Trading Update, etc

SYNSTAR PLC
30 September 1999


                     Synstar Plc
Trading Update for the year ending 30 September 1999

Richard  Ferre, Chief Executive of Synstar Plc, gave
an update on current trading at a presentation to analysts  
today where he said that the Group is on track to deliver 
results in line with expectations. The following summarises 
his key points:

Lancare Acquisition

The acquisition of Lancare, completed on 10 September
1999, is expected to be earnings enhancing, before
goodwill amortisation, for the year ending 30 September 2000, 
but will have negligible impact on the trading performance of  
the Company for the current year.  The initial purchase price  
was made from cash reserves, therefore, the year-end cash
position of Synstar has been reduced.

Computer Services

The overall level of contract growth for this division is 
on plan, with new contract wins in the first half starting on 
time. Growth in the second half has derived predominantly from 
the expansion of agreements with existing customers. There is 
evidence that customers will not wish to change service providers  
on 31 December, 1999, traditionally the month with the highest 
level of contract renewals.

Business Continuity

Synstar has significantly increased its strategic capital 
investment in this area during the second half, with the opening 
of major new business recovery centres in Wellingborough and Dublin.  
The sales pipeline is increasing and we anticipate growth rates
in the second half to be ahead of the first half. This is a result 
of the higher levels of investment, together with successful 
cross-selling to Computer Services clients and increased awareness  
of IT dependency because of Y2K.

Organisational structure

With effect from 1 October 1999 Steven Bolton, currently Managing 
Director of UK and Ireland, will be appointed Chief Operating 
Officer of Synstar Plc. Bolton, 39, has been with the company for  
15 years and was promoted to the Board in 1996. This newly
created position consolidates the management of UK and Ireland with 
mainland Europe.  It is part of Synstar's ongoing strategy to manage 
the growth of its business by regularly reviewing its organisational 
structure and central support functions.

In this new structure, the role of Managing Director for mainland 
Europe no longer exists.  As a result, Joe Connolly, who currently 
fills this role, will be leaving Synstar on an amicable basis when  
current projects he is working on conclude.

Press speculation

Commenting on recent press speculation regarding a possible offer  
for the company, Richard Ferre confirmed that Synstar had not 
received any such approach, nor has it entered into talks on 
the subject, formal or informal.

Synstar will announce preliminary results for the year ending 
30 September 1999 on 8 December 1999.

For more information, please contact:


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