Document:

REGISTERED NUMBER: 1974868

                         TWINCENTRIC INTEGRATION LIMITED

                           REPORT OF THE DIRECTOR AND

                         UNAUDITED FINANCIAL STATEMENTS

                                 FOR THE PERIOD

                       1 JANUARY 2002 TO 30 NOVEMBER 2002

<PAGE>

                         TWINCENTRIC INTEGRATION LIMITED

                      CONTENTS OF THE FINANCIAL STATEMENTS
                For The Period 1 January 2002 to 30 November 2002

                                                                        Page

                Company Information                                       1

                Report of the Director                                    2

                Profit and Loss Account                                   3

                Balance Sheet                                             4

                Notes to the Financial Statements                         5

                Report of the Accountants                                 8

                Trading and Profit and Loss Account                       9

<PAGE>

                         TWINCENTRIC INTEGRATION LIMITED

                               COMPANY INFORMATION
                For The Period 1 January 2002 to 30 November 2002

                DIRECTOR:                            A J McGurk

                SECRETARY:                           Mrs G J McGurk

                REGISTERED OFFICE:                   6a Church Street
                                                     Eagle Industrial Estate
                                                     Witney
                                                     Oxfordshire
                                                     OX28 4AW

                REGISTERED NUMBER:                   1974868

                ACCOUNTANTS:                         James & Cowper
                                                     Chartered Accountants
                                                     Buxton Court
                                                     3 West Way
                                                     Botley
                                                     Oxford
                                                     OX2 0JB

                                       1
<PAGE>

                         TWINCENTRIC INTEGRATION LIMITED

                             REPORT OF THE DIRECTOR
                For The Period 1 January 2002 to 30 November 2002

The director  presents his report with the  financial  statements of the company
for the period 1 January 2002 to 30 November 2002.

PRINCIPAL ACTIVITY
The principal activity of the company in the period under review was that of the
provision of computer services and the development of internet related software.

DIRECTORS
The directors during the period under review were:

           A J McGurk
           S L Black                                 - resigned 6.8.02

The  beneficial  interest of the director  holding office on 30 November 2002 in
the issued share capital of the company was as follows:

Ordinary (pound)1 shares              30.11.02                       1.1.02

A J McGurk                               2,750                        2,750

This report has been prepared in accordance with the special  provisions of Part
VII of the Companies Act 1985 relating to small companies.

ON BEHALF OF THE BOARD:

           ...................................................
           Mrs G J McGurk - Secretary

           Date: .............................................

                                       2
<PAGE>

                                     Page 3

<PAGE>

           TWINCENTRIC INTEGRATION LIMITED

                             PROFIT AND LOSS ACCOUNT
                For The Period 1 January 2002 to 30 November 2002

                                                          Period
                                                          1.1.02
                                                            to        Year Ended
                                                         30.11.02      31.12.01
                                         Notes            (pound)      (pound)
                                                         --------      --------
TURNOVER                                                  378,645       564,229

Cost of sales                                              54,205       168,463
                                                         --------      --------

GROSS PROFIT                                              324,440       395,766

Administrative expenses                                   591,344       628,315
                                                         --------      --------

                                                         (266,904)     (232,549)

Other operating income                                      3,000            --
                                                         --------      --------

OPERATING LOSS                            2              (263,904)     (232,549)

Profit/loss on sale of operation          3               365,716            --
                                                         --------      --------

                                                          101,812      (232,549)

Interest receivable and similar income                        113         2,376
                                                         --------      --------

                                                          101,925      (230,173)

Interest payable and similar charges                       18,684        14,184
                                                         --------      --------

PROFIT/(LOSS) ON ORDINARY ACTIVITIES
BEFORE TAXATION                                            83,241      (244,357)

Tax on profit/(loss)
 on ordinary activities                   4               (3,467)      (32,021)
                                                         --------      --------

PROFIT/(LOSS) FOR THE FINANCIAL PERIOD
AFTER TAXATION                                             86,708      (212,336)
                                                         --------      --------

RETAINED PROFIT/(DEFICIT) FOR THE PERIOD
                                                           86,708      (212,336)
                                                         ========      ========

                The notes form part of these financial statements

                                       3
<PAGE>

<TABLE>
<CAPTION>

                         TWINCENTRIC INTEGRATION LIMITED

                                  BALANCE SHEET
                                30 November 2002

                                                                                2002                           2001
                                                     Notes           (pound)           (pound)        (pound)         (pound)

