REG-ToLuna plc: Final Results

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ToLuna Plc

(the "Group" or the "Company")

Results for the year ended 31 December 2007

A year of continued growth in revenue, profit and innovation

Highlights

* Strong organic growth with revenues ahead 49 per cent. to �12.5million
(2006: �8.4 million)

* Pre-tax profits ahead in excess of 42 per cent. to �3.2 million (2006: �2.2
million)

* Pre-tax profits before share based payment charges and charity share-based
donation ahead 48 per cent. to �3.4 million

* EPS up 64 per cent. to 6.59 pence (2006: 4.03 pence), more than 10 per
cent. above market expectations

* Final dividend proposed of 0.75 pence per share, making 1.12 pence for the
year (2006: 0.75 pence)

* Operating cash flow improved to �3.6 million and cash reserves at the end
of the year had grown to �4.2 million

* Continued investment in people with average headcount increasing from 68 in
2006 to a average headcount of 120 in 2007

* Panel members up from 1.3 million to 1.8 million

* Successful launch of our new PanelPortal software as a service solution

* Creation of first web 2.0 panel community, with the acquisition of dPolls
and the launch of toluna.com in the UK

Further enquires:

ToLuna plc
Frederic-Charles Petit, Chief Executive Tel: 00 33 6 3308 0391
Richard Bernstein, Non-Executive Director Tel: 0207 491 0770

John East & Partners Limited
David Worlidge/Simon Clements Tel: 0207 628 2200

Powerscourt
Matthew Fletcher
Paul Durman Tel: 0207 250 1446

Notes to Editors

Toluna is a leading independent provider of online panels and technology
services to the market research industry. Through its offices in Paris, London,
Frankfurt, Amsterdam, New York and Seattle, it offers customers access to 1.8
million online panellists in 27 countries. It also licenses its survey and
panel management technology.

Chairman's Statement

At a time of unprecedented challenges in global financial markets, I am pleased
to report that 2007 was another year of impressive progress for ToLuna.

Our strategy of becoming the leading independent provider of panel, community
and technology services to the market research industry remains unchanged. A
year of rapid growth has brought us significantly further along our chosen
path.

Our panel network now extends to 27 countries and our panel membership grew
from 1.3 million to 1.8 million during the year.

The acquisition of dPolls in March 2007, together with the creation of our
Research & Development centre in Ha�fa, brought us additional strengths in
technology and innovation that will help us greatly in developing new products
and reinforce the community focus of our panel.

In this regard, with the launch of our new UK community initiative at
toluna.com in October, where members can post their own opinions and polls, we
have created the first web 2.0 panel community. At a time where the focus of
our industry is into data quality and engagement with respondents, this is a
major step forward both for the Group and our industry. The response was
instant and this initiative has been a great success in terms of engaging with
our online panel community. In the UK, toluna.com currently receives 340,000
unique visitors per month and an average of 110,000 votes per day. Since
October 2007, our members have posted 23,000 polls and provided 375,000
opinions, and we are attracting people who might otherwise not take the time to
participate in surveys. We intend to extend this very shortly to other
territories and believe it has significant potential to strengthen our panels,
improve response rates, enhance profiling and the quality of data collected.

Results

I am pleased to report that our team delivered a substantial advance in sales
and profits in 2007, while a close focus on cash generation and operating
margins enabled us to report earnings per share comfortably in excess of our
expectations.

Revenue for the year grew 49 per cent. from �8.4 million to �12.5
million. Though the rate of growth slowed in the second half of the year, this
followed a decision to focus on higher margin business.

Profit before tax rose 42 per cent. to �3.2 million, (�2.2 million in 2006).
Earnings per share advanced 64 per cent. to 6.59 pence (2006: 4.03 pence).
Profit after tax has increased 64 per cent. to �2.4 million (2006: �1.4
million).

The strength of cash generation is a feature of our business. Operating cash
flow improved to �3.6 million and cash reserves at the end of the year had
grown to �4.2 million. This gives us scope for further acquisitions to improve
our reach geographically and technologically and also gives us the opportunity
to invest in our panels and R&D.

Dividend

Your board is recommending a final dividend of 0.75 pence per share payable on
20 June 2008 to those shareholders on the register at noon on 18 April 2008.
This brings the total dividend for the year to 1.12 pence (2006: 0.75 pence).

Review of operations

Offices

One of our priorities in 2007 was to reinforce our foothold in our core market
further. We continued investing in our London, Paris and Frankfurt offices by
adding more local resources servicing our clients and focusing on the quality
of our delivery. We have also opened an Amsterdam office.

We have expanded our coverage in the USA with the opening of our Seattle
office.

We have therefore strengthened our geographic hubs in Europe and in North
America and feel confident that this gives us a strong foundation on which to
build further growth.

