RNS Number:2465T
NetStore PLC
15 December 2003


Immediate Release                                        15 December 2003

                           Netstore plc ("Netstore")

 Acquisition of the UK Managed Service Business of EMS Global Holdings Limited
                                    ("EMS")

Netstore, a leading provider of managed IT solutions, announces today that it
has, through its wholly owned subsidiary, Netstore (UK) Limited, completed the
acquisition of the sales contracts and all the infrastructure assets of the UK
managed service business of EMS, an internet security company. EMS is a
privately owned New Zealand based software company that launched a managed
internet security business in the UK in October 2001 utilising its own Cortex
software to deliver secure browsing, mail and remote connection services to
large corporate customers; principally in partnership with BT and NTL.

For the financial year ending 31 March 2003 the managed service business
reported turnover of #0.5m and net losses of #1.0m. The business being acquired
has approximately #2.5m of turnover under contract with an annual value of
approximately #1.0m; 80% of the revenues are recurring under long-term
contracts. Infrastructure assets of an approximate book value of #0.1m and
prepaid revenues of approximately #0.1m are also being acquired.

The initial consideration payable for the purchase of EMS is #0.25m. Additional
consideration of not more than #0.2m is payable 3 months after completion.
Further consideration of not more than #0.35m may become payable 7 months after
completion and is dependent upon the business acquired exceeding stringent
targets for sustainable earnings before interest and tax in the quarter ended 30
June 2004. Notwithstanding any of the foregoing, the total consideration for the
purchase of EMS shall not exceed an aggregate amount or value of #0.8m. The
consideration for the purchase of EMS will be satisfied in cash.

Netstore's strategy is to grow revenue both through acquiring new customers and
by providing new services to existing customers. The acquisition of the UK
managed service business of EMS provides a new service that sits well alongside
Netstore's other infrastructure services, On Line Backup and Managed Firewall,
and can be feasibly sold across its current customer base. The customers
acquired fit Netstore's target markets of medium to large organisations and the
acquisition develops further the partnership with BT for whom Netstore already
runs BT Datasure, an On Line Backup service resold to BT's customers, and other
internal services. EMS has made a substantial infrastructure investment of
approximately #0.3m and this infrastructure provides significant excess
capacity, with little further investment by Netstore.

The losses incurred by the managed service business of EMS in the year ended 31
March 2003 were as a result of insufficient scale in turnover to cover the
overhead cost of the business. As Netstore already has this overhead in place,
covered by its existing business, the majority of EMS's overhead cost has been
stripped out. The business has also grown substantially and, therefore, it will
be profitable for Netstore after a brief period of re-organisation.

Netstore believes the acquisition will be earnings enhancing in the first twelve
months of ownership, after re-organisation costs of approximately #0.1m, and
further enhance future profitability for the Group as a whole.

Paul Barry-Walsh, Chairman, commented:

"This is a good acquisition for Netstore, building on the investment we made in
NetConnect and delivering a revenue stream that is 80% managed service and
profitable after re-organisation; we are confident that it will provide a
positive financial contribution to the Group and that it will be an important
addition to our managed service portfolio."

For further information, please contact:

Netstore plc 0870 300 6600
Paul Barry-Walsh, Executive Chairman paul.barry-walsh@netstore.net
Neil Lloyd, CFO neil.lloyd@netstore.net

Buchanan Communications Ltd 020 7466 5000
Charles Ryland / Catherine Miles



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