         <S>                                           <C>            <C>             <C>           <C>             <C>
           FIXED ASSETS
           Tangible assets                               5                                  -                          29,278

           CURRENT ASSETS
           Stocks                                                           -                          29,500
           Debtors                                       6              3,467                         138,198
           Cash at bank and in hand                                       120                             357
                                                                    ----------                       ---------

                                                                        3,587                         168,055
           CREDITORS
           Amounts falling due within one year           7             70,676                         351,129
                                                                    ----------                       ---------

           NET CURRENT LIABILITIES                                                    (67,089)                       (183,074)
                                                                                    ----------                        --------

           TOTAL ASSETS LESS CURRENT
           LIABILITIES                                                                (67,089)                       (153,796)
                                                                                    ==========                        ========

           CAPITAL AND RESERVES
           Called up share capital                       8                             12,750                          12,750
           Share premium                                 9                             97,250                          97,250
           Profit and loss account                       9                           (177,089)                       (263,796)
                                                                                    ----------                        --------

           SHAREHOLDERS' FUNDS                                                        (67,089)                       (153,796)
                                                                                    ==========                        ========

</TABLE>

The company is entitled to  exemption  from audit under  Section  249A(1) of the
Companies Act 1985 for the period ended 30 November 2002.

The members have not  required  the company to obtain an audit of its  financial
statements  for the period  ended 30 November  2002 in  accordance  with Section
249B(2) of the Companies Act 1985.

The director acknowledges his responsibilities for:

(a)   ensuring  that the company  keeps  accounting  records  which  comply with
      Section 221 of the Companies Act 1985 and

(b)   preparing  financial  statements  which  give a true and fair  view of the
      state of affairs of the company as at the end of each  financial  year and
      of its  profit  or loss for each  financial  year in  accordance  with the
      requirements  of  Section  226  and  which   otherwise   comply  with  the
      requirements  of the Companies Act 1985 relating to financial  statements,
      so far as applicable to the company.

These  financial  statements  have been prepared in accordance  with the special
provisions of Part VII of the Companies Act 1985 relating to small companies and
with the  Financial  Reporting  Standard for Smaller  Entities  (effective  June
2002).

ON BEHALF OF THE BOARD:

           .....................................................................
           A J McGurk - Director

           Approved by the Board on ............................................

                                       4
<PAGE>
                         TWINCENTRIC INTEGRATION LIMITED

                        NOTES TO THE FINANCIAL STATEMENTS
                For The Period 1 January 2002 to 30 November 2002

1. ACCOUNTING POLICIES

Accounting convention

The financial statements have been prepared under the historical cost convention
and in accordance  with the Financial  Reporting  Standard for Smaller  Entities
(effective June 2002).

Turnover

Turnover represents net invoiced sales of services, excluding value added tax.

Tangible fixed assets

Depreciation  is provided at the  following  annual  rates in order to write off
each asset over its estimated useful life.

Fixtures and fittings          - 20% straight line
Computer equipment             - 33% straight line

Stocks

Work in progress is valued at the lower of cost and net realisable value.

Cost includes all direct expenditure and an appropriate  proportion of fixed and
variable overheads.

Deferred tax
Deferred  tax is  recognised  in  respect of all  timing  differences  that have
originated but not reversed at the balance sheet date.

Pensions
The  company  operates  a defined  contribution  pension  scheme.  Contributions
payable for the period are charged in the profit and loss account.

2. OPERATING LOSS

The operating loss is stated after charging/(crediting):

<TABLE>
<CAPTION>

                                                                         Period
                                                                         1.1.02
                                                                           to         Year Ended
                                                                        30.11.02        31.12.01
                                                                        (pound)          (pound)

                <S>                                                     <C>             <C>
                  Depreciation - owned assets                            35,371          35,260
                  Profit on disposal of fixed assets                     (1,784)              -
                  Pension costs                                           5,348               -
                                                                        ========         =======

                  Directors' emoluments and other benefits etc           64,167          84,060
                                                                        ========         =======

</TABLE>

      3. EXCEPTIONAL ITEMS

      On 30 November 2002 the trade and assets were sold to Twincentric Limited.

