PlusNet Reports H1

Turnover increased 37% to £22.5m (2005: £16.4m)

Operating profit* up 41% to £3.1m (2005: £2.2m)

Operating cashflow before customer activation and modem, and

Metronet integration costs up to £3.3m (2005: £3.1m)

Adjusted earnings per share* up 32% to 7.63p (2005: 5.79p)

Broadband customers numbers up 75% year on year to 198,000 (2005: 113,000)

Note: * Pre FRS 20 Share Based Payments

Lee Strafford, Chief Executive, commenting on PlusNet’s results, said:

"PlusNet's focus on discerning users clearly differentiates it from the service providers targeting mass-market customers. This focus provides access to a growing sub-set of the overall broadband market, driven by referral, rather than advertising. I believe we are well positioned to deliver sustainable and profitable long-term growth in the broadband market, based upon continued development of innovative, excellent value products and our low-cost operating model.

Recent turbulence and technological change in the broadband market may have adversely affected our customer acquisition rates in the short term, but we are committed to operating profitably and I am confident that our profitable operating model will be sustainable into the long term.

PlusNet's strategy positions it well to weather the current turbulent broadband market and the outlook for PlusNet remains positive."

PlusNet plc