Investment in IOS

Blue Star Capital plc
06 December 2004


For immediate release                                            6 December 2004


                             BLUE STAR CAPITAL PLC
                                 ('Blue Star')

                  Investment in India Outsourcing Services plc

Blue Star Capital plc (AIM: BLU), the company created to provide seed capital
for early stage companies, is pleased to announce it has taken a 56.7 per cent
stake in India Outsourcing Services plc, a company that today begins trading on
the Alternative Investment Market (AIM).

Blue Star led the formation of India Outsourcing Services (AIM: IOS), a company
formed to capitalise on acquisition and investment opportunities in the Indian
business process outsourcing (BPO) market.

Blue Star invested £285,000 in India Outsourcing Services, in return for 56.7
per cent  of the company's shares.

India Outsourcing Services is the first company to be formed by Blue Star
following Blue Star's flotation on AIM in October 2004.

Nigel Robertson, Blue Star's Chairman, said: 'The formation, funding and
flotation of India Outsourcing Services marks a significant achievement for Blue
Star, just two months after Blue Star's flotation. The transaction highlights
the pace and quality of dealflow we intend to deliver at Blue Star with the
objective of creating value for our shareholders.'

ENDS


For further information:

Blue Star Capital plc                                     Tel: [phone]
Nigel Robertson, Chairman
Haresh Kanabar, Chief Executive

Durlacher Limited                                         Tel: [phone]
Jonathan Retter
Katherine Roe

Buchanan Communications                                   Tel: [phone]
Mark Court
Elly Williamson

                      This information is provided by RNS
            The company news service from the London Stock Exchange