NDS GROUP PLC
             UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
                FOR THE THREE MONTHS ENDED 31 MARCH 2002

                                              3 months ended
                                                  31 March
                                Notes       2002              2001
                                     (pound)'000       (pound)'000
Revenues
Conditional access                        33,264            31,721
Integration, development &
 support                                  11,289             9,467
Licence fees & royalties                   6,668             6,223
New technologies                           8,508             4,937
Other revenue                                396             1,765
                                     ----------------  ---------------
Total revenues                            60,125            54,113
                                     ----------------  ---------------

Cost of sales
Smart card & changeover
 provisions                              (12,362)          (11,411)
Operations & support                      (5,878)           (6,800)
Royalties                                 (1,044)           (1,153)
Other                                       (373)             (643)
                                     ----------------  ---------------
Total cost of sales                      (19,657)          (20,007)
                                     ----------------  ---------------

Gross profit                              40,468            34,106
                                     ----------------  ---------------
Gross profit %                              67.3%             63.0%

Operating expenses, excluding
 goodwill amortisation
Sales & marketing expenses                (3,635)           (3,830)
Research & development                   (17,427)          (16,536)
General & administration                  (4,787)           (3,619)
                                     ----------------  ---------------
Total                                    (25,849)          (23,985)
                                     ----------------  ---------------

Operating income, before
 goodwill amortisation                    14,619            10,121
Operating income %                          24.3%             18.7%

Amortisation of goodwill                  (1,724)           (1,595)

                                     ----------------  ---------------
Operating profit                          12,895             8,526

Net interest income                          610               501
                                     ----------------  ---------------
Profit on ordinary activities
 before tax                               13,505             9,027

Taxation                                  (4,460)           (2,726)

                                     ----------------  ---------------
Net profit                                 9,045             6,301
                                     ----------------  ---------------
----------------------------------------------------------------------
Earnings per share                  2
         Basic                              17.0p             11.9p
         Diluted                            16.6p             11.4p

Adjusted earnings per share
         Basic                              20.2p             14.9p
         Diluted                            19.7p             14.3p
----------------------------------------------------------------------


                               NDS GROUP PLC
              UNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNT
                  FOR THE NINE MONTHS ENDED 31 MARCH 2002

                                     9 months ended        Year ended
                                         31 March            30 June
                              Notes   2002          2001       2001
                               (pound)'000   (pound)'000  (pound)'000
Revenues
Conditional access                  83,402        95,295      122,862
Integration, development &
 support                            34,338        29,020       38,282
Licence fees & royalties            23,824        21,559       31,870
New technologies                    26,782         9,443       15,069
Other revenue                        7,428         6,163        7,545
                                   -----------------------------------
Total revenues                     175,774       161,480      215,628
                                   -----------------------------------

Cost of sales
Smart card & changeover
 provisions                        (29,910)      (33,086)     (41,983)
Operations & support               (18,490)      (17,561)     (23,681)
Royalties                           (3,228)       (4,558)      (5,258)
Other                               (5,933)       (5,240)      (5,754)
                                   -----------------------------------
Total cost of sales                (57,561)      (60,445)     (76,676)
                                   -----------------------------------

Gross profit                       118,213       101,035      138,952
                                   -----------------------------------
Gross profit %                        67.3%         62.6%        64.4%

Operating expenses, excluding
 goodwill amortisation
Sales & marketing expenses         (12,079)      (10,177)     (14,417)
Research & development             (51,398)      (46,926)     (65,164)
General & administration           (14,405)      (12,068)     (15,601)
                                   -----------------------------------
Total                              (77,882)      (69,171)     (95,182)
                                   -----------------------------------

Operating income, before
 goodwill amortisation              40,331        31,864       43,770
Operating income %                    22.9%         19.7%        20.3%

Amortisation of goodwill            (5,170)       (2,697)      (4,590)

                                   -----------------------------------
Operating profit                    35,161        29,167       39,180

Share of associate's operating
 profit                                  -             -            5
Net interest income                  1,893         1,928        2,098
                                   -----------------------------------
Profit on ordinary activities
 before tax                         37,054        31,095       41,283

Taxation                           (12,183)       (9,183)     (12,154)

                                   -----------------------------------
Net profit                          24,871        21,912       29,129
                                   -----------------------------------


