Interim ReportSix Months Ended

30 September 2010

Table of contents 2 Interim Results for the Six Months Ended 30 September 2010

2 Financial Highlights

3 Operational Review

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 (AIM: NORK.L, ESM: NORK.IE) is a leading provider of financial crime and compliance software solutions to the global financial services industry. Established in 1998, Norkom enables financial organisations to take intelligent action, control defenses, and evolve strategies against fraud, money laundering, and other types of financial crime. By combining a unique investigative technology platform with deep domain expertise, Norkom has established a solid track record of reducing financial losses, protecting users’ reputations, improving operational efficiencies, and lowering the cost of information technology. Norkom serves clients in over 100 countries across four continents including six of the world’s top 10 financial institutions.

Norkom Group plc - Tel: +353 1 873 9600Paul Kerley, Chief Executive OfficerLiam Davis, Chief Financial Officer

Cenkos Securities plc - Tel: +44 (0) 20 7397 8900AIM Adviser and Joint BrokerStephen Keys - Camilla Hume

Goodbody Stockbrokers - Tel: +353 1 641 6017ESM Adviser and Joint BrokerLinda Hickey - Simon Howley

Threadneedle Communications - Tel: +44 (0) 20 7653 9850Financial PRCaroline Evans-Jones - Fiona Conroy

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Financial Highlights

• Resultsmarginallyaheadofguidancegivenin September2010tradingupdate

• Groupremainsprofitablewithastrongbalancesheet andcashposition

• StronggrowthinPostContractSupport(PCS),up 28%to€4.2million(2009:€3.3million)

• Revenue€22.6million(2009:€24.6million)

• EBITDAincludingIFRS2€0.8million(2009:€4.3million)

• EBITDAexcludingIFRS2€1.6million(2009:€4.5million)

• Adjustedearningspershare1.60cents(2009:4.22cents)

• Cashpositionat30September2010€37.3million (2009:€31.7million)

€m H1 2011 H1 2010

Revenue 22.6 24.6

EBITDA 1.6 4.5

AdjustedDilutedEPS 1.6cents 4.22cents

CashBalance 37.3 31.7

Operational Highlights

• Additionoffivenewclientsintargetmarketsincluding FifthThirdBank(NorthAmerica),LombardInternational Assurance(Europe)andRHBBank(Asia).

• Continuedexpansionofexistingclientrelationships, whichdeliveredover90%oftotalrevenueduring theperiod(2009:89%)throughfollow-oninvestmentin Norkomsolutions.

• Salespipelinevolumeandactivityhigherthanthefirst halfoflastyear,howeversalescycleshavelengthened duetoaslowdowninthecontractingcycleanddelays intheintroductionofnewregulations,particularlyinAsia.

• ContinuedinvestmentinourPackagedApplications withenhancementstoourelectronicpayments,debit cardandinternalfraudapplications.

• KeyNorthAmericanmarketcontinuestorecoverwith revenuesup2%to€9.2million(2009:€8.9million)on thesameperiodlastyear.

• Norkomassociate,DigitalHarbor,makingstrongprogress intheUShealthcarefraudsolutionsindustry.

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

As outlined in our trading update in September, we have experienced changes in market behaviour during the first half of the financial year, with customers now preferring an incremental approach to procurement and engaging in longer sales cycles. Whilst this impacted our view of what is achievable in terms of operating performance for the full year, the pipeline for new business remains strong and the fundamental market drivers are still present. We therefore believe the correct strategy is to continue to invest in the business, reflecting our confidence in the future growth of Norkom. Our financial strength, expanding global client base and market leading fraud management and compliance solutions provide Norkom with a strong position from which to benefit from any future upturn in the market.

Interim results for the six months ended 30 September 2010:

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“

”

Paul Kerley, Chief Executive Officer &

Executive Director

Table of contents 2 Interim Results for the Six Months Ended 30 September 2010

2 Financial Highlights

3 Operational Review

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 (AIM: NORK.L, ESM: NORK.IE) is a leading provider of financial crime and compliance software solutions to the global financial services industry. Established in 1998, Norkom enables financial organisations to take intelligent action, control defenses, and evolve strategies against fraud, money laundering, and other types of financial crime. By combining a unique investigative technology platform with deep domain expertise, Norkom has established a solid track record of reducing financial losses, protecting users’ reputations, improving operational efficiencies, and lowering the cost of information technology. Norkom serves clients in over 100 countries across four continents including six of the world’s top 10 financial institutions.

Norkom Group plc - Tel: +353 1 873 9600Paul Kerley, Chief Executive OfficerLiam Davis, Chief Financial Officer

Cenkos Securities plc - Tel: +44 (0) 20 7397 8900AIM Adviser and Joint BrokerStephen Keys - Camilla Hume

Goodbody Stockbrokers - Tel: +353 1 641 6017ESM Adviser and Joint BrokerLinda Hickey - Simon Howley

Threadneedle Communications - Tel: +44 (0) 20 7653 9850Financial PRCaroline Evans-Jones - Fiona Conroy

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Operational Review

AsoutlinedinourtradingupdateissuedinSeptember2010,Norkomexperienceddifficult tradingconditions in thefirsthalf of the year. However, levels of follow-on investmentfromourglobalclientbaseremainedstrongandtherewasevidenceofanincreaseinbuyingactivity insomeregions.Overallsalespipelinevolumeandactivityishigherthaninthefirsthalfofthepreviousfinancialyear.However,salescycleshavelengthenedduetoaslowdowninthecontractingcycleanddelays in regulatory timelines,particularly inAsia.Thishasresultedinanoveralldecreaseinrevenueto€22.6millionforthesixmonthperiodto30September2010,comparedto€24.6millionforthesameperiodin2009.

