Acquisition

SYNSTAR PLC
10 September 1999

             SYNSTAR ACQUIRES LANCARE FOR £12.5M
                              
Synstar  Plc,  the  pan-European IT  services  group,  today
announces  the acquisition of Lancare, through its  purchase
of  Lancare's  holding  company  Knowledge  Technology  Ltd.
Lancare  is  a leading UK specialist multi-service  network,
integration  and  support company, with exciting  e-commerce
capabilities. The acquisition is in line with Synstar's long-
term  strategy to grow and develop both organically  and  by
acquisition.

Summary

- Synstar is acquiring 100% of Lancare for an initial
  cash consideration of £10m, with a further earn-out
  conditional cash payment up to maximum of £2.5m.

- Lancare is one of the largest independent networking
  companies in the UK with a client base including British
  Gas, Barnet Healthcare NHS Trust, BAA, Oxford University,
  Capital Radio and the MoD.

- It has headquarters in Bristol and national coverage
  via branch offices in London, Gatwick, Birmingham and
  Glasgow.

- In the year to 31 May 1999, Lancare made profits before
  tax of £494,000 on turnover of £16.4m. Net assets at that
  date was £1.2m.

- The acquisition is consistent with Synstar's strategy
  for growth set out at the time of its flotation in March
  this year.  Synstar believes that it will complement and
  enhance Synstar's existing network services offer, providing
  the opportunity for the cross selling of Lancare's advanced
  product to Synstar's blue chip clients initially in the UK
  and later across Europe.

- The Lancare acquisition is expected to be immediately
  earnings enhancing before goodwill amortisation.

- Synstar has continued to perform strongly since the
  announcement of its interim results on 8 June 1999 and the
  Board continues to be confident about the outlook for the
  full year.

Richard Ferre, Group Managing Director of Synstar,
commented:

'This  transaction  is exactly in line  with  our  long-term
growth strategy.  Since our flotation in March of this year,
we  have  consistently  stated our  intention  to  grow  and
develop Synstar both organically and by acquisition.   As  a
total IT services company we deliver a full range of support
services that provide comfort to our customers and their end-
users.    In   the  ever-complicated  world  of  information
technology,  the supply and management of network  solutions
is  vital to desktop availability.  By acquiring Lancare, we
are  even more able to satisfy the growing networking  needs
of our customers.


Like  Synstar,  Lancare is also an independent  IT  services
company.  This means that we have an ideal 'fit' in terms of
culture and service ideology.  Lancare is a company that has
some  extremely talented people who have developed powerful,
state-of-the-art sales and service tools, which we intend to
rollout across the market wherever possible.'


Nigel Beresford, Managing Director of Lancare, commented:

'Lancare  is  a  successful  company  founded  on  a   sound
technology  platform. The acquisition by Synstar enables  us
to  leverage  off  their  strong  market  position,  service
offering and pan European coverage. This is a perfect match,
which  will  allow us to achieve aggressive  growth  and  an
enhanced service portfolio.'

For further information please contact:

Richard Ferre            Synstar Plc    01344 662 830
Joanne King              Synstar Plc    01344 662 830
Susy Streeter            GCI Focus      0171 600 1392
Alastair Hetherington    GCI Focus      0171 600 1392




INTRODUCTION

Synstar Plc, the European IT services group, today announces
the  acquisition  of  all  of the issued  share  capital  of
Lancare,  through its purchase of Lancare's holding  company
Knowledge  Technology Ltd.  Lancare is one  of  the
largest independent networking companies in the UK and  this
acquisition  will  substantially enhance Synstar's  existing
network services division.

An initial consideration of £10m in cash will be paid to the
shareholders of Lancare.  A further payment up to maximum of
£2.5m  cash  will be made on completion of the terms  of  an
earn-out.

LANCARE

Lancare,  which  is based in Bristol, is  a  private  multi-
service  networking company, specialising in  the  provision
and  support of total networking solutions, voice and  data,
in Lan/Wan environments.  Through highly skilled consultants
and support specialists, the company is able to provide full
design,   consultancy  and  integration  services  including
installation;   ongoing   remote  network   monitoring   and
management;  and on-site problem resolution.   Either
through project driven 'drag' or direct business to business
selling, the company also sells communication products  from
manufacturers  such as Cisco, 3Com, and  Lucent Technologies.

Direct   product  selling  is  mostly  achieved  though   an
innovative  e-commerce vehicle called Knowledge Club.   This
process allows potential customers to access the Lancare web
site  and  'menu  select' required  products.   The  company
receives up to 30,000 web site hits per week.

Lancare's   client   base  includes  British   Gas,   Barnet
Healthcare NHS Trust, BAA, Oxford University, Capital  Radio
and  Ministry of Defence, with  its largest  client 
contributing £1.8m of turnover for the  year ended 31 May 1999.

The company has national coverage of the UK.  In addition to
the  headquarters in Bristol, Lancare has offices in London,
Gatwick, Birmingham and Glasgow. It employs  116  people,  of  
which 83%  are  either  sales  or technically  orientated  and
has  a  low  attrition   rate. Lancare  has  five  directors on
its  Board  and  15  people working in finance and administration.