                                       5
<PAGE>

                         TWINCENTRIC INTEGRATION LIMITED

                  NOTES TO THE FINANCIAL STATEMENTS - continued
                For The Period 1 January 2002 to 30 November 2002

4.    TAXATION

      Analysis of the tax credit

      The tax credit on the profit on ordinary  activities for the period was as
      follows:

<TABLE>
<CAPTION>

                                                                                                      Period
                                                                                                      1.1.02
                                                                                                        to         Year Ended
                                                                                                     30.11.02        31.12.01
                                                                                                     (pound)         (pound)
                <S>                                                                 <C>                <C>            <C>
                  Current tax:
                  UK corporation tax                                                                   (3,467)        (32,021)
                                                                                                      --------         -------

                  Tax on profit/(loss) on ordinary activities                                          (3,467)        (32,021)
                                                                                                      ========         =======

           5. TANGIBLE FIXED ASSETS
                                                                                     Fixtures
                                                                                        and          Computer
                                                                                     fittings        equipment         Totals
                                                                                     (pound)          (pound)         (pound)
                  COST
                  At 1 January 2002                                                    24,380         160,542         184,922
                  Additions                                                                 -          64,309          64,309
                  Disposals                                                           (24,380)       (224,851)       (249,231)
                                                                                    ----------       ---------        --------

                  At 30 November 2002                                                       -               -               -
                                                                                    ----------       ---------        --------

                  DEPRECIATION
                  At 1 January 2002                                                    12,521         143,123         155,644
                   Charge for period                                                    4,070          31,301           35,371
                  Eliminated on disposal                                              (16,591)       (174,424)       (191,015)
                                                                                    ----------       ---------        --------

                  At 30 November 2002                                                       -               -               -
                                                                                    ----------       ---------        --------

                  NET BOOK VALUE
                  At 30 November 2002                                                       -               -               -
                                                                                    ==========       =========        ========

                  At 31 December 2001                                                  11,859          17,419          29,278
                                                                                    ==========       =========        ========

           6.      DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
                                                                                                        2002            2001
                                                                                                      (pound)         (pound)
                  Trade debtors                                                                             -          78,133
                  Other debtors                                                                             -          30,165
                  Tax                                                                                   3,467          29,900
                                                                                                    ----------        --------

                                                                                                        3,467         138,198
                                                                                                    ==========        ========
</TABLE>

                                       6
<PAGE>

<TABLE>
<CAPTION>

                         TWINCENTRIC INTEGRATION LIMITED

                  NOTES TO THE FINANCIAL STATEMENTS - continued
                For The Period 1 January 2002 to 30 November 2002

           7.      CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
                                                                                                        2002            2001
                                                                                                       (pound)        (pound)

                <S>                                                             <C>                    <C>            <C>
                  Bank loans and overdrafts                                                                 -         129,984
                  Trade creditors                                                                           -          62,930
                  Other creditors                                                                      69,492         148,896
                   Social security and other taxes                                                          -           9,319
                  Directors' current accounts                                                             184               -
                  Accruals and deferred income                                                          1,000               -
                                                                                                    ----------        --------

                                                                                                       70,676         351,129
                                                                                                    ==========        ========

           8. CALLED UP SHARE CAPITAL

                  Authorised:
                  Number:         Class:                                         Nominal                2002            2001
                                                                                 value:               (pound)          (pound)
                  14,000          Ordinary                                       (pound)1              14,000          14,000
                                                                                                      ========         =======

                  Allotted, issued and fully paid:
                  Number:         Class:                                         Nominal               2002            2001
                                                                                 value:               (pound)         (pound)
                  12,750          Ordinary                                       (pound)1             12,750           12,750
                                                                                                      ========         =======

           9.     RESERVES
                                                                                      Profit
                                                                                     and loss          Share
                                                                                      account         premium          Totals
                                                                                      (pound)         (pound)        (pound)

                  At 1 January 2002                                                  (263,797)         97,250        (166,547)
                   Retained profit for the period                                      86,708               -          86,708
                                                                                    ----------       ---------        --------

                  At 30 November 2002                                                (177,089)         97,250         (79,839)
                                                                                    ==========       =========        ========

</TABLE>

       This page does not form part of the statutory financial statements

                                       7
<PAGE>

                         TWINCENTRIC INTEGRATION LIMITED

                  REPORT OF THE ACCOUNTANTS TO THE DIRECTOR OF
                         TWINCENTRIC INTEGRATION LIMITED

As described on the balance sheet you are responsible for the preparation of the
financial  statements  for the period  ended 30  November  2002 set out on pages
three to seven and you consider that the company is exempt from an audit.

In accordance with your instructions, we have compiled these unaudited financial
statements  in order to assist you to fulfil  your  statutory  responsibilities,
from the accounting records and information and explanations supplied to us.

James & Cowper
Chartered Accountants
Buxton Court
3 West Way
Botley
Oxford
OX2 0JB

Date: .............................................