----------------------------------------------------------------------
Earnings per share               2
         Basic                        46.7p         41.6p        55.1p
         Diluted                      45.4p         40.0p        52.8p

Adjusted earnings per share
         Basic                        56.4p         46.7p        63.8p
         Diluted                      54.8p         44.9p        61.1p
----------------------------------------------------------------------


                                    NDS GROUP PLC
                        UNAUDITED CONSOLIDATED BALANCE SHEET
                                 AS AT 31 MARCH 2002

                                    31 March    31 March   30 June
                             Notes      2002        2001      2001
                                   (pound)'000 (pound)'000 (pound)'000
Fixed assets
Investments                            3,602       1,215       1,839
Goodwill                              61,957      63,888      67,127
Tangible assets                       19,117      19,151      20,698
                                    --------------------------------
                                      84,676      84,254      89,664
                                    --------------------------------

Current assets
Stocks                                31,133      18,881      22,438
Deferred tax asset                     2,897       3,789       2,899
Debtors due within one year           55,803      64,352      50,098
Cash                            3     90,047      40,143      65,337
                                    --------------------------------
                                     179,880     127,165     140,772

Creditors
Amounts falling due within one
 year                                (94,467)    (83,891)    (89,480)

                                    --------------------------------
Net current assets                    85,413      43,274      51,292
                                    --------------------------------

Total assets less current
 liabilities                         170,089     127,528     140,956

Creditors
Amounts falling due after one
 year                                 (1,557)     (1,725)     (1,684)

Provisions for liabilities and
 charges                             (17,350)    (11,663)    (13,406)

                                    --------------------------------
Net assets                           151,182     114,140     125,866
                                    --------------------------------


Equity and capital reserves     4
Equity share capital                     336         333         334
Share premium                        154,250     140,485     145,534
Shares to be issued                   14,334      22,500      22,336
Profit and loss account             (193,003)   (224,443)   (217,603)
Capital contribution                 133,265     133,265     133,265
                                    --------------------------------
                                     109,182      72,140      83,866
Non-equity capital                    42,000      42,000      42,000
                                    --------------------------------
Total capital employed               151,182     114,140     125,866
                                    --------------------------------



                               NDS GROUP PLC
              UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
                  FOR THE NINE MONTHS ENDED 31 MARCH 2002

                             3 months ended 9 months ended Year ended
                                   31 March     31 March     30 June
                                       2002         2002        2001
                                (pound)'000  (pound)'000 (pound)'000

Operating profit                     12,895       35,161      39,180
Non-cash operating costs              3,466       11,653      12,868
Movement in working capital           1,556      (10,504)      1,919
                                    --------------------------------
Net cash inflow from operating
 activities                          17,917       36,310      53,967

Net interest received                   610        1,940       2,098
Tax paid                             (3,417)      (7,995)     (9,170)
Capital expenditure                  (1,046)      (4,297)    (11,187)
Acquisitions and disposals           (1,358)      (1,763)        551
Proceeds from issue of shares           367          515       1,670
                                    --------------------------------
Cash generated                       13,073       24,710      37,929

Interest-bearing deposits with
 News Corporation                         -            -       5,674
Restricted cash deposits                  -            -     (14,403)

                                    --------------------------------
Increase in free cash balances       13,073       24,710      29,200

Free cash, beginning of period       62,571       50,934      21,734

                                    --------------------------------
Free cash, end of period             75,644       75,644      50,934
                                    --------------------------------

NOTES 

1. Basis of preparation and presentation 

These unaudited financial statements have been prepared using the accounting policies disclosed in the consolidated financial statements for the year ended 30 June 2001 which are in compliance with UK GAAP. They do not constitute statutory accounts. Figures for 30 June 2001 and for the year ended on that date have been extracted from the consolidated financial statements of NDS Group plc on which the auditors gave an unqualified audit report. 

