Trading Statement

Synstar PLC 27 September 2001 Synstar Trading Update The Board of Synstar plc, the pan-European business availability services provider, announces that it expects pre-tax profit and cash flow for the full year to 30 September 2001 to be towards the top end of published analyst expectations. Whilst market conditions have remained competitive, our revised business strategy has allowed the business to better identify and realise cross selling opportunities within our core customer base. The Board believes there remain further cross-selling opportunities to realise. In the second half of the year, we completed the restructuring programme on time and within budget. The financial outcome is as predicted in our interim results in June. In continental Europe, we are making progress towards our target to restore our French operation to breakeven running rate by the end of our next financial year. As we previously anticipated, our Switzerland operation remains more challenging, but we are on plan to similarly recover this business, which we anticipate will take two years to achieve. Our Networking division and our operation in Holland in particular are showing strong improvement. The tragic events in New York and Washington have undeniably put increased focus on the importance of business continuity, and we are working hard to support our customers where they have requirements. However, we expect business continuity to remain a very competitive business across most of Europe and there will inevitably be further pressure on pricing. We can report that some important regions, such as the UK, are still performing relatively positively and that our plans to increase the return on assets in this part of the business remain on track. Investors can track the progress we are making with each element of our corporate strategy on a new section on our Investor web site. This can be viewed at www.synstar.com/investor/newsupdates. In line with previous announcements, Richard Ferre will step down from his position as director from 30 September 2001. With immediate effect, Old Mutual Securities has been appointed as Synstar's corporate broker. Synstar will announce its preliminary results for the year ending 30 September 2001 on Thursday 29 November 2001. For further information: Synstar plc Christine Jones, Communications Manager (01344) 662 744 GCI Financial Roger Leboff / Nick Lambert (07811) 358 764
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