       This page does not form part of the statutory financial statements

                                       8
<PAGE>

<TABLE>
<CAPTION>

                         TWINCENTRIC INTEGRATION LIMITED

                       TRADING AND PROFIT AND LOSS ACCOUNT
                For The Period 1 January 2002 to 30 November 2002

                                                                                 Period                     Year Ended
                                                                           1.1.02 to 30.11.02                31.12.01
                                                                        (pound)       (pound)         (pound)         (pound)

          <S>                                                        <C>            <C>                <C>           <C>
           Sales                                                                      378,645                         564,229

           Cost of sales
           Purchases                                                   54,158                         136,543
           Carriage                                                        47                              18
           Other direct costs                                               -                          31,902
                                                                    ----------                       ---------
                                                                                       54,205                         168,463
                                                                                    ----------                        --------

           GROSS PROFIT                                                               324,440                         395,766

           Other income
           Loans written off                                            3,000                               -
           Deposit account interest                                       113                           2,376
                                                                    ----------                       ---------
                                                                                        3,113                           2,376
                                                                                    ----------                        --------

                                                                                      327,553                         398,142

           Expenditure
           Directors' salaries                                         64,167                          84,060
           Directors' social security                                   6,963                          32,302
           Directors' pensions paid                                         -                           5,721
           Wages & social security                                    261,845                         226,726
           Pensions                                                     5,348                               -
           Temporary staff & recruitment                               14,350                           7,100
           Redundancy payments                                         15,043                          10,140
           Payments in lieu of notice                                       -                          25,950
           Staff training & welfare                                    17,009                          17,384
           Rent                                                        26,226                          28,815
           Rates                                                        4,545                           6,262
           Service charges                                              1,679                             660
           Light & heat                                                 4,761                           5,210
           Cleaning                                                       810                           1,260
           Telephone & fax                                              5,640                           5,976
           Post & stationery                                              735                           1,675
           Travel & subsistence                                        12,456                          20,107
           Motor expenses                                               9,195                           7,161
           Internet provider charges                                   10,969                          15,943
           Insurance                                                   13,340                           9,025
           Information & publications                                      48                             361
           Repairs & renewals                                           1,102                          16,997
           Subscriptions                                                  167                             721
           Equipment hire                                                 270                             360
           Sundry expenses                                              2,302                           8,139
           Accountancy                                                  1,475                               -
           Professional fees                                           12,000                               -
           Legal fees                                                   4,617                           4,090
           Entertainment                                                4,492                           2,535
           Depreciation of tangible fixed assets                        35,371                         35,260
           Consultancy fees                                            50,379                          56,564
           Management fees                                                  -                         (11,500)

</TABLE>

       This page does not form part of the statutory financial statements

                                       9
<PAGE>

<TABLE>
<CAPTION>

                         TWINCENTRIC INTEGRATION LIMITED

                       TRADING AND PROFIT AND LOSS ACCOUNT
                For The Period 1 January 2002 to 30 November 2002

                                                                                Period                     Year Ended
                                                                         1.1.02 to 30.11.02                 31.12.01
                                                                      (pound)        (pound)          (pound)         (pound)

         <S>                                                          <C>             <C>             <C>             <C>
           Brought forward                                            587,304         327,553         625,004         398,142
                                                                    ----------                       ---------
                                                                                       587,304                        625,004
                                                                                    ----------                        --------

                                                                                     (259,751)                       (226,862)

           Finance costs
           Bank charges                                                 5,203                           3,311
           Credit card                                                    621                               -
           Bank interest                                               15,110                          13,405
           Bank loan interest                                           2,125                               -
           Other interest paid                                            143                               -
           Hire purchase                                                1,148                               -
           Foreign exchange differences                                   158                             779
                                                                    ----------                       ---------
                                                                                       24,508                          17,495
                                                                                    ----------                        --------

                                                                                     (284,259)                       (244,357)

           Profit on disposal of fixed assets
           Computer equipment                                                           1,784                               -
                                                                                    ----------                        --------

                                                                                     (282,475)                       (244,357)

           Exceptional items
           Profit/loss on sale of
           operation                                                                  365,716                               -
                                                                                    ----------                        --------

           NET PROFIT/(LOSS)                                                           83,241                        (244,357)
                                                                                    ==========                        ========

</TABLE>

                                       10
<PAGE>REGISTERED NUMBER: 4573588 (England and Wales)

