Reconstruction of the Group

Netcentric Systems PLC 7 November 2001 NETCENTRIC SYSTEMS PLC 7 November 2001 Reconstruction of the Group. The new Board of Netcentric Systems Plc ('the Company') announces the first stage of the reconstruction of the Group. The Company's wholly owned subsidiary, Netcentric Systems (Europe) Limited ('the Subsidiary'), has today posted a Company Voluntary Arrangement (the 'CVA') proposal to its creditors. The basis of the CVA, in so far as it concerns creditors, is that preferred creditors amounting to some £39,100 will be offered payment in full and unsecured creditors will be offered a cash payment of 10p in the pound in addition to an equity for debt swap whereby 9 ordinary shares in London and Boston Investments Plc ('L&Bi') will be issued for every £1 of residual liabilities in exchange for an assignment of the debt to L&Bi. The shares of L&Bi closed trading at 7 pence per share based on the mid market price as quoted by OFEX as at 5 November 2001. LBI is interested in 23,000,000, or 9.03%, of the ordinary shares of the Company. There is currently an intercompany loan of £5.2million between the Company and the Subsidiary. The Company consents to receive no payment under the voluntary arrangement in respect of their £5.2million debt. In doing so they do not abandon their claim to repayment, but reserve their rights until after the voluntary arrangement is concluded. If the terms of the CVA are agreed in an unmodified form, a sum not exceeding £60,000 will be made available by the Company to the Subsidiary as a contribution towards the 10p cash element of the proposed payment to creditors. A meeting of creditors has been convened for 26 November 2001. In the opinion of the Director of the Subsidiary, having taken independent professional advice, the Subsidiary currently does not have sufficient working capital for its present requirements, that is for at least the next 12 months from the date of this announcement. In the event that the CVA is not accepted the Subsidiary will immediately move to be placed into creditors voluntary liquidation. This CVA is in line with the declared intention of the Company's new board to stabilise the finances of the Group and to provide some value to shareholders. In addition, it is intended that a proposal for the reconstruction of the share capital of the Company will be put to its shareholders shortly. END.