Nasstar Announcements

Disposal

11 April 2008 14:43:29

Nasstar PLC
11 April 2008

Nasstar Plc

11 April 2008

Disposal of legacy web hosting contracts

Nasstar plc ("Nasstar", AIM: NASA) announces that on the 10 April 2008 it has
disposed of its web hosting contracts for a total consideration of £120,000
payable in cash. The web hosting contracts were with 13 customers for the
provision of servers for hosting web sites. Web hosting is no longer core
business and is not sold anymore.

The contracts generated revenue of just under £120,000 per annum and had
associated direct costs including rack space, power and licensing of
approximately £30,000 per annum. In addition to the direct costs were staffing
and overheads necessary to support the contracts. As the sales of core services
have grown the diversion of support staff from supporting core services to
supporting the web hosting contracts had reached the point where additional
staffing would have been necessary to support the web hosting contracts.

The proceeds of the disposal will be used to continue the growth of Nasstar's
Hosted Desktop core service.

Charles Black, Nasstar plc Chief Executive said
"This is a good deal for us. The disposal of the non-core web hosting business
further streamlines our operations and immediately brings in a year's revenue
from these contracts whilst also removing the on-going costs and overhead
associated with supporting the web hosting service.

This stops us diverting technical staff to non-core business. Nasstar is now
completely focussed on sales of its Hosted Desktop service whereby subscribers
do their computing on the internet rather than locally. The revenue from the web
hosting was increasingly becoming a declining proportion of total revenue and
carried the risk that because it wasn't core business the revenue would continue
to decline into the future."

ENDS

Contact information

Nasstar plc
Charles Black, Chief Executive
020 7148 5000 - Telephone

W.H. Ireland Limited, Nominated Adviser to Nasstar plc
Nicola Rayner
0121 616 2101 - Telephone

About Nasstar plc
Nasstar's service enables subscribers to do all of their computing in the
internet cloud, with access to their desktop, files, applications and email over
the internet rather than on-premise. Cloud computing is a highly scalable
service that provides benefits including anywhere access to computing and
provides an alternative to traditional locally installed on-premise computing.

Nasstar was founded in 1998 by Charles Black. Nasstar plc was admitted to
trading on the London Stock Exchange Alternative Investment Market in December
2005 (AIM: NASA).

For further information please visit www.nasstar.com. For Investor Relations
visit www.nasstar.com/IR
This information is provided by RNS
The company news service from the London Stock Exchange

All data suppied by Digital Look (15 minute delay)




Risk Warning

There is an extra risk of losing money when shares are bought in some smaller companies including 'Penny Shares'. There is a big difference between the buying price and the selling price of these shares. If they have to be sold immediately, you may get back much less than you paid for them or you may have difficulty in selling them. Past performance is not a reliable indicator of future results. The price may change quickly and it may go down as well as up. You could lose every penny put into a particular share.

The information contained above has been compiled from documented sources which are believed to be reliable but, due to their very nature, are subject to a degree of historical inaccuracy and have not been independently verified and cannot be guaranteed. The pages on this website are provided for information only. City Equities Limited will not accept responsibility for loss incurred by any person or body acting, or refraining from acting, as a result of information and/or opinions given anywhere on this website. Issued by City Equities Limited, Aldermary House, 10-15 Queen Street, London, EC4N 1TY. Registered in England. Registered No. 2742847. Registered Address: Amwell House, 19 Amwell Street, Hoddeson, Herts. EN11 8TS. City Equities Limited is Authorised and regulated by the Financial Services Authority. Registration No. 155051.