                               TWINCENTRIC LIMITED

                           REPORT OF THE DIRECTORS AND

                              FINANCIAL STATEMENTS

                                 FOR THE PERIOD

                       25 OCTOBER 2002 TO 31 DECEMBER 2003

<PAGE>

TWINCENTRIC LIMITED

                      CONTENTS OF THE FINANCIAL STATEMENTS
               For The Period 25 October 2002 to 31 December 2003

                                                              Page

Company Information                                             1

Report of the Directors                                         2

Report of the Independent Auditors                              4

Profit and Loss Account                                         5

Balance Sheet                                                   6

Notes to the Financial Statements                               7

Trading and Profit and Loss Account                            11

<PAGE>

TWINCENTRIC LIMITED

                               COMPANY INFORMATION
               For The Period 25 October 2002 to 31 December 2003

        DIRECTORS:                           J Conning
                                             A J McGurk

        SECRETARY:                           Answerbuy limited

        REGISTERED OFFICE:                   Buxton Court
                                             3 West Way
                                             Botley
                                             Oxfordshire
                                             OX2 0JB

        REGISTERED NUMBER:                   4573588 (England and Wales)

        AUDITORS:                            James & Cowper
                                             Registered Auditor and
                                             Chartered Accountants
                                             Buxton Court
                                             3 West Way
                                             Botley
                                             Oxford
                                             OX2 0JB

                                     Page 1

<PAGE>

TWINCENTRIC LIMITED

                             REPORT OF THE DIRECTORS
               For The Period 25 October 2002 to 31 December 2003

The directors present their report with the financial statements of the company
for the period 25 October 2002 to 31 December 2003.

INCORPORATION

The company was incorporated on 25 October 2002 and commenced trading on 1
December 2002.

PRINCIPAL ACTIVITY

The principal activity of the company in the period under review was that of the
provision of computer services and the development of internet related software.

EVENTS SINCE THE END OF THE PERIOD

Information relating to events since the end of the period is given in the notes
to the financial statements.

DIRECTORS

The directors during the period under review were:

J Conning                                                   - appointed 25.10.02
A J McGurk                                                  - appointed 25.10.02

The beneficial interests of the directors holding office on 31 December 2003 in
the issued share capital of the company were as follows:

                                                   31.12.03       at date of
                                                                  appointment
Ordinary (pound)1 shares

J Conning                                           100,000             1
A J McGurk                                          100,000            --

Mr J Conning resigned as director and company secretary on 31 March 2004.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

Company law requires the directors to prepare financial statements for each
financial year which give a true and fair view of the state of affairs of the
company and of the profit or loss of the company 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;
-     prepare the financial statements on the going concern basis unless it is
      inappropriate to presume that the company 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 to enable them to ensure that the financial statements comply with
the Companies Act 1985. They are also responsible for safeguarding the assets of
the company and hence for taking reasonable steps for the prevention and
detection of fraud and other irregularities.

AUDITORS

The auditors, James & Cowper, will be proposed for re-appointment in accordance
with Section 385 of the Companies Act 1985.

                                     Page 2
<PAGE>

TWINCENTRIC LIMITED

                             REPORT OF THE DIRECTORS
               For The Period 25 October 2002 to 31 December 2003

This report has been prepared in accordance with the special provisions of Part
VII of the Companies Act 1985 relating to small companies.

ON BEHALF OF THE BOARD:

....................................
A J McGurk - Director

Date:..............................

                                     Page 3
<PAGE>

            REPORT OF THE INDEPENDENT AUDITORS TO THE SHAREHOLDERS OF
                               TWINCENTRIC LIMITED

We have audited the financial statements of Twincentric Limited for the period
ended 31 December 2003 on pages five to ten. These financial statements have
been prepared in accordance with the Financial Reporting Standard for Smaller
Entities (effective June 2002), under the historical cost convention and the
accounting policies set out therein.

This report is made solely to the company's members, as a body, in accordance
with Section 235 of the Companies Act 1985. Our audit work has been undertaken
so that we might state to the company's members those matters we are required to
state to them in an auditors' report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone
other than the company and the company's members as a body, for our audit work,
for this report, or for the opinions we have formed.

Respective responsibilities of directors and auditors

As described on page two the company's directors are responsible for the
preparation of financial statements in accordance with applicable law and United
Kingdom Accounting Standards.

Our responsibility is to audit the financial statements in accordance with
relevant legal and regulatory requirements and United Kingdom Auditing
Standards.

