Trading Update

Synstar PLC
30 March 2004

30 March 2004

                                  Synstar Plc
                           ('Synstar' or 'the Group')

                                 Trading Update

Synstar, the pan-European IT services provider, will shortly enter its close
period for the six month period ending 31 March 2004 and is therefore providing
the following Trading Update.

Current trading continues in line with market expectations. The Board has been
encouraged by the recent contract wins and extensions, which confirm the
strategy of cross selling services to the existing customer base. The margin
deterioration in lower added-value elements of the maintenance business has been
in line with earlier expectations.

In December 2003, when issuing the Preliminary Results for the year ended 30
September 2003, we outlined our plans for Phase 4 and Phase 5 of the strategy to
develop Synstar as a trusted infrastructure Managed Services provider. During
the first six months of this financial year these plans have been executed in
line with our expectations. The restructuring to re-align resources to develop
Managed Services business is progressing well. This indicates that the in-year
targets for both the costs and benefits of this exercise, which form the core of
Phase 4, will be delivered.

As planned, a number of cost reduction and business development actions remain
to be completed to meet the full year profit expectations. However the progress
achieved during the first half indicates that these actions will complete to
plan. The Board therefore confirms that full year expectations also remain in
line with consensus forecasts.

Steve Vaughan, Chief Executive, commented: 'In December 2003, we outlined the
next stage of our plan to develop Managed Services as the core profit stream of
the business. This plan has required a considerable investment in time, effort
and resources. I am pleased with the initial results of this investment. We are
taking these actions to seize the opportunity for further business in Managed
Services, and our future pipeline has developed in line with expectations. I
believe that we are now well-positioned to deliver by year end our objective of
repositioning Synstar away from those parts of our business affected most
seriously by margin pressure, with a strong basis for a profitable future.'


For further information please contact:

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