved gross margin which rose to 62.8%
  (2003: 59.0%). In March 2004, the Company acquired IO Interactive A/S (IO),
  the Danish studio which, together with Eidos, had been responsible for the development
  of the highly successful Hitman franchise. The Hitman franchise has now sold
  over 5.5 million units to date and significantly strengthens our European creative
  base and development expertise. IO is expected to contribute to the Groups
  on-going development of unique IP with plans to release a new franchise title
  next year. IOs technology is also playing a key role in the Groups
  transition programme to next generation Xbox 2 and PS3 platforms, which is on
  track. We have brought the development of the Companys best selling Championship
  Manager football management game in-house and the improved Championship Manager
  5 will release on PC during the 2005 financial year. In Spring 2005, the game
  will also release on PlayStation 2 for the first time, as well as on Xbox. In
  addition, Championship Manager will go online through subscription during the
  second half of the 2005 financial year. We are confident that these advances
  and new applications will give the successful Championship Manager franchise
  a new fan base and enable the game to appeal to a wider audience. Our Crystal
  Dynamics Studio in the US is continuing the development of the next Tomb Raider
  game which will be unveiled this Autumn and is scheduled for release in the
  fourth quarter of the 2005 financial year. Following the internal transfer of
  the Tomb Raider franchise from Core Design to Crystal Dynamics, Core Design
  has been refocused and restructured. A number of the new concept ideas and pre-production
  works, for both platform and PlayStation Portable (PSP) application, are being
  developed in this studio. During the year, the Company continued to derive revenue
  and leverage value from its own intellectual property. This included a movie
  deal entered into for Fear Effect (similar to those previously entered into
  for Tomb Raider and Deus Ex) and a dialogue with various film studios in relation
  to other products is on-going.

New Media

On October 28, 2003, we announced the creation
    of a New Media Division, formed to help facilitate the extension of our intellectual
    property into new markets using a coordinated and strategic approach. The
    division has since undertaken a number of successful projects bringing our
    existing products to market through new distribution channels, particularly
    online, and introducing some of our key brands to new platforms such as mobile
    phone handsets, new handheld game devices and interactive digital TV. During
    the year, income from these new platforms has been generated following agreements
    with AT&T, Bell Canada, China Telecom, Metaboli, Nokia, Sky and Vodafone,
    among many others. The Company has advanced its owned IP into new applications
    through new franchise titles scheduled to release in the 2005 financial year,
    namely 25 To Life, Project: Snowblind and Just Cause, each of which are either
    wholly or partly online game products. Although the New Media Division is
    at an early stage of development, it continues to gain momentum and is already
    making a positive contribution to the Company's financial position.

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The Board

On July 15, 2003, the Company announced that
  Jeremy Heath-Smith, Development Director of Eidos plc and Managing Director
  of Core Design Limited, was stepping down from the Boards of both companies
  with immediate effect. On October 28, 2003, the Company announced that Simon
  Protheroe would step down from the Eidos plc Board following his appointment
  as head of the New Media Division and that Jonathan Kemp, European Managing
  Director, was being promoted to the Eidos plc Board on December 1, 2003.

Our People

In what turned out to be a challenging year,
  our employees have again exerted great efforts in striving to deliver upon the
  Companys objectives. We would like to take this opportunity to recognise
  their achievements and thank them for their continued dedication and support.

Strategic Review

As we have previously indicated, the entertainment
  software market continues to evolve and mature with franchise scale and diversity,
  aligned to financial strength, becoming ever more important. In addition, there
  is the continuing need to invest more heavily in R&D ahead of the next hardware
  cycle. These market trends and the changing competitive landscape have led Eidos
  to become increasingly reliant on the performance of key titles. With this in
  mind, the Board initiated a review of the strategic alternatives available to
  Eidos in order to exploit fully the potential of the Companys extensive
  portfolio of intellectual property and development capabilities. This review
  commenced in June and remains in progress under the direction of the Chairman.
  On August 3, the Board of Eidos confirmed that it had received expressions
  of
  interest from a number of parties. On October 18, the Board announced that discussions, which relate to a possible
  sale of the Company, are progressing well, although there can be no certainty
  at
  this stage as to whether or not they will lead to an offer being made for the
  Company.

Continued Development

Notwithstanding the ongoing strategic review,
  management remains focused on driving the business forward and is committed
  to providing the design, innovation and technological advancement that can further
  improve the gameplay experience. To that end, we have a significant release
  schedule planned for the 2005 financial year which includes a strong mix of
  sequel and new franchise titles. Five titles are planned for release in the
  first half and nine titles in the second half, including the next editions in
  the highly successful Hitman and Tomb Raider franchises.



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Year ended June 30, 2004 compared to
  year ended June 30, 2003

Turnover

Turnover decreased by 11.6% to £133.9
  million compared to £151.5 million in the year to June 30, 2003. Overall,
  the Group recorded a loss after tax of £2.9 million compared to a profit
  of £19.2 million in the year to June 30, 2003.

The Company released 22 new game skus
  in the year (2003: 27), including five for PlayStation 2 and six for Xbox with
  the balance being principally PC game releases. In total, 12.5 million units
  were shipped in 2004, the same as for 2003. There was a decrease in the gross
  average selling price from £13.73 to £12.72 over the year reflecting
  increased sales of our back catalogue titles. Approximately 73% of the Groups
  total revenue was derived from console based games, compared to 74% in the same
  period last year.

Operating Results

The gross margin was 62.8% compared to 59.0%
  in 2003. This increase reflects the move towards internally generated intellectual
  property.

Operating expenses increased to £89.7
  million from £78.8 million. This increase arises largely from certain
  non-recurring savings made in 2003 together with the increase in goodwill amortisation
  arising from the acquisition of IO Interactive A/S in March 2004.

Advertising costs were £20.2 million
  (15.1% of turnover) compared to £18.3 million (12.1% of turnover) last
  year. This reflects the trend for increasing advertising support being required
  to promote game releases. The fixed element of selling and marketing costs was
  £6.5 million compared to £7.4 million in the previous year. The
  reduction in expenditure is due to the full year impact of savings made in the
  prior year.

Research and development, representing the
  Groups total investment in product development, totalled £39.2 million
  (2003: £32.6 million). The 20% increase in this cost reflects the Companys
  commitment to invest in developing quality titles in future, and certain non-recurring
  savings which occurred during the previous year. The Group expects the level
  of expenditure to increase again in the 2005 financial year.

Total administrative
    expenses for the year were £23.8 million including goodwill amortisation
    of £1.6 million, compared to £20.4 million including goodwill amortisation
    of £0.2 million in 2003. The increase in the amortisation charge resulted
    from the goodwill arising on the acquisition of IO Interactive A/S on March
    31, 2004. Also included in administrative expenses for 2004 are foreign exchange
    losses of £0.8 million against £0.9 million of foreign exchange
    gains in 2003. While the Group continues to invest in management and infrastructure,
    it will also continue to manage its administrative expenses.

After deducting total operating expenses of
  £89.7 million, the Group made an operating loss of £3.6 million.
  After deducting operating expenses before goodwill of £88.1 million, the
  Group made an operating loss before goodwill of £2.0 million. This included
  the Groups share of joint venture operating profits of £2.1 million.
  This compares to an operating profit of £13.2 million and an operating
  profit before goodwill and exceptional items for the prior year of £13.9
  million, which included joint venture operating profits of £3.0 million.

Exceptional Items

There were no exceptional items during the
  year. During 2003, the Group received a £1.4 million settlement, net of
  costs, in respect of its former investment in Express.com. The Group took an
  exceptional charge against the full carrying value of this investment in the
  year to 31 March 2001 and Express.com subsequently filed for Chapter 11 bankruptcy
  protection.

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Taxation

The Group recorded a tax charge in the year
  of £1.0 million which largely comprises the Groups share of taxes
  payable in its profitable joint venture companies. Significant brought forward
  losses remain available within the Group to offset future trading profits. The
  Company has reviewed the provisions of FRS19 Deferred Tax and believes
  that no further amounts should be recognized in respect of these losses.

Earnings Per Share

The Group reported a loss of £2.9 million
  for the year compared to a profit of £19.2 million for the previous year.
  The basic (loss)/earnings per share was (2.1) p compared to 13.8p for 2003,
  based on the weighted average number of shares in issue during the year.

Liquidity and Capital Resources

Net assets at June 30, 2004 included goodwill
  of £25.3 million (2003: £0.3 million), tangible fixed assets and
  investments of £10.4 million (2003: £7.4 million as restated, see
  note 2 in Item 8), net current assets of £40.2 million (2003: £67.9
  million) and other long term creditors and provisions of £3.9 million
  (2003: £0.03 million).

At the year end, the Group had cash and cash
  equivalents of £37.4 million (2003: £58.2 million) and no debt (2003:
  £nil). The decrease in cash primarily resulted from the acquisition of
  IO Interactive A/S as referred to below. There was a cash outflow before the
  management of liquid resources and financing of £18.4 million during the
  year (2003: £0.8 million). Operating activities generated a cash inflow
  of £8.2 million (2003: £4.7 million outflow), reflecting the operating
  loss offset by a decrease in working capital during the year.

Interest received decreased to £1.9 million
  in the year to June 30, 2004 from £3.1 million in the previous year. The
  decrease was primarily due to lower average cash balances held during the year
  and the lower average interest rates that existed throughout the year.

Year ended June 30, 2003 compared to
  year ended June 30, 2002

NB: Please note that the Company changed its
  year end during 2002 from March 31, to June 30. This discussion below compares
  the year ended June 30, 2003, to the year ended June 30, 2002.

The Groups results for the year ended
  June 30, 2003 showed continued significant improvements in its operating and
  financial performance. Turnover increased by 29.8% to £151.5 million compared
  to £116.7 million in the year to June 30, 2002. Gross margins increased
  to 59.0% compared to 58.3% and there were further reductions in the Groups
  fixed cost base. Overall the Group recorded a net profit after tax of £19.2
  million for the year to June 30, 2003 compared to a loss of £15.3 million
  for the year to June 30, 2002.

Turnover

We released 27 new game versions in the year
     to June 30, 2003 (2002: 18), including seven for PlayStation 2 and five
    for
  Xbox with the balance being principally PC game releases. A number of key franchise
     titles such as Tomb Raider: The Angel of Darkness, Hitman 2: Silent Assassin,

  TimeSplitters 2 and Championship Manager 4, each sold circa one million units
     during the year to June 30, 2003. The balance of our portfolio in favour
    of
  pillar titles represented a significant improvement over the prior year.Catalogue sales of earlier versions of franchise
  titles such as Tomb Raider, Deus Ex and TimeSplitters remained strong in the
  year. In total, 12.5 million units were shipped in the year to June 30, 2003,
  compared to 11.4 million units during the year to June 30, 2002. There was
  an
  increase in the gross average selling price from £12.22 to £13.73
   over the year to June 30, 2003 resulting from the strong performance of our

  franchise titles. Overall, approximately 75% of Eidos revenue for the
  year to June 30, 2003 was derived from console based games, compared to 65%
in the prior year.

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Operating results

The gross margin for the year to June 30, 2003
  was 59.0% compared to 58.3% for the year to June 30, 2002.

Total operating expenses for the year ended
  June 30, 2003 fell to £76.3 million from £82.3 million for the year
  to June 30, 2002. The decrease in operating expenses arose largely from the
  full year impact of savings made in prior years together with certain non-recurring
  savings made in research and development.

Advertising costs in the year to June 30, 2003
  were £18.3 million (12.1% of turnover) compared to £13.7 million
  (11.8% of turnover) for the year to June 30, 2002. This reflected the strong
  promotional support for our pillar titles released during the year to June 30,
  2003. The fixed element of selling and marketing costs was £7.4 million
  compared to £8.1 million in the prior year. The reduction in expenditure
  was due to the full year impact of savings that arose from salary and licence
  amortization costs in our publishing businesses.

Research and development, representing the
  Groups total investment in product development, totalled £32.6 million
  in 2003 (2002: £39.0 million). This decrease reflected the move toward
  internally developed franchise titles and certain non-recurring savings.

Total administrative expenses for the year
  to June 30, 2003 were £20.4 million including goodwill amortization of
  £0.2 million, compared to £24.2 million including goodwill amortization
  of £4.2 million in 2002. The reduction in the amortization charge resulted
  from the goodwill relating to the acquisition of Crystal Dynamics becoming fully
  amortized during the year to June 30, 2002. Administrative expenses before goodwill
  amortization were £20.2 million compared to £20.0 million for the
  year to June 30, 2002.

After deducting total operating expenses of
  £76.3 million, Eidos reported an operating profit of £13.2 million
  for the year to June 30, 2003. This included the Groups share of joint
  venture operating profits of £2.5 million (including goodwill amortization
  of £0.5 million). This compares to an operating loss for the year to June
  30, 2002 of £20.8 million, which included joint venture operating profits
  of £1.8 million.

Exceptional items

During the year to June 30, 2003 the Group
  received a £1.4 million litigation settlement, net of costs, in respect
  of its former investment in Express.com. The Group took an exceptional charge
  against the full carrying value of this investment in the year to March 31,
  2001 and Express.com subsequently filed for Chapter 11 bankruptcy protection.

Taxation

Included within the tax credit for the financial
  year 2003 was an amount of £5.6 million relating to the release of provisions
  in respect of prior year contingent tax liabilities. This release reflected
  the results of discussions with the Inland Revenue during the 2003 financial
  year.

Earnings per share

Eidos reported a profit after tax of £19.2
  million for the year to June 30, 2003 compared to a loss of £15.3 million
  for the year to June 30, 2002. The basic earnings per share was 13.8p compared
  to a loss of 11.1p for the year to June 30, 2002, based on the weighted average
  number of shares in issue during the year to June 30, 2003.

Critical Accounting Policies

The Group prepares its consolidated financial
     statements in accordance with U.K. GAAP as described under the heading Item
      3  Key Information  Selected Financial Data and
      reconciles  such to U.S. GAAP to the extent required by the rules of the
      US Securities and
  Exchange Commission. In preparing the consolidated financial statements in
      accordance  with both U.K. GAAP and U.S. GAAP senior management have to
      make certain key
  assumptions and estimates that affect the reported amounts of assets and liabilities
       and disclosure of contingent liabilities at the date of the financial
      statements
  and the reported amounts ofrevenues and expenses during the reporting periods.
  In doing so, they have to exercise considerable judgement in respect of matters
  which are inherently uncertain. The U.K GAAP accounting policies described below
  are considered critical by senior management because they provide the framework
  within which the Group attempts to quantify and assess the assumptions and estimates
  which have the greatest bearing on the consolidated financial statements. Any
  change in the estimates used could materially affect the reported results and
  actual conditions may differ from those assumed.

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Sales Returns and Allowances and Price
  Protection Reserves

The majority of the Groups reported revenue
  is derived from the sale of pre-packaged entertainment software. Revenue is
  recorded at the point of sale, net of taxes and provisions for future returns
  and price protection. In common with other publishers of entertainment software
  the Group operates a number of territory-specific programmes under which retailers
  may qualify to return unsold product, subject to certain qualifying conditions.
  Alternatively the Group may offer price protection programmes in certain markets,
  though again these are subject to the satisfaction of certain qualifying conditions.
  Typically the Group maintains a policy of issuing credits under such programmes.

By analysing historical rates of return and
  price protection in conjunction with a number of key variables including the
  prevailing market and economic conditions at that time, the Group is able to
  estimate future expected rates of returns and price protection. The adequacy
  of the reserves generated by these estimated rates is reviewed regularly in
  the light of current market and economic conditions, considering in particular
  up to date patterns of sell-through, anticipated trends in the hardware and
  software markets, seasonal factors, perceived consumer preferences and general
  economic conditions.

In the past the Group has not always been able
  to accurately estimate the adequacy of its reserves. In 2001 the Group reported
  that this was caused by the sell through of products released in the previous
  year being less than anticipated as a result of continuing consumer uncertainty
  surrounding the release of new video game hardware platforms. Since then all
  of the new hardware platforms have now been successfully launched and senior
  management have taken significant steps to impose new procedures and controls
  on the estimation of the Groups exposure to future returns and price protection.
  In addition measures have been put in place to control the flow of new product
  into the market place as over stocking in retail and distribution channels may
  also generate significant future exposures for the Group. The senior management
  of the Group believes that the controls that they have put in place enable it
  to make a more realistic estimation of the groups exposure to future returns
  and price protection. Nevertheless if the Group were to change certain of the
  key estimates or assumptions that underpin its calculations, then the level
  of reserves carried at the balance sheet date would be altered as would the
  reported net gain for the period. Similarly if actual credits issued for returns
  and price protection are in excess of the level of reserves carried, then future
  reported revenues might be reduced in the future. Conversely if the level of
  actual credits is less than the reserve, then this could increase future reported
  revenues.

Taxes

The estimation of the Groups consolidated
  tax charge is a complex matter encompassing many different international tax
  jurisdictions. In calculating the Group charge management has to make certain
  estimates regarding individual exposures in different countries and assess the
  recoverability of deferred tax assets. It can often take many years to finalise
  individual tax charges and to reach agreement on areas of contention with the
  relevant tax authorities. The Company recognises tax benefits from exposures
  only when it is probable that those benefits will be retained. There is no guarantee
  that the level of provision carried in respect of open tax items at any one
  time, will be sufficient to meet final liabilities as they are agreed and fall
  due.

In reviewing the recoverability of deferred
  tax assets in the jurisdictions with a cumulative history of losses the Group
  has limited the recognition of deferred tax assets to reversing deferred tax
  liabilities. Estimates of future income are considered only for those jurisdictions
  with a history of predictable profits. Changes in the estimates used to assess
  the recoverability of deferred tax assets could affect the level of assets carried
  in the balance sheet at the period-end and also the level of tax charge in the
  profit and loss account for the period.

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Goodwill Impairment

The Group capitalizes and amortizes goodwill
  in respect of the acquisition of certain subsidiaries and associated undertakings
  in accordance with FRS10: Goodwill and Intangibles. The Group makes certain
  estimates regarding the useful life of goodwill that take account of a number
  of factors including the future prospects for the entity concerned and the projections
  for both net income and net cash-flow. To the extent that these projections
  no longer justify the carrying value of any remaining goodwill, the amortization
  charge will be accelerated to the degree required to reflect the revised estimate
  of the fair value of the goodwill. The carrying value of investments carried
  at cost are also reviewed in a similar fashion and to the extent that an investments
  carrying value can be shown to be permanently impaired, then full provision
  will be made through the profit and loss account.

The estimates used in assessing the carrying
  value of both goodwill and investments carried at cost rely on assumptions made
  about the performance and prospects of the entities themselves and also about
  the markets in which they operate. Where the entities do not have an established
  track record or where they are operating in new or emerging markets then the
  inherent uncertainty in forecasting future performance may be compounded. To
  the extent that projections no longer substantiate the recorded values of either
  goodwill or investments carried at cost, then net income may be adversely affected.

The value of unamortized goodwill held within
  intangible assets at June 30, 2004 was £25,258,000 (June 30, 2003: £252,000).
  The carrying value of investments carried at cost within fixed asset investments
  at June 30, 2004 was £4,205,000. (June 30, 2003: £2,746,000 as restated
  (see note 2 in Item 8)).

Valuation of inventory

The Group carries its inventory of finished
  goods at the lower of cost and net realisable value. In order to determine what
  this carrying value should be, management has to estimate the price that they
  expect to achieve on the future sale of the stock. This process involves reviewing
  current patterns of demand in the market and projecting these forward. It may
  also require an assessment of how future demand could be affected by changes
  in the wholesale price charged by the Group and by other factors that may be
  beyond the control of the group. In this way management will seek to determine
  the most realistic price that they believe can be achieved and hence the likelihood
  that inventories on hand can be sold at or above cost. Should managements
  estimates of current or future demand prove to be unrealistic, then the Group
  may fail to achieve a wholesale price that is sufficient to cover the carrying
  value of the inventory and hence the charge to the profit and loss account may
  be greater than expected.

The total amount of inventory on hand at June
  30, 2004 was £3,457,000 (June 30, 2003: £2,772,000).

New Accounting Standards

New UK Accounting Standards and Pronouncements
  Applicable to the Group

FRS 20

On April 7, 2004 the Accounting Standards Board
  issued FRS 20 -Share-based payment.
  FRS 20 is effective for periods commencing on or after January 1, 2005. The
  Company will first adopt the standard in its financial statements for the year
  ended June 30, 2006. Upon adoption it will supersede the accounting requirements
  of UITF Abstract 17 Employee share schemes. FRS 20 applies to all share options
  and share purchase schemes, including Save As You Earn schemes, and to both
  equity-settled and cash-settled share based payment arrangements, whether with
  employees or third party providers of goods and services. The key change introduced
  by the standard is the requirement to recognise an expense for all share-based
  payments based on the fair value of the instrument. Market based performance
  conditions are taken account of in the measurement of the fair value of the
  instrument granted, and no subsequent adjustments made. Service conditions and
  non-market based performance conditions cause subsequent adjustments to the
  number of shares/options in respect of which the fair value is charged to the
  profit and loss account. The Company is in the process of evaluating the impact
  on the financial statements of the Group.

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FRS 21

On May 20, 2004 the Accounting Standards Board
  issued FRS 21 Events after
  the balance sheet date. FRS 21 replaces SSAP 17 
  Post balance sheet events, and is effective for periods beginning on or after
  January 1, 2005. Early adoption is not permitted. The Company will first adopt
  the standard in its financial statements for the year ended June 30, 2006. The
  key change introduced by FRS 21 is that an entity will no longer be permitted
  to recognise dividends declared after the balance sheet date as a liability
  at the balance sheet date. Equally, dividends receivable cannot be recognized
  until the entity is entitled to receive payment. The standard is not expected
  to have a significant impact on the financial statements of the Group.

New US Accounting Standards and Pronouncements
  Applicable to the Group

FAS 150

In May 2003, the FASB issued Statement No.
  150, Accounting for Certain Financial Instruments with Characteristics
  of Both Liabilities and Equity. Statement 150 requires that certain financial
  instruments with characteristics of both liabilities and equity be classified
  as a liability. In November 2003, the FASB deferred application of certain provisions
  of Statement 150 through FASB Staff Position (FSP) 150-3 which eliminates the
  disclosure requirements for certain mandatorily redeemable instruments and prohibits
  early adoption for instruments within the scope of the deferrals established
  by FSP 150-3. The Company does not expect the adoption of this statement will
  have a material impact on the Companys financial position, results of
  operations or cash flows.

Liquidity and capital resources

The Groups policy is to use a combination
  of committed bank facilities and equity in order to ensure that it has sufficient
  financial resources to meet its short and long term funding requirements. Subsequent
  to the end of fiscal 2001, a 1 for 3 rights issue was announced. In this rights
  issue, each holder of three Ordinary Shares (excluding holders of American Depositary
  Shares, and ordinary shareholders located in the U.S. and Canada, Australia,
  Ireland or Japan) was offered the right to purchase one ordinary share for £1.55.
  Following receipt of £51.6 million, net of expenses, raised from the rights
  issue, the Groups borrowings were repaid and the terms of the credit facility
  with the Royal Bank of Scotland amended to a committed £15 million multi
  currency facility. This facility is secured by a fixed and floating charge over
  the assets of the Group.. A separate borrowing facility of £0.8 million
  was secured by the Groups Japanese subsidiary with Mizuho Bank Limited,
  also in 2002. This facility was reduced to £0.5 million during fiscal
  2003.

The £15 million facility was renewed
  in fiscal 2005 (maturing in September 2005). Overall at June 30, 2004, the Group
  had undrawn committed facilities of £16.8 million (June 30, 2003: £15.5
  million), denominated £15 million in Sterling, £0.5 million in Japanese
  Yen and £1.3 million in Danish Krone. Although the Group did not need
  to draw down against the Sterling facility, under the terms a draw down would
  only have been permissible if certain covenants were met. During the relevant
  period the Group was in full compliance with these covenants. The Group believes
  that the requirements of its existing business and future investment can be
  met for at least the next 12 months from its current cash reserve and committed
  facilities.

The Group also held short-term deposits at
  June 30, 2004 of £12.6 million (June 30, 2003: £30.3 million). Credit
  risk on transactions is minimized by operating within the parameters of the
  Group treasury policy. Most of the Groups surplus funds are held in the
  United Kingdom and there are no material funds as to which repatriation is restricted
  as a result of foreign exchange regulations.

Capital Resources

Net assets at June 30, 2004 include goodwill
  of £25.3 million (June 30, 2003: £0.3 million), tangible fixed assets
  and investments of £10.4 million (June 30, 2003: £7.4 as restated,
  see note 2 in Item 8), net current assets of £40.2 million (June 30, 2003:
  £67.9 million) and other long term creditors and provisions of £3.9
  million (June 30, 2003: £nil).

At the year end Eidos had cash balances of
  £37.4 million (June 30, 2003: £58.2 million) and no gross debt (June
  30, 2003: nil). There was a cash outflow before the management of liquid resources
  and financing of £18.4 million during the year (30 June 2003: 0.8 million).
  Operating activities generated a cash inflow of£8.2
  million (June 30, 2003: cash outflow of £4.7 million), reflecting the
  operating loss offset by a decrease in working capital during the year.

As discussed above the Group
    has committed facilities of £16.8 million, £15 million maturing
    September 2005 and £0.5 million on 31 December 2004. The £1.3
    million Danish Krone facility has no maturity date. The facilities bear interest
    at rates based on inter-bank interest rates. The purpose of the facilities
is to meet short and long term requirements. Historically the Groups borrowing
requirements have arisen from a seasonal working capital cycle. The intensity
of the cycle can be affected by a number of factors, however it is primarily
the Groups release schedule and resulting performance of the titles in the market
place (see also ‘Risk Factors’).

The Group also provides working
    capital to its overseas subsidiaries in their functional currencies and hedges
    its exposure in accordance with the Groups Treasury policy. The Groups
    objective in managing the currency exposures is to minimise gains and losses
    arising. To this end the Group may use financial instruments (forward contracts,
    swaps, options) to manage currency exposures that arise on both funding and
    trading balances denominated in foreign currencies. Changes in the fair values
    of instruments used to hedge foreign currency monetary assets and liabilities
    are recognized in the hedged periods.

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Research and Development, Patents and
  Licenses

During the 15 month period ended June 30, 2002,
  and the years ended June 30, 2003 and June 30, 2004, the Group has invested
  an aggregate of just over £120 million (including employment costs) on
  research and development (£48 million, £33 million and £39
  million in each period respectively). The investment relates to video compression,
  processing and storage technology and developing entertainment software. Such
  investments were made mainly in the U.K. and the U.S.A. and consisted mainly
  of salaries and related employment costs incurred in the development of its
  technology and games. See Item 5  Operating and Financial Review
  and Prospects.

Trend information

The following trends could have a material
  impact on the Groups net revenues, profitability, and liquidity and capital
  resources.

a) The market for video games follows a cycle
  that is defined by the introduction of new hardware platform that replace older
  and less sophisticated technology. The market for video games is widely believed
  to be in the mature upswing of its current cycle as all of the next generation
  consoles have now been established. It may be the case that this cycle will
  enter its down swing in the next two to three years as the major manufacturers
  of videogame platforms announce and introduce their next generation of hardware.

b) The Group may invest in its core business
  of developing and publishing computer and video games through either or both
  of organic growth and acquisition.

Safe Harbor Statement

The statements contained herein, which are
  not historical facts, are considered forward-looking statements under federal
  securities laws. Such forward-looking statements are based on the beliefs of
  our management as well as assumptions made by and information currently available
  to them. The Company has no obligation to update such forward-looking statements.
  Actual results may vary significantly from these forward-looking statements
  based on a variety of factors. Your particular attention is drawn to the Cautionary
  Statement with Respect to Forward Looking Statements on the cover page.

Off-Balance Sheet Arrangements

The Group had no material off-balance sheet
  arrangements at June 30, 2004.

Tabular disclosure of contractual obligations

|Contractual
            obligation as atJune
            30,2004 |  |  |        |  |  |         |  |  | Payment Due by period |  |  |           |  |  |          | 
|---------------------------------------------------------------- |  |  | ------ |  |  | ------- |  |  | --------------------- |  |  | --------- |  |  | -------- | 
|                                                                 |  |  |        | 
|                                                                 |  |  | Total  |  |  | <1 year |  |  | 1-3 years             |  |  | 3-5 years |  |  | >5 years | 
|                                                                 |  |  |        |  |  |         |  |  |                       |  |  |           |  |  |          | 
|                                                                 |  |  | £000  |  |  | £000   |  |  | £000                 |  |  | £000     |  |  | £000    | 
|Capital (Finance) Lease obligations                              |  |  | 756    |  |  | 345     |  |  | 411                   |  |  |          |  |  |         | 
|Operating Lease obligations                                      |  |  | 12,026 |  |  | 3,652   |  |  | 5,131                 |  |  | 1,963     |  |  | 1,280    | 
|Payments to developers                                           |  |  | 5,334  |  |  | 5,334   |  |  |                      |  |  |          |  |  |         | 
|                                                                 |  |  |        |  |  |         |  |  |                       |  |  |           |  |  |          | 
|Total                                                            |  |  | 18,116 |  |  | 9,331   |  |  | 5,542                 |  |  | 1,963     |  |  | 1,280    | 
|                                                                 |  |  |        |  |  |         |  |  |                       |  |  |           |  |  |          | 

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ITEM 6  DIRECTORS, SENIOR MANAGEMENT
  AND EMPLOYEES

Directors and senior management

The business address of the directors and executive
  officers of the Group is c/o Eidos plc, Wimbledon Bridge House, 1 Hartfield
  Road, Wimbledon, London SW19 3RU.



|Name                                    |  | Position/Role                                                   | 
|--------------------------------------- |  | --------------------------------------------------------------- | 
|                                        |  |                                                                 | 
|Directors  Executive                   |  |                                                                 | 
|Stuart Cruickshank                      |  | Chief Financial Officer                                         | 
|Jeremy Heath-Smith                      |  | Development Director (resigned
    July 14, 2003)               | 
|Jonathan Kemp                           |  | European Managing Director (appointed
        December 1, 2003) | 
|Ian Livingstone                         |  | Creative Director                                               | 
|Michael McGarvey(3)                     |  | Chief Executive Officer                                         | 
|Simon Protheroe                         |  | Technical Director (resigned
    October 28, 2003)              | 
|                                        |  |                                                                 | 
|Directors  Non-Executive               |  |                                                                 | 
|David Adams(1)
      (2) (3)            |  | Non-Executive Director                                          | 
|John van Kuffeler(2)
      (3)          |  | Non Executive Chairman                                          | 
|Victor Steel(1)
      (2) (3)           |  | Non-Executive Director                                          | 
|Allen Thomas(1)
      (2) (3)           |  | Non-Executive Director                                          | 
|                                        |  |                                                                 | 
|Other Executive Officers /Key Employees |  |                                                                 | 
|Michael Arnaouti                        |  | Company Secretary and Corporate
    Services Director           | 
|Robert Dyer                             |  | President of Eidos, Inc. (resigned
    September 10, 2004)      | 
|David Rose                              |  | European Development Director                                   | 
|John Spinale                            |  | Senior VP North American Development                            | 

|   
|---
|(1)
|(2)
|(3)

Stuart Cruickshank

Mr. Cruickshank was appointed to the Board
  as Chief Financial Officer in September 2001 from Kingfisher plc where he had
  been the Finance Director of Woolworths. Prior to joining Kingfisher he was
  Corporate Finance Director at United Biscuits and Finance Director at McVities
  UK and KP Foods. Mr. Cruickshank has also worked at Grand Metropolitan (Diageo)
  and Whitbread, where he undertook a wide variety of financial roles.

Jeremy Heath-Smith

Mr. Heath-Smith served as Worldwide Head of
  Development from January 2000 and as a director of the Company from April 1996
  to July 2003. From November 1994 to April 1996, Mr. Heath-Smith served as a
  main Board Director of CentreGold plc in addition to his role as Managing Director
  of U.S. Gold Limited. In July 1988, he founded Core Design Limited, an interactive
  software developer and publisher that was acquired by CentreGold plc in 1994.
  Mr. Heath-Smith resigned as a director on July 14, 2003.

Jonathan Kemp

Promoted to the Board on December 1, 2003,
  Mr. Kemp has served as European Managing Director since November 2000. Prior
  to that he served as Managing Director of Eidos Interactive Limited from November
  1998 and as its Sales Director from October 1997 to November 1998. Before joining
  Eidos Mr. Kemp was Sales Director of Microprose Software Limited.

