Interim ReportSix Months Ended

30 September 2009

Table of contents 2 - Interim Results for the Six Months Ended 30 September 2009

2 Interim Results for the Six Months Ended 30 September 2009

2 Financial Highlights

3 Business Highlights

7 Interim Consolidated Income Statement

8 Interim Consolidated Statement of Comprehensive Income

9 Interim Consolidated Statement of Financial Position

10 Interim Consolidated Statement of Changes in Equity

11 Interim Consolidated Cash Flow Statement

12 Notes to the Interim Consolidated Financial Statements

Norkom Group plcPaul Kerley – Chief Executive OfficerLiam Davis – Chief Financial Officer

Telephone - +3531 873 9600

Norkom Technologies is a market-leading provider of innovative financial crime and compliance solutions to the global financial services industry. We enable organisations to take intelligent action, control their defences and evolve their strategies against financial crime. We offer a comprehensive set of software solutions which can be scaled and customised to meet clients’ current and future needs – from anti-money laundering and customer due diligence to enterprise investigation of all types of fraud. Used by clients in over 100 countries, Norkom is proven to reduce financial losses, protect reputation, improve operational efficiencies and lower the total cost of ownership.

The company reports the following key financials:

• Revenueup2%to€24.6millioninthesix-month periodto30September2009(H12010)(H1 2009:€24.2million)and3.5%onourH2Financial Yearto31March2009(€23.8million)

• EBITDAup8%to€4.3million(H12009:€4.0million)

• PostContractSupport(PCS)up46%to€3.3million (H12009:€2.3million),whichnowincreasesour recurringrevenuelineto13%oftotalrevenue

• AdjustedDilutedEPSup7%to4.22cents(H1 2009:3.95cents)

• Netcashinflowgeneratedfromoperationsof€4.7 million(H12009:€0.6million)

• Netcashof€30.5million(March2009: €26.1million)

2009 Half Year Results

€m H1 2010 H1 2009 % change

Revenue 24.6 24.2 2%

EBITDA 4.3 4.0 8%

Adjusted 4.22cents 3.95cents 7%DilutedEPS

CashBalance 31.7 22.8

Key business highlights for the period included the following:

• Norkomcontinuestoexecuteandwinnewclientsin ourtargetregions,witheightnewclientsaddedduring thesixmonthsto30September2009(H12010),whilst wecontinuetoexpandourexistingclientrelationships, whichdelivered89%oftotalrevenueduringthis period(H12009:77%)throughfollow-onre-investment inNorkom’ssolutions

• Ourmostrecentgeographicalexpansionintothe MiddleEastcontinues,aswehaverecentlywonour secondandthirdnewclientsinthelast12monthsin theregion

• OurEuropeanregionhasgrownfromstrength-to- strength,whererevenueincreasedby15%to€5.8 million(H12009:€5.0million)

• OurfocusonFraudsolutionscontinuestobe rewardedandwenowhave22clientsaspartofour franchiseinthisarea(H12009:14)

• Ourassociate,DigitalHarbor,hasestablisheditselfas aseriouscontenderinthehealthcarefraudindustry, closingtwotransanctionsduringtheperiod.

Commenting on the half year results, Norkom’s chief executive officer Paul Kerley, said:

We are clearly pleased to have produced these results particularly in a period of significant upheaval and crisis in our core market. Our capacity to expand our reach into new markets, while, in parallel, generating significant pull-through business from our existing clients, places the company in a strong position to capitalise on a return to normal buying behaviour in our market. While the crisis provided a challenge for Norkom, the strength of our market franchise, solutions and business model made it easier to withstand compared to some of our competitors, which have exited the market. With this market consolidation and the continued endorsement of our solutions by industry analysts, we expect to pick up a greater share of the returning demand in the market, underpinning our plans to return to normal levels of growth for Norkom.

Interim results for the six months ended 30 September 2009:

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“

”

Paul Kerley, Chief Executive Officer &

Executive Director

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Business Highlights

Norkom increased revenue to €24.6 million for the six-monthperiodto30September2009comparedto€24.2millionforthesameperiodin2008(+2%)and3.5%aheadofthesecondsix-monthperiodto31March2009(€23.8million).Ofparticularsignificancewas thestrongrevenuegrowthof15%(€5.8million)recorded inEuropeand9%(€5.0million) inAsiaPacific in thesameperiod.Revenuegrowthcame fromboth incremental contracts,withover80%ofexistingclientsre-investinginNorkom’ssolutions,and from new contracts, with eight new name clientssecured in 2009. This brings our client franchise to 104clientsinthecurrentperiod,includingsevenofthetop10globalbanks.

Whilst conditions in the financial servicesmarket remaindifficult, Norkom continues to grow revenues, EBITDAand cash while deepening our relationship with existingcustomersthroughstrongfollow-onbusiness.Ourcurrentclients contributed over 89% of our revenues, with theremainder being generated as a result of new contractswitheightnewclients,whichweresecuredinthesix-monthperiodending30September2009.

We are confident that the drivers of demandwill remainstrong. We see a continued drive from regulators tomonitorbankingpractices,whichisexpectedtoincreasefurtherovertheyearsahead,withtheriseininternational,professionally-executedfraudcontinuingtogrow.

Weseesomedelaysindecision-makingparticularlyintheUSandUK,butareseeingincreasedbuyeractivityinthesemarkets, which gives us confidence of a resumption inpurchasedecisionsduringthefirstsixmonthsof2010.ThedelaysintheUSandUKwereanticipatedand,whilstthisdoesaffectourgrowthlevelsinthecurrentperiod,wehavecompensatedasplannedwithsignificantcontractwinswithboth existing and new clients, particularly in ContinentalEurope and South East Asia. This demonstrates theimportanceof the leverage thatNorkomderives from itsglobalpresence.

OurincreasedR&Dinvestmentsinpackagedapplicationshaveprovenverysuccessful,particularlyintheMiddleEast,wherewehaveaddedtwonewclientsduringtheperiod.Financialinstitutionsinthismarketaredemandingout-of-the-boxpackagedsolutionsforfinancialcrimeandwehavebeensuccessfulinaddingclientssuchasNCBCapitalinSaudiArabia to our franchise.Weare very active in thismarketandwould,again,expectfurtherclientclosuresinthenextfinancialperiod.