Nigel    Beresford,   Managing   Director   and    principal
shareholder, founded Lancare in 1987. He has been in the  IT
sector  for  some 20 years. Prior to setting up  Lancare  he
held  senior  management positions with ICL in South  Africa
and  Carnell  in  the  UK.  His determination  to  establish
Lancare as a provider of true value added service, technical
integrity and innovative solutions has resulted in a company
that  has emulated that vision by developing a leading  edge
service  range.  He  has  been  an  exponent  of  electronic
commerce for the improvement of business processes for  many
years.  Lancare's resulting e-commerce and  management  tool
won Service Management Europe 99 Best IT Service Award and a
leading US consultancy firm recently termed Lancare's remote
management  service  as 'world beating.'   Upon  completion,
Nigel  Beresford will continue to head the acquired  Lancare
business,  reporting directly  to  Steve Bolton, Synstar's 
Managing Director,  UK and  Ireland.  His position will be 
reviewed before the  end of  the  one  year  period,  with  
a  view  to  a  permanent appointment.

For  the financial year ended 31 May 1999, Lancare reported
profits before taxation were £494,000 on turnover of £16.4m.
The net assets of Lancare as at 31 May 1999, were £1.2m. 


REASONS FOR THE ACQUISTION

Synstar's stated aim is to grow organically and through  the
strategic   acquisition  of  complementary   companies,   to
increase  market  share and become one of the  top  five  IT
service providers in Europe.

Synstar uses its specialist knowledge in the utilisation and
support  of  local area networks to assist its customers  to
plan  and execute the installation of new computer networks,
including cabling design and deployment, and router and  hub
configuration.   The  acquisition  brings   new   areas   of
expertise  in both e-commerce capabilities and the provision
of complex network disaster recovery.

In  addition,  the Group uses network analysis  software  to
seek  out  potential  bottle-necks  and  problem  areas   in
connection with the installation of its customers' networks.
These services are offered as stand-alone services, or in  a
portfolio  of further software and user support and  product
sourcing services for desktop systems.

The  demand  for network support of IT systems  is  growing,
particularly   in   Continental   Europe,   as    businesses
increasingly migrate from centralised mainframe or mid-range
computer    systems   to   a   decentralised   client-server
environment.

Lancare has a strong brand name, an excellent sales team and
provides  an  integrated networking  product  including  its
remote management and diagnostic software tools.
The potential to 'cross sell' the Lancare product, initially
to  UK  clients  and  later  to clients  across  Europe,  is
excellent.   Synstar  has  a  presence  in 12   European
countries, employing almost 2,700 staff and counts 55 of the
FTSE 100 index companies as its clients.

Synstar  will  concentrate on developing the  higher  margin
network  integration, remote management and services element
of  the  business, while retaining network  related  product
sales.

The market for networking in the UK in 1999 is estimated  to
be  worth in the region of £1.2bn* and is currently  growing
at  an  estimated  rate of 20%* per  annum.   There  is  the
potential for Synstar to rollout the systems and products of
Lancare through its subsidiaries in Continental Europe.

INTEGRATION OF LANCARE

Lancare's   services   will   become   part   of   Synstar's
product portfolio and be  introduced  to new  and  existing 
exiting Synstar clients under  the Lancare  brand.   Lancare   
will greatly enhance Synstar's networking services offerings
and significantly augment its technical expertise in this area.


Synstar  will  use  the Lancare brand to drive  all  of  its
current  and  future local and wide area networking  service
products  for  maximum  effect. This  will  be  particularly
significant  in  the  field of voice  and  data  convergence
technologies,  where Synstar's goal is to  be  a  recognised
leader in the field.

IMPACT OF THE ACQUISITION

The  acquisition  is  expected to be  immediately  earnings
enhancing, before  goodwill   amortisation   from
September  1999,  with  a  full  year  effect  reflected  in
Synstar's results for the year ending 30 September 2000.


SYNSTAR PLC

Financial information
Synstar  was  admitted to the Official List  of  the  London
Stock  Exchange  on  5  March 1999. At  its  maiden  interim
results  on  8 June 1999, Synstar announced an  increase  in
turnover  of  32%  to  £104m and an  increase  in  operating
profits  of 43% to £5.2m in respect of the six months  ended
31 March 1999.  Synstar had net cash of £19.2m and a forward
order book of approximately £240m.

The Company
Synstar is a leading independent provider of IT services  to
a  broad  range of customers in the UK and most  Continental
European  countries.   It addresses customers'  IT  services
needs  by  offering a wide range of integrated services  and
solutions  in  two  principal areas: Computer  Services  and
Business Continuity Services.

Synstar's  Computer  Services business offers  hardware  and
software   support   services  for   a   wide   variety   of
manufacturers'   computer   products,   desktop   management
services,  data  management  services  and  computer  repair
services.  The Business Continuity Services business  offers
comprehensive  business continuity planning and  consultancy
and  disaster  recovery  services.  The  Group  markets  its
services   to   senior  executives  and   IT   managers   in
organisations that employ substantial IT infrastructures and
are  likely to rely on external service providers to support
these in the most efficient way.

Synstar's  customer base includes a large number of  private
and   public-sector  organisations  in  the  UK   and   many
Continental European countries.  The Group targets customers
that have the scale to be large, sophisticated buyers of  IT
services,  including customers which the  Directors  believe
are  likely  to  be key drivers of future  growth,  such  as
British   Airways,  CSC,  DailmerChrysler,  Generale   Bank,
L'Oreal, the NHS, SmithKline Beecham and Telecom Italia.
                              
* Source: Ovum research, June 1999, commissioned by Synstar