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Ian Livingstone

A member of the Board since October 1995, Mr.
  Livingstone was appointed Creative Director in April 2002 when he stepped down
  as Executive Chairman, a position he had held since 1995. From May 1994 to October
  1995 Mr. Livingstone was Managing Director of Domark Group Limited. Since 1982,
  Mr. Livingstone has authored and co-authored the Fighting Fantasy
  series of interactive game books which have sold in excess of 14 million copies
  worldwide. In 1975, he co-founded Games Workshop Limited, a role-playing games
  company, where he served as Joint Managing Director and subsequently as Chairman
  until 1991.

Michael McGarvey

Promoted to the Board in October 1997 and appointed
  Chief Executive Officer in November 2000, Mr. McGarvey previously served as
  Chief Operating Officer from 1997. Prior to that Mr. McGarvey had been Chief
  Executive Officer of Eidos Interactive Inc, Vice President, Sales and Marketing
  of Domark Software Inc and Director of Sales for Diceon Electronics Inc.

Simon Protheroe

Mr. Protheroe served as Technical Director
  of the Company and as a director from June 1994 to October 2003. From July 1993
  to December 1993, Mr. Protheroe served as a consultant to the Group. He has
  conducted post-graduate studies and subsequent research in the field of image
  processing and he has published works in the fields of image sequence analysis,
  machine vision and neural networks. He has developed software for the Joint
  European Torus and the Defence Research Agency. He resigned from the Board on
  October 28, 2003.

David Adams

Mr. Adams joined the Board in May 2001 as a
  non-executive Director and was appointed Senior Independent Director in March
  2003. He is currently Deputy Chief Executive and Finance Director of House of
  Fraser Plc. Mr. Adams was previously Finance Director of Asprey Plc, Texas Homecare,
  Dorothy Perkins and Topshop.

John van Kuffeler

Mr. van Kuffeler joined the Board as non-executive
  Chairman in April 2002 and is also Chairman of Provident Financial plc and Huveaux
  PLC and a director of The Medical Defence Union. Prior to taking up these appointments
  he was Chief Executive of Provident Financial plc and Brown Shipley Holdings
  plc.

Victor Steel

Mr.
  Steel has served as a non-executive Director since September 1998. He is also
  Chairman of Forbidden Technologies plc, Mygard plc and Ideas Hub plc, and non-executive
  Deputy Chairman of Navy Army and Air Force Institutes. Mr. Steels previous
  appointments were as Chairman of Mansfield Brewery plc and European Leisure
  plc and as Executive Director of Kingfisher plc, Guinness plc and Beecham Group
  plc.

Allen Thomas

Mr.
  Thomas joined the Board in September 1998 as a non-executive Director and is
  a lawyer qualified in England and the US. He currently also serves as a non-executive
  Director of Highway Insurance Holdings Plc and Penna Consulting Plc. From 1973
  to 1992 Mr. Thomas served as a partner of the international law firm Paul, Weiss,
  Rifkind, Wharton & Garrison, and was the founding partner of the firms
  Hong Kong office.

Mr.
  Dyer has served as President of Eidos Interactive, Inc., a wholly owned subsidiary
  of the Company, since November 1998. From February 1994 to October 1998, Mr.
  Dyer worked at Crystal Dynamics, Inc. and in his most recent position, was President.
  Prior to joining Crystal Dynamics, Mr. Dyer worked for Disney Home Video International
  as Director of Sales and Business Development from December 1991 through January
  1994. Mr. Dyer resigned with effect from September 10, 2004.

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Michael ArnaoutiMr. Arnaouti was appointed Company Secretary
  of Eidos plc in June 2002 and Corporate Services Director on July 1, 2004. He
  joined the Company from from Spirent plc, where he had been Company Secretary
  for ten years. Prior to that Mr. Arnaouti was Assistant Company Secretary to
  the Rio Tinto Zinc (Metal Group) Limited. Mr. Arnaouti graduated in Business
  Studies from the University of Bristol and is a qualified Chartered Secretary.

David RoseMr. Rose has held the position of European
  Development Director since July 2003, prior to this performing the role of External
  Development Director. He joined Eidos in April 1999 from Sony/Psygnosis, where
  Mr. Rose held various positions including Studio Manager, Programming Manager
and Head Programmer.

John SpinaleMr.
  Spinale is the Senior Vice President of North American Development. He was promoted
  to that position in February 2004, having previously been General Manager of
  Crystal Dynamics Inc, Eidos North American console development house.
  Prior to joining Eidos in 2002, Mr. Spinale was VP Product Development for MobileSys
  Inc, a wireless enterprise software and network services company which he joined
  via their acquisition of Bitmo Inc, which he founded in 1998; he served as Chief
  Executive Officer. Mr. Spinale began his career in games at Activision Inc in
  1993 where he served in a variety of production and management roles, building
  several major products and participating in the creation of a worldwide development
  infrastructure. He holds a degree in Engineering from Yale University.

Compensation

The amounts paid to Directors during fiscal
  2004 were as follows:

|                   |         | Salary and  |               | Severance |  | Taxable |  | Pension |  | Total   | 
|------------------ | ------- | ----------- | ------------- | --------- |  | ------- |  | ------- |  | ------- | 
|Fees               | Payment | Benefits(1) | contributions |          
|                   |         |             |               |           |  |         |  |         |  |         | 
|                   |         | £000       |               | £000     |  | £000   |  | £000   |  | £000   | 
|Executives         |         |             |               |           |  |         |  |         |  |         | 
|Mr. Cruickshank    |         | 203.3       |               |          |  | 26.9    |  | 24.4    |  | 254.6   | 
|Mr. Heath-Smith(2) |         | 62.4        |               | 236.0     |  | 8.0     |  | 7.5     |  | 313.9   | 
|Mr. Kemp(3)        |         | 113.8       |               |          |  | 13.4    |  | 11.9    |  | 139.1   | 
|Mr. Livingstone    |         | 240.0       |               |          |  | 27.6    |  | 28.8    |  | 296.4   | 
|Mr. McGarvey       |         | 366.3       |               |          |  | 113.5   |  | 21.2    |  | 501.0   | 
|Mr. Protheroe(4)   |         | 28.9        |               |          |  | 4.8     |  | 3.5     |  | 37.2    | 
|Non-Executive      |         |             |               |           |  |         |  |         |  |         | 
|Mr. Adams          |         | 42.0        |               |          |  |        |  |        |  |        | 
|Mr. Van Kuffeler   |         | 105.0       |               |          |  |        |  |        |  | 105.0   | 
|Mr. Steel          |         | 42.0        |               |          |  |        |  |        |  | 42.0    | 
|Mr. Thomas         |         | 42.0        |               |          |  |        |  |        |  | 42.0    | 
|                   |         |             |               |           |  |         |  |         |  |         | 
|Total              |         | 1,245.7     |               | 236.0     |  | 194.2   |  | 97.3    |  | 1,773.2 | 
|                   |         |             |               |           |  |         |  |         |  |         | 
|                   |         |             |               |           |  |         |  |         |  |         | 
|Notes:             |         |             |               |           |  |         |  |         |  |         | 

|(1) | Taxable benefits include
        expensed company cars, life, disability and healthcare insurance coverage.
        Michael McGarvey (the highest paid director), also received the benefit
        of £62,080 in relation to Company provided housing accommodation
        during the year. With effect from 23 May 2004, a cash allowance has been
      paid to him in lieu of this benefit at a current annual rate of £69,484.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|(2) | Jeremy Heath-Smith resigned
        as a director of Eidos plc and Core Design Limited on July 14, 2003.
        He remained on paid leave until September 30, 2003 while the Company
        undertook a development and technology capability review of the Core
        Design studio. Effective from September 30, 2003, Mr. Heath-Smith left
        the Companys employment and received a severance payment of £236,000
        (gross) representing the residual value of his 12 month contractual notice
        entitlement. The payment was made under a Compromise and Settlement Agreement,
        which, inter alia, reaffirmed the continuing nature of various post-termination
        restrictive covenants owed by him to the Company. No further payments
        are due or payable to Mr. Heath-Smith arising from either his former
        offices or the cessation of his employment with the Company.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|(3) | Jonathan Kemp was appointed
        to the Board on December 1, 2003.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|(4) | Simon Protheroe resigned
        from the Board on October 28, 2003.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             



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Annual Incentive Bonus Plan

A revised bonus scheme was introduced for the
  fiscal year ended June 30, 2004, which was designed to reward executive directors
  and other senior executives for the achievement of annual objectives. The new
  plan is targeted at rewarding the achievement of challenging financial goals
  (below which no bonus is earned) as determined by the Remuneration Committee
  at the beginning of each financial year with reference to the Companys
  business plans and market expectations. A small proportion of the bonus opportunity
  (typically 15%) may be earned for achieving stretching personal performance
  objectives providing corporate objectives are met. The maximum bonus opportunity
  for executive directors is 100% of salary for full achievement of all performance
  targets. No bonus entitlements were earned in respect of the year under review
  (2003: £118,000).

Employment Contracts of Currently Serving
  Directors and Executive Officers

Mr. Cruickshank and the Company are parties
  to a Service Agreement pursuant to which Mr. Cruickshank serves as Chief Financial
  Officer. Mr Cruickshanks salary is reviewable annually. As of July 1,
  2004 Mr. Cruickshanks salary is £213,000 per year. Either party
  may terminate the agreement with twelve months notice. Mr. Cruickshank
  is also entitled to bonuses as determined by the Board of Directors of the Company.
  In the year ended June 30, 2004, no bonus was paid.

Mr. Kemp and the Company are parties to a Service
  Agreement pursuant to which Mr. Kemp serves as European Managing Director. Mr.
  Kemps salary is reviewable annually. As of July 1, 2004 his salary is
  £204,800 per year. In order to terminate the agreement, twelve months
  notice is required from the Company and six months from Mr. Kemp. Mr. Kemp is
  also entitled to bonuses as determined by the Board of Directors of the Company.
  In the year ended June 30, 2004, no bonus was paid.

Mr. Livingstone and the Company are parties
  to a Service Agreement pursuant to which Mr. Livingstone serves as Creative
  Director. As of July 1, 2004 Mr. Livingstones salary is £240,000
  per year. His salary is reviewable annually. Either party may terminate the
  agreement with six months notice. Mr. Livingstone does not participate
  in a bonus programme.

Mr. McGarvey and the Company are parties to
  a Service Agreement pursuant to which Mr. McGarvey serves as Chief Executive
  Officer. Mr. McGarveys salary is reviewable annually. As of July 1, 2004
  his salary is £366,300 per year. Either party may terminate the agreement
  with twelve months notice. Mr. McGarvey is also entitled to bonuses as
  determined by the Board of Directors of the Company. In the year ended June
  30, 2004, no bonus was paid.

Mr. Arnaouti and the Company are parties to
  a Service Agreement pursuant to which Mr. Arnaouti serves as Company Secretary
  and Corporate Services Director. Mr. Arnaoutis salary is reviewable annually.
  As of July 1, 2004 his salary is £165,000 per year. Either party may terminate
  the agreement with six months notice. Mr. Arnaouti is also entitled to
  bonuses as determined by the Board of Directors of the Company. In the year
  ended June 30, 2004, no bonus was paid.

Mr. Rose and the Company are parties to a Service
  Agreement pursuant to which Mr. Rose serves as European Development Director.
  Mr. Roses salary is reviewable annually. As of July 1, 2004 his salary
  is £140,000 per year. Either party may terminate the agreement with six
  months notice. Mr. Rose is also entitled to bonuses as determined by the
  Board of Directors of the Company. In the year ended June 30, 2004, no bonus
  was paid.

Mr. Spinale and Crystal Dynamics Inc
  are parties to a Service Agreement pursuant to which Mr. Spinale serves as
  General Manager. Mr. Spinales salary is reviewable annually. As of July
  1, 2004 his salary is $240,000 (£133,000) per year. Either party may
  terminate the agreement with six months notice. Mr. Spinale is also entitled
  to bonuses as determined by the Board of Directors of the Company. In the year
  ended June 30, 2004, no bonus was paid.

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Board Practices

The Audit Committee

This committee comprises three non-executive
  directors: Mr. Steel (Chairman); Mr. Thomas; and Mr. Adams. The Company believes
  that all members of the Audit Committee are independent
  within the meaning of the Sarbanes-Oxley Act of 2002 and the listing rules of
  the NASDAQ National Market. The Committee meets no less than four times a year
  with the external auditors together with various representatives of the executive,
  finance and internal audit functions in attendance. It also meets privately
  with the external auditors on a regular basis.

Among other responsibilities the Committee:
  is responsible for the appointment, review and remuneration of the external
  auditors and has authority to pre-approve their engagement for both audit and
  permitted non-audit services within an agreed framework; annually assesses the
  independence and objectivity of the auditors; reviews the annual and interim
  financial statements, the Groups accounting policies and procedures and
  its financial control environment; and reviews the Groups system of internal
  controls, including risk management.

The Remuneration Committee

The Remuneration Committee comprises the four
  non-executive directors: Mr. Thomas (Chairman); Mr. Steel; Mr. van Kuffeler;
  and Mr. Adams. It meets at least twice a year and otherwise as necessary. It
  advises the Board on the Companys remuneration strategy and determines,
  on behalf of the Board and within its remuneration policy, the individual remuneration
  package of each of the executive directors and all members of the senior management
  team. In setting the policy, the Committee considers a number of factors including:

(a) the basic salaries and benefits available
  to Executive Directors and Officers at comparable international businesses of
  similar size, particularly those with which the Company competes in the entertainment
  software industry;

(b) the need to attract, retain and motivate
  high calibre executives without paying excessively;

(c) the need to maintain an appropriate balance
  and linkage between fixed and performance related variable remuneration so as
  to effectively align the interests of the executive with those of shareholders;

(d)the
  need to provide remuneration packages based on local country practice; and

(e)the need to incentivize and reward superior performance both in the short and
  long-term.

The Committee meets on an ad hoc basis and
  has also received independent advice from external remuneration consultants.

No director is involved in deciding his own
  remuneration, whether determined by the Committee, or in the case of non-executives,
  by the Board. David Adams and Allen Thomas, both Remuneration Committee members,
  will stand for re-election as directors at the Companys forthcoming Annual
  General Meeting.

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Nomination Committee

The Nomination Committee comprises the four
  non-executive Directors (Mr. van Kuffeler (Chairman), Mr. Thomas, Mr. Steel
  and Mr. Adams) together with the Chief Executive and meets at least once a year.
  It is responsible for reviewing the composition and structure of the Board and
  for making recommendations to the Board for its consideration and approval.

Employees

The average weekly number of persons (including
  Executive Directors) employed by the Group during the year was:

|                                |                    |      | Year ended |  |  | Three monthsended |  |  | Year endedJune
      30, |  |  | Year endedJune
      30, | 
|------------------------------- | ------------------ | ---- | ---------- |  |  | ----------------- |  |  | ------------------------ |  |  | ------------------------ | 
|March 31,2002                   | June30,
      2002 | 2003 | 2004      
|                                |                    |      |            |  |  |                   |  |  |                          |  |  |                          | 
|Corporate                       |                    |      | 30         |  |  | 30                |  |  | 34                       |  |  | 35                       | 
|Computer entertainment software |                    |      | 513        |  |  | 509               |  |  | 502                      |  |  | 661                      | 
|                                |                    |      |            |  |  |                   |  |  |                          |  |  |                          | 
|Total                           |                    |      | 543        |  |  | 539               |  |  | 536                      |  |  | 696                      | 
|                                |                    |      |            |  |  |                   |  |  |                          |  |  |                          | 

Computer entertainment software staff can be
  further analyzed as follows:

|                         |  |  | U.K. |  |  | U.S. |  |  | Europe |  |  | Asia |  |  | Total | 
|------------------------ |  |  | ---- |  |  | ---- |  |  | ------ |  |  | ---- |  |  | ----- | 
|Sales and Marketing      |  |  | 49   |  |  | 25   |  |  | 42     |  |  | 9    |  |  | 125   | 
|Research and development |  |  | 127  |  |  | 187  |  |  |       |  |  | 9    |  |  | 323   | 
|Administration           |  |  | 12   |  |  | 31   |  |  | 15     |  |  | 7    |  |  | 65    | 
|                         |  |  |      |  |  |      |  |  |        |  |  |      |  |  |       | 
|Total                    |  |  | 188  |  |  | 243  |  |  | 57     |  |  | 25   |  |  | 513   | 
|                         |  |  |      |  |  |      |  |  |        |  |  |      |  |  |       | 
|                         |  |  |      |  |  |      |  |  |        |  |  |      |  |  |       | 

|                         |  |  | U.K. |  |  | U.S. |  |  | Europe |  |  | Asia |  |  | Total | 
|------------------------ |  |  | ---- |  |  | ---- |  |  | ------ |  |  | ---- |  |  | ----- | 
|Sales and Marketing      |  |  | 48   |  |  | 24   |  |  | 42     |  |  | 9    |  |  | 123   | 
|Research and development |  |  | 126  |  |  | 178  |  |  | 1      |  |  | 9    |  |  | 314   | 
|Administration           |  |  | 12   |  |  | 37   |  |  | 15     |  |  | 8    |  |  | 72    | 
|                         |  |  |      |  |  |      |  |  |        |  |  |      |  |  |       | 
|Total                    |  |  | 186  |  |  | 239  |  |  | 58     |  |  | 26   |  |  | 509   | 
|                         |  |  |      |  |  |      |  |  |        |  |  |      |  |  |       | 

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|                         |  |  | Year
      ended June 30, 2003
|------------------------ |  |  | ------------------------------
|                         |  |  |                               
|                         |  |  | U.K.                          
|                         |  |  | World                         
|Sales and Marketing      |  |  | 44                            
|Research and development |  |  | 137                           
|Administration           |  |  | 12                            
|                         |  |  |                               
|Total                    |  |  | 193                           
|                         |  |  |                               
|                         |  |  |                               

|                         |  |  | Year
          ended June 30, 2004 | 
|------------------------ |  |  | ---------------------------------- | 
|                         |  |  |                                    | 
|                         |  |  | U.K.                               | 
|Sales and Marketing      |  |  | 39                                 | 
|Research and development |  |  | 134                                | 
|Administration           |  |  | 10                                 | 
|                         |  |  |                                    | 
|Total                    |  |  | 183                                | 
|                         |  |  |                                    | 

Relationship between management and unions

There are no relationships between labor unions
  and any company within the Group.

Temporary employees

Within the Group, during fiscal 2004 there
  were on average 26 non-permanent employees every quarter.

Share ownership

Interest in Shares

The interests of the current Directors and
  Executive Officers in the shares of the company as at September 15, 2004 were
  as follows.

|                                           |  |  | Number of
      shares as atSeptember 15, 2004 |  |  | % Ownership |  
|------------------------------------------ |  |  | ---------------------------------------------- |  |  | ----------- | -
|                                           |  |  |                                                |  |  |             |  
|I Livingstone                              |  |  | 2,942,612                                      |  |  | 2.07        | %
|M McGarvey                                 |  |  | 64,913                                         |  |  | 0.05        | %
|J Kemp                                     |  |  | 20,087                                         |  |  | 0.01        | %
|S Cruickshank                              |  |  | 9,074                                          |  |  | 0.01        | %
|J van Kuffeler                             |  |  | 10,000                                         |  |  | 0.01        | %
|Remaining Directors and Executive Officers |  |  | 9,434                                          |  |  | 0.00        | %
|                                           |  |  |                                                |  |  |             |  
|Total of Directors and Executive Officers  |  |  | 3,056,120                                      |  |  | 2.15        | %
|                                           |  |  |                                                |  |  |             |  

In total, this shareholding represents 2.15%
  of the issued share capital of the Company.

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Interests in Share Options

As of September 15, 2004, options for Ordinary
  Shares had been granted to the following Directors and Executive Officers of
  the Company pursuant to the Groups share option schemes:

|Name               |  |  | OptionsOutstanding |  |  | Option Exercise Period/Vesting
      Date |  |  | Exercise Price
      perOrdinary Share |  
|------------------ |  |  | ------------------ |  |  | ----------------------------------------- |  |  | -------------------------------------- | -
|                   |  |  |                    |  |  |                                           |  |  |                                        |  
|Approved Schemes   |  |  |                    |  |  |                                           |  |  |                                        |  
|M Arnaouti         |  |  | 25,210             |  |  | 09/19/05
      to 09/19/12                |  |  | 119.00                                 | p
|S Cruickshank      |  |  | 11,764             |  |  | 09/05/04 to 09/05/11                      |  |  | 255.00                                 | p
|J Kemp             |  |  | 9,110              |  |  | 05/29/02
      to 05/28/09                |  |  | 329.21                                 | p
|I Livingstone      |  |  | 21,050             |  |  | 04/03/99 to 04/01/06                      |  |  | 142.48                                 | p
|D Rose             |  |  | 10,045             |  |  | 04/11/03
      to 04/10/10                |  |  | 298.63                                 | p
|                   |  |  |                    |  |  |                                           |  |  |                                        |  
|Unapproved Schemes |  |  |                    |  |  |                                           |  |  |                                        |  
|M Arnaouti         |  |  | 49,790             |  |  | 09/19/05
      to 09/19/09                |  |  | 119.00                                 | p
|                   |  |  | 75,000             |  |  | 10/17/06 to 10/17/10                      |  |  | 149.00                                 | p
|                   |  |  | 56,165             |  |  | 12/12/06
      to 12/12/13                |  |  | 133.00                                 | p
|                   |  |  |                    |  |  |                                           |  |  |                                        |  
|S Cruickshank      |  |  | 88,236             |  |  | 09/05/04
      to 09/05/08                |  |  | 255.00                                 | p
|                   |  |  | 100,000            |  |  | 09/11/06 to 09/11/10                      |  |  | 145.00                                 | p
|                   |  |  | 93,000             |  |  | 12/12/06
      to 12/12/13                |  |  | 133.00                                 | p
|J Kemp             |  |  | 129,855            |  |  | 05/29/02 to 05/28/06                      |  |  | 329.21                                 | p
|                   |  |  | 44,469             |  |  | 04/11/03
      to 04/10/07                |  |  | 298.63                                 | p
|                   |  |  | 75,000             |  |  | 07/25/04 to 07/25/08                      |  |  | 254.00                                 | p
|                   |  |  | 65,000             |  |  | 10/17/06
      to 10/17/10                |  |  | 149.00                                 | p
|                   |  |  | 117,430            |  |  | 12/12/06 to 12/12/13                      |  |  | 133.00                                 | p
|I Livingstone      |  |  | 166,666            |  |  | 04/28/06
      to 04/28/10                |  |  | 144.00                                 | p
|M McGarvey         |  |  | 1,111,725          |  |  | 10/14/01 to 10/13/05                      |  |  | 105.24                                 | p
|                   |  |  | 139,543            |  |  | 10/16/00
      to 10/14/04                |  |  | 154.26                                 | p
|                   |  |  | 366,300            |  |  | 12/12/06 to 12/12/13                      |  |  | 133.00                                 | p
|D Rose             |  |  | 17,747             |  |  | 04/11/03
      to 04/10/07                |  |  | 298.63                                 | p
|                   |  |  | 40,000             |  |  | 07/25/04 to 07/25/08                      |  |  | 254.00                                 | p
|                   |  |  | 40,000             |  |  | 09/19/05
      to 09/19/09                |  |  | 119.00                                 | p
|                   |  |  | 75,000             |  |  | 10/17/06 to 10/17/10                      |  |  | 149.00                                 | p
|                   |  |  | 31,900             |  |  | 12/12/06
      to 12/12/13                |  |  | 133.00                                 | p
|                   |  |  |                    |  |  |                                           |  |  |                                        |  

|U.S. Stock OptionSchemes |  |  |        |  |  |                            |  |  |        |  
|------------------------ |  |  | ------ |  |  | -------------------------- |  |  | ------ | -
|J Spinale                |  |  | 20,000 |  |  | 11/18/05
      to 11/18/09 |  |  | 204.00 | c
|                         |  |  | 20,000 |  |  | 04/15/06 to
      05/15/10 |  |  | 223.00 | c
|                         |  |  | 75,000 |  |  | 10/17/06
      to 10/17/10 |  |  | 149.00 | p
|                         |  |  | 30,850 |  |  | 12/12/06 to
      12/12/13 |  |  | 133.00 | p

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|Restricted Stock Awards |  |  |           |  |  |          |  |  |   | 
|----------------------- |  |  | --------- |  |  | -------- |  |  | - | 
|J Kemp                  |  |  | 37,500    |  |  | 09/20/05 |  |  |  | 
|                        |  |  | 10,000    |  |  | 10/17/06 |  |  |  | 
|M McGarvey              |  |  | 145,000   |  |  | 09/20/05 |  |  |  | 
|Performance SharePlan   |  |  |           |  |  |          |  |  |   | 
|S Cruickshank           |  |  | 81,300    |  |  | 12/12/06 |  |  |  | 
|J Kemp                  |  |  | 67,800    |  |  | 12/12/06 |  |  |  | 
|M McGarvey              |  |  | 244,200   |  |  | 12/12/06 |  |  |  | 
|                        |  |  |           |  |  |          |  |  |   | 
|Total                   |  |  | 3,691,655 |  |  |          |  |  |   | 
|                        |  |  |           |  |  |          |  |  |   | 



|                                                   |  |  | Number    |  |  | Maturity
      Date |  |  | Exercise
    Price |  
|-------------------------------------------------- |  |  | --------- |  |  | ------------------- |  |  | ------------------ | -
|                                                   |  |  |           |  |  |                     |  |  |                    |  
|Sharesave Scheme                                   |  |  |           |  |  |                     |  |  |                    |  
|M Arnaouti                                         |  |  | 9,742     |  |  | 05/01/06            |  |  | 97.00              | p
|S Cruickshank                                      |  |  | 9,742     |  |  | 05/01/06            |  |  | 97.00              | p
|J Kemp                                             |  |  | 9,742     |  |  | 05/01/06            |  |  | 97.00              | p
|M McGarvey                                         |  |  | 8,750     |  |  | 11/01/06            |  |  | 108.00             | p
|D Rose                                             |  |  | 7,306     |  |  | 12/01/07            |  |  | 129.00             | p
|                                                   |  |  |           |  |  |                     |  |  |                    |  
|Total                                              |  |  | 45,282    |  |  |                     |  |  |                    |  
|                                                   |  |  |           |  |  |                     |  |  |                    |  
|All directors and executive officersas
    a group |  |  | 3,736,937 |  |  |                     |  |  |                    |  
|                                                   |  |  |           |  |  |                     |  |  |                    |  

All Employee Option Plans

The Company operates an Inland Revenue approved
  SAYE Share Scheme (Sharesave Scheme) for all U.K. employees under
  which options may be granted with an exercise price discounted by up to 20%
  of the market price of an Eidos share at the date of grant. Similar schemes
  are operated in France, Germany and Japan. In the US, the Company operates an
  equivalent Employee Stock Purchase Plan under which employees may apply to purchase
  shares at a 15% discount to market price. These schemes are detailed in Item
  8, Note 21.

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ITEM 7  MAJOR SHAREHOLDERS AND
  RELATED PARTY TRANSACTIONS

Major Shareholders

As at December 10, 2004, the Company had been
  notified of the following interests in 3 per cent or more of its issued share
  capital.

|Shareholder                                         | No. of shares
      held |  | % of shares
      inissue | 
|--------------------------------------------------- | ------------------------ |  | ------------------------- | 
|Schroder Investment Management
      Limited        | 31,204,165               |  | 21.97                     | 
|Goldman Sachs Inc                                   | 15,556,280               |  | 10.95                     | 
|Taube Hodson Stonex Partners
      Limited          | 11,679,524               |  | 8.22                      | 
|Legal & General Investment
      Management Limited | 5,149,347                |  | 3.63                      | 
|T. Rowe Price Associates Inc                        | 4,500,000                |  | 3.17                      | 
|USB Global Asset Management (UK) Limited            | 4,466,607                |  | 3.15                      | 

None of foregoing major shareholders have voting
  rights different from those of the other shareholders of the Company. As far
  as the Group is aware it is not directly or indirectly owned or controlled by
  another corporation(s) or by any foreign government nor are there any arrangements,
  which may at a subsequent date result in a change of control of the Group.

At December 10, 2004 there were 5,931 holders of record of Ordinary shares and 5 of such holders were resident in the United States representing 0.001% of the issued Ordinary shares. In addition, at December 10, 2004 there were 119 holders of record of the Companys
American Depositary Shares (including 2 for DTC).

Related party transactions

In relation to material transactions, the Group
  has not identified any parties who are able to negotiate more favorable terms
  than would have been available to any other independent party on an arms
  length basis.

Year ended June 30, 2004

(a) During the year the Group paid £2.5
  million (year ended June 30, 2003: £3.3 million) to its associated undertakings
  as royalties and advances on games being developed for the Group.

(b) In July 1999, Eidos acquired a 75% stake
  in Proein SL, which is accounted for as a joint venture. In the year to June
  30, 2004 Eidos sold games to Proein SL totalling £2.6 million (year ended
  June 30, 2003: £1.6 million). In addition, in the same period Eidos paid
  £3.3 million (year ended June 30, 2003: £3.1 million) to Pyro Studios
  SL (in which Eidos owns a 26.7% stake) as royalties and advances for the development
  of games for Eidos. At June 30, 2004, Eidos was owed £47,000 (2003: £238,000)
  by Proein SL, and was owed £76,000 by Pyro Studios SL (2003: £283,000).

(c) The Group has taken advantage of the exemption
  in Financial Reporting Standard No. 8 in respect of subsidiaries, which are
  consolidated in these accounts.

Year ended June 30, 2003

(a) During the year the Group paid £3.3
  million to its associated companies as royalties and for development of games
  for the Group.

(b) In July 1999 the Group acquired a 75% stake
  in Proein SL. In the year ended June 30, 2003 the Group sold games to Proein
  SL for a total of £1.6 million after provisions. These games were all
  sold on an arms length basis. In addition in the same period the Group
  paid £3.1 million to Pyro Studios SL (in which the Group acquired a 25%
  stake) as royalties and for the development of games for the Group.

At June 30, 2003 the Group was owed £238,000
  by Proein SL (via a third party distributor) and owed Pyro Studios SL £283,000.

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(c) In June 2001 Eidos took its stake in Ion
  Storm to 89%. In the year ended June 30, 2003 the Group paid £5.4 million
  to Ion Storm for the development of games for the Group. At June 30, 2003 Ion
  Storm owed Eidos £3,831,000

(d) During the year, Eidos wrote off a £4,589
  royalty owed to one of its Directors, Ian Livingstone, for royalties owed in
  connection with a game to which he owned the rights, Deathtrap Dungeon. In addition,
  rights have been granted to a Korean company to develop a game based on his
  other works, for which the Korean company will pay Ian Livingstone a royalty.
  Eidos is helping to produce this game and will have European and US publishing
  rights to it, however, there is no royalty agreement in connection with this
  game between Eidos and Ian Livingstone.

Three months ended June 30, 2002

(a) During the quarter the Group paid £1.3
  million to its associated companies as royalties and for development of games
  for the Group.

(b) In July 1999 the Group acquired a 75% stake
  in Proein SL. In the Three months ended June 30, 2002 the Group sold games to
  Proein SL for a total of £179,000. These games were all sold on an arms
  length basis. In addition in the same period the Group paid £0.5 million
  to Pyro Studios SL (in which the Group acquired a 25% stake) as royalties and
  for the development of games for the Group.

At June 30, 2002 the Group was owed £24,000
  by Proein SL (via a third party distributor) and was owed by Pyro Studios SL
  £112,000.

(c) In June 2001 Eidos took its stake in Ion
  Storm to 89%. In the Three months ended June 30, 2002 the Group paid £1.4
  million to Ion Storm for the development of games for the Group. At June 30,
  2002 Ion Storm owed Eidos £4.6 million.

Year ended March 31, 2002

(a) During the year the Group paid £6.1
  million to its associated companies as royalties and for development of games
  for the Group.

(b) In July 1999 the Group acquired a 75% stake
  in Proein SL. In the year ended March 31, 2002 the Group sold games to Proein
  SL for a total of £1.1 million after provisions. These games were all
  sold on an arms length basis. In addition in the same period the Group
  paid £3.7 million to Pyro Studios SL (in which the Group acquired a 25%
  stake) as royalties and for the development of games for the Group.

At March 31, 2002 the Group was owed £105,000
  by Proein SL (via a third party distributor) and owed Pyro Studios SL £51,000.

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ITEM 8  FINANCIAL INFORMATION

Consolidated Statements and Other Financial
  Information.