Wecontinuetogrowourfraudfranchiseglobally,havingclosedcontractswithbothourexistingandnewclients

duringtheperiod.Wecannowcount22clientsacrossallregionsaspartofour fraud franchise (H12009:14)andweseestrongdemand foroursolutions in theareasofmulti-channel,onlinefraud,debitcardfraud,depositfraudandinternalfraud.

Our Solutions

InkeepingwithourobjectiveofdrivinginvestigatorefficiencyanddemonstratingclearROI,on08SeptemberNorkomannounced the next generation of Norkom’s innovativeList Fingerprinting technology, Norkom Smart Update,propelling us ahead of our competition. This productmonitors every single change in information provided inawatch list update, cleverly reducing investigation effortwithout sacrificingmatchquality. This successfully drivesdowndatacentrecosts,enablingorganisationstodomorewithlessbyreducingoverallinvestigationworkloadwithoutcompromisingregulatorycompliance.

InadditiontoNorkomSmartUpdate,wehaveintroducedother notable product innovations over this period,including the ability to allow the “modularisation” ofNorkomapplicationsontopofthecorefinancialcrimeandcomplianceplatform.Thishassignificantbenefitsintermsofmaking itmore efficient for our services organisation,delivery partners and clients tomanage solution-specificchanges, as well as making it easier for our clients toeffectivelyintegratenewproductsintotheirexistingNorkomFinancial Crime management infrastructures, resulting inthelowesttotalcostofownership.Anticipatingincreasedregulatoryoversightofthefinancialservicessector,wecontinuedtobuild-outourcommandandcontrolreportingtoolsduringtheperiodunderreview,whichprovidegranularmeasurementcapabilityandkeyriskindicators required tomonitorandcontrol theoperationsof a financial crime investigation unit. This developmentenables Norkom to package leading practices into ourapplicationstoaccelerateourclients’time-to-value.

Wehavealsoundertakenexcitingresearchintheareaofour advanced analytics, incorporating the latest thinkingin knowledge extraction and machine learning. TheseinnovationsmeanthatNorkomwillcontinuetobuildonouradvancedanalyticscapabilities,makingiteasierforclientstodetectandcombatemergingfraudtypologiesandfurtherimprove system accuracy. It will also secure Norkom’sposition ahead of our competition in providing leading-edgeanti-frauddetectionandinvestigationtechnologiestothefinancialcrimeandcompliancemarket.

Packaged applications

Formanyyears,Norkomhas led themarket in termsof

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prioritising the build-out of a platform that enables ourclientsandprospects toquickly respondtonewcriminaltypologies,providingoneinfrastructuretocombatamyriadofexistingandemergingcriminalbehaviour.Akeystrategyfor Norkom now is to capitalise on the strength of ourplatform by using its unique configuration capabilities toproduceparticularpackagedapplicationsthataddressveryspecificcriminalactivity.Wehaveincreasedourinvestmentbyfurtherembeddingdetectionandinvestigativeforensiccapabilitiesthatproducesignificantoperationalefficienciesbothpre-andpost-productimplementation.Thisstrategyhasbeenthekeytooursuccessinenteringnewmarketsandsigningupnewclientsduringtheperiod.ThereleaseoftargetedpackagedapplicationshasenabledNorkomtoaccelerateentry intotheMiddleEastmarketanddeepenourpresence inAustralia,whilstalsogivingusaccesstoaTier2financialmarketandexpandingourfootprintbothgeographicallyandverticallywithdealwinsincludingNCBCapitalintheperiod.

Channels and Alliances

Our partner-related activities continued both on a globallevelwithpartnerssuchas IBM,andona regionalbasiswith several new partners during the period. We havestartedworkingwithEjadaSystemsLtd.intheMiddleEastasourstrategicregionalpartnerfordelivery,whileinEasternEurope we are developing local regional distributorshipswithcompaniessuchasFujitsuandSapientics.

WecontinuetoreplacetherunratefromthebankruptcyofsomeofourUSclientsin2008,whichsubsequentlyledtoadeclineinpartnerrevenueof10%inH12010(H12009:12%).We remain confident that our global and regionalpartners, together with our strong focus on a standarddelivery approach through packaged applications, willfacilitateastrongreturninfutureperiods.

OurmarkethascompletedtheconvergencecyclebetweenCompliance and Fraud solutions. We expect FinancialCrime andCompliance solutions to address awider setofrisktypes inthecomingyears.Thiswill introducenewgrowth opportunities and will be underpinned by newstrategicalliances.Ourchannelandalliancesstrategywillbeadoptedinthecomingperiodstotakeadvantageofthenewopportunitiesthatemergeinthemarketplace.

Market Endorsement

Duringtheperiod,GartnerInc.awardeda“Positive”ratingtoNorkom’sEnterpriseFraudManagement(EFM)solutionsin its latest report, “Marketscope for Enterprise FraudManagement.”

AuthoredbyGartner’sAvivahLitan, the reportcompares

EFM vendors across a range of evaluation criteria suchas sales strategy, offering (product) strategy, innovation,product/service, overall viability, market responsivenessandtrackrecordandcustomerexperience.GartnerdefinesEFMsoftware as an application that supports detection,analyticsandmanagementoffraudacrossusers,accounts,channels,productsandotherentities(e.g.,kiosks).

“We estimate that this market will grow about 10-15%in 2009, despite the slowdown in the economy, mainlybecause large global financial institutions are investingheavily in EFM technology against a backdrop ofincreasinglyfrequentandsophisticatedfraudattacks,andalsodue toadesire toconsolidate fraudpreventionandfinancialcrimeeffortsacrosstheenterprise”,explainsLitan.“Enterprise fraudmanagement (EFM)savesusersmoneybyenablingoperationalefficienciesandbystoppinglossesfromcross-channel, cross-account and/or cross-productfraudschemes”,sheconcludes.

