Trading Update, etc

SYNSTAR PLC 30 September 1999 Synstar Plc Trading Update for the year ending 30 September 1999 Richard Ferre, Chief Executive of Synstar Plc, gave an update on current trading at a presentation to analysts today where he said that the Group is on track to deliver results in line with expectations. The following summarises his key points: Lancare Acquisition The acquisition of Lancare, completed on 10 September 1999, is expected to be earnings enhancing, before goodwill amortisation, for the year ending 30 September 2000, but will have negligible impact on the trading performance of the Company for the current year. The initial purchase price was made from cash reserves, therefore, the year-end cash position of Synstar has been reduced. Computer Services The overall level of contract growth for this division is on plan, with new contract wins in the first half starting on time. Growth in the second half has derived predominantly from the expansion of agreements with existing customers. There is evidence that customers will not wish to change service providers on 31 December, 1999, traditionally the month with the highest level of contract renewals. Business Continuity Synstar has significantly increased its strategic capital investment in this area during the second half, with the opening of major new business recovery centres in Wellingborough and Dublin. The sales pipeline is increasing and we anticipate growth rates in the second half to be ahead of the first half. This is a result of the higher levels of investment, together with successful cross-selling to Computer Services clients and increased awareness of IT dependency because of Y2K. Organisational structure With effect from 1 October 1999 Steven Bolton, currently Managing Director of UK and Ireland, will be appointed Chief Operating Officer of Synstar Plc. Bolton, 39, has been with the company for 15 years and was promoted to the Board in 1996. This newly created position consolidates the management of UK and Ireland with mainland Europe. It is part of Synstar's ongoing strategy to manage the growth of its business by regularly reviewing its organisational structure and central support functions. In this new structure, the role of Managing Director for mainland Europe no longer exists. As a result, Joe Connolly, who currently fills this role, will be leaving Synstar on an amicable basis when current projects he is working on conclude. Press speculation Commenting on recent press speculation regarding a possible offer for the company, Richard Ferre confirmed that Synstar had not received any such approach, nor has it entered into talks on the subject, formal or informal. Synstar will announce preliminary results for the year ending 30 September 1999 on 8 December 1999. For more information, please contact: Richard Ferre, Joanne King Synstar Plc 01344 662 830 Susy Streeter GCI Focus 0171 600 1392