TheGroupsecuredfivenewclientsintheperiodincludingFifth Third Bank, Lombard International Assurance andRHBBank.Themajorityofrevenuefromthesenewclientswillberecognisedinfutureperiodsduetothetimingofthecontractsignings.Wecontinuetoworkwithover100clients,includingsixofthetop10globalbanks,givingusastrongplatformforfuturegrowth.

Importantly, there are signs of continued recovery in ourkey North American market, where contracts with twonewclientswereaddedduringtheperiod.Thisresultedinrevenuegrowthfromthisregionof2%to€9.2million(2009:€8.9million).

While new sales are taking longer to close, the level ofvisibilityremainshighamongourexistingclients.Over90%of revenue in the period came from existing clients. Thisincreased activity level amongour current customer baseis reflected in thegrowthofPostContractSupport (PCS)revenue,which grew by 28% to €4.2million (2009: €3.3million).Asthishasbeenafocusfortheprecedingperiods,wearepleased to see the recurring revenue linegrow tobecome19%oftotalrevenues(2009:13%).

Thereisacontinuingchangeinbuyingbehaviourtopurchasepackaged applications that accommodate constrainedbudgets while enabling an incremental approach tobuildinganenterprisefinancialcrimesolution.Thisvalidatesthe evolution of our product development strategy andwe continue to invest in our packaged applications.EnhancementswerecompletedtoourElectronicPayments,DebitCardandInternalFraudapplicationsduringtheperiod.

Our associate, Digital Harbor, is establishing itself as aserious contender in the US healthcare fraud industry.Havingmoved to profitability during calendar year 2009,

thebusinesscontinuestogrowandhasnowsecuredfivecontractsintheemergingUSHealthcareFraudSolutionsmarketsinceitsinception.

Wecontinuetogrowourfraudfranchisegloballyandhaveclosedcontractswithbothexistingandnewclientsduringtheperiod.Inparticular,weareseeingstrongdemandforoursolutionsintheareasofelectronicpaymentfraud,debitcardfraud,andmulti-channelfraud.

Norkom maintains a strong financial position, whichultimately provides theGroupwith a solid platform fromwhichtocontinuetogrowitsoperationsonaglobalbasis.

Financial Review

This was a challenging period for Norkomwith revenuedecreasing by 8% to €22.6million for the period ended30September2010 (2009:€24.6million).Thisdecreaseis largely attributable to the Asia Pacific market, whererevenuedecreasedby33% in theperiod to €3.3million(2009:€5.0million).AcombinationoffactorsaffectedsalesinSouthEastAsiaandJapan,includingapostponementinnewregulatorystatutesandelongatedsalescycles,whichimpactedrevenuerecognitionasprojectcommencementwas delayed. Additionally, Norkom works with partnersin Asia Pacific such as NS Solutions Corporation inJapanandUnisysCorporation inNewZealand.Softwarerevenuefrompartnerswouldberecognisedup-frontratherthanonapercentageofcompletionbasis.Therefore thepostponementinthisrevenueaddedtotheimpactandwillhaveanimpactonfullyearrevenue.

Revenue in Ireland, UK & Rest of World (ROW) alsodecreasedby5%to€4.7million(2009:€4.9million),whichismainlyattributabletolowerrevenuefromtheMiddleEastregionduringtheperiod.

RevenueinEuropedecreasedby6%to€5.4million(2009:€5.8million)asaresultofelongatedsalescycles.Thishasbeenparticularlyevidentbetweenthepointofselectionandtheclosingoflegalcontracts.

RevenueinNorthAmericaincreasedby2%to€9.2million(2009:€8.9million)andtherearesignsthattheUSmarketis returningtonormalbuyingbehaviourparticularly in theareaoffraud.Overall,revenuecamefrombothincrementalcontracts,withover90%ofrevenuecomingfromexistingclients,andnewcontracts,withfivenewclientssecuredin2010 includingFifthThirdBank,Lombard InternationalAssuranceandRHBBank.

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The overall 8% revenue decline came from a decreasein license revenues during the period. License revenuedecreased by 46% to €2.8 million (2009: €5.1 million)and wasmainly accounted for by the postponement ofregulationsandlengthenedsalescyclesintheAsiaPacific,asoutlinedabove.

Professional services revenue decreased by 4% to €15.6million(2009:€16.2million),reflectingthereducednewclientimplementationactivity.PostContractSupport(PCS)grewby28%to€4.2million(2009:€3.3million)duetothehighlevels of adoption of our products across existing clients.ThisstronggrowthincreasestheGroup’srecurringrevenueto19%oftotalrevenuesduringtheperiod(2009:13%).

Gross Profit margin (excluding IFRS 2 and depreciationcharges) reduced to59% (2009:62%)due,mainly, to achange in license mix as opposed to individual marginpressure,as individualmarginson the revenue line itemsremainedstrongduringtheperiod.

Operating costs (excluding IFRS 2 and depreciationcharges) across sales and marketing, research anddevelopment and general administration increased by7%during the half to €11.6million (2009: €10.8million)duemainlytoincreasedsalesandmarketinginvestments,particularly inNorth Americawherewe saw some signsof increased purchasing activity during the period.Management continues to prudently manage costs andhasastronglyheldcultureofprojectaccountingacrosstheorganisation in order to consistentlymanage projects todesiredprofitabilitylevels.

