The Interim Results for Conister Trust , based on Finch Road in Douglas,
for the six months ended 30 June 2006 has produced a loss on ordinary activities before tax of ?383,000 .
This compares with a profit of just over ?300,000 in the same period a year ago.

Chairman Jim Mellon, who has invested substantially in the firm, says, while disappointing, the results are in line with the Board's expectations in the difficult trading environment.
And he warns that the next six months are not expected to produce " any material improvement".

Net operating income in the six months declined slightly to ?1.9 million
compared to ?2 million in the same period last year due to the subdued
traditional HP ( hire purchase) market and restrained litigation funding lending,

The chairman's statement continues "Its noted that the Bank's core business is focused on traditional HP markets in the Isle of Man and UK which suffer from strong competition, declining volumes and low profitability. Nevertheless, there has been a noticeable improvement in the volumes in the Manx business during July reflecting a focus on improving performance and loss of a Manx competitor. We have also seen promising growth in
our unsecured lending to military personnel. Looking forward, trading conditions are expected to remain competitive in our traditional markets. We remain cautious in our credit policy to maintain the high quality of our lending.

We have continued to restrain new lending for litigation funding as we
reposition ourselves in this market. Bad debt expenses have increased primarily reflecting slower than anticipated repayments of litigation funding advances.

A notable achievement in 2006 has been the inception of a new revenue stream financing vehicle insurance premiums. The Bank has funded
?2 million to date and we contemplate a significant increase in this area.

Operating expenses have increased to ?2 million in the first six months compared to ?1.5 million for the same period last year as we invest in transforming the business including the appointment of a new Chief Executive Officer and strengthening our management team.

The Board has resolved that an interim dividend will not be paid for the half
year to 30 June 2006 (2005: 0.3p per share).

"The capitalisation of the Bank has been significantly strengthened with the
subscription for 12,000,000 Ordinary Shares by Burnbrae Limited, a company
beneficially owned by Mr Mellon, for a consideration of ?5.4 million at the end of May.
It is Burnbrae's stated intention to support Conister's growth in new areas".