EIDOS PLC AND SUBSIDIARIES

STATEMENT OF DIRECTORS RESPONSIBILITIES

The following statement, which should be read
  in conjunction with the report of the Independent Auditors set out on the next
  page, is made with a view to distinguishing for shareholders the respective
  responsibilities of the directors and of the auditors in relation to the consolidated
  financial statements.

Company law in the U.K. requires the directors
  to prepare financial statements for each financial period which give a true
  and fair view of the state of affairs of the Company and Group and of the profit
  or loss of the Group for that period. In preparing those financial statements,
  the directors are required to

| | select suitable accounting
      policies and then apply them consistently;                                                                                              
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                          
| | make judgements and estimates
      that are reasonable and prudent;                                                                                                     
|  |                                                                                                                                                                          
| | state whether applicable accounting
      standards have been followed, subject to any material departures disclosed
      and explained in the financial statements; and
|  |                                                                                                                                                                          
| | prepare the financial statements
      on the going concern basis unless it is inappropriate to presume that the
      Company and Group will continue in business.      

The directors are responsible for keeping proper
  accounting records which disclose with reasonable accuracy at any time the financial
  position of the Company and the Group and to enable them to ensure that the
  financial statements comply with the Companies Act 1985. They have responsibility
  for taking such steps as are reasonably open to them to safeguard the assets
  of the Group and to prevent and detect fraud and other irregularities.

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REPORT OF INDEPENDENT REGISTERED PUBLIC
  ACCOUNTING FIRM

The Board of Directors and Stockholders

Eidos plc

We have audited the accompanying consolidated
  balance sheets of Eidos plc and subsidiaries as of June 30, 2004 and 2003 and
  the related consolidated statements of operations, statements of total recognized
  gains and losses, and changes in shareholders equity and cash flows for
  the years ended June 30, 2004 and 2003, the three month period ended June 30,
  2002, and the year ended March 31, 2002. These consolidated financial statements
  are the responsibility of the Companys management. Our responsibility
  is to express an opinion on these consolidated financial statements based on
  our audits.

We conducted our audits in accordance with
  auditing standards generally accepted in the United Kingdom and the standards
  of the Public Company Accounting Oversight Board (United States). Those standards
  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. An audit also includes assessing the accounting
  principles used and significant estimates made by management, as well as evaluating
  the overall financial statement presentation. We believe that our audits provide
  a reasonable basis for our opinion.

In our opinion, the consolidated financial
  statements referred to above present fairly, in all material respects, the financial
  position of Eidos plc and subsidiaries as of June 30, 2004 and 2003 and the
  results of their operations and their cash flows for the years ended June 30,
  2004 and 2003, the three month period ended June 30, 2002, and the year ended
  March 31, 2002, in conformity with generally accepted accounting principles
  in the United Kingdom.

Accounting principles generally accepted in
  the United Kingdom vary in certain significant respects from accounting principles
  generally accepted in the United States of America. Information relating to
  the nature and effect of such differences is presented in Note 32 to the consolidated
  financial statements.

KPMG Audit Plc

London, England
  September 15, 2004



Chartered Accountants and Registered Auditor

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EIDOS PLC AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

|                                                              | Notes            |      | June 30, |   | June 30, |  
|------------------------------------------------------------- | ---------------- | ---- | -------- | - | -------- | -
|                                                              | 2003             | 2004
|                                                              | Restated, note 2 |     
|                                                              |                  |      |          |   |          |  
|                                                              |                  |      | £000    |   | £000    |  
|Fixed assets                                                  |                  |      |          |   |          |  
|Goodwill                                                      | 11               |      | 252      |   | 25,258   |  
|Tangible assets                                               | 12               |      | 4,681    |   | 6,167    |  
|Joint ventures                                                |                  |      |          |   |          |  
|Share
      of gross assets                                   |                  |      | 5,302    |   | 5,851    |  
|Share
      of gross liabilities                              |                  |      | (2,557   | ) | (1,646   | )
|                                                              |                  |      |          |   |          |  
|                                                              |                  |      | 2,745    |   | 4,205    |  
|Interest in associated undertaking                            | 13               |      | 1        |   |         |  
|                                                              |                  |      |          |   |          |  
|Total investments                                             |                  |      | 2,746    |   | 4,205    |  
|                                                              |                  |      |          |   |          |  
|Total fixed assets                                            |                  |      | 7,679    |   | 35,630   |  
|                                                              |                  |      |          |   |          |  
|Current assets                                                |                  |      |          |   |          |  
|Stocks                                                        | 14               |      | 2,772    |   | 3,457    |  
|Debtors, net of provision for doubtful
      accounts         | 15               |      | 39,122   |   | 16,162   |  
|Cash at bank and in hand                                      |                  |      | 58,242   |   | 37,404   |  
|                                                              |                  |      |          |   |          |  
|                                                              |                  |      | 100,136  |   | 57,023   |  
|Creditors: amounts falling due within one
      year          | 16               |      | (32,204  | ) | (16,775  | )
|Net current assets                                            |                  |      | 67,932   |   | 40,248   |  
|                                                              |                  |      |          |   |          |  
|Total assets less current liabilities                         |                  |      | 75,611   |   | 75,878   |  
|Creditors: amounts falling due after more
      than one year | 17               |      | (33      | ) | (411     | )
|Provisions for liabilities and charges                        | 18               |      |         |   | (3,531   | )
|                                                              |                  |      |          |   |          |  
|Net assets                                                    |                  |      | 75,578   |   | 71,936   |  
|                                                              |                  |      |          |   |          |  
|                                                              |                  |      |          |   |          |  
|Capital and reserves                                          |                  |      |          |   |          |  
|Called up share capital                                       | 20               |      | 2,799    |   | 2,840    |  
|Share premium account                                         | 22               |      | 138,315  |   | 78,594   |  
|Other reserves                                                | 22               |      | 707      |   | 690      |  
|Profit and loss account                                       | 22               |      | (65,967  | ) | (9,604   | )
|Reserve for own shares                                        |                  |      | (276     | ) | (2,564   | )
|                                                              |                  |      |          |   |          |  
|Equity shareholders funds                                    | 22               |      | 75,578   |   | 71,936   |  
|                                                              |                  |      |          |   |          |  

The accompanying notes are an
  integral part of these consolidated financial statements.

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EIDOS PLC AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS

|                                                                             |       |  | Year ended
      March 31, |    | Three monthsended June 30, |    | Year ended
      June 30, |   | Year ended
      June 30, |   
|---------------------------------------------------------------------------- | ----- |  | -------------------------- | -- | -------------------------- | -- | ------------------------- | - | ------------------------- | --
|                                                                             | Notes |  | 2002                       |    | 2002                       |    | 2003                      |   | 2004                      |   
|                                                                             |       |  |                            |    |                            |    |                           |   |                           |   
|                                                                             |       |  | £000                      |    | £000                      |    | £000                     |   | £000                     |   
|Turnover: Group (including share of joint
      ventures)                    |       |  | 130,939                    |    | 11,264                     |    | 169,048                   |   | 150,057                   |   
|Less: share of turnover
      of joint ventures                              |       |  | (10,659                    | )  | (2,967                     | )  | (17,514                   | ) | (16,140                   | ) 
|                                                                             |       |  |                            |    |                            |    |                           |   |                           |   
|Turnover                                                                     | 3     |  | 120,280                    |    | 8,657                      |    | 151,534                   |   | 133,917                   |   
|Cost of sales                                                                |       |  | (48,680                    | )  | (5,144                     | )  | (62,099                   | ) | (49,877                   | ) 
|                                                                             |       |  |                            |    |                            |    |                           |   |                           |   
|Gross profit                                                                 |       |  | 71,600                     |    | 3,513                      |    | 89,435                    |   | 84,040                    |   
|Selling and marketing                                                        |       |  | (20,554                    | )  | (5,308                     | )  | (25,747                   | ) | (26,703                   | ) 
|Research and development                                                     |       |  | (39,386                    | )  | (9,179                     | )  | (32,579                   | ) | (39,190                   | ) 
|Goodwill amortization                                                        |       |  | (6,906                     | )  | (71                        | )  | (264                      | ) | (1,567                    | ) 
|Other administrative
      expenses                                          |       |  | (20,292                    | )  | (4,580                     | )  | (20,173                   | ) | (22,208                   | ) 
|                                                                             |       |  |                            |    |                            |    |                           |   |                           |   
|Total administrative expenses                                                |       |  | (27,198                    | )  | (4,651                     | )  | (20,437                   | ) | (23,775                   | ) 
|                                                                             |       |  |                            |    |                            |    |                           |   |                           |   
|Group operating income/(loss)                                                |       |  | (15,538                    | )  | (15,625                    | )  | 10,672                    |   | (5,628                    | ) 
|Share of operating profit of joint ventures                                  |       |  | 1,446                      |    | 394                        |    | 2,950                     |   | 2,068                     |   
|Joint venture goodwill
      amortization                                    |       |  | (5,192                     | )  | (1,415                     | )  | (471                      | ) |                          |   
|                                                                             |       |  |                            |    |                            |    |                           |   |                           |   
|Profit / (loss) from
      operations                                        |       |  | (19,284                    | )  | (16,646                    | )  | 13,151                    |   | (3,560                    | ) 
|Exceptional income on sale of investments
      or termination of operations | 8     |  | 4,377                      |    |                           |    | 1,400                     |   |                          |   
|Income from investments                                                      |       |  | 152                        |    |                           |    |                          |   |                          |   
|Net interest income                                                          | 6     |  | 584                        |    | 160                        |    | 2,803                     |   | 1,609                     |   
|                                                                             |       |  |                            |    |                            |    |                           |   |                           |   
|Income/(loss) before
      tax                                               | 7     |  | (14,171                    | )  | (16,486                    | )  | 17,354                    |   | (1,951                    | ) 
|Income tax (expense) /benefit                                                | 9     |  |                           |    | (56                        | )  | 1,851                     |   | (962)                     |   
|                                                                             |       |  |                            |    |                            |    |                           |   |                           |   
|Net income/(loss)                                                            |       |  | (14,171                    | )  | (16,542                    | )  | 19,205                    |   | (2,913                    | ) 
|                                                                             |       |  |                            |    |                            |    |                           |   |                           |   
|Basic earnings/(loss)
      per share                                        | 10    |  | (10.7                      | )p | (11.8                      | )p | 13.8                      | p | (2.1                      | )p
|Diluted earnings/(loss) per share                                            | 10    |  | (10.7                      | )p | (11.8                      | )p | 13.7                      | p | (2.1                      | )p

The accompanying notes are an
  integral part of these consolidated financial statements.

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EIDOS PLC AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF TOTAL
RECOGNIZED GAINS AND LOSSES

|                                                                           |  | Year ended |   | Three months   |   | Year ended |   | Year ended |  
|-------------------------------------------------------------------------- |  | ---------- | - | -------------- | - | ---------- | - | ---------- | -
|                                                                           |  | March, 31  |   | ended June 30, |   | June 30,   |   | June 30,   |  
|                                                                           |  | 2002       |   | 2002           |   | 2003       |   | 2004       |  
|                                                                           |  |            |   |                |   |            |   |            |  
|                                                                           |  | £000      |   | £000          |   | £000      |   | £000      |  
|Net income/(loss) for the period                                           |  |            |   |                |   |            |   |            |  
|Group                                                                      |  | (15,220    | ) | (16,749        | ) | 17,186     |   | (4,437     | )
|Joint Ventures                                                             |  | 1,049      |   | 207            |   | 2,019      |   | 1,524      |  
|                                                                           |  |            |   |                |   |            |   |            |  
|                                                                           |  | (14,171    | ) | (16,542        | ) | 19,205     |   | (2,913     | )
|                                                                           |  |            |   |                |   |            |   |            |  
|Currency translation differences
      on foreign currency net investments |  |            |   |                |   |            |   |            |  
|Group                                                                      |  | (234       | ) | (583           | ) | (635       | ) | (1,349     | )
|Joint Ventures                                                             |  | (12        | ) | 209            |   | 406        |   | (126       | )
|                                                                           |  |            |   |                |   |            |   |            |  
|                                                                           |  | (246       | ) | (374           | ) | (229       | ) | (1,475     | )
|                                                                           |  |            |   |                |   |            |   |            |  
|Total recognized gains/(losses)
      relating to the period               |  | (14,417    | ) | (16,916        | ) | 18,976     |   | (4,388     | )
|                                                                           |  |            |   |                |   |            |   |            |  

The accompanying notes are an
  integral part of these consolidated financial statements.

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EIDOS PLC AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CHANGES
IN SHAREHOLDERS EQUITY:

|                                                                                                        |             |  |        |  |                 |   |          |   |         |  | Own Shares |   |                  |   |         |  
|------------------------------------------------------------------------------------------------------- | ----------- |  | ------ |  | --------------- | - | -------- | - | ------- |  | ---------- | - | ---------------- | - | ------- | -
|                                                                                                        |             |  |        |  | Additional paid |   | Other    |   | Merger  |  | Restated   |   | Profit           |   |         |  
|                                                                                                        | Shares (#)  |  | Amount |  | up capital      |   | Reserves |   | Reserve |  | (note 2)   |   | and loss account |   | Total   |  
|                                                                                                        |             |  |        |  |                 |   |          |   |         |  |            |   |                  |   |         |  
|                                                                                                        |             |  |        |  |                 |   |          |   |         |  |            |   |                  |   |         |  
|                                                                                                        |             |  | £000  |  | £000           |   | £000    |   | £000   |  | £000      |   | £000            |   | £000   |  
|Balances as of March 31, 2001                                                                           | 103,931,470 |  | 2,079  |  | 85,822          |   | 707      |   |        |  |           |   | (57,991          | ) | 30,617  |  
|Loss for the year                                                                                       |            |  |       |  |                |   |         |   |        |  |           |   | (14,171          | ) | (14,171 | )
|Exchange differences                                                                                    |            |  |       |  |                |   |         |   |        |  |           |   | (246             | ) | (246    | )
|Goodwill relating to the
      disposal of associated and
          other investments                   |            |  |       |  |                |   |         |   |        |  |           |   | 1,005            |   | 1,005   |  
|Provision for impairment in carrying value
      of goodwill in
          associated companies          |            |  |       |  |                |   |         |   |        |  |           |   | 3,299            |   | 3,299   |  
|Premium on issue of new shares                                                                          | 35,721,045  |  | 714    |  | 52,166          |   |         |   |        |  |           |   |                 |   | 52,880  |  
|                                                                                                        |             |  |        |  |                 |   |          |   |         |  |            |   |                  |   |         |  
|Balances as of March 31, 2002                                                                           | 139,652,515 |  | 2,793  |  | 137,988         |   | 707      |   |        |  |           |   | (68,104          | ) | 73,384  |  
|Loss for the year                                                                                       |            |  |       |  |                |   |         |   |        |  |           |   | (16,542          | ) | (16,542 | )
|Exchange differences                                                                                    |            |  |       |  |                |   |         |   |        |  |           |   | (374             | ) | (374    | )
|Premium on issue of new shares                                                                          | 100,840     |  | 2      |  | 119             |   |         |   |        |  |           |   |                 |   | 121     |  
|                                                                                                        |             |  |        |  |                 |   |          |   |         |  |            |   |                  |   |         |  
|Balances as of June 30, 2002                                                                            | 139,753,355 |  | 2,795  |  | 138,107         |   | 707      |   |        |  |           |   | (85,020          | ) | 56,589  |  
|Profit for the year                                                                                     |            |  |       |  |                |   |         |   |        |  |           |   | 19,205           |   | 19,205  |  
|Exchange differences                                                                                    |            |  |       |  |                |   |         |   |        |  |           |   | (229             | ) | (229    | )
|Premium on issue of new shares                                                                          | 208,168     |  | 4      |  | 208             |   |         |   |        |  |           |   |                 |   | 212     |  
|                                                                                                        |             |  |        |  |                 |   |          |   |         |  |            |   |                  |   |         |  
|Balances as of June 30, 2003                                                                            | 139,961,523 |  | 2,799  |  | 138,315         |   | 707      |   |        |  |           |   | (66,044          | ) | 75,777  |  
|Adjustment (note 2)                                                                                     |            |  |       |  |                |   |         |   |        |  | (276       | ) | 77               |   | (199    | )
|                                                                                                        |             |  |        |  |                 |   |          |   |         |  |            |   |                  |   |         |  
|Balance as of June 30 2003 (restated,
      note 2)                                                     | 139,961,523 |  | 2,799  |  | 138,315         |   | 707      |   |        |  | (276       | ) | (65,967          | ) | 75,578  |  
|Loss for the year                                                                                       |            |  |       |  |                |   |         |   |        |  |           |   | (2,913           | ) | (2,913  | )
|Exchange difference arising on consolidation                                                            |            |  |       |  |                |   |         |   |        |  |           |   | (1,475           | ) | (1,475  | )
|Reserve movement                                                                                        |            |  |       |  | (60,000         | ) |         |   |        |  |           |   | 60,000           |   |        |  
|Issuance of new shares in connection with
      the
          acquisition of IO Interactive             | 1,511,509   |  | 30     |  |                |   |         |   | 1,980   |  |           |   |                 |   | 2,010   |  
|Exercise of warrants, options and rights
      under
          US stock purchase plan                   | 529,439     |  | 11     |  | 279             |   | (17      | ) |        |  |           |   |                 |   | 273     |  
|Goodwill previously written off to reserves,
      transferred
          to the profit and loss account |            |  |       |  |                |   |         |   |        |  |           |   | 488              |   | 488     |  
|Purchase of own shares                                                                                  |            |  |       |  |                |   |         |   |        |  | (2,485     | ) |                 |   | (2,485  | )
|Awards of own shares under US stock purchase
      plan                                                 |            |  |       |  |                |   |         |   |        |  | 197        |   |                 |   | 197     |  
|Cost of employee share options                                                                          |            |  |       |  |                |   |         |   |        |  |           |   | 263              |   | 263     |  
|                                                                                                        |             |  |        |  |                 |   |          |   |         |  |            |   |                  |   |         |  
|Balances as of June 30, 2004                                                                            | 142,002,471 |  | 2,840  |  | 78,594          |   | 690      |   | 1,980   |  | (2,564     | ) | (9,604           | ) | 71,936  |  
|                                                                                                        |             |  |        |  |                 |   |          |   |         |  |            |   |                  |   |         |  

The accompanying notes are an
  integral part of these consolidated financial statements.

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EIDOS
  PLC AND SUBSIDIARIES 
  CONSOLIDATED STATEMENTS OF CASHFLOW

|                                                                                        | Notes                 |                        | Year ended           |                      | Three
            months |   | Year ended |   | Year
            ended |  
|--------------------------------------------------------------------------------------- | --------------------- | ---------------------- | -------------------- | -------------------- | ------------------------ | - | ---------- | - | ---------------------- | -
|                                                                                        | March
            31, | ended
            June | June
            30, | June
            30,
|                                                                                        | 2002                  | 30,
            2002   | 2003                 | 2004                
|                                                                                        |                       |                        |                      |                      |                          |   |           
|                                                                                        |                       |                        | £000                |                      | £000                    |   | £000      |   | £000                 
|Net cash inflow/(outflow) from
             operatingactivities                         | 24                    |                        | (15,448              | )                    | (3,116                   | ) | (4,674     | ) | 8,187                  |  
|                                                                                        |                       |                        |                      |                      |                          |   |            |   |                        |  
|Dividends from
      Joint Ventures and Associates                                      |                       |                        | 799                  |                      | —                        |   | 2,195      |   | 989                    |  
|Returns on investment and servicing
      of finance                                    |                       |                        |                      |                      |                          |   |            |   |                        |  
|Interest received                                                                       |                       |                        | 1,367                |                      | 1,382                    |   | 2,151      |   | 1,665                  |  
|Bank interest paid                                                                      |                       |                        | (986                 | )                    | (83                      | ) | (325       | ) | (199                   | )
|Interest paid on finance
      leases                                                   |                       |                        | (52                  | )                    | (82                      | ) | (28        | ) | (9                     | )
|Other interest paid                                                                     |                       |                        | —                    |                      | —                        |   | —          |   | 40                     |  
|                                                                                        |                       |                        |                      |                      |                          |   |            |   |                        |  
|                                                                                        |                       |                        | 329                  |                      | 1,217                    |   | 1,798      |   | 1,497                  |  
|                                                                                        |                       |                        |                      |                      |                          |   |            |   |                        |  
|Taxation                                                                                |                       |                        |                      |                      |                          |   |            |   |                        |  
|U.K. taxation (paid)
      / repaid                                                     |                       |                        | (9,147               | )                    | 10,824                   |   | 283        |   | (4,153                 | )
|Overseas taxation (paid) / repaid                                                       |                       |                        | 2,829                |                      | (60                      | ) | (28        | ) | (1,090                 | )
|                                                                                        |                       |                        |                      |                      |                          |   |            |   |                        |  
|                                                                                        |                       |                        | (6,318               | )                    | 10,764                   |   | 255        |   | (5,243                 | )
|                                                                                        |                       |                        |                      |                      |                          |   |            |   |                        |  
|Capital expenditure and financial
      investment                                      |                       |                        |                      |                      |                          |   |            |   |                        |  
|Purchase of tangible
      fixed assets                                                 |                       |                        | (2,294               | )                    | (750                     | ) | (1,756     | ) | (2,765                 | )
|Sale of tangible fixed assets                                                           |                       |                        | 10                   |                      | —                        |   | 18         |   | 13                     |  
|(Purchase) / sale of
      other investments                                            |                       |                        | 11,161               |                      |                         |   | —          |   | —                      |  
|Proceeds from sale of other investments                                                 |                       |                        | —                    |                      | —                        |   | 1,400      |   | —                      |  
|                                                                                        |                       |                        |                      |                      |                          |   |            |   |                        |  
|                                                                                        |                       |                        | 8,877                |                      | (750                     | ) | (338       | ) | (2,752                 | )
|                                                                                        |                       |                        |                      |                      |                          |   |            |   |                        |  
|Acquisitions and disposals                                                              |                       |                        |                      |                      |                          |   |            |   |                        |  
|Purchase of subsidiary
      undertaking                                                |                       |                        | —                    |                      | —                        |   | —          |   | (21,622                | )
|Net cash acquired with
      subsidiaries                                               |                       |                        | 371                  |                      | —                        |   | —          |   | 75                     |  
|Sale of associate                                                                       |                       |                        | —                    |                      | —                        |   | —          |   | 488                    |  
|                                                                                        |                       |                        |                      |                      |                          |   |            |   |                        |  
|                                                                                        |                       |                        | 371                  |                      | —                        |   | —          |   | (21,059                | )
|                                                                                        |                       |                        |                      |                      |                          |   |            |   |                        |  
|Net cash (outflow)/inflow before financing
      andmanagement of
     liquid resources |                       |                        | (11,390              | )                    | 8,115                    |   | (764       | ) | (18,381                | )
|                                                                                        |                       |                        |                      |                      |                          |   |            |   |                        |  
|Management of liquid resources                                                          |                       |                        |                      |                      |                          |   |            |   |                        |  
|Increase/(decrease) in term deposits                                                    | 25                    |                        | (34,030              | )                    | (4,051                   | ) | 7,785      |   | 17,569                 |  
|                                                                                        |                       |                        |                      |                      |                          |   |            |   |                        |  
|Financing                                                                               |                       |                        |                      |                      |                          |   |            |   |                        |  
|Issue of new ordinary shares                                                            |                       |                        | 52,880               |                      | 121                      |   | 212        |   | 273                    |  
|Repayment of principal under finance leases                                             |                       |                        | (223                 | )                    | 38                       |   | (223       | ) | (97                    | )
|Purchase of own shares (net proceeds from
      share    issuances)                     |                       |                        | —                    |                      | —                        |   | (276       | ) | (2,288                 | )
|                                                                                        |                       |                        |                      |                      |                          |   |            |   |                        |  
|                                                                                        |                       |                        | 52,657               |                      | 159                      |   | (287       | ) | (2,112                 | )
|                                                                                        |                       |                        |                      |                      |                          |   |            |   |                        |  
|Increase/(decrease)
      in cash in the period                                         | 25                    |                        | 7,237                |                      | 4,223                    |   | 6,734      |   | (2,924                 | )
|                                                                                        |                       |                        |                      |                      |                          |   |            |   |                        |  

The accompanying notes are an
  integral part of these consolidated financial statements.

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EIDOS PLC AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL
  STATEMENTS

|1 | Nature of Business and Organization
|- | -----------------------------------

The activities of Eidos plc (Eidos
  or the Company) and subsidiaries (including Eidos, the Group)
  during the periods presented herein were the developing and publishing of interactive
  software titles for PC and certain games consoles (under license with the console
  manufacturer), the design, manufacture and sale of video compression and video
  editing software, post-production video editing and new media design and consultancy.

Currently the principal markets for the Groups
  products, all of which are similar in size based on turnover, are the United
  States, United Kingdom and Continental Europe. Asia and the Rest of the World
  make up a small but growing part of the Group revenue. Computer software titles
  are sold primarily to wholesale and retail distributors.

The computer games industry is characterized
  by the dominance of hit titles; consequently a relatively small
  number of titles (or franchises) will often make up a significant proportion
  of turnover and net income. Eidos stated policy is to concentrate on quality
  titles and consequently titles which management believes to be marginal are
  often terminated or sub-licensed.

|2 | Summary of Significant Accounting
      Policies
|- | ------------------------------------------------

The financial statements have been prepared
  under the historical cost convention and in accordance with accounting principles
  generally accepted in the United Kingdom. A summary of the more important Group
  accounting policies, which have been applied consistently, is set out below.

These principles differ in certain significant
  respects from generally accepted accounting principles in the United States
  (U.S. GAAP). Application of U.S. GAAP would have affected shareholders
  funds and results of operations at June 30, 2003, and at June 30, 2004, and
  for the year ended March 31, 2002, the three month period ended June 30, 2002
  and the years ended June 30, 2003 and June 30, 2004 to the extent summarized
  in Note 32.

Basis of preparation

The information set out in these accounts does not constitute the companys statutory accounts for the years ended June 30, 2004 or 2003. Those accounts have been reported on by the companys auditors; their reports were unqualified and did not contain a statement under section 237(2) or (3) of the Companies Act 1985. The accounts for 2003 and 2004 have been delivered to the registrar of companies.

Changes in presentation of financial
  statements

During the year the group changed the following
  accounting policy:

Own shares

Own shares held by the Companys Employee
  Benefit Trust were previously classified as fixed asset investments under UITF
  13. For the shares that relate to the restricted stock scheme or the performance
  share plan, as prescribed by UITF 17, the difference between their market value
  at the date of grant and their exercise price is being charged to the profit
  and loss account over three years, the performance period of each scheme.

UITF 38  Accounting for ESOP Trusts,
  which has been adopted, has superseded UITF 13. The effect of adoption is to
  show the consideration paid by the Company for investments in its own shares
  as a deduction in arriving at shareholders funds, instead of fixed assets.
  This has resulted in fixed asset investments of £199,000 being transferred
  to an own shares reserve. As there is a requirement in UITF 38 to disclose the
  historic cost of own shares held, a further adjustment of £77,000, being
  the cumulative UITF 17 charge to date, has been reclassified from the profit
  and loss reserve to the own shares reserve.

The adjustments made for the adoption of UITF
  38 are shown in the consolidated statements of changes in shareholders
  equity.

Basis of consolidation

The consolidated profit and loss account and
  balance sheet include the financial statements of the Company and its subsidiary
  undertakings (the Group). The results of subsidiaries sold or acquired
  are included in the consolidated profit and loss account up to, or from, the
  date control passes. Intra-Group sales and profits are eliminated fully on consolidation.
  On acquisition of a subsidiary, all of the subsidiarys assets and liabilities
  that exist at the date of acquisition are recorded at their fair values reflecting
  their condition at that date. The group recognizes all changes to those assets
  and liabilities, and the resulting gains and losses that arise after the Group
  has gained control of the subsidiary.

Associated and joint venture undertakings

Associated undertakings are undertakings in
  which the Group holds a long-term interest and over which it actually exercises
  significant influence. Joint ventures are undertakings which are jointly controlled
  with other entities or individuals. The Groups share of profits less losses
  from associated and joint undertakings is included in the consolidated profit
  and loss account on the equity accounting basis. The holding value of associated
  undertakings is based upon the Groups equity in the net assets of such
  undertakings.

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Goodwill

Goodwill in respect of the acquisition of subsidiaries
  and associated undertakings represents the excess of the fair value of the consideration
  given over the fair value of the identifiable net assets acquired. Goodwill
  arising prior to April 1998 has been written off immediately against reserves.

Goodwill arising after April 1998 is capitalized
  and amortized to nil in the profit and loss account over the estimated useful
  economic life in accordance with FRS10.

A charge is recognized in the Groups
  profit and loss account in respect of any impairment in the value of goodwill.
  Goodwill written off directly to reserves and not previously charged to the
  Groups profit and loss account is included in determining the profit and
  loss of a subsidiary on disposal. Goodwill previously written off to reserves
  was not reinstated in the balance sheet when FRS10 was adopted. It has been
  offset against the merger reserve with the excess being offset against the profit
  and loss reserve.

Turnover

Turnover, which excludes sales between group
  companies, represents the invoiced amounts of goods sold, net of provisions
  for returns, value added tax and trade discounts (excluding co-operative advertising
  expenses). Revenue from licence agreements is recognized when the right to consideration
  is obtained in exchange for performance.

Tangible fixed assets

The cost of fixed assets is their purchase
  cost, together with any incidental costs of acquisition. Provision is made for
  depreciation on all tangible fixed assets at rates calculated to write off the
  cost less residual value of each asset over its expected useful life as follows:

Leasehold improvements: over the life of the
  lease;Fixtures and fittings: 20% per annum straight
  line; 
  Computer equipment: 33% per annum straight line; and 
  Motor vehicles: 25% per annum straight line.

Research and development

All research and development expenditure is
  charged to the profit and loss account as incurred. This includes all software
  development expenditure on individual titles, advance royalties paid under publishing
  agreements to external developers and advance royalties paid under licensing
  arrangements.

Investments

Investments held as fixed assets are stated
  at cost less provision for any impairment in value.

Licence fees

Licence fees payable to celebrities and professional
  sports organisations for use of their name over a number of years or for a range
  of products (a franchise), including sub-licence arrangements and fees payable
  through intermediaries, are charged to the profit and loss account as sales
  and marketing expenditure on the basis of actual product sales. Management relies
  on forecasts of sales to determine the relevant amortization rate of the licence
  fee.

Licence fees are classified as current and
  non-current assets based on the remaining life of the licence. Management regularly
  reviews the carrying value of such licences, including comparing actual sales
  to forecast, and will accelerate the amortization should circumstances require
  it.

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Taxation

Deferred tax is recognized, without discounting,
    in respect of all timing differences between the treatment of certain items
    for taxation and accounting purposes which have arisen but not reversed by
    the balance sheet date, except as otherwise required by FRS 19. Tax charges
    or credits arising on the retranslation of foreign currency borrowings used
    to finance or provide a hedge against equity investments in foreign enterprises
    are taken to the Statement of Total Recognized Gains and Losses together
    with the exchange differences on the borrowings themselves. A net deferred
    tax asset is regarded as recoverable and therefore recognized only when,
    on the basis of all available evidence, it can be regarded as more likely
    than not that there will be suitable taxable profits from which the future
  reversal of the underlying timing differences can be deducted.

Foreign currencies

Assets and liabilities of subsidiaries in
    foreign currencies are translated into sterling at rates of exchange ruling
    at the end of the financial period. The results and cash flows of foreign
    subsidiaries are translated at the average rate of exchange for the period.
    Gains or losses on exchange arising from the retranslation of the opening
    net investment in subsidiary companies and from the translation of the results
    of those companies are taken to reserves and are reported in the statement
    of total recognized gains and losses. Exchange differences arising from the
    retranslation of long-term foreign currency borrowings used to finance foreign
    currency investments are also taken to reserves. Transactions in foreign
    currencies are recorded using the rate of exchange ruling at the date of
    the transaction or if hedged forward, at the date of exchange under the related
    foreign currency contract. Monetary assets and liabilities denominated in
    foreign currencies are translated using the contracted rate or the rate of
    exchange ruling at the balance sheet date and the gains or losses on translation
  are included in the profit and loss account.

Stocks

Stocks are valued at the lower of cost and
    net realisable value. In general, cost is determined on a weighted average
    basis and includes transport and handling costs.