EBITDAexcludingIFRS2decreasedby64%to€1.6million(2009:€4.5million)duringtheperiod,dueto theweakerthanexpectedperformancefromlicenserevenue.WiththeincreaseintheIFRS2chargeto€0.8millionin2010(2009:€0.2million),EBITDA including IFRS2hasdecreasedby82% to €0.8 million (2009: €4.3 million). The increasedIFRS2chargereflectsthestep-upinthebasepriceof6.7millionoptionsissuedinSeptember2009comparedwiththepriceofpreviousoptions,whichweremostlygrantedpre-IPOin2006.

TheEBITDAdecreaseintheperiodhashadadirectonwardeffectonadjustedearningspershare,whichdecreasedby62%to1.60centsinthehalf(2009:4.22cents).Therewasaslightincreaseinthedilutedsharecountduring2010to92.9million(200992.5million).

Therehasbeenapositiveforeignexchangeimpactinthe

currentperiodagainst the sameperiod in 2009.Overall,across the three main trading currencies of US Dollar,AustralianDollarandSterling,therewasapositiveimpactof€0.5milliontoearningsduring2010versus2009.

Norkom’s overall cash position has moved from €31.7millionasattheendofSeptember2009to€37.3millionat endSeptember 2010. TheGrouphadan exceptionalperformance in the year to March 2010 (€41.6 million),wherecashof€15.0millionwasgeneratedfromoperatingactivities. Up to 50% of the €15.0 million was prepaidby existing clients for 2010 revenue and the impact isunwindinginthecurrentperiod.Takinganeighteenmonthperiod from 1st April 2009 to 30th September 2010,Norkomhasincreaseditscashpositionfrom€27.5millionto €37.3million, a generation of €9.8million or 83% ofEBITDAexcludingIFRS2forthe18monthperiod,whichwas€11.8million.

Overall,Norkom’sbalancesheethasstrengthenedduringtheperiod,addingtotheGroup’sstrongfinancialposition.Netassetsincreasedfrom€65.7millionat31March2010to€66.3millionat30September2010.

The Market

Market ChangesThe pipeline for new business remains strong and,although sales cycles have lengthened and regulationsbeen delayed, contracts have not been cancelled butdelayed. Therefore, the same opportunity exists and thefundamentalmarketdriversremain.Thesedrivers includea growing regulatory burden, demand for integrated riskmanagement, replacement of first generation solutions,an increase in demand for real-time solutions, and anincreaseinfinancialcrime.Theviewacrossanumberofindustry analysts, includingChartis Research, is that thecurrent low level ofmarketgrowthwill return to10-15%CAGRfrom2011throughto2013.Additionally,weexpecta replacementmarket to emerge in calendar year 2012where legacy transaction monitoring systems will needtobereplacedtomeetmoreexactingstandards.Wearealready seeing signsof a liftingof themarket stagnationand returning growth in some geographies, with NorthAmerica leading the way. However, the timing of whenlegislationwill be introduced and regulations enforced incertaingeographiescannotcurrentlybeascertained.

Clients’buyingbehaviourcontinues toevolve. Insteadofpurchasing complete enterprise platforms, smaller initialimplementations are being procured. Industry analysts

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Gartner, Chartis and Celent all indicate that the marketis moving to adopt an enterprise capability. Clients areseeking enterprise-wide converged solutions that allowthem to combat fraud, achieve compliance and ROI,but they are now choosing to enhance their systems inincrementalstages.

This behaviour is certainly in evidence amongst our clientbasewhereweareseeingsignificantpull-throughrevenuesfromexistingclients,suchasZionsBancorporation, whoentered into an initial contractual relationship to addressa specific business issue and have since expanded theirfinancial crime and compliance capabilities by adoptingfurtherNorkomsolutions.

There is an increasing amount of M&A activity in thefinancial services sector, such as Thompson Reutersacquiring Complinet, IBM acquiring Open Pages andWoltersKluwersFinancialServicesacquiringFRSGlobal.Thismaybeafurtherdriverforthereplacementoflegacytransactionmonitoringsystemsasmentionedabove.

Regulatory Update In geographies with established regulatory regimes, thelegislativeburdenonfinancialinstitutionscontinuestogrow,increasingexistingclients’adoptionofNorkom’ssolutionsandpull-throughrevenues.Weareseeingescalatingcasesof disciplinary action in the form of fines and/or ceaseanddesistorders,whichseverelyimpactuponafinancialinstitution’s reputation and, ultimately, bottom line. Suchdisciplinary action has the effect of driving pull-throughorders and, during the period, there were a number ofhigh-profilefinesimposedonglobalfinancialinstitutionsfornon-compliance.

Regulatory costs continue to climb and there is clearevidence in the market that financial institutions areselectingconvergedsolutions thatallowthemtocombatfraudwhilst,atthesametime,achievinganROIthroughtheimplementationofthesefraudsolutionsthatcancontributetothecostsofcompliancesystemsandoperations.

Asia Pacific Regulatory LandscapeWhile in the long term, regulatory activity has a positiveimpact on Norkom’s prospects, the combination of thepostponement of new regulatory guidelines passing intolawanddelaysintheenforcementofsaidregulationshaveimpactedrevenuesforthehalfandfullyear.

AchangeingovernmentinJapanandareviewoflegislativeprioritieshasdelayedtheimplementationofnewregulationspreviouslyslatedbytheJapanFinancialIntelligenceCentre

(JAFIC)forOctober2010.TheJAFIChasnowindicatedanewimplementationdateofJune2011.

