Interim Results

Blue Star Capital plc
28 June 2005


For immediate release                                               28 June 2005



                               BLUE STAR CAPITAL PLC
                         ('Blue Star' or 'the Company')



               Interim Results for the period ended 31 March 2005



Blue Star Capital plc (AIM: BLU), the company created to provide seed capital
for early stage companies, is pleased to announce its maiden interim results for
the period ended 31 March 2005.



Highlights


•        Blue Star joined AIM in October 2004, having successfully raised gross
         proceeds of £5.5m



•        The Company has built a portfolio of four investments in AIM-traded
         shell companies focussed on a variety of sectors



•        Blue Star has invested a total of £1.16 million in these investments



•        Turnover for the period was £50,000 and pre-tax losses were £75,268



•        Net cash as of 31 March 2005 was £3.94 million



•         Post the period end Blue Star invested in Medcenter Holdings Inc.



•        The Company's priority is for its shell company investments to complete
         acquisitions in the near term





Nigel Robertson, Blue Star Capital's Executive Chairman, commented: 'We have
made significant progress in executing our strategy since joining AIM. Our
priority now is to ensure the completion of acquisitions at our shell
investments with the objective of building value for our shareholders.'



                                      ENDS



For further information:


Blue Star Capital plc                                     Tel: [phone]
Nigel Robertson, Chairman
Haresh Kanabar, Chief Executive

Panmure Gordon & Co                                       Tel: [phone]
Jonathan Retter
Katherine Roe

Buchanan Communications                                   Tel: [phone]
Mark Court
Elly Williamson



                              CHAIRMAN'S STATEMENT



I am pleased to report Blue Star Capital's maiden interim results for the period
ended 31 March 2005, a period of great significance in the development of the
Company and during which the foundations have been laid for the future growth of
the company.



Blue Star was formed to provide seed capital for early stage companies and
thereby to create a diverse portfolio of investments from which to build capital
value for shareholders. This strategy was endorsed in October last year when the
Company joined the AIM market after successfully raising gross proceeds of £5.5
million.



I am pleased to report that the Company has made considerable progress in
executing its strategy since admission to AIM.



Four investments have already been made in newly formed shell companies
targeting acquisition opportunities across a variety of sectors ranging from
property development to telecoms, media and technology. All four of these
companies - India Outsourcing Services plc, Black Raven Properties plc, Gordian
Investments plc and Gasol plc - have joined the AIM market.



Now that the Company has established its initial portfolio of investments, the
Board's focus is on overseeing the successful completion of acquisitions at each
of the investments. Significant progress has already been made in identifying
and evaluating potential acquisitions and I look forward to updating
shareholders in due course.



Post the period end, Blue Star made a fifth investment through taking a minority
stake in Medcenter Holdings Inc, a leading provider of e-marketing intelligence
and relationship marketing solutions to the pharmaceutical industry.



Our financial performance during the first half was in line with management
expectations. Turnover was £50,000, reflecting advisory fee income and interest
receivable in the period amounted to £84,521. The pre-tax loss was £75,268, and
loss per share was 0.07p. Net cash was £3.94 million as of 31 March 2005.



We look forward to the future with confidence.






Nigel Robertson
Executive Chairman



BLUE STAR CAPITAL PLC :  INTERIM RESULTS

Profit and Loss Account
For the period ended 31 March 2005   ( unaudited )

                                                                                period ended
                                                                                 31-Mar-05
                                                                                ( unaudited )
                                                               Note                 £

Turnover                                                                            50,000

Other operating expenses (net)                                                   (209,789)

Operating loss                                                                   (159,789)

Other interest receivable and similar income                                        84,521

Loss on ordinary activities before taxation                                       (75,268)

Taxation                                                          2                      0

Loss after taxation                                                               (75,268)

Loss per share                                                    4                 (0.07) p


All recognised gains and losses are included in the profit and loss account.





BLUE STAR CAPITAL PLC :  INTERIM RESULTS

Balance Sheet
As at 31 March 2005 ( unaudited )
                                                                                     31-Mar-05
                                                                                    ( unaudited )
                                                                Note                    £

Fixed Assets
Office Equipment                                                                        10,384
Investments                                                                          1,161,010
Total Fixed assets                                                                   1,171,394

Current Assets
Cash at bank                                                                         3,939,544
Debtors & prepayments                                                                   65,181
                                                                                     4,004,725

Creditors: amounts falling due within one year                                       (128,605)
Net Current Assets                                                                   3,876,120

Net Assets                                                                           5,047,514



Net Assets

Capital and reserves
Share capital issued and fully paid up                                                 105,500
Share premium account                                                                5,017,282
Profit & loss account                                                                 (75,268)

Shareholders' Funds                                                                  5,047,514





BLUE STAR CAPITAL PLC :  INTERIM RESULTS

Cash flow statement
For the period ended 31 March 2005   ( unaudited )

                                                                                 period ended
                                                                                    31-Mar-05
                                                                                 ( unaudited )
                                                                                      £

Net cash outflow from operating activities                                           (95,914)

Returns on investments and servicing of finance
Interest Received                                                                      84,521

Cash outflow before financing and use of liquid resources                            (11,393)


Capital expenditure and financial investment
Purchase of tangible fixed assets                                                    (10,835)
Purchase of Investments                                                           (1,161,010)

Net cash outflow from capital expenditure and
  financial investment                                                            (1,171,845)

Financing
Issue of shares                                                                     5,122,782

Net cash inflow from financing                                                      5,122,782

Increase in cash                                                                    3,939,544





Notes to the interim report



1: BASIS OF PREPARATION



The interim accounts for the period ended 31 March 2005 are unaudited and do not
constitute statutory accounts in accordance with section 240 of the Companies
Act 1985.


The financial information has been prepared in accordance with applicable
accounting standards and under the historical cost accounting convention.



2: TAXATION



There is no tax charge for the period due to the loss arising.



3: DIVIDENDS



The Directors are not declaring a dividend for the period ended 31 March 2005.



4: LOSS PER SHARE



The calculation of the loss per share is based on the loss for the period of
£75,268 and the weighted average number of shares in issue during the period of
105,500,000



COPIES OF INTERIM RESULTS



Copies of the interim results are available from the Company's office, 22 Soho
Square, London W1D 4NS




                      This information is provided by RNS
            The company news service from the London Stock Exchange