Digital Harbor

Ourhealthcarefraudspin-offcompany,DigitalHarbor,hascloseda further twodeals in thisnascentmarket.DigitalHarbor’sfranchisehasbeensignificantlyenhancedduringtheperiod.Weanticipatethatthenewregulations,togetherwith healthcare reform initiatives, will drive significantdemand in thisareaandweexpect toseeanescalationinactivitylevels,particularlyin2011.WearepleasedthatDigitalHarborhasrecentlymovedintoprofitabilityandweexpectthistopersistthroughthenextfinancialperiod.Wewill activelyworkwithmanagement during the next twofinancial periods to understand the true growthpotentialofthemarketandputinplacetheappropriateinvestmentsplanstoavailoftheopportunity.

Financial Highlights

ThiswasanotherperiodofsolidperformanceforNorkomwith revenue increasingby2% to€24.6million for theperiod ended 30 September 2009 (H1 2009: €24.2million)andalsoagrowthof3.5%onoursecondhalf-yearperformanceinthefinancialyearto31March2009(€23.8 million). Asia Pacific returned a strong revenueincreaseof9% to€5.0million in theperiod (H12009:€4.6million).Europealsoreturnedstronggrowthof15%to€5.8million(H12009:€5.0million).RevenueinNorthAmerica decreased by 13% to €8.9million (H1 2009:€10.3million),primarilyduetooneofourkeyUSclientsenteringChapter11bankruptcyintheUSinSeptember2008.Excludingthisexceptionalevent,ourgrowthintheUSwasflat.RevenueinIreland,UK&RestoftheWorld(ROW)increasedby15%to€4.9million(H12009:€4.3million),reflectingastrongperformancefromourMiddleEast regionduring theperiod.Overall, revenuegrowth

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came from both incremental contracts, with 89% ofrevenuecomingfromexistingclientsandtheremainderfrom new contracts, with eight new clients secured in2009includingNCBCapitalandBankofSouthPacific.

Theoverall2%revenuegrowthcamefromanincreaseinProfessional Services and Post Contract Support (PCS)revenues.Professionalservicesgrewby3%to€16.2million(H12009:€15.6million),whilstPCSgrewby46%to€3.3million(H12009:€2.3million).Thisincreasesourrecurringrevenue line to 13% of total revenues during the period(H12009:9%)andisastrongindicationofourcustomersatisfaction ratings. Our license revenue decreased by18% to €5.1 million (H1 2009: €6.3 million), impactedmainlybyaslowdowninexpenditureinbothourUSandUKmarkets.We continue to use our global leverage toaccelerate investments in the short-term inmarketswithstrongerdemand,whilstwaitingforothermarketstoreturntonormalgrowth levels.This isparticularlyevident in thegrowth within our European, Middle Eastern and Asianregionsinthecurrentperiod.Wealsocontinuetoproducestrongindividualmarginsonourrevenuelineitems,whichhave delivered an overall gross profit increase of 3% to€15.3million(H12009:€14.9million)forthecurrentperiodexcludingdepreciation.

OperatingcostsacrossSalesandMarketing,ResearchandDevelopment,andGeneralandAdminremainedatsimilarlevelsoverthesameperiod in2008,withanexpenditureof 44% of revenue in H1 2010 (€10.9 million excludingdepreciation)comparedto45%inH12009(€10.9millionexcluding depreciation), as management continue toproactivelymanageallcostsanddriveoperatingleveragefrom its global investments. Management will also useits stronglyheldcultureofproject accountingacross theorganisation to manage projects to desired profitabilitylevels above the line and its return from investments inoperatingcosts.

Ourstrongperformanceacrossrevenue,grossprofitandoperatingcostmanagementhasdeliveredanEBITDAof€4.3million(H12009:€4.0million)withoverallgrowthof8% in the current period.EBITDAmarginsof 18%wereachieved (H1 2009: 17%), which demonstrate how ourfinancialmodelisbothpredictableandconsistentinwhatisadifficultperiodforourcoremarket.

TherehasbeennomaterialforeignexchangeP&LimpactinthecurrentperiodagainstthesameperiodinH12009.WhilsttherehasbeenapositiveimpactfromtheUSdollarexchange rate (average rate v’s EUR in 2009 : 1.40 v’saverageratein2008:1.55),thiswasoffsetbyanequivalentnegativeeffectonsterling(H12010:88pencev’sH12009:79pence)andtheAustraliandollar(H12010:1.76v’sH12009:1.68).This“netting”effectislikelytocontinuefortheremainderofthefinancialyear.

Norkomhasdeliveredexceptionalcashflowperformancein the current period, with our overall cash balancestrengtheningfrom€27.5millionat31March2009to€31.7million at 30 September 2009. Norkom places a strongemphasis on working capital management, achievingexceptional cash generation from operating activitiesduringtheperiodof€4.7million(H12009:€0.6million).

Adjusteddilutedearningspersharehasincreasedby7%to4.22cents (H12009:3.95cents),whilst thedilutedshare count has increased from 90.7million shares inH12009to92.5millionsharesinH12010.Thisincreaseismainly as a result of the vesting of employee shareoptionsaspartofour2006planto31March2009.

Overall, Norkom’s balance sheet has, once again,strengthened during the period. Net assets increasedfrom€58.2millionat31March2009to€59.5millionat30September2009.WehavenotedsomeperiodendbalancesheetcurrencytranslationeffectfromthemovementintheUSdollar/Euro,closingexchangeratesfrom1.32to1.46duringtheperiod,whichhasdepressedthegrowthinnetassets(€1.3million)whencomparedtoretainedNetProfit(€3.2million).Wemaintainastrongfinancialpositionwithbalance sheet and cash flow strength, which ultimatelyplacestheGroupinasolidpositiontocontinuetogrowitsoperationsonaglobalbasis.

As at 12 August 2009, the Irish registered group ofcompaniesNorkomGroup plc (The ParentCompany),NorkomTechnologiesLimitedandNorkomTechnologies(Ireland)LimitedeffectedarestructuringoftheirindividualstatutoryreservesinaccordancewithSection72oftheIrish Companies Act 1963, after obtaining High Courtapprovalandpassingspecialresolutionsinaccordancewiththesameact.

TheeffectofthisrestructuringenabledpermanentcreditbalancesonsharepremiumandotherreserveaccountstobematchedagainstpermanentdebitbalancesontheretainedlossaccountintheGroupbalancesheet,whichhadarisenprimarilyonhistoricalGroup investments insubsidiaryentitiesandtheraisingoffinancethroughtheissueofordinarysharecapitalinrespectofsame.

Theoverall impactof the restructuring is toenable theretainedearningsaccounts,onaGroupand individualcompanybasis, toproperly reflect thehistoricalprofitsthat havearisen in transactionsexternal to theGroup,post-historical Group restructuring, and make theseearningsavailablefordistribution.

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Business Strategy and Future Outlook

Norkom will continue its strategy of building-out itsmarket and product footprints. Our focus on buildingnewgeographicmarketsforourproductsandsolutionsisprovingsuccessfulandwewillcontinuetopursuethisstrategy inthecomingperiod.Afteryearsofsignificantinvestmentinourcoreplatform,wearenowinapositiontoaccelerate thedeliveryofpackagedsolutions to themarketplace. Our strategy is to embed the domain-specific detection and investigation capabilities thatsignificantly improve operational efficiencies in fightingspecificcrimetypologies forourclientsandprospects.Theinitialpackagedapplicationsthathavebeenreleasedunderpinoursuccessinenteringnewmarkets,wideningouroveralladdressablemarket.Inthecomingperiod,wewilldedicateevenmoreresourcestoenablethismarketandproductfootprintexpansion.

Failures in the capital markets are prompting theevolutionof a raftofnew legislation toprovidegreateroversightofcapitalmarketsactivities.Fortheremainderof2009and2010,weexpecttoseetotalfinesofgreaterthan$2billionnotincludingthecommensuratecollateralcoststhattendtobeamultipleoftheactualleviedfine.We are also seeing a move towards regulating fraudand internal security,withanumberof key regulationsalready enacted. These new regulations are driven bytheneedto increaseprotection forconsumers.Buyersinourmarketplacearebecomingevermoreawareofthefinancialsecurityoftheirpartnervendorsand,therefore,are seeking a financially strong solution partner whenconsidering providers with whom to work. Norkom,with our strong balance sheet, history of growth withprofits andproven long-term relationshipswith leadinginternationalfinancialservices institutions isseenasanideal solution partner to solve multiple financial crimeproblemsforourclients.

Norkombelievesthatareturntonormalinvestmentlevelsin ourmarket is already evident, albeit slowly in somegeographies.Theshakeoutinthecompetitivelandscape,whichhasresultedfromtheturmoilofthelasttwoyears,willcreateopportunitiesforNorkomtotakealargershareof the market. Key product innovations and strategicpartnershipswillbepursuedanddeveloped toavailofthisopportunity.Overall.Norkomwillremainprudentandvigilant in the short-termas themarket recoverypicksup,whilstmaking thenecessary investment toavail ofthe market, product and partnering opportunities thatexist,enablingNorkomtoreturntothegrowthlevelsthatthecompanyhasexperiencedinpreviousyears.

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Interim Consolidated Income Statementfor the 6 months ended 30 September 2009 6 Months to 6 Months to 30 September 2009 30 September 2008 (unaudited) (unaudited) Note €’000 €’000

Continuing Operations Revenue 4 24,601 24,184Costofsales (9,560) (9,467)

Gross profit 15,041 14,717

Salesandmarketingcosts (4,492) (4,724)Researchanddevelopmentcosts (3,640) (3,723)Administrativeexpenses (3,095) (2,714)Amortisationofintangibleassets (582) (826)Operating profit 3,232 2,730 Shareoflossofassociate (166) (272)Financerevenue 135 351Financecosts (23) (30) Profit before tax 3,178 2,779 Income tax expense:Currenttaxcharge 6 (35) (268)Deferredtaxcharge 6 26 (319) Profit for the period from continuing operations 3,169 2,192

Attributable to:Equityholdersoftheparent 3,169 2,182Minorityinterest - 10 3,169 2,192

EPS:Basicearningsperordinaryshare 3 3.55c 2.46c Dilutedearningsperordinaryshare 3 3.43c 2.40c

Adjusted EPS:EPSadjustedforamortisationandnon-cashcharges 3 4.22c 3.95cEBITDAEPS 3 4.69c 4.42c

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Interim Consolidated Statement of Comprehensive Incomefor the 6 months ended 30 September 2009 6 Months to 6 Months to 30 September 2009 30 September 2008 (unaudited) (unaudited) €’000 €’000 Profit for the period from continuing operations 3,169 2,192Exchangedifferencesonthetranslationofforeignoperations (2,074) 2,276

Total comprehensive income for the period net of tax 1,095 4,468

Attributable to:Equityholdersoftheparent 1,095 4,458Minorityinterest - 10 1,095 4,468

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Interim Consolidated Statement of Financial Positionat 30 September 2009 30 September 2009 31 March 2009 €’000 €’000 (unaudited)

Assets Non-CurrentAssetsPropertyplantandequipment 1,461 1,736Intangibleassets 22,697 25,302Investmentinassociate 1,625 1,790Deferredtaxasset 2,191 2,232

27,974 31,060

CurrentassetsTradeandotherreceivables 15,346 16,767Prepayments 481 614Financialassets 54 28Cashandcashequivalents 31,686 27,453 Total current assets 47,567 44,862

Total assets 75,541 75,922

EquityandliabilitiesIssuedsharecapital 897 894Sharepremium 25 42,454Otherreserves 1,257 29,175Cumulativetranslationadjustment (2,419) (345)Retainedprofit/(loss) 59,734 (13,988) Equity attributable to equity holders of the parent 59,494 58,190

Minorityinterest 0 0

Total Equity 59,494 58,190

Non-currentliabilitiesInterestbearingloansandborrowings 1,000 1,000Deferredtaxliability 130 104Financeleaseobligations 73 154Otherpayables - 51

