NEWCASTLE United today announced the Preliminary Results for the year ended July 31, 2005.

FINANCIAL HIGHLIGHTS

- Group turnover of £87.0m, down from £90.2m in prior year.

- Operating expenses before player amortisation and trading rose from £69.7m to £80.9m principally as a result of additional home games and increased investment in the playing squad. Group operating profit before player trading and amortisation fell to £6.0m (2004: £20.4m).

- Substantial increase in profit on disposal of players' registrations of £13.5m (2004: profit of £0.3m).

- Profit before interest and taxation of £4.5m (2004: £8.8m).

- Match revenues up 4% from £33.9m to £35.3m due to three additional home games.

- Sponsorship revenues up 1% from £9.3m to £9.4m.

- Revenues from catering up 28% from £5.3m to £6.8m.

OPERATIONAL HIGHLIGHTS

- Significant strengthening of the first team squad, with Scott Parker and Emre Belozoglu being signed before the end of the financial year. Michael Owen, Albert Luque and Nolberto Solano were also signed during the transfer window, but after the financial year end.

- Reached semi-final of FA Cup and quarter final of UEFA Cup.

- Disappointing position of 14th in FA Premier League.

- Successful opening of Shearer's Sports Bar in December 2004.

- Newcastle United superstore, in conjunction with adidas, opened in April 2005.

- 100% ownership of media rights following acquisition by the Company of Premium TV Limited's ('PTV') 50% stake in nufc.co.uk Limited during February 2005.

- Successfully staged two England international fixtures at St. James' Park.

- Conclusion of filming of 'Goal', followed by international distribution in September 2005.

Freddy Shepherd, Chairman of Newcastle United, commented: "While the team progressed to the semi-final of the FA Cup and quarter finals of the UEFA Cup competition, the Club's performance in the FA Premier League was disappointing and below the level that we demand.

"Since the end of the season, the Board of Directors has worked very hard to complete the signings of some exceptional players, culminating in the signing of Michael Owen from Real Madrid. This has been a period of major investment in the playing squad.

"The Board of Directors has made available the funding to secure one of the most exciting playing squads in the FA Premier League and hopes to bring the success that our magnificent supporters desire."

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