In Malaysia, the impact of the financial crisis causedMalaysia’s central bank, Bank Negara, to extend thedeadlinebywhichbanksarerequiredtocomplywiththeAMLATF (formerly known as the Anti-Money LaunderingAct2001),originallyintroducedon6March2007.

InNewZealand,newlegislation-theAnti-MoneyLaunderingand Countering Financing of Terrorism (AML/CFT) Bill -passed its thirdreading inOctober2009,but thedate formeetingthesenewobligationsandrequirementsremainstobesetbyNewZealand’sgovernment.Part2of theBill isexpectedtobeintroducedoverthenextsixtosevenmonths.

Packaged Applications

We have continued our investment in building outour portfolio of Packaged Applications. In the area ofcompliance,highlightsincludethesignificantimprovementsin user efficiency in ourWatch List Management (WLM)product, where over 90% of WLM alerts can now beadjudicated inasinglemouse-click.WehavealsomadeanumberofimprovementstoourCustomerDueDiligence/KnowYourCustomer (CDD/KYC)Complianceproduct,including the addition of new risk parameters in the riskscore calculation and extensions to our Enhanced DueDiligence(EDD)workflows.

In our fraud practice, we have added a number ofextensions intheareasof internal fraud,debitcardfraudandelectronicpaymentfraud.Inadditiontoproductbuild-out, we have also strengthened our capabilities both intermsofacquiringadditionaldeepdomainknowledgeintothebusinessthroughthehiringofadditionalfinancialcrimesubjectmatter experts and through the build out of ourPackagedApplicationsgroup.

Channel Partners and Alliances

Norkom continues to have strong relationships withchannelpartnersandalliancesaroundtheworld,includingIBM(worldwide),EjadaSystems (Saudi),Fujitsu (Europe),Sapientics (Europe) and Collection Première Moscow(“CPM”)(Russia).

ChannelpartnersprovideNorkomwiththeabilitytoincreaseitsscalabilityandglobaladoption.Inparticular,Norkomispleased to have successfully executed a joint customerwinwithCPMandIBMinRussiaforVTBBank,Russia’sleadingbank intermsofthenumberoftransactionswith

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internationalcontractors.VTBBankhaschosenasolutionofferedbyIBMandNorkomtoprovideanintegratedAnti-Money Laundering (AML) system. This new system willhelp the bank better manage the risks associated withsuspicioustransactions.

We continue to build our Asian partner relations withNS Solutions in Japan and Unisys Corporation in NewZealand.Thedelaysdescribedabove in these regions intheintroductionoflegislationandinthereleaseofregulatoryguidelinestothelocalfinancialinstitutionshavemeantthatsales through thesepartnerswerenotcompletedduringthefirsthalfoftheyear.

License revenue from channel partners is recogniseddifferently to direct sales contracts. Partner sales arecontractedinsuchawaythattheproductlicenceisrequiredtoberecognisedupfront.Thisisincontrasttotherevenuerecognitionpolicyofdirectcustomercontracts,withlicenserevenuerecognisedovertheperiodofthecontract.Thisisoneof thecontributingfactorstothedecline inrevenuesduringtheperiodandhasalsohadasignificantimpactonNorkom’searningsasalmost100%marginisdrivenfromlicenserevenue.

Norkom’s alliance with MasterCard is progressing well.Under the agreement, Norkom’s Enterprise InvestigationManagement (EIM) solution is being incorporated intoMasterCard’sofferingandwillbeofferedtoitscustomersasavalue-addedservicetoenhancetheirfraudmanagementcapabilities, specifically in predicting, detecting andpreventingpaymentcardfraud.Digital Harbor

The Group’s 47% owned Digital Harbor business hasestablished itselfasaseriouscontender in theemergingHealthcare Fraud Solutions market. Having moved intoprofitability in2009, thebusinesshascontinued togrowandhasnowsecuredfivecontractsintheNorthAmericanmarket. Healthcare fraud is an escalating problem andrepresents a potentially significant growth segmentwithin the fraud market. Norkom continues its strategicinvestment in this area in order to address this futuremarketopportunity.

Business Strategy and Future Outlook

The current market behaviour is one of acquiring aPackagedApplication as an entry point to an enterprisefinancial crime and compliance capability. The last sixmonthswere defined by a very challenging environment

whichhashadanimpactonthehalfyearandwillcontinuetohaveanimpactonthefullyear.However,thestrengthofourunderlyingbusinessandtheconfidencewehaveinthemediumandlong-termgrowthofthecomplianceandfraudmanagementmarketmeanswewillcontinue to invest inkeyregionsandproductstoreturntheGrouptogrowth,while operating profitably. The current R&D focus ondeliveringourPackagedApplicationsstrategywill remainunchangedwhileourinvestmentinsaleswillbeadjustedtoreflectthechangedbuyingbehaviourinourmarket.

Norkom believes the market is increasingly adopting astrategyofselectingconvergedsolutionsthatcanusethesameinfrastructuretoaddressbothfraudandcompliance.WhileNorkom is inaverystrongposition toavailof thischange, legacysolutionprovidersandenterprisesolutionproviderswillnotstandidlyby.Competitionwillbetoughbut a market leadership position and a standard in theindustry will evolve for a small number of players in thecomingperiodsandwebelievewearewellpositionedtobeamongthatgroup.

Thevisibilityofourbusinessopportunitywithourexistingclient franchise remains strong, with growth in our coremarkets continuing to be driven by increased regulatoryenforcementandevolvingcriminalactivity.

