Disposal

Iomart Group PLC
9 January 2002

IOMART COMPLETES TRANSFORMATION

iomart plc today announced the sale of its broadband business to Centrica Plc.
This broadband business acts as a reseller of BT Wholesale's ADSL product
range and the directors estimate that it had revenues of £1.9M in the year
ended 31 December 2001 and losses of £1.6M.

The transaction for a consideration of £2.0M in cash includes 2,750 customers,
fixed assets valued at £275,000, the full assignation of the Stornoway Support
Centre and 40 staff.   The deal includes future service contracts to iomart
with value of  £489K in the year 2002.

iomart will use the proceeds of the sale to accelerate development of its
NetIntelligence product set and additional sales and marketing spend as part
of its outsourced messaging portfolio.

iomart's free cash balances following the disposal will be £7.8M.

iomart C.E.O Angus MacSween said;

' this completes the withdrawal of iomart from telco and infrastructure
related products and facilitates focus on the new strategy concentrating on
the NetIntelligence suite of products '.

Enquiries:  Angus MacSween 0141 931 7022

Notes

1.      iomart Group plc is an Internet and messaging company, supplying
Internet security applications and secure e-mail messaging services. Founded
in 1998, and listed on the UK AIM stock market, iomart is a European based
company with operational headquarters in both the UK and Germany.

2.      In Britain, energy and essential services group Centrica plc trades
under the AA, British Gas/Scottish Gas, Goldfish and One.Tel, brands.

3.      Centrica Telecommunications is the leading indirect access telephone
supplier in the UK with over 1 million active customers of its two brands.
Its British Gas Communications business was launched in September 2000 and it
acquired its One.Tel business in the UK earlier this year. The business aims
to bring innovative telecoms products and services at competitive prices.
Centrica Telecommunications is widely seen as the most able challenger to BT
in the fixed line market.