Finance and operating leases

Costs in respect of operating leases are
    charged on a straight line basis over the lease term. Leasing agreements,
    which transfer to the Group substantially all the benefits and risks of ownership
    of an asset are treated as if the asset has been purchased outright. The
    assets are included in fixed assets and the capital element of Group leasing
    commitments is shown as obligations under finance leases. The capital element
    is applied to reduce the outstanding obligations and the interest element
    is charged against profit so as to give a constant periodic rate of charge
    on the remaining balance outstanding at each accounting period. Assets held
    under finance leases are depreciated over the shorter of the lease terms
  and the useful lives of equivalent owned assets.

Pensions

The Group operates various defined contribution
    pension schemes. Contributions are recognized as they are incurred in accordance
  with the rules of the schemes.

Derivative financial instruments

The Group uses derivative financial instruments
    to reduce exposure to foreign exchange risk. The Group does not hold or issue
    derivative financial instruments for speculative purposes. For a forward
    foreign exchange contract to be treated as a hedge, the instrument must be
    related to actual foreign currency assets or liabilities or to a probable
    commitment. It must involve the same currency or similar currencies as the
    hedged item and must also reduce the risk of foreign currency exchange movements
    on the Groups operations. Gains and losses arising on these contracts
    are deferred and recognized in the profit and loss account, or as adjustments
    to the carrying amount of fixed assets, only when the hedged transaction
    has itself been reflected in the Groups accounts. If an instrument
    ceases to be accounted for as a hedge, for example, because the underlying
    hedged position is eliminated, the instrument is marked to market and any
  resulting profit or loss recognized at that time.

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Exceptional items

These are material items arising from events
    in the past or present ordinary activities of the Group and which due to
    their size or incidence are disclosed separately in order that the consolidated
  financial statements give a true and fair view.

Use of estimates

The preparation of the financial statements
    in conformity with U.K. GAAP requires management to make estimates and assumptions
    that affect the reported amounts of assets and liabilities and disclosure
    of contingent liabilities at the date of the financial statements and the
    reported amounts of revenues and expenses during the reporting periods. Actual
  results could differ from those estimates.

Management have reviewed the different estimates
    and assumptions that they have to make and have identified a number of critical
    accounting policies. These are the U.K. GAAP policies that are applied to
    those areas that require the greatest level of judgement and which could
    have the most material affect on the consolidated financial statements of
  the Group.

Sales Returns and Allowances and Price
  Protection Reserves

The majority of the Groups reported
    revenue is derived from the sale of pre-packaged entertainment software.
    Revenue is recorded at the point of sale, net of taxes and provisions for
    future returns and price protection. In common with other publishers of entertainment
    software the Group operates a number of territory-specific programmes under
    which retailers may qualify to return unsold product, subject to certain
    qualifying conditions. Alternatively the Group may offer price protection
    programmes in certain markets, though again these are subject to the satisfaction
    of certain qualifying conditions. Typically the Group maintains a policy
  of issuing credits under such programmes.

By analysing historical rates of return
    and price protection in conjunction with a number of key variables including
    the prevailing market and economic conditions at that time, the Group is
    able to estimate future expected rates of returns and price protection. The
    adequacy of the reserves generated by these estimated rates is reviewed regularly
    in the light of current market and economic conditions, considering in particular
    up to date patterns of sell-through, anticipated trends in the hardware and
    software markets, seasonal factors, perceived consumer preferences and general
  economic conditions.

In the past the Group has not always been
    able to accurately estimate the adequacy of its reserves and in the year
    ended March 31, 2001 reported an exceptional charge of £16.9 million
    in respect of additional returns reserves required. At the time the Group
    reported that this was caused by the sell through of products released in
    the previous year being less than anticipated as a result of continuing consumer
    uncertainty surrounding the release of new video game hardware platforms.
    Since then all of the new hardware platforms have now been successfully launched
    and senior management have taken significant steps to impose new procedures
    and controls on the estimation of the Groups exposure to future returns
    and price protection. In addition measures have been put in place to control
    the flow of new product into the market place as over stocking in retail
    and distribution channels may also generate significant future exposures
    for the Group. The senior management of the Group believes that the controls
    that they have put in place enable it to make a more realistic estimation
    of the groups exposure to future returns and price protection. Nevertheless
    if the Group were to change certain of the key estimates or assumptions that
    underpin its calculations, then the level of reserves carried at the balance
    sheet date would be altered as would the reported net loss for the period.
    Similarly if actual credits issued for returns and price protection are in
    excess of the level of reserves carried, then future reported revenues might
    be reduced in the future. Conversely if the level of actual credits is less
    than the reserve, then this could increase future reported revenues

Taxes

The estimation of the Groups
      consolidated tax charge is a complex matter encompassing many different
      international tax
  jurisdictions. In calculating the Group charge management has to make certain
      estimates regarding individual exposures in different countries and assess
      the
  recoverability of deferred tax assets. It can often take many years to finalise
      individual tax charges and to reach agreement on areas of contentionwith
      the relevant tax authorities. The Company recognises tax benefits from
      exposures only when it is probable that those benefits will be retained.
      There is no guarantee that the level of provision carried in respect of
      open tax items at any one time, will be sufficient to meet final liabilities
as they are agreed and fall due.

In reviewing the recoverability of deferred
    tax assets in the jurisdictions with a cumulative history of losses the Group
    has limited the recognition of deferred tax assets to reversing deferred
    tax liabilities. Estimates of future income are considered only for those
    jurisdictions with a history of predictable profits. Changes in the estimates
    used to assess the recoverability of deferred tax assets could affect the
    level of assets carried in the balance sheet at the period-end and also the
  level of tax charge in the profit and loss account for the period.

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The Group capitalizes and amortizes goodwill
  in respect of the acquisition of certain subsidiaries and associated undertakings
  in accordance with FRS10: Goodwill and Intangibles. The Group makes certain
  estimates regarding the useful life of goodwill that take account of a number
  of factors including the future prospects for the entity concerned and the consequent
  projections for both net income and net cash-flow. To the extent that these
  projections no longer justify the carrying value of any remaining goodwill,
  then the amortization charge will be accelerated to the degree required to reflect
  the revised estimate of the fair value of the goodwill. The carrying value of
  investments carried at cost are also reviewed in a similar fashion and to the
  extent that an investments carrying value can be shown to be permanently
  impaired, then full provision will be made through the profit and loss account.

The estimates used in assessing the carrying
  value of both goodwill and investments carried at cost rely on assumptions made
  about the performance and prospects of the entities themselves and also about
  the markets in which they operate. Where the entities do not have an established
  track record or where they are operating in new or emerging markets then the
  inherent uncertainty in forecasting future performance may be compounded.

To the extent that projections no longer substantiate
  the recorded values of either goodwill or investments carried at cost, then
  net income may be adversely affected.

Valuation of inventory

The Group carries its inventory of finished
  goods at the lower of cost and net realisable value. In order to determine what
  this carrying value should be, management has to estimate the price that they
  expect to achieve on the future sale of the stock. This process involves reviewing
  current patterns of demand in the market and projecting these forward. It may
  also require an assessment of how future demand could be affected by changes
  in the wholesale price charged by the Group and by other factors that may be
  beyond the control of the group. In this way management will seek to determine
  the most realistic price that they believe can be achieved and hence the likelihood
  that inventories on hand can be sold at or above cost. Should managements
  estimates of current or future demand prove to be unrealistic, then the Group
  may fail to achieve a wholesale price that is sufficient to cover the carrying
  value of the inventory and hence the charge to the profit and loss account may
  be greater than expected.

3     Segmental
  Analysis

The analysis by class of business of the Groups
  turnover, income before taxation and assets is set out below.

Turnover by class of business

|                   |                     | Year
      ended  |                   | Three months
    ended |  | Year ended |  | Year ended | 
|------------------ | ------------------- | ----------------- | ----------------- | ---------------------- |  | ---------- |  | ---------- | 
|March
    31, 2002 | June
      30, 2002 | June
    30, 2003 | June
    30, 2004
|                   |                     |                   |                  
|£000              | £000               | £000             | £000            
|Class of business  |                     |                   |                   |                        |  |            |  |            | 
|Computer software  |                     | 120,280           |                   | 8,657                  |  | 151,534    |  | 133,917    | 
|                   |                     |                   |                   |                        |  |            |  |            | 

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Income/(loss) on ordinary activities before
tax

|                            |               | Year
            ended    |                  | Three months
            ended |   | Year ended |  | Year ended |  
|--------------------------- | ------------- | ------------------------- | ---------------- | ------------------------------ | - | ---------- |  | ---------- | -
|March
            31, 2002  | June 30, 2002 | June
            30, 2003 | June30,
    2004
|                            |               |                           |                 
|£000                       | £000         | £000                     | £000           
|                            |               |                           |                  |                                |   |            |  |            |  
|Class
          of business |               |                           |                  |                                |   |            |  |            |  
|Computer
        software   |               | (14,156                   | )                | (16,486                        | ) | 17,354     |  | (1,951     | )
|Video editing               |               | (15                       | )                |                               |   |           |  |           |  
|                            |               |                           |                  |                                |   |            |  |            |  
|                            |               | (14,171                   | )                | (16,486                        | ) | 17,354     |  | (1,951     | )
|                            |               |                           |                  |                                |   |            |  |            |  

Net Assets/Net liabilities

|                           |                                |                               |                            |        |   | Year
        ended |  |        | 
|-------------------------- | ------------------------------ | ----------------------------- | -------------------------- | ------ | - | ------------------ |  | ------ | 
|Year
            ended     | Three
            months ended | June
                30, 2003 | Year
            ended    
|March
            31, 2002 | June 30, 2002                  | Restated
            (note 2) | June30,
              2004
|                           |                                |                               |                           
|£000                      | £000                          | £000                         | £000                     
|Class of business          |                                |                               |                            |        |   |                    |  |        | 
|Computer software          |                                | 76,179                        |                            | 59,384 |   | 75,578             |  | 71,936 | 
|Video editing              |                                | (2,795                        | )                          | (2,795 | ) |                   |  |       | 
|                           |                                |                               |                            |        |   |                    |  |        | 
|                           |                                | 73,384                        |                            | 56,589 |   | 75,578             |  | 71,936 | 
|                           |                                |                               |                            |        |   |                    |  |        | 

Video editing was provided by Eidos Post
    Productions Ltd (formerly Glassworks Productions Ltd), an 85% subsidiary,
    the business and assets of which were sold on December 15, 2000. The remaining
  net liabilities represent an intercompany balance with the Eidos group.

Turnover by destination

The Group organizes its computer software
  business by geographical area.

Eidos has offices in the United Kingdom,
    United States, France, Germany, Spain, Denmark, Australia and Japan. The
    latter two do not generate significant income in relation to the remainder
    of the Group and are included within the Rest of World segment.
    The French and German offices sell to other French and German speaking European
  countries (namely Belgium, Austria and Switzerland).

The turnover is attributable to the Groups
  principal activities and arose in the following geographical areas:

|                           |               | Year
            ended    |                            | Three months
            ended |   | Year ended |  | Year ended | 
|-------------------------- | ------------- | ------------------------- | -------------------------- | ------------------------------ | - | ---------- |  | ---------- | 
|March
            31, 2002 | June 30, 2002 | June
            30, 2003 | June30,
              2004
|                           |               |                           |                           
|£000                      | £000         | £000                     | £000                     
|United Kingdom             |               | 25,517                    |                            | 3,598                          |   | 36,323     |  | 29,265     | 
|France                     |               | 12,652                    |                            | 1,204                          |   | 12,746     |  | 17,431     | 
|Germany                    |               | 16,282                    |                            | 1,109                          |   | 14,123     |  | 13,552     | 
|Rest of Europe             |               | 16,951                    |                            | 974                            |   | 16,788     |  | 19,993     | 
|U.S.                       |               | 40,576                    |                            | 2,602                          |   | 62,274     |  | 42,518     | 
|Rest of World              |               | 8,302                     |                            | (830                           | ) | 9,280      |  | 11,158     | 
|                           |               |                           |                            |                                |   |            |  |            | 
|                           |               | 120,280                   |                            | 8,657                          |   | 151,534    |  | 133,917    | 
|                           |               |                           |                            |                                |   |            |  |            | 

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Turnover by origination

|                           |               | Year
            ended    |                            | Three
            months ended |  | Year
            ended |  | Year
            ended | 
|-------------------------- | ------------- | ------------------------- | -------------------------- | ------------------------------ |  | ---------------------- |  | ---------------------- | 
|March
            31, 2002 | June 30, 2002 | June
            30, 2003 | June30,
              2004
|                           |               |                           |                           
|£000                      | £000         | £000                     | £000                     
|United Kingdom             |               | 38,525                    |                            | 4,149                          |  | 51,059                 |  | 43,641                 | 
|France                     |               | 15,413                    |                            | 1,388                          |  | 15,733                 |  | 21,299                 | 
|Germany                    |               | 18,813                    |                            | 1,280                          |  | 16,017                 |  | 15,019                 | 
|U.S.                       |               | 43,046                    |                            | 1,126                          |  | 65,088                 |  | 48,820                 | 
|Rest of World              |               | 4,483                     |                            | 714                            |  | 3,637                  |  | 5,138                  | 
|                           |               |                           |                            |                                |  |                        |  |                        | 
|                           |               | 120,280                   |                            | 8,657                          |  | 151,534                |  | 133,917                | 
|                           |               |                           |                            |                                |  |                        |  |                        | 

Inter-segment sales (predominantly royalties)

|                           |               | By origination            |                           
|-------------------------- | ------------- | ------------------------- | --------------------------
|                           |               |                           |                           
|                           |               | Year
            ended    |                           
|March
            31, 2002 | June 30, 2002 | June
            30, 2003 | June30,
              2004
|                           |               |                           |                           
|£000                      | £000         | £000                     | £000                     
|United Kingdom             |               | 30,596                    |                           
|France                     |               |                          |                           
|Germany                    |               | 9                         |                           
|U.S.                       |               | 13,380                    |                           
|Rest of World              |               | 1,070                     |                           
|                           |               |                           |                           
|                           |               | 45,055                    |                           
|                           |               |                           |                           

Turnover from the joint ventures originates
    from Spain and relates to computer software. In addition, turnover in the
    U.K. includes £2,648,000 (year to June 30, 2003: £1,632,000,
    three months to June 30, 2002 £180,000, year to March 31, 2002: £1,157,000)
to the joint venture in Spain.

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Income/(loss) on ordinary activities before
tax

|                                                  |       | Year ended March 31,
    2002 |       | Three months ended
      June
    30, 2002 |   | Year ended June 30,
    2003 |   | Year ended June 30,
    2004 |  
|------------------------------------------------- | ----- | ----------------------------- | ----- | ------------------------------------------ | - | ---------------------------- | - | ---------------------------- | -
|                                                  |       |                               |      
|£000                                             | £000 | £000                         | £000
|Geographical segment                              |       |                               |       |                                            |   |                              |   |                              |  
|United Kingdom                                    |       | 5,728                         |       | (17,321                                    | ) | 7,108                        |   | (6,223                       | )
|France                                            |       | 1,165                         |       | (120                                       | ) | 1,540                        |   | 1,720                        |  
|Germany                                           |       | 349                           |       | (523                                       | ) | (999                         | ) | (1,784                       | )
|Spain (joint ventures)                            |       | (3,581                        | )     | (991                                       | ) | 2,562                        |   | 1,975                        |  
|Denmark                                           |       |                              |       |                                           |   |                             |   | 4,112                        |  
|U.S.                                              |       | (22,335                       | )     | 2,703                                      |   | 6,177                        |   | (1,589                       | )
|Rest of World                                     |       | 126                           |       | (234                                       | ) | (434                         | ) | (162                         | )
|                                                  |       |                               |       |                                            |   |                              |   |                              |  
|                                                  |       | (18,548                       | )     | (16,486                                    | ) | 15,954                       |   | (1,951                       | )
|                                                  |       |                               |       |                                            |   |                              |   |                              |  
|Profit/(loss) on investments  United
    Kingdom |       | 4,377                         |       |                                           |   | 1,400                        |   |                             |  
|                                                  |       |                               |       |                                            |   |                              |   |                              |  
|                                                  |       | (14,171                       | )     | (16,486                                    | ) | 17,354                       |   | (1,951                       | )
|                                                  |       |                               |       |                                            |   |                              |   |                              |  

Net Assets/Liabilities

|                       |       | June 30,
    2002 |   | June 30, 2003
      Restated
    (note 2) |   | June 30,
    2004 |  
|---------------------- | ----- | ----------------- | - | ----------------------------------------- | - | ----------------- | -
|                       |       |                  
|£000                  | £000 | £000            
|Geographical segment   |       |                   |   |                                           |   |                   |  
|United Kingdom         |       | 89,965            |   | 99,678                                    |   | 80,785            |  
|France                 |       | 1,724             |   | 3,369                                     |   | 4,347             |  
|Germany                |       | (324              | ) | (1,279                                    | ) | 1,601             |  
|Spain (joint ventures) |       | 3,789             |   | 2,745                                     |   | 3,919             |  
|Denmark                |       |                  |   |                                          |   | 7,201             |  
|U.S.                   |       | (38,980           | ) | (28,927                                   | ) | (25,788           | )
|Rest of World          |       | 415               |   | (8                                        | ) | (129              | )
|                       |       |                   |   |                                           |   |                   |  
|                       |       | 56,589            |   | 75,578                                    |   | 71,936            |  
|                       |       |                   |   |                                           |   |                   |  

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4     Directors
  emoluments

Detailed disclosures of the Directors
  individual remuneration and share options are also given in Item 6.

|                              |  | Year ended March 31,
    2002 |  | Three months ended
      June
      30, 2002 |  | Year ended June 30,
2003 |  | Year ended June 30,
2004 |    
|----------------------------- |  | ----------------------------- |  | -------------------------------------------- |  | ------------------------ |  | ------------------------ | ---
|                              |  |                               |  |                                              |  |                          |  |                          |    
|                              |  | £000                         |  | £000                                        |  | £000                    |  | £000                    |    
|Directors emoluments         |  |                               |  |                                              |  |                          |  |                          |    
|Salary payments and royalties |  | 1,090                         |  | 278                                          |  | 1,899                    |  | 1,015                    |    
|Fees                          |  | 114                           |  | 44                                           |  | 211                      |  | 231                      |    
|Company pension contributions |  | 98                            |  | 33                                           |  | 112                      |  | 97                       |    
|Other benefits                |  | 262                           |  | 71                                           |  | 209                      |  | 194                      |    
|Compensation payment          |  |                              |  |                                             |  |                         |  | 236                      | (1)
|                              |  |                               |  |                                              |  |                          |  |                          |    
|                              |  | 1,564                         |  | 426                                          |  | 2,431                    |  | 1,773                    |    
|                              |  |                               |  |                                              |  |                          |  |                          |    

1Effective
  from September 30, 2003, Mr Heath-Smith left the Companys employment and
  received a severance payment of £236,000 (gross) representing the residual
  value of his 12 month contractual notice entitlement. The payment was made under
  a Compromise and Settlement Agreement, which, inter alia, reaffirmed the continuing
  nature of various post-termination restrictive covenants owed by him to the
  Company. No further payments are due to Mr Heath-Smith arising from either his
  former offices or the cessation of his employment with the Company.

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Interests in share options

Details
    of options held by directors are
    set out below:

|                | As atJuly 1, 2003 or atdate of 
appointment if later |  | Granted
in year |  | Lapsed
in year |   | As at June 30,
2004 |  | Option price
(pence) |  | Date from which
exercisable |  | Expiry date |  | Note
|--------------- | ---------------------------------------------------- |  | --------------- |  | -------------- | - | ------------------- |  | -------------------- |  | --------------------------- |  | ----------- |  | ----
|                |                                                      |  |                 |  |                |   |                    
|Mr. Heath-Smith | 21,267                                               |  |                |  | (21,267        | ) |                    |  | 141.04               |  | n/a                         |  | n/a         |  |     
|                | 8,119                                                |  |                |  | (8,119         | ) |                    |  | 117.00               |  | n/a                         |  | n/a         |  |     
|                | 173,611                                              |  |                |  | (173,611       | ) |                    |  | 144.00               |  | n/a                         |  | n/a         |  |     
|                |                                                      |  |                 |  |                |   |                     |  |                      |  |                             |  |             |  |     
|Mr. Kemp        | 9,110                                                |  |                |  |               |   | 9,110               |  | 329.21               |  | 05/29/02                    |  | 05/28/09    |  | 1   
|                | 129,855                                              |  |                |  |               |   | 129,855             |  | 329.21               |  | 05/29/02                    |  | 05/28/09    |  | 1   
|                | 44,469                                               |  |                |  |               |   | 44,469              |  | 298.63               |  | 04/11/03                    |  | 04/10/07    |  | 1   
|                | 75,000                                               |  |                |  |               |   | 75,000              |  | 254.00               |  | 07/25/04                    |  | 07/25/08    |  | 1   
|                | 9,742                                                |  |                |  |               |   | 9,742               |  | 97.00                |  | 11/01/05                    |  | 05/01/06    |  | 4   
|                | 65,000                                               |  |                |  |               |   | 65,000              |  | 149.00               |  | 10/17/06                    |  | 10/17/10    |  | 2   
|                |                                                     |  | 117,430         |  |               |   | 117,430             |  | 133.00               |  | 12/12/06                    |  | 12/12/13    |  | 3   
|                |                                                      |  |                 |  |                |   |                     |  |                      |  |                             |  |             |  |     
|Mr. Livingstone | 21,050                                               |  |                |  |               |   | 21,050              |  | 142.48               |  | 04/03/99                    |  | 04/01/06    |  | 1   
|                | 166,666                                              |  |                |  |               |   | 166,666             |  | 144.00               |  | 04/28/06                    |  | 04/28/10    |  | 1   
|                |                                                      |  |                 |  |                |   |                     |  |                      |  |                             |  |             |  |     
|Mr. McGarvey    | 139,543                                              |  |                |  |               |   | 139,543             |  | 154.26               |  | 10/16/00                    |  | 10/14/04    |  | 1   
|                | 1,111,725                                            |  |                |  |               |   | 1,111,725           |  | 105.24               |  | 10/14/01                    |  | 10/13/05    |  | 1   
|                | 8,750                                                |  |                |  |               |   | 8,750               |  | 108.00               |  | 05/01/06                    |  | 11/01/06    |  | 4   
|                |                                                     |  | 366,300         |  |               |   | 366,300             |  | 133.00               |  | 12/12/06                    |  | 12/12/13    |  | 3   
|                |                                                      |  |                 |  |                |   |                     |  |                      |  |                             |  |             |  |     
|Mr. Protheroe   | 55,586                                               |  |                |  |               |   | 55,586              |  | 61.76                |  | 07/21/97                    |  | 07/19/04    |  | 1   
|                | 111,172                                              |  |                |  |               |   | 111,172             |  | 62.96                |  | 03/11/98                    |  | 03/09/05    |  | 1   
|                | 50,000                                               |  |                |  |               |   | 50,000              |  | 121.00               |  | 09/20/05                    |  | 09/20/09    |  | 1   
|                | 37,500                                               |  |                |  |               |   | 37,500              |  | 144.00               |  | 04/28/06                    |  | 04/28/10    |  | 1   
|                |                                                      |  |                 |  |                |   |                     |  |                      |  |                             |  |             |  |     
|Mr. Cruickshank | 88,236                                               |  |                |  |               |   | 88,236              |  | 255.00               |  | 09/05/04                    |  | 09/05/08    |  | 1   
|                | 11,764                                               |  |                |  |               |   | 11,764              |  | 255.00               |  | 09/05/04                    |  | 09/05/11    |  | 1   
|                | 9,742                                                |  |                |  |               |   | 9,742               |  | 97.00                |  | 11/01/05                    |  | 05/01/06    |  | 4   
|                |                                                     |  | 100,000         |  |               |   | 100,000             |  | 145.00               |  | 09/11/06                    |  | 09/11/10    |  | 1   
|                |                                                     |  | 93,000          |  |               |   | 93,000              |  | 133.00               |  | 12/12/06                    |  | 12/12/13    |  | 3   
|                |                                                      |  |                 |  |                |   |                     |  |                      |  |                             |  |             |  |     
|Total           | 2,310,407                                            |  | 676,730         |  | (202,997       | ) | 2,784,140           |  |                      |  |                             |  |             |  |     
|                |                                                      |  |                 |  |                |   |                     |  |                      |  |                             |  |             |  |     

None of the non-executive Directors has any
  options in the Company.

Notes:

Note 1  Granted under the Eidos plc Share
    Option Scheme. No pre-vesting performance conditions apply. No further options
    will be granted under this closed Scheme.

Note 2  Granted under the Eidos plc Share
    Option Scheme. Vesting conditional upon an increase of at least 15% over
    a period of three consecutive financial years in the Companys Earnings
    Per Share. No further options will be granted under this closed Scheme.

Note 3  Granted under the Eidos 2003
    Share Option Plan. Pre-vesting performance conditions detailed on page 75.

Note 4  Granted under the All-Employee
    UK Savings-Related Share Option Scheme. No pre-vesting performance conditions
    applicable.

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Details of awards made to executive directors
    during the year under the Performance Share Plan are as follows:

|                   | July 1, 2003 or at date
          of appointment |  | Granted
      in
    the year |  | Market
    value of
    shares when
    award
    granted (£) |  | Awards
    lapsed/vested
    during
    the year |  | Interests
    at
    June 30,
    2004 |  | Vesting
    dates
    of outstanding
    awards | 
|------------------ | ------------------------------------------------ |  | ----------------------------- |  | ------------------------------------------------------------- |  | ------------------------------------------------ |  | -------------------------------------- |  | ----------------------------------------------- | 
|                   |                                                  |  |                               |  |                                                              
|Stuart Cruickshank | -                                                |  | 81,300                        |  | 1.33                                                          |  | -                                                |  | 81,300                                 |  | 12/12/06                                        | 
|Jonathan Kemp      | -                                                |  | 67,800                        |  | 1.33                                                          |  | -                                                |  | 67,800                                 |  | 12/12/06                                        | 
|Michael McGarvey   | -                                                |  | 244,200                       |  | 1.33                                                          |  | -                                                |  | 244,200                                |  | 12/12/06                                        | 

As previously reported, pending the introduction
  of the Performance Share Plan and in order to retain and incentivize certain
  key executives, the Committee made a small number of awards of Restricted Stock
  as permitted under the UKLA Listing Rules.

Details of outstanding awards made under the
  Restricted StockPlan are as follows:

|                           | July 1, 2003 or at dateof appointmentif later |  | Grantedin the year |  | Market
      value ofshares when
award granted
(£) |  | Awardslapsed/vestedduring the year |  | Interests atJune 30,2004 |  | Vesting dates ofoutstandingawards | 
|-------------------------- | --------------------------------------------- |  | ------------------ |  | -------------------------------------------------- |  | ---------------------------------- |  | ------------------------ |  | --------------------------------- | 
|                           |                                               |  |                    |  |                                                   
|Jonathan Kemp (1)          | 37,500                                        |  | -                  |  | 1.21                                               |  | -                                  |  | 37,500                   |  | 09/20/05                          | 
|Jonathan Kemp (2)          | -                                             |  | 10,000             |  | 1.49                                               |  | -                                  |  | 10,000                   |  | 10/17/06                          | 
|Michael McGarvey
      (1) | 145,000                                       |  | -                  |  | 1.21                                               |  | -                                  |  | 145,000                  |  | 09/20/05                          | 

|      
|------
|Notes:
|(1)   
|(2)   

As employees, the executive directors are also
  entitled to participate in the Companys all-employee UK Savings Related
  Share Option Scheme under which options may be granted with an exercise price
  discounted by up to 20% of the market price of an Eidos share at the time of
  grant. Further details on the Companys existing share plans are provided
  in note 21 to the Accounts.

The mid-market price of an Eidos share was 137p
  on July 1, 2003 and 107p on June 30, 2004 and during that period ranged between
  a high of 183p and a low of 105p.

All options give the holders the rights to
  acquire shares on a one for one basis.

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The average weekly number of persons (including
  executive directors) employed by the Group and total costs during the periods
  indicated below were:

|                                      | Year ended
      
    March 31, 2002 |  | Three months ended June 30, 2002 |  | Year ended
 June 30, 2003 |  | Year ended 
    June 30, 2004 | 
|------------------------------------- | ------------------------------------ |  | -------------------------------- |  | ------------------------- |  | ----------------------------- | 
|                                      |                                      |  |                                  |  |                           |  |                               | 
|By activity                           |                                      |  |                                  |  |                           |  |                               | 
|Corporate                             | 30                                   |  | 30                               |  | 34                        |  | 35                            | 
|Computer entertainment
      software | 513                                  |  | 509                              |  | 502                       |  | 661                           | 
|                                      |                                      |  |                                  |  |                           |  |                               | 
|                                      | 543                                  |  | 539                              |  | 536                       |  | 696                           | 
|                                      |                                      |  |                                  |  |                           |  |                               | 

Computer entertainment software staff numbers
  have been further broken down in Item 6.

|                            | Year ended
    March 31, 2002 |  | Three months
      ended
    June 30, 2002 |  | Year ended
    June 30, 2003 |  | Year ended
    June 30, 2004 | 
|--------------------------- | ----------------------------- |  | ------------------------------------------ |  | ---------------------------- |  | ---------------------------- | 
|                            |                               |  |                                            |  |                              |  |                              | 
|                            | £000                         |  | £000                                      |  | £000                        |  | £000                        | 
|Staff costs                 |                               |  |                                            |  |                              |  |                              | 
|Wages and salaries          | 25,840                        |  | 5,571                                      |  | 25,071                       |  | 24,734                       | 
|Social security costs       | 2,350                         |  | 941                                        |  | 2,550                        |  | 2,617                        | 
|Pension costs (see note 29) | 788                           |  | 213                                        |  | 857                          |  | 831                          | 
|                            |                               |  |                                            |  |                              |  |                              | 
|                            | 28,978                        |  | 6,725                                      |  | 28,478                       |  | 28,182                       | 
|                            |                               |  |                                            |  |                              |  |                              | 

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6Net
  Interest and Similar Charges

|                               | Year ended
    March 31, 2002 |   | Three months ended
    June 30, 2002 |   | Year ended
    June 30, 2003 |   | Year ended
    June 30, 2004 |  
|------------------------------ | ----------------------------- | - | ------------------------------------ | - | ---------------------------- | - | ---------------------------- | -
|                               |                               |   |                                      |   |                              |   |                              |  
|                               | £000                         |   | £000                                |   | £000                        |   | £000                        |  
|Interest payable               |                               |   |                                      |   |                              |   |                              |  
|Group                          |                               |   |                                      |   |                              |   |                              |  
|Bank loans and overdrafts      | (825                          | ) | (236                                 | ) | (15                          | ) | (104                         | )
|Finance leases                 | (20                           | ) | (74                                  | ) | (28                          | ) | (29                          | )
|Other interest                 | (161                          | ) | (92                                  | ) | (186                         | ) | (75                          | )
|                               |                               |   |                                      |   |                              |   |                              |  
|                               | (1,006                        | ) | (402                                 | ) | (229                         | ) | (208                         | )
|Share of joint ventures        | (36                           | ) | (12                                  | ) | (63                          | ) | (47                          | )
|                               |                               |   |                                      |   |                              |   |                              |  
|                               | (1,042                        | ) | (414                                 | ) | (292                         | ) | (255                         | )
|                               |                               |   |                                      |   |                              |   |                              |  
|Interest receivable            |                               |   |                                      |   |                              |   |                              |  
|Bank interest and other income | 1,485                         |   | 532                                  |   | 2,949                        |   | 1,704                        |  
|Share of joint ventures        | 141                           |   | 42                                   |   | 146                          |   | 160                          |  
|                               |                               |   |                                      |   |                              |   |                              |  
|                               | 1,626                         |   | 574                                  |   | 3,095                        |   | 1,864                        |  
|                               |                               |   |                                      |   |                              |   |                              |  
|Net interest receivable        | 584                           |   | 160                                  |   | 2,803                        |   | 1,609                        |  
|                               |                               |   |                                      |   |                              |   |                              |  

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7     (Loss)/Profit
  on Ordinary Activities before Taxation

|                                                            |                                                       | Year
          ended
    March 31, 2002 |      | Three months ended June 30, 2002 |       | Year
          ended
    June 30, 2003 |       | Year
          ended
    June 30, 2004 | 
|----------------------------------------------------------- | ----------------------------------------------------- | --------------------------------------- | ---- | -------------------------------- | ----- | -------------------------------------- | ----- | -------------------------------------- | 
|                                                            |                                                       |                                         |      |                                  |       |                                        |       |                                        | 
|                                                            |                                                       | £000                                   |      | £000                            |       | £000                                  |       | £000                                  | 
|This is stated after charging:                              |                                                       |                                         |      |                                  |       |                                        |       |                                       
|Depreciation charge for the period                          |                                                       |                                         |      |                                  |       |                                        |       |                                       
|                                                            | Owned tangible fixed assets                           | 2,092                                   |      | 523                              |       | 1,950                                  |       | 2,136                                  | 
|                                                            | Tangible fixed assets held
      under finance leases | 156                                     |      | 36                               |       | 131                                    |       | 80                                     | 
|(Profit)/loss on disposal of
      fixed assets             | (82                                                   | )                                       | (4   | )                                | 34    |                                        | 93    |                                       
|Amortization of goodwill and
      other investments        |                                                       |                                         |      |                                  |       |                                        |       |                                       
|                                                            | Joint ventures goodwill amortization                  | 5,192                                   |      | 1,415                            |       | 471                                    |       |                                       | 
|                                                            | Other goodwill amortization                           | 6,906                                   |      | 71                               |       | 264                                    |       | 1,567                                  | 
|                                                            | Other investment amortization                         |                                        |      |                                 |       | 77                                     |       | 263                                    | 
|Auditors remuneration for
      audit                      | 423                                                   |                                         | 17   |                                  | 400   |                                        | 413   |                                       
|Other fees paid to the auditors
      and their associates* | 855                                                   |                                         | 333  |                                  | 707   |                                        | 500   |                                       
|Operating lease charges 
      plant and machinery         | 572                                                   |                                         | 132  |                                  | 606   |                                        | 552   |                                       
|Operating lease charges 
      other                       | 2,926                                                 |                                         | 667  |                                  | 2,502 |                                        | 2,439 |                                       
|(Gain)/loss on exchange differences                         | 109                                                   |                                         | (580 | )                                | (902  | )                                      | 835   |                                       
|                                                            |                                                       |                                         |      |                                  |       |                                        |       |                                       

*Other fees paid to the auditors and their
  associates include tax compliance fees of £148,000, other tax advisor
  fees of £232,000, other assurance work of £71,000 and other work
  of £49,000. The fees paid to the auditors of £195,000 in respect
  of the acquisition of IO Interactive A/S during the year have been included
  in the consideration paid (see note 23).