2. Earnings per share 

In addition to earnings per share calculated on the basis of net profit for the year, figures are also presented for earnings per share adjusted to eliminate the distortions caused by amortisation of goodwill. A reconciliation of the profits used in the calculations is as follows: 



                                         3 months ended
                                               31 March
                                     2002               2001
                              (pound)'000        (pound)'000
Net profit                          9,045              6,301
Add back amortisation of
 goodwill                           1,724              1,595
                              ---------------    -----------------
Adjusted net profit                10,769              7,896
                              ---------------    -----------------

                                    9 months ended        Year ended
                                        31 March             30 June
                                  2002           2001           2001
                           (pound)'000    (pound)'000    (pound)'000

Net profit                      24,871         21,912         29,129
Add back amortisation of
 goodwill                        5,170          2,697          4,590
                          ---------------  -------------  ------------
Adjusted net profit             30,041         24,609         33,719
                          ---------------  -------------  ------------

The weighted average number of shares and the weighted average number of potential shares in issue for each period (including potentially dilutive share options and potential shares to be issued in connection with the acquisition of Orbis Technology Limited ("Orbis")) have been determined in accordance with FRS 14. These quantities are therefore a function of, amongst other things, the average quoted share price for the period. The figures used in the calculations are as follows: 



Period                     Weighted average   Weighted average number
                            shares in issue       of potential shares

3 months to 31 March 2002          53,346,335              54,552,714
3 months to 31 March 2001          52,833,371              55,150,221

9 months to 31 March 2002          53,285,215              54,806,124
9 months to 31 March 2001          52,724,290              54,752,098

Year ended 30 June 2001            52,824,956              55,197,631
                                   ----------              ----------

3. Cash 

 

                            31 March      31 March        30 June
                                2002          2001           2001
                         (pound)'000   (pound)'000    (pound)'000

Restricted cash deposits      14,403        14,403         14,403
Freely available cash         75,644        25,740         50,934

                           ------------  ------------   ------------
                              90,047        40,143         65,337
                           ------------  ------------   ------------

Restricted cash deposits are amounts held in an interest bearing account with the Company's bank as security to support guarantees given by the bank in connection with the Series A Guaranteed Loan Notes issued in connection with the acquisition of Orbis. 

4. Share capital and reserves 

Movements on consolidated capital and reserves and reconciliation of movements in shareholders' funds for the 9 months ended 31 March 2002 are as follows: 

                           Equity       Share  Non-equity   Shares to
                           ------      ------  ----------   ---------
                            share     premium       share   be issued
                            -----     -------      ------   ---------
                          capital                 capital
                          -------                 -------
                      (pound)'000 (pound)'000 (pound)'000 (pound)'000

As at 30 June 2001            334     145,534      42,000      22,336
Profit for the period           -           -           -           -
Issue of shares for cash        1         715           -           -
Acquisition of Orbis            1       8,001           -      (8,002)
Other movements                 -           -           -           -
Foreign exchange movement
                                -           -           -           -

                        ---------------------------------------------
As at 31 March 2002           336     154,250      42,000      14,334
                        ---------------------------------------------


                              Capital     Profit and  Total share-
                             --------     ----------  -----------
                         contribution   loss account   holders'
                         ------------   ------------   -------
                                                         funds
                                                         -----
                          (pound)'000  (pound)'000 (pound)'000


As at 30 June 2001            133,265    (217,603)     125,866
Profit for the period               -      24,871       24,871
Issue of shares for cash            -        (201)         515
Acquisition of Orbis                -           -            -
Other movements                     -          65           65
Foreign exchange movement
                                    -        (135)        (135)


                        ---------------------------------------
As at 31 March 2002           133,265    (193,003)      151,182

                        ---------------------------------------

The consideration payable in connection with the acquisition of Orbis on 1 December 2000 is dependent upon the final determination of the revenues and profitability of Orbis for the two years ended 31 March 2002 and certain other factors and is payable in several instalments. "Shares to be issued" represents an estimate of the amounts to be settled in shares, based on the fair value of those shares as at the date of acquisition and the movement in the period represents shares actually issued. 

Shares issued for cash resulted from the exercise of share options by certain employees. 

As at 31 March 2002 there were 53,483,901 shares in issue. 

5. Litigation 

On 11 March 2002, Groupe Canal+S.A., Canal+ Technologies S.A. and Canal+ Technologies Inc. (collectively "Canal+"), subsidiaries of Vivendi Universal Group filed a lawsuit against NDS Group plc and NDS Americas Inc. (a subsidiary company) in the United States District Court, Northern District of California, alleging acts of improper conduct, including unfair competition and copyright infringement, in connection with the conditional access systems operated by Canal+. NDS has responded in a statement that it believes the claims to be baseless. The company intends to defend the suit vigorously and to pursue the filing of counterclaims against Canal+.