Software as a service solution

We continue to invest in cutting edge technology services with new versions of
our AutomateSurvey and PanelPortal services launched during the year. The new
release of PanelPortal in particular, which allows our clients to create,
manage and engage with their own panel of customers, readers and employees has
been very warmly received.

From the outset we were confident that building our panel, survey and poll
technology offering would enable us to help blue chip companies to engage with
their customers online in a "self service" data collection and insight
environment. The latest industry forecasts indicate that this is by far one of
the fastest growing sectors of online market research services. This reinforces
our confidence that this represents a foundation for substantial growth as well
as a key differentiator from our competitors.

Panel building

We have made great strides in extending the reach of our panel operations both
in our main operating countries and in some of the world's fastest growing
regions.

Our panel membership, which was 350,000 when ToLuna shares were floated in
2005, had reached 1.8 million at the year end and is still growing rapidly. We
operate in 27 countries as far afield as Mexico, Brazil, Russia, China and
Japan. We intend to continue growing the reach of our panel.

We have also made significant progress in our B2B panel strategy by signing an
exclusive strategic partnership on 31 October 2007 with the leading B2B
publisher Incisive Media to build B2B panels communities.

I would like to take this opportunity to thank our panel members for
participating actively in the life of our communities.

Clients

The number of clients, who include leading market research companies, media
agencies, and blue chip companies, grew from 246 to 319 and repeat business
again contributed a major part of our revenue at 70 per cent.

Management and staff

Our staff's expertise, dedication and commitment are the foundation of our
business. This major asset for the company has enabled us to report another
year of excellent service to our clients and I am proud to report that very
high levels of satisfaction are confirmed by our monthly customer survey.

On behalf of the board, I would like to thank all our staff for their efforts
during another year of substantial achievement for the group.

Charitable donations

During 2007 we issued 25,000 new shares, which were gifted to five charitable
organisations. We hope that this will encourage other companies to support
charities in this way.

Prospects

The outlook for the world economy is clouded by the current turbulence on
financial markets and the repercussions of the gathering slowdown in the US.

Against this background, it is encouraging that our new financial year has
begun well and is in line with our expectations.

Although the market research industry is unlikely to be immune to a downturn,
the Inside Research forecast suggests that the online services sector is well
positioned for further growth. While your board remains aware of the risks, we
believe the growth prospects of the online market research services sector,
underpinned by its evident cost and technological advantages, remain robust.
The sector is forecast to grow by 15 per cent. in the USA in the coming year
and by 26 per cent. in Europe. Within the online sector, the provision of new
types of research using the internet, such as specialist "self service"
research to companies and the creation of private panels for clients is
expected to grow rapidly. This is an area in which ToLuna is exceptionally well
placed.

Our cash resources also give us the scope to build on our successful track
record in acquisitions.

For all these reasons, while mindful of the risks, we look forward to the
current year with confidence.

George Kynoch
Chairman
4 April 2007

Consolidated Income Statement

Note Year ended Year ended
31 December 31 December
2007 2006

�'000 �'000

Revenue 2 12,462 8,392

Staff costs (4,817) (3,295)

Other operating expenses (4,611) (2,963)

Profit from operations 3,034 2,134

Net finance income 152 104

Profit before tax 3,186 2,238

Tax 3 (816) (790)

Profit for the financial year 2,370 1,448

Earnings per share

Basic 5 6.59p 4.03p

Diluted 5 6.14p 3.96p

Consolidated Balance Sheet

31 December 31 December
2007 2006

�'000 �'000

Non-current assets

Goodwill 1,953 1,953

Other intangible assets 2,695 1,153

Property, plant and equipment 436 202

Deferred tax - 21

5,084 3,329

Current assets

Trade and other receivables 4,161 3,019

Cash and cash equivalents 4,219 3,605

8,380 6,624

Total assets 13,464 9,953

Equity and liabilities

Equity

Share capital 360 359

Share premium account 5,437 5,365

Retained earnings 4,088 1,803

Translation reserve 132 (42)

Total equity 10,017 7,485

Current liabilities

Trade and other payables 3,047 1,933

Tax liabilities 91 535

Total current liabilities 3,138 2,468

Deferred tax 309 -

Total equity and liabilities 13,464 9,953

Consolidated Cash Flow Statement

Year ended Year ended
31 December 31 December
2007 2006

�'000 �'000

Operating activities

Profit before tax 3,186 2,238

Adjustments for:

Depreciation and amortisation 1,050 508

Share option grant costs 228 106

Other share based payments (charity) 55 -

Loss on disposal of property, plant and 5 4
equipment

Exchange differences 92 (42)

4,616 2,814

Tax paid (930) (73)

Increase in receivables (1,142) (1,696)

Increase in payables 1,021 860

Cash generated from operations 3,565 1,905

Net investment income (152) (104)

Net cash from operating activities 3,413 1,801

Investing activities

Interest received 155 106

Interest paid (3) (2)

Purchase of subsidiary undertakings (net of (29) -
cash acquired)

