Re India Outsourcing Services

Blue Star Capital plc
15 November 2004


For immediate release                                           15 November 2004





                            BLUE STAR CAPITAL PLC

                                 ('Blue Star')



             Proposed 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 led the formation, and
is planning to invest in, India Outsourcing Services plc, a company that today
revealed plans to float on the Alternative Investment Market (AIM).

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

The full text of India Outsourcing Services's press announcement follows:




                          INDIA OUTSOURCING SERVICES PLC
                     ('India Outsourcing' or 'the Company')


            Intention to Float on the Alternative Investment Market
                          of the London Stock Exchange


India Outsourcing Services plc, a company formed to capitalise on acquisition
and investment opportunities in the Indian business process outsourcing (BPO)
market, is pleased to announce its intention to seek Admission for its shares to
trade on the Alternative Investment Market (AIM) by way of a Placing.

Blue Star Capital (AIM: BLU), the recently floated investment company, has been
instrumental in the formation of India Outsourcing and proposes to make a
significant investment in the Placing.


Highlights


  • India Outsourcing has a strong management team. The Company's Chief
    Executive is Amit Pau, who has more than 10 years' experience as a senior
    executive in the global telecoms industry. He was formerly managing director
    of Vodafone Multi-Media and a Non-Executive Director of Vodafone Spain and
    of Radamec Group plc. The Company's Board includes Haresh Kanabar, Blue Star
    Capital's Chief Executive, as Chairman and Nigel Robertson, Blue Star
    Capital's Chairman, as Non-Executive Director.


  • The Company has been established to capitalise on acquisition and
    investment opportunities in India's BPO market, which has grown rapidly with
    the rise of 'offshoring'. The BPO market includes a wide range of services
    including call centres, help desks, back office operations, IT services and
    customer service operations.

  • The Indian BPO market is forecast to grow from $2.3 billion in 2002 to
    $8.5 billion in 2008 (source: NASSCOM). The global BPO market is forecast to
    grow to a market size of between $200 billion and $250 billion in 2008
    (source: IDC).


  • On Admission, the Company will have no trading businesses although a
    number of potential targets have been identified.


  • India Outsourcing is raising gross proceeds of £500,000 by way of a
    Placing.


  • The funds raised by the Placing will be used for carrying out due
    diligence on potential acquisitions and for the Company's initial working
    capital requirements.


  • It is expected that trading in India Outsourcing shares will commence on
    AIM in early December.


  • Durlacher is the Company's nominated adviser and broker.



On the plans for the flotation, Haresh Kanabar, India Outsourcing's Chairman,
said: 'We are delighted to be able to launch a vehicle on the Alternative
Investment Market in London that will give investors an opportunity to gain
exposure to such an attractive growth market in India. We believe we have the
experience and infrastructure to identify and acquire opportunities in the
Indian BPO market, thereby 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