Total non-current liabilities 1,203 1,309 Currentliabilities Tradeandotherpayables 7,448 8,856Incometaxespayable 27 196Financeleaseobligations 116 83Supplierloan - 18Deferredrevenue 7,253 7,270 Total current liabilities 14,844 16,423

Total liabilities 16,047 17,732

Total equity and liabilities 75,541 75,922

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Interim Consolidated Statement of Changes in Equity (unaudited) for the six months ended 30 September 2009 and 2008

Issued Share Retained Other Translation Minority Total capital premium profit reserves reserve Total interest EquityAttributabletoequityholdersoftheparent €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000

At 31 March 2009 894 42,454 (13,988) 29,175 (345) 58,190 0 58,190Movementintranslationreserve - - - - (2,074) (2,074) - (2,074) Totalincomeandexpensesrecogniseddirectlyinequity - - - - (2,074) (2,074) - (2,074) Profitretainedforthefinancialperiod - - 3,169 - - 3,169 - 3,169 Totalincomeandexpensefortheperiod - - 3,169 - (2,074) 1,095 - 1,095 Capitalrestructuring–note(7) - (42,454) 70,553 (28,099) - - - -ESOPissueofordinaryshares 3 25 - - - 28 - 28Expensingofshare-basedpayment - - - 181 - 181 - 181 At 30 September 2009 (unaudited) 897 25 59,734 1,257 (2,419) 59,494 0 59,494

Issued Share Retained Other Translation Minority Total capital premium loss reserves reserve Total interest EquityAttributabletoequityholdersoftheparent €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000

At 31 March 2008 893 42,445 (17,993) 28,894 (3,954) 50,285 0 50,285Movementintranslationreserve - - - (25) 2,301 2,276 - 2,276 Totalincomeandexpensesrecogniseddirectlyinequity - - - (25) 2,301 2,276 - 2,276 Profitretainedforthefinancialperiod - - 2,182 - - 2,182 10 2,192 Totalincomeandexpensefortheperiod - - 2,182 (25) 2,301 4,458 10 4,468 ESOPissueofordinaryshares 1 6 - - - 7 - 7Expensingofshare-basedpayment - - - 258 - 258 - 258Dividendsofsubsidiaries - - - - - - (10) (10) At 30 September 2008 (unaudited) 894 42,451 (15,811) 29,127 (1,653) 55,008 0 55,008

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Interim Consolidated Cash Flow Statement – for the 6 months ended 30 September 2009 6 Months to 6 Months to 30 September 2009 30 September 2008 €’000 €’000 (unaudited) (unaudited)

Cash flows from operating activitiesProfitbeforetax 3,178 2,779AdjustmenttoreconcileprofitbeforetaxtonetcashflowsNon-cash: Depreciationofproperty,plantandequipment 523 457 Amortisationofintangibles 582 826 Share-basedpayments 181 258 Shareoflossofassociate 166 272Financeincome (135) (351)Financecosts 23 30Workingcapitaladjustments: Decrease/(Increase)indebtorsandprepayments 2,480 (5,305) (Decrease)/Increaseincreditorsandaccruals (2,336) 1,650 Cashgeneratedfromoperations 4,662 616

Incometaxpaid (50) (166)

Net cash from operating activities 4,612 450 CashflowsfrominvestingactivitiesAcquisitionofasubsidiary,netofcashacquired - 1,524Purchaseofproperty,plantandequipment (254) (200)Interestreceived 189 396

Net cash provided by / (used in) investing activities (65) 1,720

Financing activitiesProceedsfromESOPissueofshares 28 7Capitalelementoffinanceleasepayable (79) (113)Capitalelementofsupplierloan (18) (34)Financeleaseinterestpaid (24) (28)Supplierloaninterestpaid - (2)Dividendspaidtominorityinterests (260) (100) Net cash flows from financing activities (353) (270)

Increase/(decrease)incash 4,194 1,900

Netforeignexchangedifference 39 175Cashandcashequivalentsat1April 27,453 20,715

Cash and cash equivalents at 30 September 31,686 22,790

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Notes to the Interim Consolidated Financial Statements For the 6 months ended 30 September 2009

(1) Corporate informationThe interim condensed consolidated financial statements of the Norkom Group plc for the six months ended 30September2009wereauthorisedforissueinaccordancewitharesolutionofthedirectorson6November2009.

NorkomGroupplcisincorporatedasapubliclimitedcompanyunderthelawsofIrelandandisdomiciledinIreland.ItssharesarelistedontheIEXandAIMmarkets.

(2) Basis of preparation and accounting policies

Basis of preparationThe interimcondensedconsolidatedfinancial statements for thesixmonthsended30September2009havebeenpreparedinaccordancewithIAS34“Interim Financial Reporting”.TheinterimconsolidatedfinancialstatementsdonotincludealltheinformationanddisclosuresrequiredintheannualfinancialstatementsandshouldbereadinconjunctionwiththeGroup’sannualfinancialstatementsasatandfortheyearended31March2009,whichhavebeenpreparedinaccordancewithIFRS.

Significant accounting policiesTheaccountingpoliciesadoptedinthepreparationoftheinterimconsolidatedfinancialstatementsareconsistentwiththosefollowedinthepreparationoftheGroup’sannualfinancialstatementsfortheyearended31March2009,exceptfortheadoptionofnewStandardsandInterpretations,notedbelow:

IFRIC11 IFRS2– ‘Group and Treasury Share Transactions’. This interpretation requiresarrangementswherebyanemployeeisgrantedrightstoanentity’sequityinstruments,tobeaccountedforasanequity-settledscheme,eveniftheentitybuystheinstrumentsfromanotherparty,ortheshareholdersprovidetheequityinstrumentsneeded.TheadoptionofthisInterpretationdidnothaveanyeffectonthefinancialpositionorperformanceoftheGroup.

IFRS2Share-basedPayment– ‘Vesting Conditions and Cancellations’. TheStandardhasbeenamended toclarifythedefinitionofvestingconditionsandtoprescribetheaccountingtreatmentofanawardthatiseffectivelycancelledbecauseanon-vestingcondition isnot satisfied.Theadoptionof thisamendmentdidnothaveany impacton thefinancialpositionorperformanceoftheGroup.