We report to you our opinion as to whether the financial statements give a true
and fair view and are properly prepared in accordance with the Companies Act
1985. We also report to you if, in our opinion, the Report of the Directors is
not consistent with the financial statements, if the company has not kept proper
accounting records, if we have not received all the information and explanations
we require for our audit, or if information specified by law regarding
directors' remuneration and transactions with the company is not disclosed.

We read the Report of the Directors and consider the implications for our report
if we become aware of any apparent misstatements within it.

Basis of audit opinion

We conducted our audit in accordance with United Kingdom Auditing Standards
issued by the Auditing Practices Board. An audit includes examination, on a test
basis, of evidence relevant to the amounts and disclosures in the financial
statements. It also includes an assessment of the significant estimates and
judgements made by the directors in the preparation of the financial statements,
and of whether the accounting policies are appropriate to the company's
circumstances, consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all the information and
explanations which we considered necessary in order to provide us with
sufficient evidence to give reasonable assurance that the financial statements
are free from material misstatement, whether caused by fraud or other
irregularity or error. In forming our opinion we also evaluated the overall
adequacy of the presentation of information in the financial statements.

Opinion

In our opinion the financial statements give a true and fair view of the state
of the company's affairs as at 31 December 2003 and of its loss for the period
then ended and have been properly prepared in accordance with the Companies Act
1985.

James & Cowper
Registered Auditor and
Chartered Accountants
Buxton Court
3 West Way
Botley
Oxford
OX2 0JB

Date:..............................

                                     Page 4
<PAGE>

TWINCENTRIC LIMITED

                             PROFIT AND LOSS ACCOUNT
               For The Period 25 October 2002 to 31 December 2003

                                          Notes                        (pound)

TURNOVER                                                               590,633

Cost of sales                                                          361,057
                                                                     ---------

GROSS PROFIT                                                           229,576

Administrative expenses                                                703,590
                                                                     ---------

OPERATING LOSS                                2                       (474,014)

 Interest payable and similar charges                                    6,402
                                                                     ---------

LOSS ON ORDINARY ACTIVITIES
BEFORE TAXATION                                                       (480,416)

 Tax on loss on ordinary activities           3                             --
                                                                     ---------

LOSS FOR THE FINANCIAL PERIOD
AFTER TAXATION                                                        (480,416)
                                                                     ---------

DEFICIT FOR THE PERIOD                                                (480,416)
                                                                     =========

                The notes form part of these financial statements

                                     Page 5
<PAGE>

TWINCENTRIC LIMITED

                                  BALANCE SHEET
                                31 December 2003

                                          Notes        (pound)         (pound)
FIXED ASSETS
Intangible assets                             4                             --
Tangible assets                               5                         28,698
                                                                     ---------

                                                                        28,698

CURRENT ASSETS
Debtors                                       6         18,323

CREDITORS
 Amounts falling due within one year          7        327,437
                                                      --------

NET CURRENT LIABILITIES                                               (309,114)
                                                                     ---------

TOTAL ASSETS LESS CURRENT
LIABILITIES                                                           (280,416)
                                                                     =========

CAPITAL AND RESERVES
Called up share capital                       9                        200,000
Profit and loss account                      10                       (480,416)
                                                                     ---------

SHAREHOLDERS' FUNDS                                                   (280,416)
                                                                     =========

These financial statements have been prepared in accordance with the special
provisions of Part VII of the Companies Act 1985 relating to small companies and
with the Financial Reporting Standard for Smaller Entities (effective June
2002).

ON BEHALF OF THE BOARD:

....................................
A J McGurk - Director

Approved by the Board on ..........

                The notes form part of these financial statements

                                     Page 7
<PAGE>

                               TWINCENTRIC LIMITED

                        NOTES TO THE FINANCIAL STATEMENTS
               FOR THE PERIOD 25 OCTOBER 2002 TO 31 DECEMBER 2003

              1.  ACCOUNTING POLICIES

                  ACCOUNTING CONVENTION
                  The financial statements have been prepared under the
                  historical cost convention and in accordance with the
                  Financial Reporting Standard for Smaller Entities (effective
                  June 2002).

                  TURNOVER
                  Turnover represents net invoiced sales of services, excluding
                  value added tax.

                  TANGIBLE FIXED ASSETS
                  Depreciation is provided at the following annual rates in
                  order to write off each asset over its estimated useful life.

                  Fixtures and fittings          - 50% straight line
                  Computer equipment             - 50% straight line

                  DEFERRED TAX
                  Deferred tax is recognised in respect of all timing
                  differences that have originated but not reversed at the
                  balance sheet date.