The audit fee of the Company was £20,000.

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8     Profit
  on Investments and Exceptional Items

|                                                           | Year ended
      March 31, 2002 |   | Three months ended
      June 30, 2002 |  | Year ended
      June 30, 2003 |  | Year ended
      June 30, 2004 |  
|---------------------------------------------------------- | ------------------------------- | - | -------------------------------------- |  | ------------------------------ |  | ------------------------------ | -
|                                                           |                                 |   |                                        |  |                                |  |                                |  
|                                                           | £000                           |   | £000                                  |  | £000                          |  | £000                          |  
|Profit/(loss) on investments                               |                                 |   |                                        |  |                                |  |                                |  
|Profit on disposal
      of other investments              | 8,495                           |   | —                                      |  | —                              |  | 488                            |  
|Loss on disposal of associates and other
      investments | (750                            | ) | —                                      |  | —                              |  | —                              |  
|Transfer of goodwill
      from reserves                   |                                 |   |                                        |  |                                |  | (488                           | )
|Settlement received in relation to Express.com             | —                               |   | —                                      |  | 1,400                          |  | —                              |  
|                                                           |                                 |   |                                        |  |                                |  |                                |  
|Profit on disposal
      of fixed asset investments        | 7,745                           |   | —                                      |  | 1,400                          |  | —                              |  
|Write down of investments                                  |                                 |   |                                        |  |                                |  |                                |  
|Provision for impairment
      in carrying value of        |                                 |   |                                        |  |                                |  |                                |  
|goodwill (previously
      written off to reserves)        | (3,299                          | ) | —                                      |  | —                              |  | —                              |  
|Provision against other investments                        | (69                             | ) | —                                      |  | —                              |  | —                              |  
|                                                           |                                 |   |                                        |  |                                |  |                                |  
|Write down of investments                                  | (3,368                          | ) | —                                      |  | —                              |  | —                              |  
|                                                           |                                 |   |                                        |  |                                |  |                                |  
|                                                           | 4,377                           |   | —                                      |  | 1,400                          |  | —                              |  
|                                                           |                                 |   |                                        |  |                                |  |                                |  

On September 4, 2003, Eidos and Sports Interactive
  Limited announced an agreement to end their existing relationship for the development
  of the Companys highly successful Championship Manager football management
  series. Eidos agreed to surrender its 25% interest in Sports Interactive for
  a cash consideration of £488,000, generating no profit/loss following
  the transfer of attributable goodwill from reserves of £488,000.

During 2003 the Group received a £1.4
  million litigation settlement, net of costs, in respect of its former investment
  in Express.com. The Group took an exceptional charge against the full carrying
  value of this investment in the year to March 31, 2001 and Express.com subsequently
  filed for Chapter 11 bankruptcy protection.

The effect on the taxation charge for the year
  of the exceptional items is disclosed in note 9.

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9Tax
Charge/(Credit) on Income/(Loss) on Ordinary Activities

|                                      | Year ended
    March 31, 2002 |   | Three months ended
      June
            30, 2002 |   | Year ended
    June 30, 2003 |   | Year ended
    June 30, 2004 |  
|------------------------------------- | ----------------------------- | - | -------------------------------------------------- | - | ---------------------------- | - | ---------------------------- | -
|                                      |                               |   |                                                    |   |                              |   |                              |  
|                                      | £000                         |   | £000                                              |   | £000                        |   | £000                        |  
|Current
    Tax                       |                               |   |                                                    |   |                              |   |                              |  
|UK Taxation                           |                               |   |                                                    |   |                              |   |                              |  
|U.K. Corporation tax                  |                              |   |                                                   |   | 2,860                        |   | 413                          |  
|Less double tax relief                |                              |   |                                                   |   | (1,002                       | ) | (67                          | )
|                                      |                               |   |                                                    |   |                              |   |                              |  
|                                      |                              |   |                                                   |   | 1,858                        |   | 346                          |  
|Adjustment in respect of prior years: |                               |   |                                                    |   |                              |   |                              |  
|Exceptional items                     |                              |   |                                                   |   | (5,595                       | ) |                             |  
|Operational                           | (773                          | ) | (78                                                | ) | (480                         | ) | (2,028                       | )
|                                      |                               |   |                                                    |   |                              |   |                              |  
|Total Current UK Tax                  | (773                          | ) | (78                                                | ) | (4,217                       | ) | (1,682                       | )
|                                      |                               |   |                                                    |   |                              |   |                              |  
|Foreign Taxation                      |                               |   |                                                    |   |                              |   |                              |  
|Current tax on income for the year    | 344                           |   | 159                                                |   | 1,283                        |   | 1,193                        |  
|Adjustments in respect of prior years | 429                           |   | (25                                                | ) | (100                         | ) | 251                          |  
|                                      |                               |   |                                                    |   |                              |   |                              |  
|Total Current Tax                     |                              |   | 56                                                 |   | (3,034                       | ) | (238                         | )
|                                      |                               |   |                                                    |   |                              |   |                              |  
|Of which:                             |                               |   |                                                    |   |                              |   |                              |  
|Remaining Group taxation              | (502                          | ) | (101                                               | ) | (4,063                       | ) | (940                         | )
|Joint ventures taxation              | 502                           |   | 157                                                |   | 1,029                        |   | 702                          |  
|                                      |                               |   |                                                    |   |                              |   |                              |  
|                                      |                              |   | 56                                                 |   | (3,034                       | ) | (238                         | )
|Deferred taxation  foreign           |                               |   |                                                    |   |                              |   |                              |  
|Group                                 |                              |   |                                                   |   | 1,218                        |   | 1,245                        |  
|Joint Venture                         |                              |   |                                                   |   | (35                          | ) | (45                          | )
|                                      |                               |   |                                                    |   |                              |   |                              |  
|                                      |                              |   | 56                                                 |   | (1,851                       | ) | 962                          |  
|                                      |                               |   |                                                    |   |                              |   |                              |  
|Of which:                             |                               |   |                                                    |   |                              |   |                              |  
|Operational                           |                              |   | 56                                                 |   | 3,744                        |   | 962                          |  
|Exceptional                           |                              |   |                                                   |   | (5,595                       | ) |                             |  
|                                      |                               |   |                                                    |   |                              |   |                              |  
|                                      |                              |   | 56                                                 |   | (1,851                       | ) | 962                          |  
|                                      |                               |   |                                                    |   |                              |   |                              |  

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Total income tax expense differs from the amounts
  computed by applying the U.K. statutory income tax rate of 30% (2003: 30%, 2002:
  30%) to income/(loss) before taxes, as a result of the following:

|                                                                                                 |  | Year ended
   March 31, 2002 |   | Three months ended
    June 30, 2002 |   | Year ended
    June 30, 2003 |   | Year ended
    June 30, 2004 |  
|------------------------------------------------------------------------------------------------ |  | ---------------------------- | - | ------------------------------------ | - | ---------------------------- | - | ---------------------------- | -
|                                                                                                 |  |                              |   |                                      |   |                              |   |                              |  
|                                                                                                 |  | £000                        |   | £000                                |   | £000                        |   | £000                        |  
|Profit/(loss) for the period                                                                     |  | (14,171                      | ) | (16,486                              | ) | 17,354                       |   | (1,951                       | )
|                                                                                                 |  |                              |   |                                      |   |                              |   |                              |  
|U.K. statutory rate                                                                              |  | (4,251                       | ) | (4,956                               | ) | 5,206                        |   | (585                         | )
|Expenses disallowed for tax purposes                                                             |  | 4,927                        |   | 6,472                                |   | 1,228                        |   | 613                          |  
|Tax effect of
    bad debt provision against U.S. intercompany balance                           |  | (2,443                       | ) |                                     |   |                             |   |                             |  
|Timing
            difference where benefit  not recognizedfor
            deferred tax purposes |  | 6,069                        |   | (924                                 | ) | 1,981                        |   | 2,661                        |  
|Difference
      between overseas and U.K. tax rate                                              |  | (1,809                       | ) | 633                                  |   | 921                          |   | (74                          | )
|Utilization of tax losses                                                                        |  | (2,278                       | ) | (379                                 | ) | (4,999                       | ) | (1,523                       | )
|Prior year adjustments  operational                                                             |  |                             |   | (442                                 | ) | (580                         | ) | (1,777                       | )
|Exceptional prior year items                                                                     |  |                             |   |                                     |   | (5,595                       | ) |                             |  
|Double tax relief for overseas income                                                            |  |                             |   |                                     |   | (1,002                       | ) | (67                          | )
|Unrelieved withholding tax                                                                       |  |                             |   |                                     |   | 28                           |   | 250                          |  
|Other                                                                                            |  | (215                         | ) | (348                                 | ) | (222                         | ) | 264                          |  
|                                                                                                 |  |                              |   |                                      |   |                              |   |                              |  
|Total current tax                                                                                |  |                             |   | 56                                   |   | (3,034                       | ) | (238                         | )
|                                                                                                 |  |                              |   |                                      |   |                              |   |                              |  
|Release of deferred tax asset                                                                    |  |                             |   |                                     |   | 1,260                        |   |                             |  
|Deferred tax in respect of timing differences                                                    |  |                             |   |                                     |   | (77                          | ) | 1,200                        |  
|                                                                                                 |  |                              |   |                                      |   |                              |   |                              |  
|Deferred taxation                                                                                |  |                             |   |                                     |   | 1,183                        |   | 1,200                        |  
|                                                                                                 |  |                              |   |                                      |   |                              |   |                              |  
|Tax (Credit)
    / Charge on Profit / (Loss) on Ordinary Activities for the Period               |  |                             |   | 56                                   |   | (1,851                       | ) | 962                          |  
|                                                                                                 |  |                              |   |                                      |   |                              |   |                              |  

Timing differences arise in the UK, US and
  Germany where they mainly relate to current year losses unable to be utilised.

Prior year items relate to the partial release
  of provisions established in prior years as a result of settlements with tax
  authorities in respect of transfer pricing matters. The Company continues to
  maintain tax provisions for potential tax charges in other jurisdictions related
  to transfer pricing which may arise in future periods. During the current year
  the Group has made an additional provision for tax charges related to transfer
  pricing, which may arise in respect of the tax position for the current year.
  In finalizing the tax provisions the directors have taken account of the ongoing
  discussions with tax authorities in relation to these items and the likely outcome
  of those discussions. The provision of £2.7 million at June 30, 2004 (2003:
  £5.5 million) is the directors best estimate of amounts that will
  ultimately be payable to the respective tax authorities.

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10Earnings
  / (Loss) Per Share

The calculations of earnings per share are
  based on the following information. All numbers (including the comparatives)
  reflect the five for one share split, which took place on January 25, 2000 and
  the 1 for 3 Rights Issue, which took place in July 2001.

Weighted average number of shares:

|                               |  | Year ended
    March 31, 2002 |  | Three months
      ended
June 30, 2002 |  | Year ended
    June 30, 2003 |  | Year ended
    June 30, 2004 | 
|------------------------------ |  | ----------------------------- |  | -------------------------------------- |  | ---------------------------- |  | ---------------------------- | 
|                               |  |                               |  |                                        |  |                              |  |                              | 
|                               |  | Number of shares              |  | Number of shares                       |  | Number of shares             |  | Number of shares             | 
|For basic earnings per share   |  | 132,514,410                   |  | 139,744,013                            |  | 139,637,852                  |  | 140,313,421                  | 
|Exercise of share options      |  | 1,722,349                     |  | 1,299,565                              |  | 705,258                      |  | 945,597                      | 
|                               |  |                               |  |                                        |  |                              |  |                              | 
|For diluted earnings per share |  | 134,236,759                   |  | 141,043,578                            |  | 140,343,110                  |  | 141,259,018                  | 
|                               |  |                               |  |                                        |  |                              |  |                              | 

No dividends were paid during any of the last
  three fiscal years.

In accordance with FRS14  Earnings per
  share, the diluted loss per share for the year ended June 30, 2004 is equivalent
  to the basic loss per share as any exercise of share options would have the
  effect of decreasing the loss per share.

|BASIC and
    DILUTED EPS                 |  |                                     |    |                                            |    |                                    |   |                                    |   
|----------------------------------------- |  | ----------------------------------- | -- | ------------------------------------------ | -- | ---------------------------------- | - | ---------------------------------- | --
|                                          |  | Year
          ended
March 31, 2002 |    | Three
          months ended
June 30, 2002 |    | Year
          ended
June 30, 2003 |   | Year
          ended
June 30, 2004 |   
|                                          |  |                                     |    |                                            |    |                                    |   |                                    |   
|                                          |  | £000                               |    | £000                                      |    | £000                              |   | £000                              |   
|Net income/(loss)
      for the year      |  | (14,171                             | )  | (16,542                                    | )  | 19,205                             |   | (2,913                             | ) 
|                                          |  |                                     |    |                                            |    |                                    |   |                                    |   
|Earnings/(loss)
      (basic and diluted) |  | (14,171                             | )  | (16,542                                    | )  | 19,205                             |   | (2,913                             | ) 
|                                          |  |                                     |    |                                            |    |                                    |   |                                    |   
|                                          |  |                                     |    |                                            |    |                                    |   |                                    |   
|                                          |  | Pence
    per share                 |    | Pence
    per share                        |    | Pence
    per share                |   | Pence
    per share                |   
|Earnings/(loss)
      per share  basic   |  | (10.7                               | )p | (11.8                                      | )p | 13.8                               | p | (2.1                               | )p
|                                          |  |                                     |    |                                            |    |                                    |   |                                    |   
|Earnings/(loss)
      per share  diluted |  | (10.7                               | )p | (11.8                                      | )p | 13.7                               | p | (2.1                               | )p
|                                          |  |                                     |    |                                            |    |                                    |   |                                    |   

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11     Intangible Fixed Assets

|                            |  | £000  | 
|--------------------------- |  | ------ | 
|Goodwill                    |  |        | 
|Cost                        |  |        | 
|At July 1, 2003             |  | 34,709 | 
|Additions                   |  | 26,587 | 
|                            |  |        | 
|At June
    30, 2004        |  | 61,296 | 
|Amortization                |  |        | 
|At July 1, 2003             |  | 34,457 | 
|Exchange adjustment         |  | 14     | 
|Amortization for the period |  | 1,567  | 
|                            |  |        | 
|At June
    30, 2004        |  | 36,038 | 
|                            |  |        | 
|Net book
    value          |  |        | 
|At June
    30, 2004        |  | 25,258 | 
|                            |  |        | 
|At June
    30, 2003        |  | 252    | 
|                            |  |        | 

The unamortized goodwill at June 30, 2004 relates
  to IO Interactive A/S (acquired in 2004) and is being amortized over its five
  year estimated useful economic life.

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12     Tangible
Fixed Assets

|                             |       | Leasehold
    improvements |       | Fixtures and
    fittings |   | Computer
    equipment |   | Total  |  
|---------------------------- | ----- | -------------------------- | ----- | ------------------------- | - | ---------------------- | - | ------ | -
|                             |       |                            |      
|£000                        | £000 | £000                      | £000
|Cost                         |       |                            |       |                           |   |                        |   |        |  
|At June 30, 2003             |       | 2,999                      |       | 2,688                     |   | 8,850                  |   | 14,537 |  
|Exchange adjustment          |       | (15                        | )     | (118                      | ) | (338                   | ) | (471   | )
|In respect of new subsidiary |       | 81                         |       |                          |   | 1,090                  |   | 1,171  |  
|Additions                    |       | 76                         |       | 160                       |   | 2,529                  |   | 2,765  |  
|Disposals                    |       | (1                         | )     | (229                      | ) | (869                   | ) | (1,099 | )
|                             |       |                            |       |                           |   |                        |   |        |  
|At June 30, 2004             |       | 3,140                      |       | 2,501                     |   | 11,262                 |   | 16,903 |  
|                             |       |                            |       |                           |   |                        |   |        |  
|Depreciation                 |       |                            |       |                           |   |                        |   |        |  
|At June 30, 2003             |       | 1,238                      |       | 2,142                     |   | 6,476                  |   | 9,856  |  
|Exchange adjustments         |       | (46                        | )     | (68                       | ) | (229                   | ) | (343   | )
|Charge for the period        |       | 297                        |       | 192                       |   | 1,727                  |   | 2,216  |  
|Disposals                    |       | (1                         | )     | (220                      | ) | (772                   | ) | (993   | )
|                             |       |                            |       |                           |   |                        |   |        |  
|At June 30, 2004             |       | 1,488                      |       | 2,046                     |   | 7,202                  |   | 10,736 |  
|                             |       |                            |       |                           |   |                        |   |        |  
|Net book value               |       |                            |       |                           |   |                        |   |        |  
|At June 30, 2004             |       | 1,652                      |       | 455                       |   | 4,060                  |   | 6,167  |  
|                             |       |                            |       |                           |   |                        |   |        |  
|At June 30, 2003             |       | 1,761                      |       | 546                       |   | 2,374                  |   | 4,681  |  
|                             |       |                            |       |                           |   |                        |   |        |  

The net book value of tangible fixed assets
  includes an amount of £732,000 (2003: £37,000) in respect of computer
  equipment held under finance leases.

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13     Fixed
Asset Investments



|                                                    |       | Joint 
    ventures |       | Associated
    undertakings |   | Own shares |   | Total |  
|--------------------------------------------------- | ----- | ------------------- | ----- | --------------------------- | - | ---------- | - | ----- | -
|                                                    |       |                     |      
|£000                                               | £000 | £000               | £000
|At June 30, 2003 (as originally reported)           |       | 2,745               |       | 1                           |   | 199        |   | 2,945 |  
|Prior year adjustment                               |       |                    |       |                            |   | (199       | ) | (199  | )
|                                                    |       |                     |       |                             |   |            |   |       |  
|At July 1, 2003 (restated, note 2)                  |       | 2,745               |       | 1                           |   |           |   | 2,746 |  
|Share of retained profits less dividends
      paid |       | 1,268               |       |                            |   |           |   | 1,268 |  
|Addition                                            |       | 269                 |       |                            |   |           |   | 269   |  
|Disposal                                            |       |                    |       | (1                          | ) |           |   |      |  
|                                                    |       |                     |       |                             |   |            |   |       |  
|Translation adjustment                              |       | (77                 | )     |                            |   |           |   | (77   | )
|                                                    |       |                     |       |                             |   |            |   |       |  
|At June 30, 2004                                    |       | 4,205               |       |                            |   |           |   | 4,205 |  
|                                                    |       |                     |       |                             |   |            |   |       |  

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Interests in Group undertakings

The directors consider that to give full particulars
  of all interests in Group undertakings would lead to a statement of excessive
  length. The following information relates to those subsidiary undertakings,
  joint ventures and associated undertakings whose results or financial position,
  in the opinion of the directors, principally affected the financial statements
  of the Group:

|                              |               |                          |                   |                     |         |                            |  | Held
      by other |   |     |  
|----------------------------- | ------------- | ------------------------ | ----------------- | ------------------- | ------- | -------------------------- |  | ------------------- | - | --- | -
|Country
      of              |               | Description
      of     | Group             | Held
      by the  
|Subsidiaryundertakings        | incorporation | Nature
      of business | shares
      held | companies           | Company
|                              |               |                          |                   |                     |         |                            |  |                     |   |     |  
|Eidos Interactive Limited     |               | England
      and        |                   | Developer
      and |         | Ordinary
      £1 shares   |  |                    |   | 100 | %
|                              |               | Wales                    |                   | Publisher
      of  |         | each and                   |  |                     |   |     |  
|                              |               |                          |                   | computer            |         | A
      ordinary         |  |                     |   |     |  
|                              |               |                          |                   | software            |         | £0.05
      shares each    |  |                     |   |     |  
|Eidos Inc                     |               | U.S.A                    |                   | Developer and       |         | Common stock               |  | 100                 | % |    |  
|                              |               |                          |                   | Publisher of        |         | $0.001 par value           |  |                     |   |     |  
|                              |               |                          |                   | computer            |         |                            |  |                     |   |     |  
|                              |               |                          |                   | software            |         |                            |  |                     |   |     |  
|Crystal DynamicsInc.          |               | U.S.A                    |                   | Developer
      of  |         | Common
      stock         |  | 100                 | % |     |  
|                              |               |                          |                   | computer            |         | no par
      value         |  |                     |   |     |  
|                              |               |                          |                   | software            |         |                            |  |                     |   |     |  
|Core Design Limited           |               | England and              |                   | Developer of        |         | Ordinary £1 shares         |  | 100                 | % |    |  
|                              |               | Wales                    |                   | computer            |         |                            |  |                     |   |     |  
|                              |               |                          |                   | software            |         |                            |  |                     |   |     |  
|Eidos France SARL             |               | France                   |                   | Publisher
      of  |         | Ordinary
      Shares      |  | 100                 | % |    |  
|                              |               |                          |                   | computer            |         | of 7,623
      Euros       |  |                     |   |     |  
|                              |               |                          |                   | software            |         |                            |  |                     |   |     |  
|Eidos (Deutschland) GmbH      |               | Germany                  |                   | Publisher of        |         | Euros 25,565               |  | 100                 | % |    |  
|                              |               |                          |                   | computer            |         |                            |  |                     |   |     |  
|                              |               |                          |                   | software            |         |                            |  |                     |   |     |  
|Eidos KK                      |               | Japan                    |                   | Publisher
      of  |         | Shares
      of 50,000 Yen |  |                    |   | 100 | %
|                              |               |                          |                   | computer            |         |                            |  |                     |   |     |  
|                              |               |                          |                   | software            |         |                            |  |                     |   |     |  
|Eidos Interactive Pty Limited |               | Australia                |                   | Publisher of        |         | Ordinary share of          |  |                    |   | 100 | %
|                              |               |                          |                   | computer            |         | AUS$1                      |  |                     |   |     |  
|                              |               |                          |                   | software            |         |                            |  |                     |   |     |  
|IO Interactive A/S            |               | Denmark                  |                   | Developer
      of  |         | A
      Ordinary         |  | 100                 | % |    |  
|                              |               |                          |                   | computer            |         | shares
      of DKK        |  |                     |   |     |  
|                              |               |                          |                   | software            |         | 616,580
      and B      |  |                     |   |     |  
|                              |               |                          |                   |                     |         | Ordinary
      shares      |  |                     |   |     |  
|                              |               |                          |                   |                     |         | of DKK
      40,000.       |  |                     |   |     |  
|Ion Storm LLP                 |               | U.S.A.                   |                   | Developer of        |         | Partnership units          |  | 89                  | % |    |  
|                              |               |                          |                   | computer            |         |                            |  |                     |   |     |  
|                              |               |                          |                   | software            |         |                            |  |                     |   |     |  
|Joint ventures                |               |                          |                   |                     |         |                            |  |                     |   |     |  
|                              |               |                          |                   |                     |         |                            |  |                     |   |     |  
|Proein SL                     |               | Spain                    |                   | Publisher of        |         | 5000 Common                |  | 75                  | % |    |  
|                              |               |                          |                   | computer            |         | shares of                  |  |                     |   |     |  
|                              |               |                          |                   | software            |         | 6 Euros each               |  |                     |   |     |  
|Pyro Studios SL               |               | Spain                    |                   | Developer of        |         | 500 Common                 |  | 26.7                | % |    |  
|                              |               |                          |                   | computer            |         | shares of                  |  |                     |   |     |  
|                              |               |                          |                   | software            |         | 6 Euros each               |  |                     |   |     |  

All the above companies operated principally
  in their country of incorporation

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14Stocks

|                              | June 30, 2003 |  | June 30, 2004 | 
|----------------------------- | ------------- |  | ------------- | 
|                              |              
|£000                         | £000        
|Raw materials and consumables | 552           |  | 486           | 
|Finished goods                | 2,220         |  | 2,971         | 
|                              |               |  |               | 
|Stocks                        | 2,722         |  | 3,457         | 
|                              |               |  |               | 

15Debtors

|                               | June 30, 2003 |  | June 30, 2004 | 
|------------------------------ | ------------- |  | ------------- | 
|                               |               |  |               | 
|                               | £000         |  | £000         | 
|Trade debtors, net             | 32,420        |  | 10,183        | 
|Deferred tax asset (note 19)   | 46            |  |              | 
|Other debtors*                 | 4,048         |  | 3,143         | 
|Prepayments and accrued income | 2,608         |  | 2,836         | 
|                               |               |  |               | 
|                               | 39,122        |  | 16,162        | 
|                               |               |  |               | 

* Included within other debtors is £35,000
  (June 30, 2003: £50,000), which is recoverable after more than one year.

Provision for bad and doubtful debts

|                         |          |          | Provision utilised in |   | Provision created in |  |       | 
|------------------------ | -------- | -------- | --------------------- | - | -------------------- |  | ----- | 
|Opening balance          | the year | the year | Closing balance      
|                         |          |          |                      
|                         | £000    |          | £000                 |   | £000                |  | £000 | 
|Year ended June 30, 2003 | 769      |          | (712                  | ) | 651                  |  | 708   | 
|Year ended June 30, 2004 | 708      |          | (1,840                | ) | 2,912                |  | 1,780 | 

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16Creditors: Amounts Falling Due Within One Year

|                                      | June 30, 2003 |  | June 30, 2004 | 
|------------------------------------- | ------------- |  | ------------- | 
|                                      |              
|£000                                 | £000        
|Obligations under finance leases      | 16            |  | 345           | 
|Trade creditors                       | 9,262         |  | 5,832         | 
|Other taxes and social security costs | 2,643         |  | 3,597         | 
|Other creditors                       | 3,420         |  | 548           | 
|Accruals                              | 9,558         |  | 4,746         | 
|Corporation tax                       | 7,305         |  | 1,707         | 
|                                      |               |  |               | 
|                                      | 32,204        |  | 16,775        | 
|                                      |               |  |               | 

Included within other creditors are royalty
  creditors of £548,000 (2003: £3,387,000).

17Creditors: Amounts Falling Due After More Than One
  Year

|                                    | June 30, 2003 |  | June 30, 2004 | 
|----------------------------------- | ------------- |  | ------------- | 
|                                    |              
|£000                               | £000        
|Accruals and deferred income        | 26            |  |              | 
|Obligations under finance leases:   |               |  |               | 
|Due between one and two
      years | 2             |  | 300           | 
|Due between two and five years      | 5             |  | 111           | 
|                                    |               |  |               | 
|                                    | 33            |  | 411           | 
|                                    |               |  |               | 

18Provisions for liabilities and charges

|                                         | £000 | 
|---------------------------------------- | ----- | 
|As at June 30, 2003                      |      | 
|Provision for deferred consideration     | 2,068 | 
|Provision for deferred tax (see note 19) | 1,463 | 
|                                         |       | 
|At June 30, 2004                         | 3,531 | 
|                                         |       | 

The provision for deferred consideration relates
  to the acquisition of IO Interactive A/S (see note 23).

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|19 | Deferred Taxation
|-- | -----------------

|                                                                      |  |                     |  |                     |  
|--------------------------------------------------------------------- |  | ------------------- |  | ------------------- | -
|                                                                      |  | June
      30, 2003 |  | June
      30, 2004 |  
|                                                                      |  |                     |  |                     |  
|                                                                      |  | £000               |  | £000               |  
|Unrecognized Tax Assets                                               |  |                     |  |                     |  
|Excess of tax allowances
      over book depreciation of fixed assets |  | 502                 |  | 852                 |  
|Other timing differences                                              |  | 9,141               |  | 7,211               |  
|Tax effect of losses
      carried forward                            |  | 25,589              |  | 29,361              |  
|                                                                      |  |                     |  |                     |  
|Unrecognized deferred
      tax asset                                 |  | 35,232              |  | 37,424              |  
|                                                                      |  |                     |  |                     |  
|                                                                      |  |                     |  |                     |  
|                                                                      |  | June
      30, 2003 |  | June
      30, 2004 |  
|                                                                      |  |                     |  |                     |  
|                                                                      |  | £000               |  | £000               |  
|Recognized Tax Assets / Liabilities                                   |  |                     |  |                     |  
|Tax effect of losses
      carried forward                            |  |                    |  | 513                 |  
|Other timing differences  foreign                                    |  | 46                  |  | (1,976              | )
|                                                                      |  |                     |  |                     |  
|Recognized deferred tax
      asset / liability                       |  | 46                  |  | (1,463              | )
|                                                                      |  |                     |  |                     |  
|                                                                      |  |                     |  |                     |  
|Movement in deferred tax asset / (liability)                          |  |                     |  |                     |  
|At July 1, 2003                                                       |  |                     |  | 46                  |  
|Profit and loss charge                                                |  |                     |  | (1,245              | )
|Foreign exchange movements                                            |  |                     |  | 3                   |  
|Acquisition of IO Interactive A/S                                     |  |                     |  | (267                | )
|                                                                      |  |                     |  |                     |  
|At June 30,
    2004                                                  |  |                     |  | (1,463              | )
|                                                                      |  |                     |  |                     |  

The movement in the deferred tax provided
    has arisen in respect of timing differences acquired in IO Interactive A/S.

Significant brought forward losses remain
    available within the Group to offset future trading profits. The Group has,
    however, reviewed the provisions of FRS 19  Deferred Tax, and believes
    that no further amounts should currently be recognised in respect of these
    losses as, in the opinion of the directors, there is insufficient evidence
    that they will be recoverable.

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|20 | Called up Share Capital
|-- | -----------------------

|                                                            |  |                     |  |                     | 
|----------------------------------------------------------- |  | ------------------- |  | ------------------- | 
|                                                            |  | June
      30, 2003 |  | June
      30, 2004 | 
|                                                            |  |                     |  |                     | 
|                                                            |  | £000               |  | £000               | 
|Authorized                                                  |  |                     |  |                     | 
|June 30, 2003: 192,500,000 Ordinary Shares
      of 2p each |  | 3,850               |  |                    | 
|June 30, 2004: 192,500,000 Ordinary Shares
      of 2p each |  |                    |  | 3,850               | 
|                                                            |  |                     |  |                     | 
|Issued and fully paid                                       |  |                     |  |                     | 
|June 30, 2003: 139,961,523 Ordinary Shares
      of 2p each |  | 2,799               |  |                    | 
|June 30, 2004: 142,002,471 Ordinary Shares
      of 2p each |  |                    |  | 2,840               | 
|                                                            |  |                     |  |                     | 

During the year, 95,586 new Ordinary shares
  were allotted following the exercise of share options under the Companys
  various share option schemes, 119,368 new Ordinary shares were allotted in respect
  of the US Stock Purchase Plan, 314,485 new Ordinary shares were allotted in
  respect of the exercise of warrants and 1,511,509 Ordinary shares were allotted
  in connection with the acquisition of IO Interactive A/S. The total consideration
  received on all share allotments was £2,283,000. This comprised cash consideration
  of £273,000 and non cash consideration of £2,010,000. The non cash
  consideration related to the acquisition of IO Interactive A/S as detailed in
  note 23. The total nominal value of shares issued was £41,000.