IFRS3(amendment),‘Business combinations’andconsequentialamendmentstoIAS27,‘Consolidated and separate financial statements’,IAS28,‘Investments in associates’andIAS31, ‘Interests in joint ventures’,effectiveprospectivelytobusinesscombinationsforwhichtheacquisitiondateisonorafterthebeginningofthefirstannualreportingperiodbeginning on or after 1 July 2009.Management have early adopted this amended standard for the annual periodcommencingon1April2009.Theadoptionofthisamendmentdidnothaveany impactonthefinancialpositionorperformanceof theGroupasat1April2009.Managementhasassessedthe impactof therequirementsregardingacquisitionaccounting,consolidationandassociatesontheGroup.TheGroupdoesnothaveanyjointventures.

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IFRS8, ‘Operating segments’.IFRS8replacesIAS14,‘Segment reporting’,andrequiresa‘managementapproach’under which segment information is presented on the same basis as that used for internal reporting purposes.Managementhaveimplementedthisstandardfortheannualperiodcommencingon1April2009andhavedeterminedthatnochangeinthenumberofthereportedsegmentshasoccurred.ThisstandardrequiresdisclosureofinformationabouttheGroup’soperatingsegmentsandreplacestherequirementtodetermineprimary(business)andsecondary(geographical) reporting segmentsof theGroup.Adoptionof thisStandarddidnothaveanyeffecton the financialposition or performance of theGroup. TheGroup determined that the operating segmentswere the same as thebusinesssegmentspreviouslyidentifiedunderIAS14SegmentReporting.

IAS23(amendment),‘Borrowing costs’.ThisamendmentisnotrelevanttotheGroup,astheGroupdoesnotcurrentlyhaveborrowingcostsonqualifyingassets.

IAS 1, (amendment), ‘Presentation of financial statements’.Management has developed proforma accounts underthe revised disclosure requirements of this standard, including the presentation of a Consolidated Statement ofComprehensiveIncome.

IAS32(amendment),‘Financial instruments: presentation’,andconsequentialamendmentstoIAS1,‘Presentation of financial statements’.TheadoptionofthisstandardhashadnoimpactontheGroup,astheGroupdoesnothaveanyputtableinstruments.

IFRIC13, ‘Customer loyalty programmes’,effectiveforannualperiodsbeginningonorafter1July2009.Managementhasevaluated theeffectof this interpretationon its revenue recognitionandhasdeterminednochange inpolicy isrequired.

IFRIC9,‘Reassessment of Embedded Derivatives and IAS 39 Financial Instruments: Recognition and Measurement’. TheseamendmentstoIFRIC9requireanentitytoassesswhetheranembeddedderivativemustbeseparatedfromahostcontractwhentheentityreclassifiesahybridfinancialassetoutofthefairvaluethroughprofitorlosscategory.Thisassessmentistobemadebasedoncircumstancesthatexistedonthelaterofthedatetheentityfirstbecameapartytothecontractandthedateofanycontractamendmentsthatsignificantlychangethecashflowsofthecontract.IAS39nowstatesthatifanembeddedderivativecannotbereliablymeasured,theentirehybridinstrumentmustremainclassifiedasatfairvaluethroughprofitorloss.

IFRIC16, ‘Hedges of a Net Investment in a Foreign Operation’.Theinterpretationistobeappliedprospectively.IFRIC16providesguidanceontheaccountingforahedgeofanetinvestment.Assuchitprovidesguidanceonidentifyingtheforeigncurrencyrisksthatqualifyforhedgeaccountinginthehedgeofanetinvestment,wherewithinthegroupthehedginginstrumentscanbeheldinthehedgeofanetinvestmentandhowanentityshoulddeterminetheamountof foreigncurrencygainor loss, relating toboth thenet investmentand thehedging instrument, tobe recycledondisposalofthenetinvestment.TheGrouphaselectedtorecyclethegainorlossthatarisesfromthedirectmethodofconsolidation,whichisthemethodtheGroupusestocompleteitsconsolidation.AstheGroupdidnotdisposeofanynetinvestmentithashadnoimpactonthefinancialpositionorresults.

Improvements to IFRSs

InMay2008 theBoard issued its firstomnibusof amendments to its standards,primarilywitha view to removinginconsistenciesandclarifyingwording.Thereareseparatetransitionalprovisionsforeachstandard.TheadoptionofthefollowingamendmentsresultedinchangestoaccountingpoliciesbutdidnothaveanyimpactonthefinancialpositionorperformanceoftheGroup.

IAS1‘Presentation of Financial Statements’:AssetsandliabilitiesclassifiedasheldfortradinginaccordancewithIAS39‘Financial Instruments’:RecognitionandMeasurementarenotautomaticallyclassifiedascurrentinthestatementof financial position. The Group amended its accounting policy accordingly and analysed whether Management’sexpectationoftheperiodofrealisationoffinancialassetsandliabilitiesdifferedfromtheclassificationoftheinstrument.Thisdidnotresultinanyre-classificationoffinancialinstrumentsbetweencurrentandnon-currentinthestatementoffinancialposition.

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IAS16‘Property, Plant and Equipment’:Replacetheterm“netsellingprice”with“fairvaluelesscoststosell”.TheGroupamendeditsaccountingpolicyaccordingly,whichdidnotresultinanychangeinthefinancialposition.

IAS23‘Borrowing Costs’:Thedefinitionofborrowingcostsisrevisedtoconsolidatethetwotypesof itemsthatareconsideredcomponentsof ‘borrowing costs’intoone–theinterestexpensecalculatedusingtheeffectiveinterestratemethodcalculatedinaccordancewithIAS39.TheGrouphasamendeditsaccountingpolicyaccordinglywhichdidnotresultinanychangeinitsfinancialposition.