                  PENSIONS
                  The company operates a defined contribution pension scheme.
                  Contributions payable for the period are charged in the profit
                  and loss account.

                  GOODWILL
                  Goodwill, being the amount paid in connection with the
                  aquisition of a business in 2002, has been fully written off
                  at the end of the period after an impairment review considered
                  goodwill to carry no value as at 31 December 2003.

              2. OPERATING LOSS

                  The operating loss is stated after charging/(crediting):

                                                                     (POUND)
                  Depreciation - owned assets                        33,915
                  Auditors remuneration                               6,500
                  Foreign exchange differences                         (141)
                  Pension costs                                       6,350
                                                                    ========

                  Directors' emoluments and other benefits etc       33,985
                                                                    ========

           3.     TAXATION

                  ANALYSIS OF THE TAX CHARGE
                  No liability to UK corporation tax arose on ordinary
                  activities for the period.

                                     Page 7
<PAGE>

                               TWINCENTRIC LIMITED

                  NOTES TO THE FINANCIAL STATEMENTS - CONTINUED
               FOR THE PERIOD 25 OCTOBER 2002 TO 31 DECEMBER 2003

           4. INTANGIBLE FIXED ASSETS
                                                     GOODWILL
                                                      (POUND)
                                                     ---------
                  COST
                  Additions                           365,716
                                                     ---------

                  At 31 December 2003                 365,716
                                                     ---------

                  AMORTISATION
                  Impairments                         365,716
                                                     ---------

                  At 31 December 2003                 365,716
                                                     ---------

                  NET BOOK VALUE
                  At 31 December 2003                       -
                                                     =========

           5. TANGIBLE FIXED ASSETS

<TABLE>
<CAPTION>
                                                                                     FIXTURES
                                                                                        AND          COMPUTER
                                                                                     FITTINGS        EQUIPMENT         TOTALS
                                                                                      (POUND)         (POUND)          (POUND)
                  COST
<S>                                                                                    <C>             <C>             <C>
                  Additions                                                            22,561          40,052          62,613
                                                                                      --------         -------         -------

                  At 31 December 2003                                                  22,561          40,052          62,613
                                                                                      --------         -------         -------

                  DEPRECIATION
                   Charge for period                                                   12,220          21,695          33,915
                                                                                      --------         -------         -------

                  At 31 December 2003                                                  12,220          21,695          33,915
                                                                                      --------         -------         -------

                  NET BOOK VALUE
                  At 31 December 2003                                                  10,341          18,357          28,698
                                                                                      ========         =======         =======

           6.      DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
                                                                                                                       (POUND)
                  Trade debtors                                                                                        10,073
                  Other debtors                                                                                         4,500
                  Prepayments and accrued income                                                                        3,750
                                                                                                                      --------

                                                                                                                       18,323
                                                                                                                      ========

           7.      CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
                                                                                                                       (POUND)
                  Bank loans and overdrafts                                                                           119,899
                  Hire purchase contracts                                                                               5,678
                  Trade creditors                                                                                       9,498
                   Social security and other taxes                                                                     15,104
                  VAT                                                                                                  21,688
                  Other creditors                                                                                      16,346
                  Directors' loan accounts                                                                            105,095
                  Accrued expenses                                                                                     34,129
                                                                                                                     ---------
                                                                                                                      327,437
                                                                                                                    ==========
</TABLE>

                                     Page 8
<PAGE>

                               TWINCENTRIC LIMITED

                  NOTES TO THE FINANCIAL STATEMENTS - CONTINUED
               FOR THE PERIOD 25 OCTOBER 2002 TO 31 DECEMBER 2003

               8. SECURED DEBTS

                  The following secured debts are included within creditors:

                                                                     (POUND)
                  Bank overdraft                                     119,899
                                                                   =========

                  The bank overdraft is secured by the following:

                  HSBC life policy number 9G8427T. First mortgage given by
                  Twincentric Limited. HSBC life policy number 9C2822Y. First
                  mortgage given by Twincentric Limited. Guarantee of
                  (pound)75,000 given by A J McGurk.
                  Guarantee of (pound)75,000 given by J B Conning.
                  Debenture including fixed equitable charge over all present
                  and future freehold and leasehold property; first fixed charge
                  over, among other things, book and other debts, chattels,
                  goodwill and uncalled capital, both present and future; and
                  first floating charge over all assets and undertaking both
                  present and future given by Twincentric Limited.