Purchase of intangible assets (2,448) (1,010)

Purchase of property, plant and equipment (376) (206)

Net cash from investing activities (2,701) (1,112)

Cash inflow before financing 712 689

Financing

Dividends paid (313) (90)

Issue of shares 18 -

Proceeds from finance leases entered into 170 70

Capital repayments of finance leases (55) (32)

Net cash (outflow) from financing (180) (52)

Foreign exchange differences 82 -

Increase in cash and cash equivalents in the 614 637
year

Cash and cash equivalents at start of the year 3,605 2,968

Cash and cash equivalents at end of the year 4,219 3,605

Statements of Changes in Equity

Consolidated Share Share Retained Translation Total
capital premium earnings reserve
account

�'000 �'000 �'000 �'000 �'000

At 1 January 2006 359 5,365 339 - 6,063

Foreign exchange - - - (42) (42)
differences

Profit for the year - - 1,448 - 1,448

Total recognised - - 1,448 (42) 1,406
income and expense

Dividends paid - - (90) - (90)

Share option grants - - 106 - 106

At 31 December 2006 359 5,365 1,803 (42) 7,485

Foreign exchange - - - 174 174
differences

Profit for the year - - 2,370 - 2,370

Total recognised - - 2,370 174 2,544
income and expense

Dividends paid - - (313) - (313)

Shares issued 1 72 - - 73

Share option grants - - 228 - 228

At 31 December 2007 360 5,437 4,088 132 10,017

Notes to the Financial Statements

1. Publication of non-statutory accounts

The financial information set out in this announcement does not constitute
statutory accounts as defined in Section 240 of the Companies Act 1985.

The financial information for the year ended 31 December 2006 has been
extracted from the group's financial statements to that date which received an
unmodified auditors' report and have been delivered to the Registrar of
Companies. The financial information for the year ended 31 December 2007 has
been extracted from the group's financial statements to that date which have
received an unmodified auditor's report but have not yet been delivered to the
Registrar of Companies.

2. Segmental information

All revenue relates to the supply of online data collection services to the
market research industry. The directors regard this as a single class of
business.

All revenue is originated from Europe. Geographical split of revenue by
customer location is as follows:

Year to 31 December 2007 Europe Asia/Pacific America Total

�'000 �'000 �'000 �'000

Revenue from external customers 9,632 253 2,577 12,462

Assets 13,402 61 1 13,464

Liabilities 2,727 48 363 3,138

Property plant and equipment 396 26 14 436

Capital expenditure 2,782 32 10 2,824

Amortisation and depreciation 1,039 6 5 1,050

Year to December 2006 Europe Asia/Pacific America Total

�'000 �'000 �'000 �'000

Revenue from external customers 5,871 188 2,333 8,392

Assets 9,870 - 62 9,932

Liabilities 2,393 - 75 2,468

Property plant and equipment 192 - 10 202

Capital expenditure 1,204 - 12 1,216

Amortisation and depreciation 529 - - 529

3 Tax

Year ended Year ended
31 December 31 December
2007 2006

�'000 �'000

Current tax

UK tax 435 417

Foreign tax 51 99

486 516

Deferred tax - origination and reversal of 330 274
temporary differences

Tax expense 816 790

Deferred tax relates to the utilisation of the deferred tax asset recognised on
the acquisition of the ToLuna SAS in respect of accumulated tax losses and
other timing differences arising in the period.

Tax reconciliation Year ended Year ended
31 December 31 December
2007 2006

�'000 �'000

Profit before tax 3,186 2,238

Tax at 30 per cent. on profit before tax 956 671

Effects of:

Non deductible items 146 41

Foreign tax rates (9) 11

Unutilised losses in foreign subsidiaries - 21

Other timing differences 36 46

Research and development tax credit (313) -

Tax expense 816 790

4 Dividends

The Company paid a dividend of 0.5 pence per share on 29 June 2007 amounting to
�179,828 and 0.37 pence per share on 19 October 2007 amounting to �133,073.

5 Earnings per share

Earnings per share has been calculated on a profit after tax of �2,370,000
(2006: �1,448,000) and the weighted average number of shares in issue for the
period of 35,947,613 (2006: 35,915,245).

The diluted earnings per share are calculated on the assumption that all
options granted were exercised. This would give rise to a total weighted
average number of ordinary shares in issue for the period of 38,629,905 (2006:
36,590,436).

Year ended 31 December Year ended 31 December

2007 2006

Basic Diluted Basic Diluted

�'000 �'000 �'000 �'000

Profit for the financial 2,370 2,370 1,448 1,448
year

Earnings per share 6.59p 6.14p 4.03p 3.96p

* Availability of Accounts

Copies of the Report and Accounts will be sent to shareholders shortly and will
be available from the registered office of the Company, 29 Curzon Street,
London W1J 7TL and the Company's website www.toluna-group.com.

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