At the Annual General Meeting held on November
  24, 2003, shareholders gave authority for the Company to purchase up to 6,998,076
  of its own Ordinary shares in the market subject to certain specified conditions.
  As at September 15, 2004, no purchases have been made or are contracted to be
  made pursuant to such authority.

There has been no material increase in the
  issued share capital, whether by exercise of options, rights, warrants or otherwise,
  between the financial year end and September 15, 2004, the date on which these
  Accounts have been signed.

Own Shares

During 2002 the Company established the Eidos
  plc Employee Benefit Trust (the Trust) in order to hold shares purchased
  in the market for the future satisfaction of awards under the Companys
  various long term equity incentive plans. It is anticipated that awards of Restricted
  Shares and grants under the Performance Share Plan will be satisfied by the
  transfer of shares from the Trust. Awards made under the Companys share
  option schemes will primarily be satisfied by the issue of new shares, but in
  certain circumstances may be satisfied by the transfer of shares from the Trust.
  No more than 10% of the Companys equity may be made available for issue
  under all employee share plans over a 10 year period.

During the year 1,779,223 Eidos plc shares
  were purchased by the Trust on the open market for a total consideration of
  £2,484,000. The number and market value of the Ordinary Shares held by
  the Trust at June 30, 2004 was 1,833,000 and £1,966,000 respectively (June
  30, 2003: 236,500 and £323,000 respectively). The movement in the own
  shares reserve during the year is shown in the Consolidated Statements of Changes
  in Shareholders Equity.

Movements of shares during the year are as
  follows:

|                                                                  | Numbers
      of Ordinary Shares |  
|----------------------------------------------------------------- | -------------------------------- | -
|                                                                  |                                  |  
|                                                                  |                                  |  
|Balance at July 1, 2003                                           | 236,500                          |  
|Purchased during the year                                         | 1,779,223                        |  
|Allocated in respect of the US Employee
      Stock Purchase Plan | (182,723                         | )
|                                                                  |                                  |  
|Balance at June 30, 2004                                          | 1,833,000                        |  
|                                                                  |                                  |  

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|21 | Stock Options
|-- | -------------

Long-Term Equity Incentive Arrangements

At an Extraordinary General Meeting held on
  December 12, 2003, shareholders approved the introduction of new long-term equity
  incentive arrangements (which replaced the existing expiring schemes). The following
  arrangements were introduced:

|• | two new share option schemes: a UK Inland
        Revenue approved scheme (the 2003 Eidos Approved Share Option Plan )
        and a scheme which is not subject to Inland Revenue limits (the 2003
        Eidos Unapproved Share Option Plan ) (together, the New Option
    Plans); and
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                                                                                                                 
|• | a new share-based incentive plan, to be
        known as the Eidos 2003 Performance Share Plan (the Performance
    Share Plan).                                                                                                                                                              
|  |                                                                                                                                                                                                                                                                                                 

In addition, and in line with existing arrangements,
  shareholders also authorised the directors to extend the Unapproved Share Option
  Plan and the Performance Share Plan to take account of local tax, legal and
  regulatory issues in those countries in which the Group has a material operating
presence.

New Option Plans

The New Option Plans provide for the granting
    of options to purchase shares to employees of the Company and its subsidiaries
    up to a maximum of 10% of the issued share capital of the Company immediately
    prior to the day any options are granted. The option price may not be less
    than the higher of the nominal value of one Eidos share or the fair market
    value of an Eidos share on the date the option is granted. TheRemuneration
    Committee (the Committee) may make annual option grants to participants
    over shares worth up to 200% of basic salary. Options are generally exercisable
    between three and ten years after grant, provided that certain performance
  conditions, as determined by the Committee, have been satisfied.

Options granted prior to December 12, 2003
  are generally not subject to performance conditions.

Performance Share Plan

The Performance Share Plan provides for
    the award of conditional rights to acquire shares of the Company at nil cost
    to participants subject to the achievement of certain performance conditions,
    as determined by the Committee. Awards vest on the third anniversary of grant.
    The Committee may make annual grants of conditional awards over Ordinary
  shares in the Company worth up to 100% of basic salary to participants.

Restricted Stock Plan

Pending the introduction of the Performance
    Share Plan in order to retain and incentivise certain key executives, the
    Committee also made a small number of share awards under a Restricted Stock
  Plan in 2002 and 2003.

All Employee Option Plans

The Company operates an Inland Revenue approved
    SAYE Share Scheme (Sharesave Scheme) for all UK employees under
    which options may be granted with an exercise price discounted by up to 20%
    of the market price of an Eidos share at the date of grant. Similar schemes
    are operated in France, Germany and Japan. In the US, the Company operates
    an equivalent Employee Stock Purchase Plan under which employees may apply
  to purchase shares at a 15% discount to market price.

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The following options for 2p ordinary shares
  were open at June 30, 2004:

|                            |                    |  |           |  |           |   |          |   |                     |  |                       |   |                                                  | 
|--------------------------- | ------------------ |  | --------- |  | --------- | - | -------- | - | ------------------- |  | --------------------- | - | ------------------------------------------------ | 
|                            | July
      1, 2003 |  | Granted   |  | Exercised |   | Lapsed   |   | June
      30, 2004 |  | Exercise
      Price* |   | Option
          Exercise Period /
Maturity Date | 
|                            |                    |  |           |  |           |   |          |   |                     |  |                       |   |                                                  | 
|Approved Scheme             | 55,586             |  |          |  |          |   | (55,586  | ) |                    |  | 61.76                 | p | 07/21/97 to 07/19/04                             | 
|(Discretionary)             | 111,172            |  |          |  |          |   |         |   | 111,172             |  | 62.96                 | p | 03/11/98 to 03/09/05                             | 
|                            | 220,840            |  |          |  |          |   | (30,000  | ) | 190,840             |  | 119.00                | p | 09/19/05 to 09/19/12                             | 
|                            | 21,267             |  |          |  |          |   | (21,267  | ) |                    |  | 141.04                | p | 04/25/99 to 04/24/06                             | 
|                            | 21,050             |  |          |  |          |   |         |   | 21,050              |  | 142.48                | p | 04/03/99 to 04/01/06                             | 
|                            | 143,368            |  |          |  |          |   | (92,800  | ) | 50,568              |  | 154.26                | p | 01/21/00 to 01/19/07                             | 
|                            | 148,758            |  |          |  |          |   |         |   | 148,758             |  | 254.00                | p | 07/25/04 to 07/25/11                             | 
|                            | 11,764             |  |          |  |          |   |         |   | 11,764              |  | 255.00                | p | 05/09/04 to 09/05/11                             | 
|                            | 186,948            |  |          |  |          |   | (78,015  | ) | 108,933             |  | 298.63                | p | 04/11/03 to 04/10/10                             | 
|                            | 9,110              |  |          |  |          |   |         |   | 9,110               |  | 329.21                | p | 05/29/02 to 05/28/09                             | 
|                            |                   |  | 82,860    |  |          |   |         |   | 82,860              |  | 133.00                | p | 12/12/05 to 12/12/13                             | 
|                            |                   |  | 188,120   |  |          |   |         |   | 188,120             |  | 133.00                | p | 12/12/05 to 12/12/13                             | 
|                            |                   |  | 20,134    |  |          |   |         |   | 20,134              |  | 149.00                | p | 10/17/06 to 10/17/13                             | 
|                            |                    |  |           |  |           |   |          |   |                     |  |                       |   |                                                  | 
|Total                       | 929,863            |  | 291,114   |  |          |   | (277,668 | ) | 943,309             |  |                       |   |                                                  | 
|                            |                    |  |           |  |           |   |          |   |                     |  |                       |   |                                                  | 
|Unapproved Scheme           |                    |  |           |  |           |   |          |   |                     |  |                       |   |                                                  | 
|(Discretionary)             | 1,111,725          |  |          |  |          |   |         |   | 1,111,725           |  | 105.24                | p | 10/14/01 to 10/13/05                             | 
|                            | 1,001,660          |  |          |  |          |   | (55,000  | ) | 946,660             |  | 119.00                | p | 09/19/05 to 09/19/09                             | 
|                            | 50,000             |  |          |  |          |   |         |   | 50,000              |  | 121.00                | p | 09/20/05 to 09/20/09                             | 
|                            | 257,930            |  |          |  | (40,000   | ) |         |   | 217,930             |  | 140.92                | p | 09/11/01 to 09/10/05                             | 
|                            | 377,777            |  |          |  |          |   | (173,611 | ) | 204,166             |  | 144.00                | p | 04/28/06 to 04/28/10                             | 
|                            | 177,645            |  |          |  |          |   | (177,645 | ) |                    |  | 154.26                | p | 01/21/00 to 01/19/04                             | 
|                            | 139,543            |  |          |  |          |   |         |   | 139,543             |  | 154.26                | p | 10/16/00 to 10/14/04                             | 
|                            | 846,742            |  |          |  |          |   | (42,000  | ) | 804,742             |  | 254.00                | p | 07/25/04 to 07/25/08                             | 
|                            | 88,236             |  |          |  |          |   |         |   | 88,236              |  | 255.00                | p | 09/05/04 to 09/05/08                             | 
|                            | 630,137            |  |          |  |          |   | (166,554 | ) | 463,583             |  | 298.63                | p | 04/11/03 to 04/10/07                             | 
|                            | 129,855            |  |          |  |          |   |         |   | 129,855             |  | 329.21                | p | 05/29/02 to 05/28/06                             | 
|                            |                   |  | 55,990    |  |          |   |         |   | 55,990              |  | 133.00                | p | 12/12/05 to 12/12/13                             | 
|                            |                   |  | 893,225   |  |          |   |         |   | 893,225             |  | 133.00                | p | 12/12/05 to 12/12/13                             | 
|                            |                   |  | 100,000   |  |          |   |         |   | 100,000             |  | 149.00                | p | 09/10/06 to 09/10/13                             | 
|                            |                   |  | 754,866   |  |          |   | (50,000  | ) | 704,866             |  | 149.00                | p | 10/17/06 to 10/17/13                             | 
|                            |                   |  | 120,000   |  |          |   |         |   | 120,000             |  | 159.00                | p | 04/06/07 to 04/06/14                             | 
|                            |                    |  |           |  |           |   |          |   |                     |  |                       |   |                                                  | 
|Total                       | 4,811,250          |  | 1,924,081 |  | (40,000   | ) | (664,810 | ) | 6,030,521           |  |                       |   |                                                  | 
|                            |                    |  |           |  |           |   |          |   |                     |  |                       |   |                                                  | 
|US Stock option Plan        | 20,000             |  |          |  |          |   |         |   | 20,000              |  | 204.00                | c | 11/18/05 to 11/18/09                             | 
|(Discretionary)             | 138,454            |  |          |  |          |   |         |   | 138,454             |  | 254.70                | c | 01/21/00 to 01/19/04                             | 
|                            | 452,500            |  |          |  |           |   | (47,500  | ) | 405,000             |  | 361.00                | c | 07/24/04 to 07/24/08                             | 
|                            | 239,013            |  |          |  |          |   | (27,792  | ) | 211,221             |  | 472.76                | c | 04/11/03 to 04/10/07                             | 
|                            | 111,172            |  |          |  |          |   |         |   | 111,172             |  | 525.80                | c | 05/29/02 to 05/28/06                             | 
|                            | 387,000            |  |          |  |          |   | (105,000 | ) | 282,000             |  | 185.00                | c | 09/19/05 to 09/19/09                             | 
|                            |                   |  | 93,950    |  |          |   |         |   | 93,950              |  | 232.00                | c | 12/12/05 to 12/12/13                             | 
|                            |                   |  | 478,010   |  |          |   |         |   | 478,010             |  | 232.00                | c | 12/12/06 to 12/12/13                             | 
|                            |                   |  | 40,000    |  |          |   |         |   | 40,000              |  | 302.00                | c | 04/06/07 to 04/06/14                             | 
|                            | 50,000             |  |          |  |          |   |         |   | 50,000              |  | 223.00                | c | 04/15/06 to 04/15/10                             | 
|                            |                   |  | 255,000   |  |          |   |         |   | 255,000             |  | 249.00                | c | 10/17/06 to 10/17/10                             | 
|                            |                    |  |           |  |           |   |          |   |                     |  |                       |   |                                                  | 
|Total                       | 1,398,139          |  | 866,960   |  |          |   | (180,292 | ) | 2,084,807           |  |                       |   |                                                  | 
|                            |                    |  |           |  |           |   |          |   |                     |  |                       |   |                                                  | 
|Restricted Stock Option     | 236,500            |  |          |  |          |   |         |   | 236,500             |  |                       |   | 09/20/05 to 09/20/05                             | 
|                            |                   |  | 85,000    |  |          |   |         |   | 85,000              |  |                       |   | 10/17/2006                                       | 
|                            |                    |  |           |  |           |   |          |   |                     |  |                       |   |                                                  | 
|Total                       | 236,500            |  | 85,000    |  |          |   |         |   | 321,500             |  |                       |   |                                                  | 
|                            |                    |  |           |  |           |   |          |   |                     |  |                       |   |                                                  | 
|PerformanceShare
      Plan |                   |  | 565,300   |  |          |   |         |   | 565,300             |  |                       |   | 12/12/06                                         | 
|                            |                    |  |           |  |           |   |          |   |                     |  |                       |   |                                                  | 

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|                  |  |  | July
      1, 2003 |  |  | Started   |  |  | Exercised |   |  | Lapsed     |   |  | June
      30, 2004 |  |  | Exercise
      price* |    |  | Maturity
      Date | 
|----------------- |  |  | ------------------ |  |  | --------- |  |  | --------- | - |  | ---------- | - |  | ------------------- |  |  | --------------------- | -- |  | ------------------- | 
|                  |  |  |                    |  |  |           |  |  |           |   |  |            |   |  |                     |  |  |                       |    |  |                     | 
|Sharesave Schemes |  |  | 4,707              |  |  |          |  |  |          |   |  | (4,707     | ) |  |                    |  |  | 403.00                | Ec |  | 06/01/03            | 
|(All-employee)    |  |  | 38,082             |  |  |          |  |  |          |   |  | (38,082    | ) |  |                    |  |  | 205.98                | p  |  | 08/01/03            | 
|                  |  |  | 54,042             |  |  |          |  |  |          |   |  | (29,514    | ) |  | 24,528              |  |  | 160.11                | p  |  | 02/01/04            | 
|                  |  |  | 12,412             |  |  |          |  |  |          |   |  |           |   |  | 12,412              |  |  | 160.11                | p  |  | 02/01/04            | 
|                  |  |  | 6,403              |  |  |          |  |  |          |   |  | (1,186     | ) |  | 5,217               |  |  | 403.00                | Ec |  | 06/01/04            | 
|                  |  |  | 11,249             |  |  |          |  |  |          |   |  | (4,891     | ) |  | 6,358               |  |  | 198.00                | p  |  | 08/01/04            | 
|                  |  |  | 4,837              |  |  |          |  |  |          |   |  | (4,837     | ) |  |                    |  |  | 149.31                | p  |  | 02/01/05            | 
|                  |  |  | 2,902              |  |  |          |  |  |          |   |  |           |   |  | 2,902               |  |  | 149.31                | p  |  | 02/01/05            | 
|                  |  |  | 116,050            |  |  |          |  |  |          |   |  | (73,610    | ) |  | 42,440              |  |  | 117.00                | p  |  | 04/01/05            | 
|                  |  |  | 7,692              |  |  |          |  |  |          |   |  |           |   |  | 7,692               |  |  | 117.00                | p  |  | 04/01/05            | 
|                  |  |  | 4,315              |  |  |          |  |  |          |   |  |           |   |  | 4,315               |  |  | 192.00                | Ec |  | 04/01/05            | 
|                  |  |  | 837                |  |  |          |  |  |          |   |  |           |   |  | 837                 |  |  | 198.00                | p  |  | 08/01/05            | 
|                  |  |  | 8,654              |  |  |          |  |  |          |   |  |           |   |  | 8,654               |  |  | 213.50                | Ec |  | 04/01/06            | 
|                  |  |  | 103,060            |  |  |          |  |  |          |   |  | (49,137    | ) |  | 53,923              |  |  | 108.00                | p  |  | 05/01/06            | 
|                  |  |  | 7,129              |  |  |          |  |  |          |   |  |           |   |  | 7,129               |  |  | 108.00                | p  |  | 05/01/06            | 
|                  |  |  | 237,654            |  |  |          |  |  |          |   |  | (106,029   | ) |  | 131,625             |  |  | 97.00                 | p  |  | 11/01/05            | 
|                  |  |  | 12,370             |  |  |          |  |  |          |   |  |           |   |  | 12,370              |  |  | 97.00                 | p  |  | 11/01/05            | 
|                  |  |  | 27,834             |  |  |          |  |  |          |   |  |           |   |  | 27,834              |  |  | 97.00                 | p  |  | 11/01/05            | 
|                  |  |  | 20,222             |  |  |          |  |  |          |   |  |           |   |  | 20,222              |  |  | 96.00                 | Ec |  | 11/01/06            | 
|                  |  |  | 1,511              |  |  |          |  |  |          |   |  |           |   |  | 1,511               |  |  | 108.00                | Ec |  | 04/01/07            | 
|                  |  |  |                   |  |  | 124,925   |  |  |          |   |  |           |   |  | 124,925             |  |  | 129.00                | p  |  | 06/01/07            | 
|                  |  |  |                   |  |  | 917       |  |  |          |   |  |           |   |  | 917                 |  |  | 129.00                | p  |  | 06/01/07            | 
|                  |  |  |                   |  |  | 27,880    |  |  |          |   |  |           |   |  | 27.880              |  |  | 129.00                | p  |  | 06/01/09            | 
|                  |  |  |                    |  |  |           |  |  |           |   |  |            |   |  |                     |  |  |                       |    |  |                     | 
|Total             |  |  | 681,962            |  |  | 153,722   |  |  |          |   |  | (311,993   | ) |  | 523,691             |  |  |                       |    |  |                     | 
|                  |  |  |                    |  |  |           |  |  |           |   |  |            |   |  |                     |  |  |                       |    |  |                     | 
|ESPP**            |  |  |                   |  |  |           |  |  |           |   |  |            |   |  |                     |  |  | 161.00                | c  |  | 09/30/02            | 
|                  |  |  | 389,040            |  |  |          |  |  | (389,040  | ) |  |           |   |  |                    |  |  | 183.00                | c  |  | 03/31/04            | 
|                  |  |  |                   |  |  | 175,302   |  |  |          |   |  |           |   |  | 175,302             |  |  | 190.00                | c  |  | 03/31/05            | 
|                  |  |  |                    |  |  |           |  |  |           |   |  |            |   |  |                     |  |  |                       |    |  |                     | 
|                  |  |  | 389,040            |  |  | 175,302   |  |  | (389,040  | ) |  |           |   |  | 175,302             |  |  |                       |    |  |                     | 
|                  |  |  |                    |  |  |           |  |  |           |   |  |            |   |  |                     |  |  |                       |    |  |                     | 
|Grand Total       |  |  | 8,446,754          |  |  | 4,061,479 |  |  | (429,040  | ) |  | (1,434,763 | ) |  | 10,644,430          |  |  |                       |    |  |                     | 
|                  |  |  |                    |  |  |           |  |  |           |   |  |            |   |  |                     |  |  |                       |    |  |                     | 

---

** Represents rights granted under the US Employee
  Stock Purchase Plan. The actual exercise price and number of purchase rights
  cannot be determined until maturity (i.e. 6 or 12 months following the date
  of grant). 389,040 is a provisional number of shares subject to purchase rights
  based on the market price of an Eidos Ordinary Share (less an applicable 15%
  discount) as at the date of grant.

As permitted under UITF Abstract 17 (revised
  2003) Employee Share Schemes, The Group has taken exemptions with regard to
  its Inland Revenue approved SAYE scheme and equivalent overseas schemes.
  These options include those granted to directors
  of the Company, which are also detailed in Item 6.

22     Share
  Premium Account, Reserves and Reconciliation of Movements in Shareholders Funds

The balances as at each balance sheet date
  and the movements in the periods are set out in the Consolidated Statements
  of Changes in Shareholders Equity.

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23     Acquisitions

On March 3, 2004, the Group entered into an
  agreement to acquire the entire share capital of IO Interactive for an initial
  consideration of £23.0 million, which was satisfied by £21.0 million
  in cash and £2.0 million in Eidos shares. Contingent consideration of
  up to £5.0 million in cash is payable dependent upon the number of new
  game units released in excess of 2.1 million units per annum over the four year
  period following completion. Based on the directors best estimate a provision
  of £2.1 million has been recorded at June 30, 2004. The Group entered
  into the agreement in order to gain access to technologies developed by IO Interactive with
  a view to sharing best practice across the group, and to bring into the group
  a team of talented developers. Goodwill of £26.6 million arose upon the
  acquisition as detailed below.

The acquisition has been accounted for using
  the acquisition method of accounting in accordance with FRS 6  Acquisitions
  and Mergers. The results of IO Interactive have been consolidated from March
  31, 2004 as the Directors believe that this was the point at which control of
  the entity effectively passed to the Group.

The net profit recognized for IO Interactives
  financial year ended December 31, 2003 was £280,502 and the net loss from
  January 1, 2004 through to the date of acquisition was £3,438,000. The
  net loss recognized in the period relating to IO Interactive was £2,362,000,
  representing operating expenses from the date of acquisition to June 30, 2004.
  Prior to the acquisition, IO Interactive developed games which were distributed
  by Eidos. Accordingly, all of IO Interactives post acquisition sales are
  intra-group sales and have been eliminated on consolidation.

The following table sets out the book values
  of the identifiable assets and liabilities acquired and their fair value to
  the group.

|                         |  |  | Book
      value |   |  | Accounting
          policyalignments |   |  | Other
          fair valueadjustments |   |  | Fair
      value |  
|------------------------ |  |  | ---------------- | - |  | ------------------------------------- | - |  | ------------------------------------- | - |  | ---------------- | -
|                         |  |  |                  |   |  |                                       |   |  |                                       |   |  |                  |  
|                         |  |  | £000            |   |  | £000                                 |   |  | £000                                 |   |  | £000            |  
|Fixed Assets             |  |  |                  |   |  |                                       |   |  |                                       |   |  |                  |  
|Tangible assets          |  |  | 1,194            |   |  |                                      |   |  | (23                                   | ) |  | 1,171            |  
|Investments              |  |  | 269              |   |  |                                      |   |  |                                      |   |  | 269              |  
|Current assets           |  |  | 2,656            |   |  | (2,656                                | ) |  |                                      |   |  |                 |  
|Capitalized software     |  |  |                  |   |  |                                       |   |  |                                       |   |  |                  |  
|Debtors                  |  |  | 694              |   |  |                                      |   |  |                                      |   |  | 694              |  
|Cash                     |  |  | 75               |   |  |                                      |   |  |                                      |   |  | 75               |  
|                         |  |  |                  |   |  |                                       |   |  |                                       |   |  |                  |  
|Total assets             |  |  | 4,888            |   |  | (2,656                                | ) |  | (23                                   | ) |  | 2,209            |  
|Creditors                |  |  | (4,342           | ) |  | 1,312                                 |   |  | (66                                   | ) |  | (3,096           | )
|                         |  |  |                  |   |  |                                       |   |  |                                       |   |  |                  |  
|Net Assets/(Liabilities) |  |  | 546              |   |  | (1,344                                | ) |  | (89                                   | ) |  | (887             | )
|Goodwill                 |  |  |                  |   |  |                                       |   |  |                                       |   |  | 26,587           |  
|TotalConsideration       |  |  |                  |   |  |                                       |   |  |                                       |   |  | 25,700           |  
|                         |  |  |                  |   |  |                                       |   |  |                                       |   |  |                  |  

The accounting policy alignment related primarily
  to the elimination of capitalized software costs and to the elimination of provisions
  for holiday pay. Adjustments were also made to the deferred tax balances. The
  fair value adjustments related primarily to the provision for obligations on
  vacant property and the write-down of leasehold improvements.

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The consideration comprises:

|                            |  |  | £000  | 
|--------------------------- |  |  | ------ | 
|                            |  |  |        | 
|Cash consideration          |  |  | 20,990 | 
|1.5 million Eidos shares    |  |  | 2,010  | 
|Deferred cash consideration |  |  | 2,068  | 
|Acquisition costs           |  |  | 632    | 
|                            |  |  |        | 
|                            |  |  | 25,700 | 
|                            |  |  |        | 

24     Reconciliation
        of operating profit/(loss) to net cash outflow/(inflow) from operating
  activities

|                                                         |  |  | Year
          endedMarch 31,2002 |   |  | Three
          monthsendedJune 30,2002 |   |  | Year
          endedJune 30,2003 |   |  | Year
          endedJune 30,2004 |  
|-------------------------------------------------------- |  |  | --------------------------------- | - |  | --------------------------------------- | - |  | -------------------------------- | - |  | -------------------------------- | -
|                                                         |  |  |                                   |   |  |                                         |   |  |                                  |   |  |                                  |  
|                                                         |  |  | £000                             |   |  | £000                                   |   |  | £000                            |   |  | £000                            |  
|Operating income/(loss)                                  |  |  | (15,538                           | ) |  | (15,625                                 | ) |  | 10,672                           |   |  | (5,628                           | )
|Loss on disposal of fixed assets                         |  |  |                                  |   |  |                                        |   |  | 34                               |   |  | 93                               |  
|Depreciation of tangible fixed assets                    |  |  | 2,248                             |   |  | 559                                     |   |  | 2,081                            |   |  | 2,216                            |  
|Amortization and write off of goodwill                   |  |  | 6,906                             |   |  | 71                                      |   |  | 264                              |   |  | 1,567                            |  
|Other amortization                                       |  |  |                                  |   |  |                                        |   |  | 77                               |   |  | 263                              |  
|(Increase)/decrease in stock                             |  |  | (523                              | ) |  | 520                                     |   |  | 510                              |   |  | (803                             | )
|(Increase)/decrease in debtors                           |  |  | (5,922                            | ) |  | 20,970                                  |   |  | (31,210                          | ) |  | 21,747                           |  
|Increase/(decrease) in creditors                         |  |  | (2,619                            | ) |  | (9,611                                  | ) |  | 12,898                           |   |  | (11,268                          | )
|                                                         |  |  |                                   |   |  |                                         |   |  |                                  |   |  |                                  |  
|Net cash
      inflow/(outflow) fromoperating activities |  |  | (15,448                           | ) |  | (3,116                                  | ) |  | (4,674                           | ) |  | 8,187                            |  
|                                                         |  |  |                                   |   |  |                                         |   |  |                                  |   |  |                                  |  

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25     Analysis
  of Net Funds

|                                                             | March 31,  |       | Change in   |       | March 31,  |       | Change in |       | June 30,   |      | Change in |       | June 30,   |      | Change in   |       | June 30,   |     
|------------------------------------------------------------ | ---------- | ----- | ----------- | ----- | ---------- | ----- | --------- | ----- | ---------- | ---- | --------- | ----- | ---------- | ---- | ----------- | ----- | ---------- | ----
|2001                                                         | period     | 2002  | period      | 2002  | period     | 2003  | period    | 2004 
|                                                             |            |       |             |       |            |       |           |      
|£000                                                        | £000      | £000 | £000       | £000 | £000      | £000 | £000     | £000
|Net cash:                                                    |            |       |             |       |            |       |           |       |            |      |           |       |            |      |             |       |            |     
|Cash at bank and in hand                                     | 28,355     |       | (11,752     | )     | 16,603     |       | 4,368     |       | 20,971     |      | 6,975     |       | 27,946     |      | (3,107      | )     | 24,839     |     
|Bank overdrafts                                              | (368       | )     | 368         |       |           |       |          |       |           |      |          |       |           |      |            |       |           |     
|                                                             |            |       |             |       |            |       |           |       |            |      |           |       |            |      |             |       |            |     
|**Total cash and demand
          debt**                     | **27,987** | ****  | **(11,384** | **)** | **16,603** | ****  | **4,368** | ****  | **20,971** | **** | **6,975** | ****  | **27,946** | **** | **(3,107**  | **)** | **24,839** | ****
|Loans repayable within
          one year                    | (18,500    | )     | 18,434      |       | (66        | )     | 66        |       |           |      |          |       |           |      |            |       |           |     
|                                                             |            |       |             |       |            |       |           |       |            |      |           |       |            |      |             |       |            |     
|****                                                         | **9,487**  | ****  | **7,050**   | ****  | **16,537** | ****  | **4,434** | ****  | **20,971** | **** | **6,975** | ****  | **27,946** | **** | **(3,107**  | **)** | **24,839** | ****
|                                                             |            |       |             |       |            |       |           |       |            |      |           |       |            |      |             |       |            |     
|Short-term deposits
        and
            liquid resources |           |       | 34,030      |       | 34,030     |       | 4,051     |       | 38,081     |      | (7,785    | )     | 30,296     |      | (17,731     | )     | 12,565     |     
|                                                             |            |       |             |       |            |       |           |       |            |      |           |       |            |      |             |       |            |     
|****                                                         | **9,487**  | ****  | **41,080**  | ****  | **50,567** | ****  | **8,485** | ****  | **59,052** | **** | **(810**  | **)** | **58,242** | **** | **(20,838** | **)** | **37,404** | ****
|Finance leases                                               | (385       | )     | 129         |       | (256       | )     | (18       | )     | (274       | )    | 251       |       | (23        | )    | (733        | )     | (756       | )   
|                                                             |            |       |             |       |            |       |           |       |            |      |           |       |            |      |             |       |            |     
|Net funds                                                    | 9,102      |       | 41,209      |       | 50,311     |       | 8,467     |       | 58,778     |      | (559      | )     | 58,219     |      | (21,571     | )     | 36,648     |     
|                                                             |            |       |             |       |            |       |           |       |            |      |           |       |            |      |             |       |            |     

Short term deposits and liquid resources comprise
  deposits repayable on demand which can be withdrawn at any time without notice
  and without penalty.

Reconciliation of Net Cash Flow to Movement
  in Net Funds

|                                                    | Year ended |          | Three months ended |   | Year ended |   | Year ended |  
|--------------------------------------------------- | ---------- | -------- | ------------------ | - | ---------- | - | ---------- | -
|March 31,                                           | June 30,   | June 30, | June 30,          
|2002                                                | 2002       | 2003     | 2004              
|                                                    |            |          |                   
|£000                                               | £000      | £000    | £000             
|Increase/(decrease) in
      cash in period         | 7,237      |          | 4,223              |   | 6,734      |   | (2,924     | )
|Cash outflow from decrease in lease financing       | 223        |          | (38                | ) | 223        |   | 97         |  
|Increase/(decrease) in
      term deposits          | 34,030     |          | 4,051              |   | (7,785     | ) | (17,569    | )
|                                                    |            |          |                    |   |            |   |            |  
|Change in net funds resulting
      from cash flows | 41,490     |          | 8,236              |   | (828       | ) | (20,396    | )
|New finance leases                                  | (131       | )        | (124               | ) | (31        | ) | (134       | )
|In respect of IO Interactive                        |           |          |                   |   |           |   | (693       | )
|Exchange rate movements                             | (150       | )        | 355                |   | 300        |   | (348       | )
|                                                    |            |          |                    |   |            |   |            |  
|Movement in net funds
      in period               | 41,209     |          | 8,467              |   | (559       | ) | (21,571    | )
|Net funds at beginning of period                    | 9,102      |          | 50,311             |   | 58,778     |   | 58,219     |  
|                                                    |            |          |                    |   |            |   |            |  
|Net funds at end of period                          | 50,311     |          | 58,778             |   | 58,219     |   | 36,648     |  
|                                                    |            |          |                    |   |            |   |            |  

26     Contingent
        Liabilities

The Company and its subsidiaries are defendants
    in a number of legal proceedings incidental to its operations. The Company
    does not expect the outcome of such proceedings, either individually or in
    aggregate, to have a material effect upon the results of the Companys
    operations or its financial position, accordingly no provision has been made.

