Contract Wins & Extensions

Synstar PLC
05 February 2004

5 February 2004

                                  Synstar plc



                          Contract wins and extensions



Synstar, the pan-European IT services provider, is pleased to announce a number
of sales successes in recent weeks.



In the UK Public Sector, Synstar has been awarded the Single Source Maintenance
contract by the Defence Communication Services Agency of the Ministry of
Defence. Under the new contract, which brings together many of the MOD's
hardware support requirements, Synstar will now provide IT and network Hardware
Maintenance to MOD establishments in a global environment, particularly in the
UK, Germany, Gibraltar, Cyprus and Her Majesty's Fleet. In addition, a complete
desktop Managed Service will be provided in Cyprus. The responsibilities cover a
range of Synstar's services, and will involve supporting over 200,000 assets,
many in secure environments. The three-year contract is valued at about £10
million. This win, against major competition, builds upon a long and successful
record of providing high quality services to the MOD and the UK's armed forces
in many locations throughout the world.



Synstar has also renewed the contract to the end of 2007 to provide pan-European
Managed Services support to Galileo, one of the world's largest travel service
providers, and one of Synstar's top five customers since 1999. The new contract
has an initial value of €18 million, and covers the UK, Western Europe and
Scandinavia. The service will be delivered by a combination of direct Synstar
staff, and subcontractors from the Synstar's European Business Network.



In Holland, cross-selling is continuing to prove to be a source of valuable
additional business. Most recently, the Dutch Airline KLM, a long-term
maintenance customer, has added Synstar networking services to its contract.
Cabling and other networking services with a value in excess of €200k will be
delivered in the coming months.



Our new name business activities have produced a significant contract with
Kingston Communications. In a three-year deal worth just under £1.5m, Synstar
will provide maintenance services to the Hull-based telecommunications company.



Steve Vaughan, Synstar Chief Executive, commented:

'We are seeing an increasing trend in our capability to win major deals against
strong competition. These recent successes are undoubtedly due to our long-held
strategy of focusing on cross-selling managed services to our existing clients.
We have has also been helped by the recent steps made to redeploy our sales
channel to win and deliver business of this type.'




Steve Vaughan / Stephen Gleadle
Synstar Plc                                                 Tel: [phone]


Edward Bridges / James Melville-Ross / Juliet Clarke
Financial Dynamics                                          Tel: [phone]







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