Standing outside the Royal Courts of Justice in London with her brother, Michelle Diskin, from Ballincollig, Co Cork, told reporters: “There never was any viable evidence against Barry.”
The appeals court upheld an earlier ruling by the British high court that Mr George was “not innocent enough to be compensated”.
“This whole case from Apr 2000 until today has been a smoke and mirrors exercise designed to placate a worried public, and give the impression that justice had been done.
“Well neither the Dando family, nor our family, has seen any justice in the past 13 years.”
Ms Diskin said: “We are extremely disappointed with the decision and will need to go away and regroup to decide what to do next. We cannot let this go unchallenged.
“Serving eight years in prison for someone else’s crime is not acceptable.
“Everything was taken from this man when the police started what we believe to be a malicious prosecution.
“He lost his home, his furniture, his clothing and all of his possessions, his place within his community and his church family.
“How did this unjust legal system expect him to start his life over? He can never get back everything that was taken from him.
“He has had to rely on his pensioner mother, now deceased, on me, and on the Miscarriages of Justice Support Services, who help those poor, wrongly convicted souls to move back into society.
“This government-appointed body recognised that Barry is a miscarriage of justice. They do not work with offenders.”
Ms Diskin said the family would prepare to “stand against this latest travesty of justice”.
“Barry is innocent. He deserves a financial settlement to compensate for all that was taken from him — everything he owned and eight years of his life.”