The Company has given a letter of guarantee
    to secure a committed borrowing facility for a subsidiary undertaking (see
    note 31).

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27     Commitments
  under Operating Leases

The Group had the following annual commitments
  under non-cancellable operating leases, analysed into leases that expire as
  follows:

|                     | Land and buildings |               | Plant, machinery, motor
      vehicles and computer equipment | 
|-------------------- | ------------------ | ------------- | ------------------------------------------------------------- | 
|                     |                    |               |                                                               | 
|June 30, 2003        |                    | June 30, 2004 | June 30, 2003                                                 | 
|                     |                    |               |                                                              
|£000                | £000              | £000         | £000                                                        
|Within one year      | 310                |               | 282                                                           | 
|In two to five years | 2,135              |               | 2,592                                                         | 
|After five years     | 521                |               | 268                                                           | 
|                     |                    |               |                                                               | 
|                     | 2,966              |               | 3,142                                                         | 
|                     |                    |               |                                                               | 

28     Capital
  Commitments

As at June 30, 2004 the Group had contracted
  to make payments, conditional upon the completion of development milestones,
  totalling £5.3 million to various licensors and developers involved in
  providing games software for the Groups use. The total amount is payable
  within one year. All development contracts can be terminated by Eidos at any
  time, without penalties, if the development milestones are not achieved.

29     Pension
  Commitments

Effective from January 1, 1997 the Group has
  operated a defined contribution private pension plan for UK employees. The assets
  of the plan are held separately from those of the Group in an independently
  administered fund. Contributions are paid to the plan and charged to the profit
  and loss account as incurred. Contributions paid by the Group during the year
  were £446,000 (year ended June 30, 2003: £379,000). At the year
  end no contributions were outstanding.

Jeremy Heath-Smith was the sole member of the
  Core Design Pension Scheme, a defined contribution scheme. Contributions paid
  by the Group during the year were £12,000 (year ended June 30, 2003: £30,000).
  At the year end no contributions were outstanding. Jeremy Heath-Smith ceased
  employment with the Group on September 30, 2003.

An employee was the sole member of the Eidos
  plc Money Purchase Plan, a defined contribution scheme. Contributions paid by
  the Group during the year were £nil (year ended June 30, 2003: £350).
  At the year end no contributions were outstanding.

Contributions were paid into private pension
  schemes of one employee (2003: two) by the Group during the year of £8,000
  (2003: £24,000). At the year end no contributions were outstanding.

All significant overseas pension arrangements
    are also of a defined contribution nature. Contributions paid by the Group
    during the year were £365,000 (year ended June 30, 2003: £424,000).
  At the year end no contributions were outstanding.

In total £831,000 was paid to pension
    schemes during the year (year ended June 30, 2003: £857,000).

Stakeholder Pensions

In October 2001, the UK Government made it
    compulsory for most companies in the UK employing over 5 members of staff
    to give their employees access to a Stakeholder pension. Eidos plc has reviewed
    its Group Personal Pension Plan and implemented a number of minor changes
    to ensure that the Plan is Stakeholder Exempt and no further action is required.

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30     Related
  Party disclosures

In relation to material transactions, the Group
  has not identified any parties who are able to negotiate more favourable terms
  than would have been available to any other independent party on an arms length
  basis.

Year ended June 30, 2004(a)During
  the year the Group paid £2.5 million to its associated undertakings as
  royalties and advances on games being developed for the Group.
  (b) In July 1999, Eidos acquired a 75% stake in Proein SL, which is accounted
  for as a joint venture. In the year to June 30, 2004 Eidos sold games to Proein
  SL totalling £2.6 million. In addition, in the same period Eidos paid
  £3.3 million to Pyro Studios SL (in which Eidos owns a 26.7% stake) as
  royalties and advances for the development of games for Eidos. At June 30, 2004,
  Eidos was owed £47,000 by Proein SL, and was owed £76,000 by Pyro
  Studios SL.
  (c) The Group has taken advantage of the exemption in Financial Reporting Standard
  No. 8 in respect of subsidiaries, which are consolidated in these accounts.All inter-company transactions are on an arms
  length basis.

Year ended June 30, 2003 (a) During the year the Group paid £3.3
  million to its associated companies as royalties and for development of games
  for the Group.
  (b) In July 1999 the Group acquired a 75% stake in Proein SL. In the year ended
  June 30, 2003 the Group sold games to Proein SL for a total of £1.6 million
  after provisions. These games were all sold on an arms length basis. In
  addition in the same period the Group paid £3.1million to Pyro Studios
  SL (in which the Group acquired a 25% stake) as royalties and for the development
  of games for the Group.At June 30, 2003 the Group was
  owed £238,000 by Proein SL (via a third party distributor) and was owed
  by Pyro Studios SL £283,000. (c) In June 2001 Eidos took its stake in Ion
  Storm to 89%. In the year ended June 30, 2003 the Group paid £5.4 million
  to Ion Storm for the development of games for the Group. At June 30, 2003 Ion
  Storm owed Eidos £3,831,000. (d) During the year, Eidos wrote off a £4,589
  Royalty owed to one of its Directors, Ian Livingstone, for royalties owed in
  connection with a game to which he owned the rights, Deathtrap Dungeon. In addition,
  rights have been granted to a Korean company to develop a game based on his
  other works, for which the Korean company will pay Ian Livingstone a royalty.
  Eidos is helping to produce this game and will have European and US publishing
  rights to it, however, there is no royalty agreement in connection with this
  game between Eidos and Ian Livingstone.

Three months ended June 30, 2002(a) During the Three months
  the Group paid £1.3 million to its associated companies as royalties and
  for development of games for the Group. (b) In July 1999 the Group acquired a 75% stake
  in Proein SL. In the Three months ended June 30, 2002 the Group sold games to
  Proein SL for a total of £179,000. These games were all sold on an arms
  length basis. In addition in the same period the Group paid £0.5 million
  to Pyro Studios SL (in which the Group acquired a 25% stake) as royalties and
  for the development of games for the Group. At June 30, 2002 the Group was owed
  £24,000 by Proein SL (via a third party distributor) and was owed by Pyro
  Studios SL £112,000.(c) In June
  2001 Eidos took its stake in Ion Storm to 89%. In the Three months ended June
  30, 2002 the Group paid £1.4
    million to Ion Storm for the development of games for the Group. At June
30, 2002 Ion Storm owed Eidos £4.6 million.

Year ended March 31, 2002

(a) During the year the Group paid £6.1
    million to its associated companies as royalties and for development of games
    for the Group.(b) In July 1999 the Group acquired a
  75% stake in Proein SL. In the year ended March 31, 2002 the Group sold games
  to Proein SL for a total of £1.1 million after provisions. These games
  were all sold on an arms length basis. In addition in the same period
  the Group paid £3.7 million to Pyro Studios SL (in which the Group acquired
  a 25% stake) as royalties and for the development of games for the Group. At
  March 31, 2002 the Group was owed £105,000 by Proein SL (via a third
  party distributor) and owed Pyro Studios SL £51,000.
(c)
    In June 2001 Eidos took its stake in Ion Storm to 89%. In the year ended
  March 31, 2002 the Group paid £9.6 million
    to Ion Storm for the development of games for the Group. At March 31, 2002 Ion
  Storm owed Eidos £4.0 million.

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31 Derivatives
  and other Financial Instruments

The Group is exposed to certain market risks
  arising from transactions in the normal course of business and financial instruments
  used to finance the Groups operations. The main risks arising are foreign
  currency risk and interest rate risk. The Groups treasury policy is to
  manage financial risks that arise in relation to underlying business needs.

The numerical disclosures in this note deal
  with financial assets and liabilities as defined in Financial Reporting Standard
  No. 13: Derivatives and Other Financial Instruments. Certain financial assets
  such as investments in subsidiary, joint and associated undertakings are excluded
  from the scope of these disclosures.

As permitted by FRS13, short-term debtors and
  creditors have been excluded from the disclosure, other than the currency disclosures.

Interest rate risk profile of financial
  assets and liabilities

The corresponding interest rate and currency
  profile of the Groups financial assets and liabilities at June 30, 2004
  was as follows:

|                                                        |  | Sterling |  | US
    Dollar |  | Euro  |  | Australian
Dollar |  | Danish
Krone |   | Singapore
Dollar |  | Japanese
Yen |  | Total  |  
|------------------------------------------------------- |  | -------- |  | ------------- |  | ----- |  | ----------------- |  | ------------ | - | ---------------- |  | ------------ |  | ------ | -
|                                                        |  |          |  |               |  |       |  |                   |  |              |   |                  |  |              |  |        |  
|                                                        |  | £000    |  | £000         |  | £000 |  | £000             |  | £000        |   | £000            |  | £000        |  | £000  |  
|Cash and liquid resources  
         floating
    rate |  | 25,000   |  | 1,343         |  | 9,383 |  | 1,583             |  | (88          | ) | 31               |  | 152          |  | 37,404 |  
|Floating rate debt                                      |  | 7        |  |              |  | 19    |  |                  |  | (756         | ) |                 |  | 9            |  | (721   | )
|                                                        |  |          |  |               |  |       |  |                   |  |              |   |                  |  |              |  |        |  
|                                                        |  | 25,007   |  | 1,343         |  | 9,402 |  | 1,583             |  | (844         | ) | 31               |  | 161          |  | 36,683 |  
|                                                        |  |          |  |               |  |       |  |                   |  |              |   |                  |  |              |  |        |  

The interest rate and currency profile of the
  Groups financial assets and liabilities at June 30, 2003 was as follows:

|                             | Sterling |  | US
    Dollar |   | Euro  |  | Australian
Dollar |  | Danish
Krone |  | Singapore
Dollar |  | Japanese
Yen |   | Total  | 
|---------------------------- | -------- |  | ------------- | - | ----- |  | ----------------- |  | ------------ |  | ---------------- |  | ------------ | - | ------ | 
|                             |          |  |               |   |       |  |                   |  |              |  |                  |  |              |   |        | 
|                             | £000    |  | £000         |   | £000 |  | £000             |  | £000        |  | £000            |  | £000        |   | £000  | 
|Cash and liquid resources   |          |  |               |   |       |  |                   |  |              |  |                  |  |              |   |        | 
|floating rate                | 49,088   |  | 1,515         |   | 7,208 |  |                  |  |             |  | 173              |  | 258          |   | 58,242 | 
|Net financial assets and     |          |  |               |   |       |  |                   |  |              |  |                  |  |              |   |        | 
|liabilities (excluding       |          |  |               |   |       |  |                   |  |              |  |                  |  |              |   |        | 
|short term debtors
      and |          |  |               |   |       |  |                   |  |              |  |                  |  |              |   |        | 
|creditors)                   | 9        |  | (7            | ) | 19    |  |                  |  |             |  | 7                |  | (11          | ) | 17     | 
|                             |          |  |               |   |       |  |                   |  |              |  |                  |  |              |   |        | 
|                             | 49,097   |  | 1,508         |   | 7,227 |  |                  |  |             |  | 180              |  | 247          |   | 58,259 | 
|                             |          |  |               |   |       |  |                   |  |              |  |                  |  |              |   |        | 

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Currency exposures

The Groups objective in managing the
  currency exposures is to minimize gains and losses arising in its overseas subsidiaries.
  The Company provides working capital to its overseas subsidiaries in their functional
  currencies and hedges its exposure in accordance with Company policy.

The table below shows the Groups currency
  exposures, i.e. those transactional exposures that give rise to the net currency
  gains and losses recognized in the profit and loss account. These exposures
  were as follows:

|                                       |  | Net Foreign
    Currency Monetary Assets/(Liabilities) |  
|-------------------------------------- |  | ------------------------------------------------------ | -
|                                       |  |                                                        |  
|                                       |  | US Dollar                                              |  
|                                       |  |                                                        |  
|                                       |  | £000                                                  |  
|                                       |  |                                                        |  
|Functional Currency of Group Operation |  |                                                        |  
|Sterling                               |  | 1,186                                                  |  
|US Dollar                              |  |                                                       |  
|                                       |  |                                                        |  
|At June 30, 2004                       |  | 1,186                                                  |  
|                                       |  |                                                        |  
|Functional Currency of Group Operation |  |                                                        |  
|Sterling                               |  | (1,588                                                 | )
|US Dollar                              |  |                                                       |  
|                                       |  |                                                        |  
|At June 30, 2003                       |  | (1,588                                                 | )
|                                       |  |                                                        |  

Borrowing facilities

The undrawn committed facilities of the Group
  at June 30, 2004 mature as follows:

|                |  | June 30, 2003 |  | June 30, 2004 | 
|--------------- |  | ------------- |  | ------------- | 
|                |  |               |  |               | 
|                |  | £000         |  | £000         | 
|Within one year |  | 15,505        |  | 16,751        | 
|                |  |               |  |               | 

Guarantees

The Company has given a letter of guarantee
  to secure a committed borrowing facility of £505,000 (2003: £505,000)
  for a Japanese subsidiary undertaking, Eidos KK.

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Fair values

Set out below is a comparison by category of
  book values and fair values of the Groups financial assets and liabilities
  at June 30, 2004.

|                                                                                                 |  | June
    30, 2004 |            | June 30, 2003 |           
|------------------------------------------------------------------------------------------------ |  | ----------------- | ---------- | ------------- | ----------
|                                                                                                 | 
|Book
    value                                                                                   |  | Fair
    value    | Book value |               | Fair value
|                                                                                                 |  |                   |            |               |           
|                                                                                                 |  | £000             |            | £000         |           
|Primary
              Financial Instruments Held or Issued to Finance
    the Groups Operations |  |                   |            |               |           
|Financial assets                                                                                 |  |                   |            |               |           
|Cash                                                                                             |  | 37,404            |            | 37,404        |           
|Debtors
      due after one year                                                                 |  | 35                |            | 35            |           
|Financial liabilities                                                                            |  |                   |            |               |           
|                                                                                                 |  |                   |            |               |           
|Finance leases                                                                                   |  | 756               |            | 756           |           
|                                                                                                 |  |                   |            |               |           

Investments have been valued at cost, as this
  is not significantly different from their fair values.

Gains and losses on hedges

The Group enters into forward foreign currency
  contracts to eliminate the currency exposures that arise on trading balances
  denominated in foreign currencies. Changes in the fair value of instruments
  used to hedge foreign currency monetary assets and liabilities are recognized
  in the financial statements in the hedged periods.

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|32 | Summary of Major Differences between
          Generally Accepted Accounting Principles in the United Kingdom and
          the 
United States
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------

The consolidated financial statements are prepared
  in accordance with accounting principles generally accepted in the United Kingdom.
  Such principles differ in certain respects from U.S. GAAP.

Application of U.S. GAAP as described below
  has the following effect on the Groups consolidated net income / (loss)
  and shareholders equity:

|                                                              |  | Year endedMarch 31, 2002 |    | Three monthsendedJune 30, 2002 |    | Year endedJune 30, 2003 |   | Year endedJune 30, 2004 |  
|------------------------------------------------------------- |  | ------------------------ | -- | ------------------------------ | -- | ----------------------- | - | ----------------------- | -
|                                                              |  |                          |   
|£000                                                         |  | £000                    |    | £000                          |    | £000                   |  
|Net income/(loss) reported underU.K. GAAP                     |  | (14,171                  | )  | (16,542                        | )  | 19,205                  |   | (2,913                  | )
|U.S. GAAP Adjustments:                                        |  |                          |    |                                |    |                         |   |                         |  
|Amortization of goodwill                                      |  |                          |    |                                |    |                         |   |                         |  
|Group                                                         |  | (135                     | )  |                               |    | 264                     |   | 1,567                   |  
|Joint ventures                                                |  |                         |    |                               |    | 471                     |   |                        |  
|Revenue recognition                                           |  | 938                      |    |                               |    | (1,703                  | ) | 1,217                   |  
|Deferred bank charges                                         |  | (1,250                   | )  |                               |    |                        |   |                        |  
|Provisions against investments                                |  | (204                     | )  |                               |    |                        |   |                        |  
|Profit on disposal of investment                              |  |                         |    |                               |    |                        |   | 488                     |  
|Vacation pay provision                                        |  |                         |    |                               |    |                        |   | (63                     | )
|                                                              |  |                          |    |                                |    |                         |   |                         |  
|Net
        income/(loss) in accordancewith
        U.S. GAAP |  | (14,822                  | )  | (16,542                        | )  | 18,237                  |   | 296                     |  
|                                                              |  |                          |    |                                |    |                         |   |                         |  
|Earnings/(loss) per share in accordance
      with U.S. GAAP  |  |                          |    |                                |    |                         |   |                         |  
|Basic                                                         |  | (11.2                    | )p | (11.8                          | )p | 13.1                    | p | 0.2                     | p
|Diluted                                                       |  | (11.2                    | )p | (11.8                          | )p | 13.0                    | p | 0.2                     | p
|                                                              |  |                          |    |                                |    |                         |   |                         |  
|                                                              |  |                          |    |                                |    |                         |   |                         |  

|                                                    |                           |        |  |        | 
|--------------------------------------------------- | ------------------------- | ------ |  | ------ | 
|Restated*                                           |                          
|June
            30, 2003                           | June
            30, 2004
|                                                    |                          
|£000                                               | £000                    
|Shareholders equity reported
      under U.K. GAAP |                           | 75,578 |  | 71,936 | 
|U.S. GAAP Adjustments                               |                           |        |  |        | 

|Amortization of goodwill                                                    |  |        |   |        |  
|--------------------------------------------------------------------------- |  | ------ | - | ------ | -
|Group                                                                       |  | 264    |   | 1,831  |  
|Joint ventures                                                              |  | 471    |   | 471    |  
|Goodwill differences arising on the acquisition
      of IO Interactive A/S |  |       |   | (1,532 | )
|Exchange difference on goodwill                                             |  | 34     |   | 47     |  
|Deferred consideration                                                      |  |       |   | 2,068  |  
|Deferred tax liability                                                      |  |       |   | 230    |  
|Revenue recognition                                                         |  | (1,703 | ) | (486   | )
|Vacation pay provision                                                      |  |       |   | (829   | )
|                                                                            |  |        |   |        |  
|Shareholders equity in accordance
      with U.S. GAAP                     |  | 74,644 |   | 73,738 |  
|                                                                            |  |        |   |        |  

* Shareholders funds prepared under U.K.
  GAAP as at June 30, 2003 have been restated for the effects of UITF 38 (see
  note 2 in the Notes to the Accounts).

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The significant differences relate principally
  to the following items and the adjustments necessary to restate net income and
  shareholders funds in accordance with U.S. GAAP are shown above.

(1)   Purchase Accounting

All of the Groups acquisitions have been
  accounted for using purchase accounting for both UK and U.S. GAAP. Under U.K.
  GAAP, in-process research and development costs are not identified as an acquired
  asset in the purchase price but rather are capitalized as goodwill and amortized
  over the expected useful life. U.S. GAAP requires the identification of in-process
  research and development as a component of the purchase price allocation. Such
  amounts in which technological feasibility has not been established and that
  have no alternative future use must be charged as an expense at the time of
  acquisition. In accordance with U.S. GAAP, the Group has identified £24.4
  million in the aggregate as in-process research and development, all of which
  was expensed in the periods in which the related acquisitions were completed
  (1996: £8.2 million, 1997: £13.8 million, and 1999: £2.4 million).

The Group has recorded £93.0 million
  as goodwill, the excess of the fair value of consideration paid over the fair
  value of identifiable net assets acquired, on a cumulative basis for U.S. GAAP
  purposes in connection with various acquisitions (1996: £7.4 million,
  1997: £11.1 million, 1998: £4.0 million, 1999: £27.8 million,
  2000: £16.7 million, 2002: £0.9 million, 2004: £25.1million).
  For U.K. GAAP purposes goodwill is amortized over 3 to 5 years, as this is the
  estimated useful life due to the rapid pace of change in the industry.

Goodwill arising on the acquisition of IO Interactive
  was £26.6 million under U.K. GAAP compared to £25.1 million under
  U.S. GAAP. The difference of £1.5 million primarily relates to the reversal
  of £2.1 million of deferred consideration for U.S. GAAP as such amounts
  are currently not payable, the provision for holiday pay of £0.8 million,
  which was retained for the purposes of U.S. GAAP, and the reversal of a deferred
  tax liability of £0.2 million associated with the holiday pay provision.
  None of this goodwill is expected to be deductible for tax purposes.

In July 2001, the Financial Accounting Standards
  Board (FASB) issued Statement of Financial Accounting Standard (SFAS)
  No. 141, Business Combinations, and SFAS No. 142, Goodwill and Other Intangible
  Assets. SFAS No. 141 requires that the purchase method of accounting be used
  for all business combinations initiated after June 30, 2001 as well as all purchase
  method business combinations completed after June 30, 2001. SFAS No. 141 also
  specifies criteria intangible assets acquired in a purchase method business
  combination must meet to be recognized and reported apart from goodwill, noting
  that any purchase price allocable to an assembled workforce may not be accounted
  for separately. SFAS No. 142 requires that goodwill and intangible assets with
  indefinite useful lives no longer be amortized, but instead tested for impairment
  at least annually in accordance with the provisions of SFAS No. 142. SFAS No.
  142 also requires that intangible assets with definite useful lives be amortized
  over their respective estimated useful lives to their estimated residual values,
  and reviewed for impairment in accordance with SFAS No. 144, Accounting for
  the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed
  Of.

Under U.K. GAAP, purchased goodwill in respect
  of acquisitions before January 1, 1998 was written off to reserves in the year
  of acquisition. Purchased goodwill in respect of acquisitions since January
  1, 1998 is capitalized in accordance with the requirements of FRS 10 Goodwill
  and Intangible Assets. Positive goodwill is amortized to nil in equal instalments
  over the estimated useful life. Upon subsequent disposal or closure of an acquired
  business, any goodwill previously taken directly to shareholders equity
  is reflected in the income or loss on disposal.

(2)     Consolidation
  and Accounting for Investments in Common Stock

Certain investments made by the Group during
  the year ended March 31, 2000 have been reported differently under U.K. GAAP
  and U.S. GAAP due to the respective definitions of a subsidiary, joint venture,
  associate and investment.

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Under U.K. GAAP, definitions of subsidiary,
  joint venture, associate and investment are broadly based upon control, to a
  certain extent irrespective of the percentage of shares held. Under U.S. GAAP,
  control and the percentage of ownership are the primary basis on which an investment
  is categorized as a subsidiary, joint venture, associate and investment. Strong
  evidence must be present in order to not consolidate voting interest entities
  with a greater than 50% shareholding or to not equity account for an investment
  of greater than 20% shareholding. During the year ended March 31, 2000, the
  Group acquired a 75% interest in Proein SL. During the year ended June 30, 2004,
  the Group acquired a 51% interest in IO Interactive Hungary Kft. Because of
  the nature of the contractual joint control arrangements, these investments
  are considered to be joint ventures in accordance with U.K. GAAP and are accounted
  for using the equity method of accounting. For U.S. GAAP purposes, Proein SL
  and IO Interactive Hungary Kft have been treated as subsidiaries and consolidated.

(3)     Revenue
  Recognition

Under U.K. GAAP, licence income and advance
  royalties are recognized when the right to consideration is obtained in exchange
  for performance. Up-front fees are required to be deferred unless contractual
  obligations have been fulfilled. During the year ended June 30, 2003, the Group
  received non-refundable advance royalties which met the criteria for revenue
  recognition under U.K. GAAP as any remaining services were considered inconsequential.
  Under U.S. GAAP such remaining services did not qualify as inconsequential and
  accordingly these advance royalties were deferred. During the year ended June
  30, 2004 the criteria for revenue recognition under U.S. GAAP were met for a
  portion of this amount and accordingly such amounts have been recognized as
  revenue in the current year.

(4)     Accrual
  for Vacation Expense

Under U.K. GAAP, no cost is accrued for vacation
  expense. U.S. GAAP requires that a liability should be accrued for vacation
  benefits that employees have earned but not yet taken.

(5)     Advertising
  Costs

There is no U.K. standard dealing specifically
    with advertising costs. The Group holds advertising costs as a prepayment
    and
  expenses them at the earlier of when the game is released or after 3 months.
    Under U.S. GAAP advertising costs are expensed when the advert first runs.
    No
  differences arose in respect of advertising costs between U.K. GAAP and U.S.
  GAAP at the year ended June 30, 2004.

(6)Deferred
  taxation

The tax effects of temporary differences that
  give rise to deferred taxes are:

|                                                              |       | June
        30, 2003 |   | June
        30, 2004 |  
|------------------------------------------------------------- | ----- | --------------------- | - | --------------------- | -
|                                                              |      
|£000                                                         | £000
|Net operating loss carryforward                               |       | 25,589                |   | 29,874                |  
|Difference between tax allowances and book
      depreciation |       | 502                   |   | 852                   |  
|Temporary differences in respect of deferred
      income     |       |                      |   | (2,008                | )
|Sales returns allowances and price protection
      reserves  |       | 3,229                 |   | 2,272                 |  
|Interest expense                                              |       | 6,577                 |   | 5,599                 |  
|Other temporary differences                                   |       | (619                  | ) | (628                  | )
|Valuation allowance                                           |       | (35,232               | ) | (37,194               | )
|                                                              |       |                       |   |                       |  
|Net deferred tax (liability)/asset
      (U.S. GAAP)          |       | 46                    |   | (1,233                | )
|                                                              |       |                       |   |                       |  

As at June 30, 2004, the Group had US Federal
  operating loss carry forwards of £52.5 million, all of which expire between
  2012 and 2023. Additionally, the Group has local operating loss carry forwards
  of £43.8 million, of which £8.1 million has unlimited carry-forward
  and £35.7 million expires between 2010 and 2014.

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The net change in the valuation allowance for
  the year was an increase of £2.0 million (2003: decrease of £10.9
  million). This relates largely to the current year losses unable to be utilised
  in the year. Other differences relate to US temporary difference arising on
  movements in provisions.

As at June 30, 2004, the Group does not believe
  that there was any material deferred tax liability arising from the excess of
  the value of its subsidiaries, joint ventures or associates over their base
  cost for tax purposes.

Under U.K. GAAP, the share of tax incurred
  by certain joint ventures is included in the tax on loss of ordinary activities.
  Under U.S. GAAP, this tax would be included as part of equity in loss of affiliates
  with income before income taxes.

(7)    Consolidated
  Statements of Cashflow

The consolidated statements of cashflow prepared
  in accordance with Financial Reporting Standard No. 1 (revised) present substantially
  the same information as that required under U.S. GAAP. However, under U.S. GAAP
  the cashflows of one of the joint ventures in Spain (which is consolidated as
  a subsidiary under U.S. GAAP and equity accounted under U.K. GAAP) should be
  added. In addition, under U.S. GAAP, there are certain differences from U.K.
  GAAP with regard to classification of items within the cashflow statement and
  with regard to the definition of cash and cash equivalents. This has the effect
  of changing the cash outflow of £2,924,000 under U.K. GAAP to a cash outflow
  of £21,225,000 under U.S. GAAP.

Under U.K. GAAP, cashflow is presented separately
  for operating activities, returns on investments and servicing of finance, taxation,
  capital expenditure and financial investment, acquisitions and disposals, management
  of liquid resources and financing activities. Under U.S. GAAP cashflow is presented
  separately for operating activities, investing activities and financing activities.
  Cashflow from taxation and returns on investments and servicing of finance would,
  with the exception of dividends paid and costs of financing be included as operating
  activities under U.S. GAAP. The payments of dividends and costs of financing
  would be included under financing activities under U.S. GAAP.

Under U.S. GAAP, cash and cash equivalents
  do not include bank overdrafts, as is the case under U.K. GAAP. Under U.S. GAAP
  such bank overdrafts are presented within financing activities.

Under U.S. GAAP, capital expenditure and financial
  investment and acquisitions and disposals are included in investing activities.

Set out below, for illustrative purposes, is
  a summary consolidated statement of cashflow under U.S. GAAP.

|                                                                     | Year ended    |               | Three months ended |   | Year ended |   | Year ended |  
|-------------------------------------------------------------------- | ------------- | ------------- | ------------------ | - | ---------- | - | ---------- | -
|March 31, 2002                                                       | June 30, 2002 | June 30, 2003 | June 30, 2004     
|                                                                     |               |               |                   
|£000                                                                | £000         | £000         | £000             
|Cash flow from operating activities                                  | (20,762       | )             | 8,878              |   | 1,979      |   | 4,636      |  
|Cash flow from investing activities                                  | 9,203         |               | (758               | ) | (635       | ) | (26,261    | )
|Cash flow from financing activities                                  | 52,723        |               | 93                 |   | (1,258     | ) | 400        |  
|                                                                     |               |               |                    |   |            |   |            |  
|Net
        increase/(decrease) in cash and cash
        equivalents | 41,164        |               | 8,213              |   | 86         |   | (21,225    | )
|                                                                     |               |               |                    |   |            |   |            |  

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(8)     Accounting
  for stock-based compensation

The Group has adopted only the disclosures
  required by SFAS No. 123,Accounting
  for Stock-Based Compensation, and will continue to recognize
  stock-based compensation expenses under APB Opinion No. 25. Accounting for
  Stock Issued to Employees. As required, pro-forma net income/(loss), earnings/(loss)
  per share and weighted-average grant-date fair value of options granted, based
  on SFAS 123s fair value methodology are disclosed below. The fair values
  of options were determined assuming expected lives of one to five years (depending
  on the scheme) and risk-free interests ranging from 4.7% to 5.2%.Furthermore,
  volatility of 54% (year to June 30, 2003: 61%, 3 months to June 30, 2002: 75%,
  year to March 31, 2002: 75%) and dividend yield of nil were assumed.

|In thousands,
      except per share data               | Year ended    |               | Three months ended |    | Year ended |   | Year ended |   
|------------------------------------------------------- | ------------- | ------------- | ------------------ | -- | ---------- | - | ---------- | --
|March 31, 2002                                          | June 30, 2002 | June 30, 2003 | June 30, 2004     
|                                                        |               |               |                   
|£000                                                   | £000         | £000         | £000             
|                                                        |               |               |                    |    |            |   |            |   
|Income/(loss)
        for the period under U.S. GAAP    | (14,822       | )             | (16,542 )          |    | 18,237     |   | 296        |   
|Adjustment:                                             |               |               |                    |    |            |   |            |   
|Stock-based
        compensation expense under SFAS 123 | (1,675        | )             | (420               | )  | (1,649     | ) | (1,326     | ) 
|Compensation
        expense recognized                 |              |               |                   |    | 77         |   | 263        |   
|                                                        |               |               |                    |    |            |   |            |   
|Pro
        forma income/(loss) for the period          | (16,497       | )             | (16,962            | )  | 16,665     |   | (767       | ) 
|                                                        |               |               |                    |    |            |   |            |   
|Pro
        forma earnings/(loss) per share             | (12.4         | )p            | (12.1              | )p | 11.9       | p | (0.5       | )p
|                                                        |               |               |                    |    |            |   |            |   

The activity of options and rights over Ordinary
  shares for the year ended March 31, 2002, the three months ended June 30, 2002
  and the years ended June 30, 2003 and 2004 was as follows:

|Options and rights
      over Ordinary shares                                        |           | Year
        ended
        March 31, 2002 |           | Three months ended
          June 30, 2002 |           | Year
        ended
        June 30, 2003 |           | Year
        ended
        June 30, 2004 | 
|------------------------------------------------------------------------------------ | --------- | ----------------------------------------- | --------- | ------------------------------------------ | --------- | ---------------------------------------- | --------- | ---------------------------------------- | 
|                                                                                     |           |                                           |           |                                            |           |                                          |           |                                         
|                                                                                     |           | Number                                    |           | Weighted                                   |           | Number                                   |           | Weighted                                 | 
|                                                                                     | average   |                                           | average   |                                            | average   |                                          | average  
|                                                                                     | price (p) |                                           | price (p) |                                            | price (p) |                                          | price (p)
|                                                                                     |           |                                           |           |                                            |           |                                          |           |                                          | 
|Outstanding
        at beginning of period                                           |           | 6,122,133                                 |           | 179.08                                     |           | 6,221,864                                |           | 201.05                                   | 
|Granted                                                                              |           | 1,951,612                                 |           | 234.96                                     |           | 111,847                                  |           | 106.45                                   | 
|Exercised                                                                            |           | 1,327,402                                 |           | 120.08                                     |           | 14,939                                   |           | 125.93                                   | 
|Lapsed                                                                               |           | 524,479                                   |           | 265.41                                     |           | 61,013                                   |           | 191.28                                   | 
|Outstanding
        at end of period                                                 |           | 6,221,864                                 |           | 201.05                                     |           | 6,257,759                                |           | 196.72                                   | 
|Exercisable
        at period end                                                    |           | 2,821,464                                 |           | 126.69                                     |           | 3,057,344                                |           | 143.50                                   | 
|                                                                                     |           |                                           |           |                                            |           |                                          |           |                                          | 
|Weighted
        average fair value of options granted
        during the period (£) |           |                                          |           | 1.33                                       |           |                                         |           | 1.33                                     | 
|                                                                                     |           |                                           |           |                                            |           |                                          |           |                                          | 
|                                                                                     |           |                                           |           |                                            |           |                                          |           |                                          | 

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The following table summarizes information about
  options and rights over Ordinary shares outstanding as at June 30, 2004:

|Range of exercise prices (p) |  | Number
  outstanding |  | Weighted average
  contractual life
  remaining (years) |  | Weighted average
  exercise price (p) |  | Number
  exercisable |  | Weighted average
  exercise price (p) | 
|---------------------------- |  | -------------------- |  | ------------------------------------------------------- |  | ------------------------------------- |  | -------------------- |  | ------------------------------------- | 
|                             |  |                      |  |                                                         |  |                                       |  |                      |  |                                       | 
|0.00-119.00                  |  | 4,029,245            |  | 2.99                                                    |  | 84.23                                 |  | 1,222,897            |  | 101.40                                | 
|121.00-199.45                |  | 4,522,594            |  | 7.10                                                    |  | 144.43                                |  | 610,843              |  | 146.83                                | 
|254.00-329.21                |  | 2,092,591            |  | 3.72                                                    |  | 273.96                                |  | 1,050,855            |  | 293.66                                | 
|                             |  |                      |  |                                                         |  |                                       |  |                      |  |                                       | 
|0.00-329.21                  |  | 10,644,430           |  | 4.88                                                    |  | 147.11                                |  | 2,884,595            |  | 181.06                                | 
|                             |  |                      |  |                                                         |  |                                       |  |                      |  |                                       | 

33    Companies
        Act 1985

The consolidated financial statements do not
    constitute statutory accounts within the meaning of the Companies
    Act 1985 (United Kingdom) for any of the periods presented. Statutory accounts
    for the years ended June 30, 2004, June 30, 2003 and the 15 month period
    ended June 30 2002 have been filed with the United Kingdoms Registrar
    of Companies. The auditor has reported on these accounts. The reports were
    unqualified and did not contain statements under Section 237 (2) or (3) of
    the Act.

