Acquisition

Iomart Group PLC
19 May 2004



                                iomart Group plc

          Acquisition of minority interest in iomart Internet Limited

iomart Group plc ('iomart') today announces that it has acquired the outstanding
25% minority interest in its webservices subsidiary, iomart Internet Limited
('iomart Internet') for a total consideration, payable on completion, of
£102,000 in cash and 3,200,000 new ordinary share of 1p each in iomart ('the
Consideration Shares'). Following the acquisition, iomart will own the entire
issued share capital of iomart Internet.

iomart Internet is a webservices business involved in the sale of website and
search engine products to the small and micro business community. In the year
ended 31 March 2004, iomart Internet generated a pre-tax profit of £530,000. As
at 31 March 2004, iomart Internet had 38,000 customers and net assets of
£517,000.

The minority interest in iomart Internet is held in equal parts by the founders
of the company, Stuart Forrest and Mark Hallam, and the consideration will be
split between them accordingly. Mr Forrest and Mr Hallam will remain as
directors of iomart Internet and key members of the senior executive team of
iomart.

Mr Forrest and Mr Hallam have undertaken not to sell more than 25% of their
shareholding in iomart in any 12 month period for the four years following the
date of this announcement and that any share sales will be conducted through
iomart's broker at the time.

The acquisition of the minority stake in iomart Internet is deemed to be a
related party transaction under the AIM Rules. The directors of iomart consider,
having consulted with KBC Peel Hunt Ltd, that the terms of the acquisition of
the minority stake in iomart Internet are fair and reasonable insofar as iomart
shareholders are concerned.

The Consideration Shares will be allotted credited as fully paid and will rank
pari passu in all respects with the existing ordinary shares in issue.
Application has been made for the Consideration Shares to be admitted to AIM. It
is expected that admission to AIM will become affective and that dealings will
commence in the Consideration Shares on 24 May 2004.

For further information, please contact:

iomart Group plc
Angus MacSween (Chief Executive)               0141 931 7000
Nick Kuenssberg (Chairman)                      0141 931 7000 or 07860 635191



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