IAS38‘Intangible Assets’:ExpenditureonadvertisingandpromotionalactivitiesisrecognisedasanexpensewhentheGroupeitherhastherighttoaccessthegoodsorhasreceivedtheservice.ThisamendmenthasnoimpactontheGroupbecauseitdoesnotenterintosuchpromotionalactivities.Thereferencetotherebeingrarely,ifever,persuasiveevidencetosupportanamortisationmethodofintangibleassetsotherthanastraight-linemethodhasbeenremoved.TheGroupreassessedtheusefullivesofitsintangibleassetsandconcludedthatthestraight-linemethodwasstillappropriate.

Theamendmentstothefollowingstandardsbelowdidnothaveanyimpactontheaccountingpolicies,financialpositionorperformanceoftheGroup:

•IFRS5Non-currentAssetsHeldforSaleandDiscontinuedOperations

•IFRS7FinancialInstruments:Disclosures

•IAS8AccountingPolicies,ChangeinAccountingEstimatesandError

•IAS10EventsaftertheReportingPeriod

•IAS16Property,PlantandEquipment

•IAS18Revenue

•IAS19EmployeeBenefits:

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(3) Earnings per Share (€’000 except share and per share data)

6 Months ended 6 Months ended 30 September 2009 30 September 2008 €’000 €’000Numerator for basic and diluted earnings per share

Profitforthefinancialperiodattributabletoordinaryshareholders 3,169 2,182

Denominator for basic earnings per share Number of Shares Number of Shares

Weightedaveragenumberofshares 89,343,760 88,855,588Effectiveofdilutivepotentialshares(shareoptions) 3,170,317 1,864,424Denominator for diluted earnings per share 92,514,077 90,720,012Earnings per Share

Basic 3.55c 2.46c

Diluted 3.43c 2.40c

Adjusted earnings per Share (€’000 except share and per share data)

6 Months ended 6 Months ended 30 September 2009 30 September 2008

(i) Adjusted EPS: Cent CentAdjusted diluted earnings per ordinary share 4.22c 3.95c

6 Months ended 6 Months ended 30 September 2009 30 September 2008

(ii)EBITDA EPS: Cent Cent

EBITDA diluted earnings per ordinary share 4.69c 4.42c

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Earnings reconciliations: 6 Months ended 6 Months ended 30 September 2009 30 September 2008

€’000 €’000

(i) Earnings for adjusted EPS reconciliation:Operatingprofit 3,232 2,730

Add back:IFRS2non-cashcharge 181 258Amortisationofintangibles 582 826Netinterest 111 321

Deduct:Shareoflossofassociate (166) (272)Minorityinterest - (10)Taxonordinaryprofits–currenttax (35) (268)Earnings for adjusted EPS 3,905 3,585 (ii) EBITDA reconciliation: €’000 €’000Operatingprofit 3,232 2,730

Add back:Depreciation 523 457Amortisationofintangibles 582 826

EBITDA 4,337 4,013

Thisreconciliationispresentedbecauseadjustedearningspershare,isanexternalmeasureusedbyanalyststohelpunderstandtheinvestmentpotentialoftheGroup.

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(4) Segmental Information

Primary reporting format – business segments

Formanagement reporting purposes, theGroup is organised into one business unit the provision of software andservices for enterprise financial crime and compliance.No operating segments have been aggregated to form thisreportableoperatingsegment.Managementmonitorstheoperatingresultsofthisbusinesssegmentinaggregateforthepurposesofdeterminingenterpriseresourceallocationandperformanceassessment.Groupfinancing(includingfinancecostsandfinancerevenue)andincometaxesaremanagedonagroupbasis.

TheinformationintheGroupconsolidatedfinancialstatementsfortheperiodendedandasat30September2009isthesameasthoseusedbytheGroupforitsinternalreportingpurposestoprovideareliableassessmentofitsrisksandreturns.

Formanagementreportingpurposes,revenuefromexternalcustomersareanalysedbytypeofrevenueandbylocation.Onageographicalbasistherevenuegeneratingoperationsofthegrouparemanagedonaglobalbasis(asthemajorityoftheGroups’externalcustomersoperateonthisbasis),geographicaloperationssharethesameriskcharacteristicsandproductcharacteristicsanddeliverymethodsareidenticalinthegeographicaltaxjurisdictionsinwhichrevenuesarerecognised.Transferpricesbetweenbusinesssegmentsbytaxjurisdictionareonanarm’slengthbasisinamannersimilartotransactionsbetweenthirdparties.Ananalysisofrevenuefromexternalcustomersbytypeofrevenueisasfollows:

6 Months ended 6 Months ended 30 September 2009 30 September 2008 €’000 €’000

Licence 5,137 6,269Professionalservices 16,159 15,644Postcontractsupport 3,305 2,271

Total 24,601 24,184

Ananalysisofrevenuefromexternalcustomerbylocationisasfollows:

6 Months ended 6 Months ended 30 September 2009 30 September 2008 €’000 €’000

Europe 5,774 5,035NorthAmerica 8,942 10,289Ireland,UK&ROW 4,934 4,302AsiaPacific 4,951 4,558

Total 24,601 24,184

Theanalysisofrevenuefromexternalcustomersbyoriginisnotmateriallydifferentfromthefiguresshownabove.

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(5) Impairments

GoodwillGoodwillistestedforimpairmentannually(asat31December)andwhencircumstancesindicatethecarryingvaluemaybeimpaired.TheGroup’simpairmenttestforgoodwillandintangibleassetswithindefinitelivesisbasedonvalueinusecalculationsthatuseadiscountedcashflowmodel.Thekeyassumptionsusedtodeterminetherecoverableamountwerediscussedinannualstatementsfortheyearended31March2009.

TheGroupconsiderstherelationshipbetweenitsmarketcapitalisationanditsbookvalue,amongotherfactors,whenreviewingforindicatorsofimpairment.Asat30September2009,themarketcapitalisationoftheGroupwasabovethebookvalueofitsequity,indicatingnoimpairmentofgoodwillhadarisen.

Intangible assetsIntangibleassetsarereviewedforindicatorsofimpairmentannually(asat31December)andadditionallyat30September2009, includingbutnot limitedtopotentialchanges invalue inusearisingfromchanges inthe internalandexternaltechnologyenvironmentandcustomerrelationsprofile.Asat30September2009noindicatorsexistedofimpairmentinthecarryingvalueofintangibleassets.