              9. CALLED UP SHARE CAPITAL

                  Authorised:
                  Number:         Class:                  Nominal
                                                            value:      (POUND)
                  10,000,000      Ordinary                (pound)1   10,000,000
                                                                     ==========

                  Allotted, issued and fully paid:
                  Number:         Class:                  Nominal
                                                            value:      (POUND)
                  200,000         Ordinary                (pound)1      200,000
                                                                     ==========

                  The following shares were allotted and fully paid for cash at
                  par during the period:

                  200,000 Ordinary shares of (pound)1 each

           10.    RESERVES
                                                                 PROFIT
                                                                AND LOSS
                                                                 ACCOUNT
                                                                  (POUND)
                  Deficit for the period                       (480,416)
                                                               ---------

                  At 31 December 2003                          (480,416)
                                                               =========

              11. RELATED PARTY DISCLOSURES

                  Included in other creditors are two loans due to the
                  directors, amounting to (pound)105,095. (pound)102,427 is owed
                  to J Conning and the balance of (pound)2,668 is owed to A J
                  McGurk.

                  On 1 December 2002, the company purchased the trade and assets
                  of Twincentric Integration Limited, a company whose sole
                  director is A J McGurk. The sale was at arms length and for an
                  open market value.

                                     Page 9
<PAGE>

                               TWINCENTRIC LIMITED

                  NOTES TO THE FINANCIAL STATEMENTS - CONTINUED
               FOR THE PERIOD 25 OCTOBER 2002 TO 31 DECEMBER 2003

        12. POST BALANCE SHEET EVENTS

            The company became a wholly owned subsidiary of ActiveCore
            Technologies Inc. on 21 June 2004.

        13. GOING CONCERN

            The financial statements have been prepared on the going concern
            basis. Trade losses have continued since the period end but the
            director believes it is appropriate for the financial statements to
            be prepared on the going concern basis as a result of continued
            financial support pledged by ActiveCore Technologies Inc.

                                     Page 10
<PAGE>

           TWINCENTRIC LIMITED

                       TRADING AND PROFIT AND LOSS ACCOUNT
               FOR THE PERIOD 25 OCTOBER 2002 TO 31 DECEMBER 2003

                                                    (POUND)        (POUND)
  TURNOVER
  Sales                                           454,493
  Training                                        106,140
  Commissions received                             30,000
                                                ----------
                                                                  590,633

  COST OF SALES
  Purchases                                        89,910
  Staff Costs                                     167,402
  Sub contractors                                 103,520
  Development costs                                   225
                                                ----------
                                                                  361,057
                                                                ----------
  GROSS PROFIT                                                    229,576

  EXPENDITURE
  Premises expenses                                19,240
  Rent                                             21,794
  Rates and water                                   5,350
  Insurance                                        24,174
  Light and heat                                    4,690
  Directors' salaries                              33,474
  Directors' social security                        3,936
  Wages                                            32,837
  Social security                                   3,493
  Pensions                                          6,350
  Staff insurance and medical                       5,927
  Telephone                                        17,963
  Post and stationery                               1,747
  Advertising                                       8,667
  Travelling                                       10,135
  Subscriptions                                     1,719
  Repairs and renewals                              4,134
  Training costs                                      785
  Sundry expenses                                   1,307
  Accountancy                                       3,944
  Legal fees                                        7,144
  Auditors remuneration                             6,500
  Foreign exchange (profits)/
  losses                                             (141)
  Entertainment                                     3,219
  Bad debts                                        69,492
                                                ----------
                                                                  297,880
                                                                ----------
                                                                  (68,304)
  FINANCE COSTS
  Bank charges                                      6,079
  Bank interest                                     4,537
  Hire purchase                                     1,865
                                                ----------
                                                                   12,481
                                                                ----------
  Carried forward                                                 (80,785)

This page does not form part of the statutory financial statements

                                     Page 11
<PAGE>

                               TWINCENTRIC LIMITED

                       TRADING AND PROFIT AND LOSS ACCOUNT
               FOR THE PERIOD 25 OCTOBER 2002 TO 31 DECEMBER 2003

                                                 (POUND)        (POUND)
Brought forward                                                (80,785)

DEPRECIATION
Fixtures and fittings                           12,220
Computer equipment                              21,695
                                             ----------
                                                                33,915
                                                             ----------

                                                              (114,700)

IMPAIRMENT LOSSES
Goodwill                                                       365,716
                                                             ----------

NET LOSS                                                      (480,416)
                                                             ==========

                                     Page 12

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