The softening of regulations in certain geographies andtheresultantunusualbuyingbehaviourmeanthatNorkomexpectsthatthepredictabilityofnewclientwinsoutsideofourcurrentcustomerbasewillremaindifficulttoascertainin the short-term.Norkomwill, therefore, continue to becautious in its outlook while the new buying behaviourestablishesitselfproperly.

TheBoardexpectsamodestreturntorevenuegrowthinthesecondsixmonthsoffiscalyear2011againstthesameperiodlastyear.Revenuesforthefullyearareexpectedtobeatsimilarlevelstofiscalyear2010.

The strength of Norkom’s solutions and the resumptionof demand in its coremarketsmean theBoard remainsconfidentofNorkom’smediumandlong-termprospects.

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Interim Consolidated Income Statementfor the 6 months ended 30 September 2010 6 Months to 6 Months to 30 September 2010 30 September 2009 (unaudited) (unaudited) Note €’000 €’000

Continuing Operations Revenue 4 22,601 24,601Costofsales (9,660) (9,560)

Gross profit 12,941 15,041

Salesandmarketingcosts (5,159) (4,492)Researchanddevelopmentcosts (4,415) (3,640)Administrativeexpenses (3,003) (3,095)Amortisationofintangibleassets (633) (582)Operating (loss) profit (269) 3,232 Shareofprofit(loss)ofassociate 23 (166)Financerevenue 502 135Financecosts (4) (23) Profit before tax 252 3,178 Income tax expense:Currenttaxcharge 6 (247) (35)Deferredtaxcharge 6 3 26 Profit for the period from continuing operations 8 3,169

Attributable to:Equityholdersoftheparent 8 3,169Non-controllinginterest - - 8 3,169

cent centEPS:Basic earnings per ordinary share 3 0.01c 3.55c Diluted earnings per ordinary share 3 0.01c 3.43c

Adjusted EPS:EPS adjusted for amortisation and non-cash charges 3 1.60c 4.22cEBITDA EPS – post IFRS 2 non-cash charge 3 0.85c 4.69cEBITDA EPS – pre IFRS 2 non-cash charge 3 1.76c 4.88c

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Interim Consolidated Statement of Comprehensive Incomefor the 6 months ended 30 September 2010 6 Months to 6 Months to 30 September 2010 30 September 2009 (unaudited) (unaudited) €’000 €’000 Profit for the period from continuing operations 8 3,169Exchangedifferencesonthetranslationofforeignoperations (266) (2,074)

Total comprehensive income for the period net of tax (258) 1,095

Attributable to:Equityholdersoftheparent (258) 1,095Non-controllinginterest - - (258) 1,095

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Interim Consolidated Statement of Financial Positionat 30 September 2010 30 September 2010 31 March 2010 (unaudited) €’000 €’000

Assets Non-CurrentAssetsPropertyplantandequipment 823 1,128Intangibleassets 22,740 23,589Investmentinassociate 1,712 1,689Deferredtaxasset 2,122 2,123

27,397 28,529

CurrentassetsTradeandotherreceivables 14,970 11,909Prepayments 871 892Cashandcashequivalents 37,270 41,642 Total current assets 53,111 54,443

Total assets 80,508 82,972

EquityandliabilitiesIssuedsharecapital 898 898Sharepremium 44 38Otherreserves 2,908 2,074Cumulativetranslationadjustment (752) (486)Retainedprofit 63,197 63,189Equity attributable to equity holders of the parent 66,295 65,713

Non-controllinginterest 0 0

Total Equity 66,295 65,713

Non-currentliabilitiesFinanceleaseobligations 37 76Otherpayables - 4

Total non-current liabilities 37 80 Currentliabilities Tradeandotherpayables 8,069 7,842Incometaxespayable 268 261Financeleaseobligations 78 78Deferredrevenue 5,761 8,998 Total current liabilities 14,176 17,179

Total liabilities 14,213 17,259

Total equity and liabilities 80,508 82,972

11 1110

Interim Consolidated Statement of Changes in Equity (unaudited) for the six months ended 30 September 2010 and 2009

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

At 31 March 2010 898 38 63,189 2,074 (486) 65,713 0 65,713 Profitretainedforthefinancialperiod - - 8 - - 8 - 8Movementintranslationreserve - - - (13) (266) (279) - (279) Total comprehensive income (loss) - - 8 (13) (266) (271) - (271) ESOPissueofordinaryshares - 6 - - - 6 - 6

Expensingofshare-basedpayment - - - 847 - 847 - 847

At 30 September 2010 (unaudited) 898 44 63,197 2,908 (752) 66,295 0 66,295

Issued Share Retained Other Translation Non-controlling 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 58,190 Profitretainedforthefinancialperiod - - 3,169 - - 3,169 - 3,169Movementintranslationreserve - - - - (2,074) (2,074) - (2,074) Total comprehensive income - - 3,169 - (2,074) 1,095 - 1,095 Capitalrestructuring - (42,454) 70,553 (28,099) - - - -

ESOPissueofordinaryshares 3 25 - - - 28 - 28

Expensingofshare-basedpayment - - - 181 - 181 - 181

At 30 September 2009 (unaudited) 897 25 59,734 1,257 (2,419) 59,494 0 59,494

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Interim Consolidated Cash Flow Statement for the 6 months ended 30 September 2010