These consolidated financial statements exclude
  certain parent company statements and other information required by the Companies
  Act 1985, however, they include all material disclosures required by generally
  accepted accounting principles in the United Kingdom including those Companies
  Act 1985 disclosures relating to the statement of income and balance sheet items.

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ITEM 9  THE OFFER AND LISTING

The Offer and Listing Details

The Ordinary Shares were included on the Unlisted
  Securities Market of the London Stock Exchange from December 1990 until October
  1995 when they were included on the Official List of the London Stock Exchange
  under the symbol EID. On December 20, 1996, 3,000,000
  Ordinary (10p) Shares were listed on the NASDAQ National Market in the form
  of American Depositary Shares evidenced by American Depositary Receipts under
  the symbol EIDSY. Bank of New York is the Depositary
  and transfer agent for the ADSs.

There was a five-for-one stock split on January
  25, 2000. This split affected both Ordinary Shares and ADSs.

A 1 for 3 rights issue was announced on May
  31, 2001, which was ratified by shareholders on June 18, 2001 and closed on
  July 12, 2001.

Figures in this section have been adjusted
  for both the five for one stock split and the 1 for 3 rights issue.

The following table sets forth, for the periods
  indicated, the period high and low middle market quotation for the Ordinary
  Shares as derived from the London Stock Exchange Daily Official List.

**Ordinary Shares Pricing Information**

|High and Low Trading Prices in Past
      Five Fiscal Years | High   |  | Low   | 
|----------------------------------------------------------- | ------ |  | ----- | 
|Fiscal 2000                                                 | £11.44 |  | £3.12 | 
|Fiscal 2001                                                 | £4.94  |  | £1.60 | 
|Fiscal 2002                                                 | £2.88  |  | £1.29 | 
|Three months ended June 30, 2002                            | £1.70  |  | £1.16 | 
|Fiscal 2003                                                 | £1.65  |  | £0.84 | 
|Fiscal 2004                                                 | £1.83  |  | £1.05 | 

High and Low Trading Prices
  in Past Nine Fiscal Quarters

|Quarter ended      | High  |  | Low   | 
|------------------ | ----- |  | ----- | 
|September 30, 2002 | £1.41 |  | £0.84 | 
|December 31, 2002  | £1.60 |  | £0.84 | 
|March 31, 2003     | £1.35 |  | £0.98 | 
|June 30, 2003      | £1.65 |  | £1.30 | 
|September 30, 2003 | £1.55 |  | £1.12 | 
|December 31, 2003  | £1.57 |  | £1.31 | 
|March 31, 2004     | £1.62 |  | £1.26 | 
|June 30, 2004      | £1.83 |  | £1.05 | 
|September 30, 2004 | £1.15 |  | £0.90 | 
|                   |       |  |       | 

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|Monthly High and Low Trading Prices
      in Last Six Months | High  |  | Low   | 
|------------------------------------------------------------ | ----- |  | ----- | 
|April 2004                                                   | £1.77 |  | £1.57 | 
|May 2004                                                     | £1.83 |  | £1.14 | 
|June 2004                                                    | £1.21 |  | £1.05 | 
|July 2004                                                    | £1.04 |  | £0.90 | 
|August 2004                                                  | £1.16 |  | £1.01 | 
|September 2004                                               | £1.08 |  | £1.00 | 

On September 15, 2004, there were 142,002,471
  Ordinary Shares held by 6,051 record holders.

American Depositary Shares Pricing
  Information(1)

|High and Low Trading Prices in Past
      Five Fiscal Years | High   |  | Low   | 
|----------------------------------------------------------- | ------ |  | ----- | 
|Fiscal 2000                                                 | $20.50 |  | $5.60 | 
|Fiscal 2001                                                 | $8.31  |  | $2.56 | 
|Fiscal 2002                                                 | $4.99  |  | $1.67 | 
|Quarter ended June 30, 2002                                 | $2.60  |  | $1.81 | 
|Fiscal 2003                                                 | $3.09  |  | $1.30 | 
|Fiscal 2004                                                 | $3.39  |  | $1.70 | 
|                                                            |        |  |       | 

|High and Low Trading Prices in Past
      Nine Fiscal Quarters |       |  |       | 
|-------------------------------------------------------------- | ----- |  | ----- | 
|Quarter ended                                                  | High  |  | Low   | 
|September 30, 2002                                             | $2.20 |  | $1.30 | 
|December 31, 2002                                              | $2.55 |  | $1.42 | 
|March 31, 2003                                                 | $2.18 |  | $1.60 | 
|June 30, 2003                                                  | $3.09 |  | $1.99 | 
|September 30, 2003                                             | $2.50 |  | $1.70 | 
|December 31, 2003                                              | $2.70 |  | $2.15 | 
|March 31, 2004                                                 | $3.09 |  | $2.30 | 
|June 30, 2004                                                  | $3.39 |  | $1.90 | 
|September 30, 2004                                             | $2.19 |  | $1.68 | 

|                                                             |       |  |       | 
|------------------------------------------------------------ | ----- |  | ----- | 
|Monthly High and Low Trading Prices
      in Last Six Months | High  |  | Low   | 
|April 2004                                                   | $3.18 |  | $2.88 | 
|May 2004                                                     | $3.39 |  | $2.15 | 
|June 2004                                                    | $2.28 |  | $1.90 | 
|July 2004                                                    | $1.94 |  | $1.68 | 
|August 2004                                                  | $2.19 |  | $1.86 | 
|September 2004                                               | $2.01 |  | $1.79 | 

---

On September 15, 2004, there were 117 holders
  of record of the Companys American Depositary Shares (including 1 for
  the Depositary Trust Company) and 3,493,276 American Depositary Shares were
  outstanding (equivalent to 3,493,276 Ordinary Shares or approximately 2.46%
  of the outstanding Ordinary Shares).

Markets

The Companys Ordinary Shares trade on
  the London Stock Exchange and the Companys American Depositary Shares
  trade on the NASDAQ National Market.

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ITEM 10  ADDITIONAL INFORMATION

Memorandum and Articles of Association

A copy of these items was incorporated in the
  Companys 2001 Annual Report on Form 20-F. The information relating to
  the Memorandum and Articles of Association included in such report are hereby
  incorporated by reference.

Material Contracts

The following contracts (not being contracts
  entered into in the ordinary course of business) have been entered into by members
  of the Group (a) within the two years immediately preceding the date of this
  report and are or may be material, or (b) contain provisions under which a member
  of the Group has an obligation or entitlement which is material to the Group
  at the date of this report:

(a) Disposal of shareholding in Opticom

In March 2000, the Company announced a disposal
  of the majority of its shareholding in Opticom to T. J. Fussell, R. N. Keith
  and Credit Suisse First Boston (International) AG. The disposal was of 1,140,000
  of the Companys 1,476,052 shares in Opticom for a total consideration
  of NOK 1,254 million (approximately £94 million). The Group sold its remaining
  stake in the company in a series of open-market transactions during November
  and December 2001, for £11.0 million net of costs.

(b) Underwriting Agreement

In May 2001, the Company entered into an underwriting
  agreement with Dresdner Kleinwort Wasserstein under which Dresdner Kleinwort
  Wasserstein agreed to procure subscribers for, or failing which itself to subscribe
  for, New Ordinary Shares not taken up under the Companys 2001 1 for 3
  Rights Issue. In consideration of its services under the agreement, Dresdner
  Kleinwort Wasserstein was paid commissions and fees of £1.5 million. The
  Rights Issue was successfully completed during the year ended March, 31 2002
  and both parties rights and obligations under the agreement have now expired.

(c) Sony contracts (licensed publisher
      agreement entered into on March 8, 1999 between Sony Computer Entertainment
      America and Eidos Interactive Inc and licensed publisher agreement entered
      into on November 22, 2000 between Sony Computer Entertainment Europe Limited
  and Eidos Interactive Limited).

(d) Xbox contract (licensed publisher
  agreement dated June 19, 2001 between Microsoft Corporation, Eidos Interactive
  Limited and Eidos Interactive Inc.).

(e) Purchase of Ion Storm(agreement
  dated October 22, 1999 relating to an Investment by Eidos Interactive Inc. in
  Ion Storm, L.P.).

(f) Purchase of IO Interactive A/S(agreement dated March 3, 2004 relating to the acquisition
  of IO Interactive A/S by Eidos plc).

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Taxation

The following is a summary of certain UK tax
  consequences generally applicable to the acquisition, ownership and disposition
  by a beneficial owner of ADSs representing Ordinary Shares and of Ordinary Shares
  not in ADS form that is resident in the United States and not resident in the
  United Kingdom (a US Holder) for the purpose of the
  current double taxation convention between the United States and the United
  Kingdom (the Convention). It should be noted that on
  July 24, 2001 representatives of the United Kingdom and United States signed
  a new Income Tax convention (the New Treaty). As of
  the date hereof, the New Treaty has not yet been ratified by the United States
  Senate or the Government of the United Kingdom, and there can be no assurance
  that it will be ratified. Thus, the New Treaty does not currently have the force
  and effect of Law. However, if the New Treaty is ratified and enters into force,
  you will no longer be entitled to claim a special foreign tax credit in respect
  of dividends that is available under the terms of the Current Treaty, except
  for a limited period of time during which you may elect to apply the entirety
  of the Current Treaty in preference to the New Treaty. This summary is therefore
  based on current UK tax law as of the date of this report and is therefore subject
  to any changes to UK tax law. Because the following discussion is a general
  summary that does not purport to address all potential tax consequences for
  all types of investors, US Holders of ADSs or Ordinary Shares should consult
  their own tax advisers as to the particular tax consequences to them of acquisition,
  ownership and disposition of the ADSs or the Ordinary Shares. The following
  summary of certain UK tax considerations does not address the tax consequences
  to a US Holder (i) who is a resident (or in the case of an individual, ordinarily
  resident) in the United Kingdom for UK tax purposes or (ii) whose holding of
  Ordinary Shares or ADSs is effectively connected with a permanent establishment
  in the United Kingdom through which such US Holder carries on business activities
  or, in the case of an individual, performs independent personal services, with
  a fixed base situated therein.

For the purposes of the Convention, US Holders
  of ADSs will be treated as the beneficial owners of the underlying Ordinary
  Shares represented by the ADSs and evidenced by the ADRs.

Accordingly, except as noted, the UK tax consequences
  discussed below apply equally to US Holders of ADSs and Ordinary Shares.

Taxation of Dividends under UK Law and
  Refunds of Tax Credits

Under the provision of the Convention and current
  UK law, a US holder of Ordinary Shares of ADSs who is an individual or a corporate
  portfolio holder (which is broadly defined as a shareholder who holds less than
  10% of the voting shares of the Company) is entitled to receive from the UK
  Inland Revenue a refund (the Tax Treaty Payment) of
  an amount equal to the tax credit in respect of the dividend to which an individual
  resident in the UK would be entitled minus a withholding tax of 15% of the sum
  of the cash dividend plus the tax credit
  (limited to the tax credit). On the basis of an £80 dividend (which amount
  has been selected for illustrative purposes only), the tax credit related to
  the dividend would be equal to £8.89 (10% of the sum of the £80
  dividend and the £8.89 tax credit). A US holder who is an individual or
  corporate portfolio holder would be entitled to receive a Tax Treaty Payment,
  calculated by reducing the £8.89 tax credit by withholding tax of 15%
  of the sum of the £80 dividend and the £8.89 tax credit. Accordingly,
  such US holder would not be entitled to receive any Tax Treaty payment. Thus,
  using the example set out above, an £80 dividend will result in the US
  holder receiving £80.

A US holder who is an individual or a corporate
  portfolio holder who receives the £80 dividend in the above example should
  be considered for US federal income tax purposes to receive a dividend of £88.89
  (£80 dividend plus the £8.89 tax credit) and would include that
  amount in income. Such US holder also should be considered to have paid £8.89
  of UK tax that, subject to the applicable limitations, would be creditable against
  such US holders US federal income tax liability.

The aggregate of the dividend paid to a US
  holder who is an individual or a corporate portfolio holder and the gross tax
  credit in respect of it will be treated as dividend income for US federal income
  tax purposes to the extent made from the Companys current or accumulated
  earnings and profits, as determined under US federal income tax principles.
  The amount of any dividend paid in Pounds Sterling will equal the US dollar
  value of the Pounds Sterling received calculated by reference to the exchange
  rate in effect on the day that the dividend is received by the US holder, in
  the case of Ordinary Shares, or by the Depositary (or its Custodian), in the
  case of ADSs, regardless of whether converted into US Dollars. Foreign currency
  exchange gain or loss, if any, realized in a subsequent sale or other disposition
  of Pounds will be treated as ordinary income or loss to the US holder.

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Dividends received on the Ordinary Shares of
  ADSs will generally not be eligible for the dividends received deduction allowed
  to US corporations under Section 245 of the US Internal Revenue Code. However,
  the withholding tax will be treated as foreign income tax eligible for credit
  or deduction against such US holders US federal income tax liability at
  such US holders option, subject to applicable limitations. US holders
  should consult their tax advisers as to the method of claiming such foreign
  tax credit or deduction and compliance with special tax return disclosure requirements
  that may apply to US holders who claim the benefit of the foreign tax credit
  on such US holders US federal income tax return.

A US holder will be denied a foreign tax credit
  (and instead allowed a deduction) for foreign taxes imposed on a dividend if
  the US holder has not held the Ordinary Shares or ADSs for at least 16 days
  in the 30-day holding period beginning 15 days before the ex-dividend date.
  Any days during which a US holder has substantially diminished its risk of loss
  on the Ordinary Shares of ADSs are not counted towards meeting the 16-day holding
  period required by the statute. A US holder that is under an obligation to make
  related payments with respect to the Ordinary Shares or ADSs (or substantially
  similar or related property) also is not entitled to claim a foreign tax credit
  with respect to a foreign tax imposed on a dividend.

Under regulations effective for payments after
  December 31, 2000, dividends paid on Ordinary Shares or ADSs to a US holder
  or to a non-US holder in the US or through US or US-related persons may be subject
  to a 31% US backup withholding tax in certain circumstances. In addition, the
  payment of proceeds of a sale, exchange or redemption of Ordinary Shares or
  ADSs to a US holder or non-US holder in the US or through US or US-related persons
  may be subject to US information reporting requirements and/or backup withholding
  tax.

US holders can avoid the imposition of backup
  withholding tax by reporting their taxpayer identification number to their broker
  or paying agent on US Internal Revenue Service Form W-9.

Non-US holders can avoid the imposition of
  backup withholding tax by providing a duly completed US Internal Revenue Form
  W-8 BEN to their broker or paying agent. Any amounts withheld under the backup
  withholding rules from a payment to a holder will be allowed as a refund or
  a credit against such holders US federal income tax liability, provided
  that the required returns are filed with US Internal Revenue Service on a timely
  basis.

UK Taxation of Capital Gains

Generally a US holder who is neither resident
  nor ordinarily resident for tax purposes in the UK will not be liable for UK
  tax on capital gains realized or accrued on the sale or other disposal of Ordinary
  Shares or ADSs unless, in the year of assessment in which the gain accrues to
  such holder, that US holder carries on a trade in the UK through a branch or
  agency and the Ordinary Shares or ADSs are or have been used by, held by, or
  acquired for use by or for the purpose of such trade, branch or agency. However,
  a UK nonresident and not ordinarily resident US holder who had been resident
  in the UK for at least part of four years and who held Ordinary Shares or ADSs
  during that period may, in certain circumstances, become liable to UK capital
  gains tax on his return to the UK following a disposal of such Ordinary Shares
  or ADSs. Any US holders whose circumstances are such that they may fall within
  such provisions are advised to consult their tax adviser.

A US holder who is resident or ordinarily resident
  for tax purposes in the UK, or a US corporation which is resident in the UK
  by reason of being managed and controlled in the UK, or a US holder who, or
  a US corporation which, is trading in the UK through a branch or agency where
  Ordinary Shares or ADSs are or have been acquired, used or held for the purposes
  of such trade, branch or agency, may be liable for both UK tax and US federal
  income tax on a gain on the disposal of the Ordinary Shares or ADSs. Such US
  holder generally will be entitled to offset a credit for UK tax against its
  US federal income tax liability with respect to such gain.

A US holder of Ordinary Shares or ADSs will
  be liable for US federal income tax on gains realized or accrued on the sale
  or disposal of Ordinary Shares or ADSs to the same extent as on any other gains
  from sales of shares. Such gain will be a capital gain if the Ordinary Shares
  or ADSs were capital assets in the hands of such US holder.

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UK Estate and Gift Tax

UK Inheritance Tax (IHT)
  is a tax levied at death on the value of an individuals estate at death
  plus the value of any gifts made within seven years of death. It may also apply
  to certain lifetime transfers or to property comprised in a trust or settlement.
  A US domiciliary need only be concerned about liability for IHT to the extent
  he is or is deemed to be also a UK domiciliary (or was a UK domiciliary at the
  time he created any trust or settlement) or otherwise to the limited extent
  of his UK assets. Generally, an individual who is domiciled in the United Kingdom
  is liable for IHT on his worldwide estate. An individual who is domiciled within
  the United States would only be subject to IHT on United Kingdom situated assets
  which would include shares in a UK company. Domicile in the UK can arise either
  as a matter of general law, because the individual regards the United Kingdom
  as his permanent home and intends to remain in the United Kingdom for the rest
  of his life, or it can arise through residence in the United Kingdom over a
  number of years. Once United Kingdom domicile has been acquired then an individual
  will be treated as continuing to be deemed domiciled in the United Kingdom for
  IHT purposes for three years after giving up that domicile.

Under the Convention between the United States
  and the United Kingdom relating to estate and gift taxes, ADSs or Ordinary Shares
  held by an individual who is domiciled for the purpose of the Convention in
  the United States and is not for the purposes of the Convention a national of
  the United Kingdom will not, provided any applicable US tax is paid, be subject
  to IHT on the individuals death or on a gift of the ADSs or the Ordinary
  Shares during the individuals lifetime unless the ADSs or the Ordinary
  Shares form part of the business property of a permanent establishment of the
  individual in the United Kingdom or, in the case of a holder who performed independent
  personal services, pertain to a fixed base in the United Kingdom used for the
  performance of independent personal services. Where the ADSs or Ordinary Shares
  have been placed in trust by a settler who, at the time of settlement, was a
  US Holder, the ADSs or Ordinary Shares will generally not be subject to IHT
  unless the settler, at the time of settlement, was not domiciled in the United
  States and was a United Kingdom national. In the exceptional case where the
  ADSs or Ordinary Shares are subject both to IHT and to US Federal gift or estate
  tax, the Convention generally provides for tax paid in the United Kingdom to
  be credited against tax payable in the United States or for tax paid in the
  United States to be credited against tax payable in the United Kingdom based
  on priority rules set forth in the Convention.

UK stamp duty and stamp duty reserve tax

Stamp duty is (subject to certain exceptions) generally
  payable at the rate of 1.5% on any instrument transferring Ordinary Shares to
  the Custodian of the Depositary. Where the transfer is not on sale, the 1.5%
  charge is applied to the value of such Ordinary Shares. Alternatively, where
  there is no instrument of transfer a similar 1.5% charge to stamp duty reserve
  tax (SDRT) may arise (see below). In accordance with the terms of the Deposit
  Agreement relating to the ordinary shares, any tax or duty payable by the Depositary
  or the Custodian of the Depositary on future deposits of Ordinary Shares will
  be charged by the Depositary to the party to whom ADSs are delivered against
  such deposits.

No UK stamp duty will be payable on transfer
  of an ADS, provided that the ADS (and any separate instrument of transfer) is
  executed and retained at all times outside the UK. A transfer of an ADS in the
  US thus will not give rise to UK stamp duty provided the instrument of transfer
  is not brought into the UK A transfer of an ADS in the UK may attract stamp
  duty at a rate of 0.5% of the consideration.

Any transfer (which will include a transfer
  from the Depositary to an ADS holder) of the Ordinary Shares, including Ordinary
  Shares underlying an ADS, may result in a stamp duty liability at the rate of
  0.5% of the consideration. There is no charge to ad valorem stamp duty on gifts.
  On a transfer of Ordinary Shares from a nominee to the beneficial owner (the
  nominee having at all times held the Ordinary Shares on behalf of the transferee)
  under which no beneficial interest passes and which is neither on sale, nor
  arises under or following a contract of sale, nor is in contemplation of sale,
  fixed stamp duty of £5 will be payable.

Stamp duty reserve tax generally at a rate
  of 0.5% of the consideration is currently payable on any agreement to transfer
  Ordinary Shares or any interest therein unless: (i) an instrument transferring
  the Ordinary Shares is executed; (ii) stamp duty, generally at a rate of 0.5%,
  is paid; and (iii) generally the instrument is stamped on or before the accountable
  date for stamp duty reserve tax. The duty will, however, be refundable if within
  six years the agreement is completed by an instrument which has been duly stamped,
  generally at the rate of 0.5%.

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Stamp duty reserve tax will not be payable on
  any agreement to transfer ADSs though an agreement to transfer the underlying
  shares is liable to SDRT as discussed above.

Documents on Display

The Companys Articles and Memorandum
  and Articles of association are available for inspection during normal business
  hours upon prior written request at the Companys registered office, which
  is located at:

Wimbledon Bridge House
  1, Hartfield Road
  Wimbledon
  London SW19 3RU
  United Kingdom



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ITEM 11  QUANTITATIVE AND QUALITATIVE
  DISCLOSURES ABOUT MARKET RISK

Foreign Currency Risk

The Group is exposed to certain market risks
  arising from transactions in the normal course of business and financial instruments
  used to finance the Groups operations. The groups financial currency
  is sterling however the group operates in a number of territories outside of
  the UK. Movements in foreign exchange rates, particularly the US dollar and
  the Euro against sterling, can affect the Groups sterling profit and loss
  account and balance sheet.

The Groups treasury policy is to manage
  financial risks that arise in relation to underlying business needs. The activities
  of the treasury function are carried out in accordance with Board approved policies.
  It is, and has been throughout the period under review, the Groups policy
  that no trading in financial instruments shall be undertaken. The treasury function
  does not operate as a profit center. Treasury activities include the use of
  spot and forward foreign exchange instruments, currency options and currency
  swaps. It is, and has been throughout the period under review, the Groups
  policy that no trading in financial instruments shall be undertaken. These instruments
  are generally short-term in nature, with typical maturities of less than three
  months. The foreign currency exchange risk associated with our forward currency
  contracts at June 30, 2004 is not material in relation to our consolidated financial
  position, results of operations or cashflows.

Interest Rate Risk

During the year the Groups interest rate
  exposure related to cash deposits and floating rate debt. Cash deposits are
  placed on the money markets for periods of up to six months. The interest rate
  risk at June 30, 2004 is not material in relation to the Groups consolidated
  financial position, results of operations or cashflow. The Group has not used
  derivative financial instruments to alter the interest rate characteristics
  of its cash deposits or floating rate debt.

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PART II

ITEM 15  CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Based on their evaluation as of the end of
  the period covered by this annual report on Form 20-F, the Companys Chief
  Executive Officer and Chief Financial Officer have concluded that the Groups
  disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e))
  under the Securities Exchange Act of 1934 (the Exchange Act) are
  effective to ensure that information that the Company is required to disclose
  in reports that it files or submits under the Exchange Act is recorded, processed,
  summarized and reported within the time periods specified in Securities and
  Exchange Commission rules and forms.

The Groups disclosure controls and procedures
  are designed to provide reasonable assurance of achieving their objectives,
  and the Companys Chief Executive Officer and Chief Financial Officer have
  concluded that these controls and procedures are effective at the reasonable
  assurance level. The Company believes that a control system, no matter
  how well designed or operated, cannot provide absolute assurance that the objectives
  of the control system are met, and no evaluation of controls can provide absolute
  assurance that all control issuances and instances of fraud, if any, within
  a company have been detected.

Changes in Internal Controls

There were no changes in the Groups internal
  controls over financial reporting during the year ended June 30, 2004 that have
  materially affected, or are reasonable like to materially affect, the Groups
  internal control over financial reporting.

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ITEM 16

ITEM 16A  AUDIT COMMITTEE FINANCIAL
  EXPERT

The Audit Committee comprises three non-executive
  directors: David Adams; Victor Steel; and Allen Thomas. The NASDAQ requires
  that the Audit Committee includes at least one member who has significant and
  relevant financial experience. Following evaluation the Board has determined
  that Mr. Adams qualifies as an audit committee financial expert,
  as defined in the Instructions to Item 16A of Form 20-F. The Company believes
  that Mr. Adams is independent within the meaning of the listing
  rules of the NASDAQ National Market. The Combined Code on Corporate Governance
  also has similar requirements in respect of an appointed financial expert.

Further information on the role and responsibilities
  of the Audit Committee is provided in Item 6, Directors, Senior Management and
  Employees.

ITEM 16B  CODE OF ETHICS

We maintain a Code of Ethics for all directors
  and senior financial officers. A copy of the Code of Ethics may be obtained
  by writing to the Company Secretarial Department at Eidos plc, Wimbledon Bridge
  House, 1 Hartfield Road, Wimbledon, London, SW19 3RU.

The Audit Committee has also established a
  Complaints and Whistleblowing Procedure so that employees may report, anonymously
  and in confidence, any suspected wrongdoings regarding violations of laws, Company
  policies, bribery, fraud, accounting or internal control irregularities or other
  related matters.

ITEM 16C  PRINCIPAL ACCOUNTANT
  FEES AND SERVICES

Our external auditors are KPMG Audit Plc. The
  following table shows the fees paid to KPMG for the fiscal years ended June
  30, 2004 and 2003.

|                      |               |  | Year ended |  |  | Year ended | 
|--------------------- | ------------- |  | ---------- |  |  | ---------- | 
|June 30, 2003         | June 30, 2004
|                      |               |  |            |  |  |            | 
|                      |               |  | £000      |  |  | £000      | 
|Audit fees            |               |  | 453        |  |  | 413        | 
|Audit related fees(1) |               |  | 92         |  |  | 266        | 
|Tax fees(2)           |               |  | 562        |  |  | 380        | 
|All other fees        |               |  |           |  |  | 49         | 
|                      |               |  |            |  |  |            | 
|Total                 |               |  | 1,107      |  |  | 1,108      | 
|                      |               |  |            |  |  |            | 

|   
|---
|(1)
|(2)

The Audit Committee is responsible for advising
  the Board on the annual appointment of external auditors and on the scope, results
  and cost effectiveness of both the audit and non-audit work. It annually assesses
  the independence and objectivity of the auditors. The Audit Committee has authority
  to pre-approve the engagement of the external auditors audit and permitted
  non-audit services within an agreed framework. All audit and non-audit fees
  paid to KPMG in the fiscal year ended June 30, 2004 were approved by the Audit
  Committee prior to the work being undertaken.

16D  EXEMPTIONS FROM LISTING STANDARDS
  FOR AUDIT COMMITTEES

None.

16E  PURCHASES OF EQUITY SECURITIES
  BY THE ISSUER AND AFFILIATED PURCHASERS

Not applicable.

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|PART
        III
|----------------

ITEM 18  FINANCIAL STATEMENTS

These documents are contained within Item 8.



ITEM 19  EXHIBITS

Exhibit

|1     | (i)       | Memorandum and Articles of
      Association                                                                           
|----- | --------- | -----------------------------------------------------------------------------------------------------------------------
|4(1)  | (ii)(iii) | Licensed Publisher Agreement
      (Sony, U.S.)                                                                        
|4(2)  | (ii)(iii) | Licensed Publisher Agreement
      (Sony, Europe)                                                                      
|4(3)  | (ii)(iii) | Licensed Publisher Agreement
      (Xbox)                                                                              
|4(4)  | (iii)     | Lease Agreement for Wimbledon
      Bridge House                                                                       
|4(5)  | (iii)     | Lease Agreement for Willow
      Place                                                                                 
|4(6)  | (iii)     | Service Agreement for Michael
      Arnaouti                                                                           
|4(7)  | (iii)     | Service Agreement for Stuart
      Cruickshank                                                                         
|4(8)  | (iii)     | Service Agreement for Robert
      Dyer                                                                                
|4(9)  |           | Service
      Agreement for Jonathan Kemp                                                                              
|4(10) | (iii)     | Service Agreement for Ian
      Livingstone                                                                            
|4(11) | (iii)     | Service Agreement for Michael
      McGarvey                                                                           
|4(12) | (iii)     | Service Agreement for David
      Rose                                                                                 
|4(13) | (iii)     | Service Agreement for John
      Spinale                                                                               
|4(14) |           | Share Sale and Purchase Agreement
      between Eidos plc and IO Interactive A/S                                       
|8     | (iv)      | List of subsidiaries                                                                                                   
|12(1) |           | Chief
      Executive Officer certification under Section 302 of the Sarbanes-Oxley
      Act of 2002                  
|12(2) |           | Chief
      Financial Officer certification under Section 302 of the Sarbanes-Oxley
      Act of 2002                  
|13    |           | Certification
      under Section 906 of the Sarbanes-Oxley Act of 2002                                                
|      |           |                                                                                                                        
|(i)   |           | Incorporated by reference
      to the registrants annual report on Form 20-F for the year ended March
      31, 2001.
|(ii)  |           | Portions have been omitted
      and filed separately with the Securities and Exchange Commission pursuant
      to a  
|      |           | request for confidential treatment
      in accordance with Rule 24b-2 under the Securities Exchange Act of            
|      |           | 1934, as amended.                                                                                                      
|(iii) |           | Incorporated by reference
      to the registrants annual report on Form 20-F for the year ended June
      30, 2003. 
|(iv)  |           | See Item 3 of this annual
      report for a list of subsidiaries                                                      

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|SIGNATURES                                                                                                                                                                                                          
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|The registrant
      hereby certifies that it meets all of the requirements for filing on Form
      20-F and that it has duly caused and authorized the undersigned to sign
      this annual report on its behalf.
|                                                                                                                                                                                                                    
|                                                                                                                                                                                                                    
|                                                                                                                                                                                                                    
|Date: December 20, 2004                                                                                                                                                                                             
|                                                                                                                                                                                                                    

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