(6) Income and deferred taxTax based on the profit for the period: 6 Months ended 6 Months ended 30 September 2009 30 September 2008 €’000 €’000Current income tax Irishtaxonpassiveincome - (77)Foreigntax (35) (191)

Total current tax charge (35) (268)Deferred taxDeferredtaxcredit/(charge) 26 (319)

Total deferred tax credit/(charge) 26 (319)

Total (charge) in the income statement (9) (587)

Notaxationhasbeencreditedorchargeddirectlytoequity.

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NorkomGrouphassubstantialtaxlossesandcreditscarriedforward,domiciledinspecificjurisdictions(listedbelow),whichcanbeutilisedagainstcashtaxliabilitiesarisingonfuturetaxabletradingprofitsinthosejurisdictions.Onagrossbasisthesetaxlossesandcreditsareestimatedtocoverpotentialtaxliabilities,arisingonthefollowingfuturetaxableincomestreams:

Jurisdiction Grosstaxableincomegeneration EffectiveTaxRate necessarytoutilizecurrenttaxlosses andcreditscarriedforward Belgium €0.5m 34%Ireland €18.4m 10%UK £1.8m 30%US $21.6m 34%

TheotherprimarytaxationjurisdictionsofAustraliaandCanada,inwhichNorkomoperates,havehistoryoftaxprofitsandcarrynoaccumulatedtaxlossesforward.

InIreland(whereanet10%manufacturingcorporatetaxrateiseffectiveandwheretheNorkomintellectualpropertyisdomiciled),researchanddevelopmenttaxcreditsaregeneratedoneligibleresearchanddevelopmentexpenditureatarateof25%.ThesecreditscanbeoffsetagainstIrishcorporatetaxliabilitiesgeneratedat10%oncurrentandfuturetaxableprofits,orrecoveredagainstpayrolltaxliabilitiespaidinthesamefinancialperiod.

(7) Group Capital Restructuring:

As at 12 August 2009 the Irish registered group companies Norkom Group plc (the Parent Company), NorkomTechnologiesLimitedandNorkomTechnologies (Ireland)Limitedeffecteda restructuringof their individual statutoryreservesinaccordancewithSection72oftheCompaniesAct1963afterobtainingHighCourtapprovalandpassingspecialresolutionsinaccordancewiththesameact.

Theeffectofthisrestructuringwastoreleasebalancestotaling€70.6millionontheSharepremiumandOtherreserveaccountstoRetainedearnings.

ThebalanceontheconsolidatedSharepremiumhadarisenfromtheissueofordinarysharesbytheParentCompany.Thebalanceon theconsolidatedOther reserveshadarisen from the issueofordinary sharesbygroupcompaniesthathadhistoricallybeenthegroupholdingcompanyandwhichweresubsequentlyrecategorisedintoOtherreserves(Mergerreserves)ongrouprestructuring.

(8) Property, plant and equipment

Additionsforthesixmonthswere€254,000(2008:€200,000).Therearenomaterialcapitalcommitments.

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(9) Share-based paymentsThecostofequity-settledtransactionswithemployeesismeasuredbyreferencetothefairvalueatthedateatwhichtheyaregrantedandisrecognisedasanexpense,togetherwithacorrespondingincreaseinequity,overthevestingperiod,whichendsonthedateonwhichtherelevantemployeesbecomefullyentitledtotheaward.Fairvalueisdeterminedbyanexternalvaluerusinganappropriatepricingmodel.Invaluingequity-settledtransactions,noaccountistakenofanyvestingconditions,otherthanconditionslinkedtothepriceofthesharesoftheCompany(marketconditions).

Noexpenseisrecognisedforawardsthatdonotultimatelyvest,exceptforawardswherevestingisconditionaluponamarketcondition,whicharetreatedasvestingirrespectiveofwhetherornotthemarketconditionissatisfied,providedthatallotherperformanceconditionsaresatisfied.Ateachbalancesheetdatebeforevesting,thecumulativeexpenseiscalculated,representingtheextenttowhichthevestingperiodhasexpiredandmanagement’sbestestimateofthenumberofequityinstrumentsthatwillultimatelyvestandtheachievementorotherwiseofnon-marketconditions.Themovementincumulativeexpensesincethepreviousbalancesheetdateisrecognisedintheincomestatement,withacorrespondingentryinotherreserves.

TheGrouphastakenadvantageofthetransitionalprovisionsofIFRS2inrespectofequity-settledawardssoastoapplyIFRS2onlytothoseequity-settledawardsgrantedafter7November2002thathadnotvestedbefore1April2007.

Thedilutiveeffectofoutstandingoptionsisreflectedasadditionalsharedilutioninthecomputationofearningspershare.

During theperiodended30September2009,6,820,000stockoptionsweregranted,under the2006optionplan.Theexercisepriceoftheoptionsrangesfrom€0.63to€1.25andisequaltothemarketpriceoftheshareonthedateofgrant.Theoptionswillbecomeexercisablebasedonthesameperformanceconditionsasappliedtothe546,834optionsgrantedunderthisplanintheyearended31March2009.ThefairvalueoftheoptionsgrantedisestimatedasofthedateofgrantusingaMonteCarlosimulationtocalculatethefairvalueusingthefollowingassumptions:

Dividend Yield 0% Expected Volatility 50% Risk Free Interest Rate Range 5.2% Average Expected life 6.0 Years Contractual Life 7 Years

(10) Interest bearing loans and borrowing costs

Allloansandborrowingsareinitiallyrecognisedatthefairvalueoftheconsiderationreceivedlessdirectlyattributabletransactioncosts.Afterinitialrecognition,interestbearingloansandborrowingsaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod.Gainsandlossesarerecognisedintheincomestatementwhentheliabilitiesarederecognisedaswellasthroughtheamortisationprocess.Borrowingcostsarerecognisedasanexpenseimmediatelywhenincurred.

(11) Events after the balance sheet date

Therewerenosignificanteventsafterthebalancesheetdate.