6 Months to 6 Months to 30 September 2010 30 September 2009 (unaudited) (unaudited) €’000 €’000

Cash flows from operating activitiesProfitbeforetax 252 3,178AdjustmenttoreconcileprofitbeforetaxtonetcashflowsNon-cash: Depreciationofproperty,plantandequipment 424 523 Amortisationofintangibles 633 582 Share-basedpayments 847 181 Shareof(profit)lossofassociate (23) 166Financeincome (502) (135)Financecosts 4 23Workingcapitaladjustments: (Increase)decreaseindebtorsandprepayments (2,774) 2,480 (Decrease)increditorsandaccruals (3,097) (2,336) Cash (used in) generated from operations (4,236) 4,662

Incometaxpaid (281) (50)

Net cash flows from operating activities (4,517) 4,612 Cash flows from investing activitiesPurchaseofproperty,plantandequipment (116) (254)Interestreceived 539 189

Net cash flows from investing activities 423 (65)

Financing activitiesProceedsfromESOPissueofshares 7 28Capitalelementoffinanceleasepayable (39) (79)Capitalelementofsupplierloan - (18)Financeleaseinterestpaid (4) (24)Dividendspaidtonon-controllinginterests (375) (260) Net cash flows from financing activities (411) (353)

(Decrease) increase in cash (4,505) 4,194

Netforeignexchangedifference 133 39Cashandcashequivalentsat1April 41,642 27,453

Cash and cash equivalents at 30 September 37,270 31,686

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Notes to the Interim Consolidated Financial Statements for the 6 months ended 30 September 2010

(1) Corporate informationTheinterimconsolidatedfinancialstatementsoftheNorkomGroupplcforthesixmonthsended30September2010wereauthorisedforissueinaccordancewitharesolutionofthedirectorson8November2010.

NorkomGroupplcisincorporatedasapubliclimitedcompanyunderthelawsofIrelandandisdomiciledinIreland.ItssharesarelistedontheESMandAIMmarkets.

(2) Basis of preparation and accounting policies

Basis of preparationThe interimconsolidatedfinancialstatements for thesixmonthsended30September2010havebeenprepared inaccordancewith IAS34 “Interim Financial Reporting”. The interimconsolidated financial statementsdonot includealltheinformationanddisclosuresrequiredintheannualfinancialstatementsandshouldbereadinconjunctionwiththeGroup’sannualfinancialstatementsasatandfortheyearended31March2010,whichhavebeenprepared inaccordancewithIFRS.

Significant accounting policiesTheaccountingpoliciesadoptedinthepreparationoftheinterimconsolidatedfinancialstatementsareconsistentwiththosefollowedinthepreparationoftheGroup’sannualfinancialstatementsfortheyearended31March2010,exceptfortheadoptionofnewStandardsandInterpretations,notedbelow:

IFRIC13,‘Customer loyalty programmes’,effectiveforannualperiodsbeginningonorafter1July2010.Managementhasevaluated theeffectof this interpretationon its revenue recognitionandhasdeterminednochange inpolicy isrequired.

IFRIC9,‘Reassessment of Embedded Derivatives and IAS 39 Financial Instruments: Recognition and Measurement’.TheseamendmentstoIFRIC9requireanentitytoassesswhetheranembeddedderivativemustbeseparatedfromahostcontractwhentheentityreclassifiesahybridfinancialassetoutofthefairvaluethroughincomestatementcategory.Thisassessmentistobemadebasedoncircumstancesthatexistedonthelaterofthedatetheentityfirstbecameapartytothecontractandthedateofanycontractamendmentsthatsignificantlychangethecashflowsofthecontract.IAS39nowstatesthatifanembeddedderivativecannotbereliablymeasured,theentirehybridinstrumentmustremainclassifiedasatfairvaluethroughincomestatement.

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.

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Improvements to IFRSs

Improvements to IFRSs (issued May 2008)InMay2008,theInternationalAccountingStandardsBoard(“theBoard”)issueditsfirstomnibusofamendmentstoitsstandards.AllamendmentsissuedareeffectivefortheGroupasat30September2010,apartfromthefollowing:

IFRS5Non-currentAssetsHeldforSaleandDiscontinuedOperations:clarifieswhenasubsidiaryisclassifiedasheldforsale,allitsassetsandliabilitiesareclassifiedasheldforsale,evenwhentheentityremainsanon-controllinginterestafterthesaletransaction.TheamendmentisappliedprospectivelyandhadnoimpactonthefinancialpositionnorfinancialperformanceoftheGroup.

Improvements to IFRSs (issued April 2009)InApril2009theBoardissueditssecondomnibusofamendmentstoitsstandards,primarilywithaviewtoremovinginconsistenciesandclarifyingwording.Thereareseparatetransitionalprovisionsforeachstandard.TheadoptionofthefollowingamendmentsresultedinchangestoaccountingpoliciesbutdidnothaveanyimpactonthefinancialpositionorperformanceoftheGroup.

IAS 7 Statement ofCash Flows: Explicitly states that only expenditure that results in recognising an asset can beclassifiedasacashflowfrominvestingactivities.Thisamendmentwillimpactthepresentationinthestatementofcashflowsofthecontingentconsiderationonanybusinesscombinationcompletedin2010uponcashsettlement.

OtheramendmentsresultingfromimprovementstoIFRSstothefollowingstandardsdidnothaveanyimpactontheaccountingpolicies,financialpositionorperformanceoftheGroup:

•IFRS2Share-basedPayment•IFRS5Non-currentAssetsHeldforSaleandDiscontinuedOperations•IAS1PresentationofFinancialStatements•IAS17Leases•IAS38IntangibleAssets•IAS39FinancialInstruments:RecognitionandMeasurement•IFRIC9ReassessmentofEmbeddedDerivatives•IFRIC16HedgeofaNetInvestmentinaForeignOperation

TheGroup has not early adopted any other standard, interpretation or amendment thatwas issuedbut is not yeteffective.

