Disposal

Synstar PLC
26 February 2002

Synstar PLC

26 February 2001


                                  Synstar Plc


                          Disposal of Swiss subsidiary


Synstar Plc today announces the disposal of the group's Swiss operations to
Itris Maintenance AG.


Under the terms of the agreement, Itris, Switzerland's leading independent IT
maintenance provider, will acquire on the 1 March 2002 the contracts held by
Synstar Computer Services AG (SCS), the stocks of maintenance equipment held by
the company, and re-employ 41 of its staff.  Remaining staff will be made
redundant over the coming months.


The consideration for the contract is a cash payment of CHF1.25m, of which
CHF0.2m will be deferred subject to client retention to August 2002.


Synstar Plc will retain responsibility for all other assets, including the
leases on its headquarters in Geroldswil and other smaller premises, and will
wind down the business, with a view to minimising any future costs.


After legal, redundancy and closure costs, this will result in a loss on
disposal in the region of £1.5m. In the year to 30 September 2001, SCS
contributed revenue of £6.0m and made a (£0.7m) loss before tax and interest.
The transaction is expected to be cash neutral for the current year.


The sale includes a mutual support and market development agreement, which is
non-exclusive.  Synstar will retain Itris as a subcontractor to support its
contract to deliver pan-European IT support for Galileo, one of the leading
providers of global distribution services for the travel industry. The deal
provides Itris with access to a number of new customers, and provides a useful
tie in to Synstar's pan-European capability.


Commenting on the transaction, Synstar Plc Chief Executive Steve Vaughan said: 
'This is a good deal for both companies.  Our existing customer relationships 
are a good fit for Itris, while Synstar retains access to the high quality 
backup we need to provide our clients with a genuine pan-European IT support 
service.'


For further information:

Synstar plc
Christine Jones                        01344 662744

GCI Financial
Roger Leboff / Geoff Callow            020 7072 4200


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