First Day of Dealings on AIM

Blue Star Capital plc 29 October 2004 For immediate release 29 October 2004 BLUE STAR CAPITAL PLC ('Blue Star' or 'the Company') First Day of Dealings on the Alternative Investment Market Blue Star Capital plc (AIM: BLU), a newly established company created with the aim of providing initial seed capital for the development of early stage companies, is pleased to announce its flotation on the Alternative Investment Market of the London Stock Exchange ('AIM') today. • Blue Star will offer institutions and other investors the ability to invest at founder stage in future opportunities that should offer strong growth prospects and significant opportunities for capital appreciation. • £5.55 million gross was raised for Blue Star via a Placing at the price of 10 pence per share. • Durlacher Limited is the Company's nominated adviser and broker. • Blue Star has an experienced Board led by executive chairman Nigel Robertson, the founder and former chief executive of scoot.com, who has broad experience of forming, funding and floating companies and of sourcing potential investments. • Blue Star's chief executive is Haresh Kanabar, a certified accountant who also has significant experience of identifying, evaluating and financing business opportunities and of managing public companies. • Blue Star's Board includes John Vergopoulos, the finance director of Spiritel plc, as a non-executive director. Mr Vergopoulos has broad experience of the SME market particularly in the formation, financing and management of companies. • The directors aim to achieve capital appreciation from a portfolio of quoted and unquoted investments in businesses that offer strong growth prospects across a range of sectors and industries, with a defined timeframe to exit. • The Company will have two principal avenues of investment: - the funding of shell companies at the founder stage, on IPO and subsequently if required; and - the funding of unquoted operating businesses with a defined timeframe to IPO / alternative exit. PLACING STATISTICS Number of existing Ordinary Shares prior to the Placing 50,000,000 Placing Price 10p Number of Placing Shares 55,500,000 Number of Ordinary Shares in issue following the Placing and Admission 105,500,000 Percentage of enlarged issued share capital subject to the Placing 52.61 per cent Market capitalisation at the Placing Price £10,550,000 Gross proceeds of the Placing £5,550,000 Estimated net proceeds of the Placing receivable by the Company £5,100,000 ENDS For further information: Blue Star Capital plc Tel: 020 7070 7283 Nigel Robertson, Chairman Haresh Kanabar, Chief Executive Durlacher Limited Tel: 020 7459 3600 Jonathan Retter Katherine Roe Buchanan Communications Tel: 020 7466 5000 Mark Court Elly Williamson This information is provided by RNS The company news service from the London Stock Exchange