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

6 Months ended 6 Months ended 30 September 2010 30 September 2009 €’000 €’000Numerator for basic and diluted earnings per share

Profitforthefinancialperiodattributabletoordinaryshareholders 8 3,169

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

Weightedaveragenumberofshares 89,790,193 89,343,760Effectiveofdilutivepotentialshares(shareoptions) 3,099,886 3,170,317Denominator for diluted earnings per share 92,890,079 92,514,077Earnings per Share

Basic 0.01c 3.55c

Diluted 0.01c 3.43c

Adjusted earnings per Share

6 Months ended 6 Months ended 30 September 2010 30 September 2009

Cent Cent(i) Adjusted EPS:Adjusteddilutedearningsperordinaryshare 1.60c 4.22c

(ii)EBITDAEPS:EBITDAdilutedearningsperordinaryshare–postIFRS2non-cashcharge 0.85c 4.69c

(ii)EBITDAEPS:EBITDAdilutedearningsperordinaryshare–preIFRS2non-cashcharge 1.76c 4.88c

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Earnings reconciliations:

(i) Earnings for adjusted EPS reconciliation: 6 Months ended 6 Months ended 30 September 2010 30 September 2009 €’000 €’000

Profitattributabletotheequityholdersoftheparent 8 3,169

Addback:IFRS2non-cashcharge 847 181Amortisationofintangibles 633 582Deferredtax(credit) (3) (26)Earnings for adjusted EPS 1,485 3,906 (ii) EBITDA reconciliation: 6 Months ended 6 Months ended 30 September 2010 30 September 2009 €’000 €’000

Operating(loss)profit (269) 3,232

Addback:Depreciation 424 523Amortisationofintangibles 633 582

EBITDA – Post IFRS 2 non-cash charge 788 4,337

IFRS2non-cashcharge 847 181

EBITDA – Pre IFRS 2 non-cash charge 1,635 4,518

ThisreconciliationispresentedbecauseadjustedearningspershareisanexternalmeasureusedbyanalyststohelpunderstandtheinvestmentpotentialoftheGroup.

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(ii) Reconciliation of EBITDA to Statutory Income Statement:

InterimConsolidatedIncomeStatementforthe6monthsended30September2010

EBITDA IFRS 2 Depreciation Statutory €’000 €’000 €’000 €’000 Revenue 22,601 - - 22,601 Costofsales (9,398) (70) (192) (9,660) Gross profit 13,203 (70) (192) 12,941 Salesandmarketingcosts (4,946) (190) (23) (5,159)Researchanddevelopmentcosts (4,036) (263) (116) (4,415)Administrativeexpenses (2,586) (324) (93) (3,003) Operating Costs (11,568) (777) (232) (12,577) EBITDA 1,635 (847) (424) 364 Amortisationofintangibleassets (633) EBIT (269) Shareofprofitofassociate 23Financerevenue 502Financecosts (4) Profit before tax 252 Incometaxexpense: Currenttaxcharge (247)Deferredtaxcredit 3 Profit for the period from continuing operations 8

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Interim Consolidated Income Statementfor the 6 months ended 30 September 2009

EBITDA IFRS 2 Depreciation Statutory €’000 €’000 €’000 €’000 Revenue 24,601 - - 24,601 Costofsales (9,299) (48) (213) (9,560) Gross profit 15,302 (48) (213) 15,041 Salesandmarketingcosts (4,399) (67) (26) (4,492)Researchanddevelopmentcosts (3,452) (41) (147) (3,640)Administrativeexpenses (2,933) (25) (137) (3,095) Operating Costs (10,784) (133) (310) (11,227) EBITDA 4,518 (181) (523) 3,814 Amortisationofintangibleassets (582) EBIT 3,232 Shareoflossofassociate (166)Financerevenue 135Financecosts (23) Profit before tax 3,178 Incometaxexpense: Currenttaxcharge (35)Deferredtaxcredit 26 Profit for the period from continuing operations 3,169

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(4) Segmental Information

IFRS 8 Operating SegmentsIFRS8requiresoperatingsegmentstobeidentifiedonthebasisofinternalreportsaboutcomponentsoftheGroupthatareregularlyreviewedbythechiefoperatingdecisionmakerinordertoallocateresourcestothesegmentsandtoassesstheirperformance.

Products and services from which the reportable segment derives its revenuesTheonereportablesegmentidentifiedandreportedexternallywastheprovisionofsoftwareandservicesforenterprisefinancial crimemonitoring and compliance. Information reported to theGroup’s chief operating decisionmaker forthepurposesof resourceallocationandassessmentof segmentperformance isprovidedonasinglebusiness linebasis, individualelementsofsoftwareandservicesnotbeingdisaggregated for thepurposesof reportingoperatingperformanceorallocatingresources.Forthepurposesofinternalreportingrevenueresultsarereportedbygeographicalregion(butnotbycountryorclient)forthepurposesofdeterminingregionalperformance,howeveroperatingresultsarenotreportedbyregionforthepurposesofresourceallocation.TheGroup’sonereportablesegmentunderIFRS8isthereforetheprovisionofsoftwareandservicesforenterprisefinancialcrimemonitoringandcompliance.

TheGroupdoesnotundertakeanyotheractivitiesotherthantheprimaryactivitydescribedabove.

Thefollowing isananalysisoftheGroup’srevenuefromcontinuingoperationsfromitsmajortypesofproductsandservices:

6 Months ended 6 Months ended 30 September 2010 30 September 2009 €’000 €’000

Licence 2,781 5,137Professionalservices 15,590 16,159Postcontractsupport 4,230 3,305

Total 22,601 24,601

Norkomanditsclientsoperateindiversegeographicalareas(notdelimitedbycountriesofoperation).

TherearenomaterialdependenciesorconcentrationsonindividualcustomerswhichwouldwarrantdisclosureunderIFRS8.

TheindividualentitieswithintheGroupeachhavealargenumberofcustomersspreadacrossvariousactivities,end-usesandgeographies.TheGroupisdomiciledinIreland.

TheGroupoperatesinfourprincipalgeographicalregions: 6 Months ended 6 Months ended 30 September 2010 30 September 2009 €’000 €’000

Ireland–CountryofDomicile 47 88UKandRestofWorld 4,642 4,846NorthAmerica 9,156 8,942Europe 5,435 5,774AsiaPacific 3,321 4,951

Total 22,601 24,601 Theanalysisofrevenuefromexternalcustomersbyoriginisnotmateriallydifferentfromthefiguresshownabove.

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(5) Impairments

GoodwillGoodwillistestedforimpairmentannually(asat31December)andwhencircumstancesindicatethecarryingvaluemaybeimpaired.TheGroup’simpairmenttestforgoodwillandintangibleassetswithindefinitelivesisbasedonvalueinusecalculationsthatuseadiscountedcashflowmodel.Thekeyassumptionsusedtodeterminetherecoverableamountwerediscussedintheannualfinancialstatementsfortheyearended31March2010.

TheGroupconsiderstherelationshipbetweenitsmarketcapitalisationanditsbookvalue,amongotherfactors,whenreviewingforindicatorsofimpairment.Asat30September2010,themarketcapitalisationoftheGroupwasabovethebookvalueofitsequity,indicatingnoimpairmentofgoodwillhadarisen.

Intangible assetsIntangibleassetsarereviewedforindicatorsofimpairmentannually(asat31December)andadditionallyatsuchtimeasan indicatorof impairment is identfiied, includingbutnot limited topotentialchanges invalue inusearising fromchangesintheinternalandexternaltechnologyenvironmentandcustomerrelationsprofile.Asat30September2010noindicatorsexistedofimpairmentinthecarryingvalueofintangibleassets.

(6) Income and deferred taxTax based on the profit for the period: 6 Months ended 6 Months ended 30 September 2010 30 September 2009 €’000 €’000

Current income tax Foreigntax (247) (35)Total current tax charge (247) (35)Deferred taxDeferredtaxcredit 3 26

Total deferred tax credit 3 26

Total charge in the income statement (244) (9)

Notaxationhasbeencreditedorchargeddirectlytoequity.

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

Jurisdiction Grosstaxableincomegeneration EffectiveTaxRate necessarytoutilizecurrenttaxlosses andcreditscarriedforward

Ireland €20.0m 12.5%UK £1.3m 30%US $25.3m 34%

TheotherprimarytaxationjurisdictionsofBelgium,AustraliaandCanada,inwhichNorkomoperates,haveahistoryoftaxprofitsandcarrynoaccumulatedtaxlossesforward.

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InIreland(wherecurrentlyanet10%manufacturingcorporatetaxrateiseffective(manufacturingreliefbeingdiscontinuedfrom1January2011givingrisetoaneffective12.5%ratefromthisdate)andwheretheNorkomintellectualpropertyisdomiciled),researchanddevelopmenttaxcreditsaregeneratedoneligibleresearchanddevelopmentexpenditureatarateof25%.ThesecreditscanbeoffsetagainstIrishcorporatetaxliabilitiesgeneratedoncurrent(at10%)andfuture(at12.5%)taxableprofits,orrecoveredagainstpayrolltaxliabilitiespaidinthesamefinancialperiod.

(7) Property, plant and equipment

Additionsforthesixmonthswere€116,000(2009:€254,000).

Therearenomaterialcapitalcommitments.

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

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

Thedilutiveeffectofoutstandingoptionsisreflectedasadditionalsharedilutioninthecomputationofearningspershare.

Duringtheperiodended30September2010,60,000stockoptionsweregranted,underthe2006optionplan.Theexercisepriceoftheoptionsis€0.80andisequaltothemarketpriceoftheshareonthedateofgrant.Theoptionswillbecomeexercisablebasedonthesameperformanceconditionsasappliedtothe6,840,000optionsgrantedunderthisplanintheyearended31March2010.ThefairvalueoftheoptionsgrantedisestimatedasofthedateofgrantusingaBlack-Scholessimulationtocalculatethefairvalueusingthefollowingassumptions:

Dividend Yield 0% Expected Volatility 50% Risk Free Interest Rate Range 3.1% Average Expected life 5.0 Years Contractual Life 7 Years

(9) Interest bearing loans and borrowing costs

Allloansandborrowingsareinitiallyrecognisedatthefairvalueoftheconsiderationreceivedlessdirectlyattributabletransactioncosts.Afterinitialrecognition,interestbearingloansandborrowingsaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod.Gainsandlossesarerecognisedintheincomestatementwhentheliabilitiesarederecognisedaswellasthroughtheamortisationprocess.Borrowingcostsarerecognisedasanexpenseimmediatelywhenincurred.

(10) Events after the balance sheet date

Therewerenosignificanteventsafterthebalancesheetdate.