Disposal

Iomart Group PLC
11 May 2001



                     IOMART SELLS MADASAFISH ISP BUSINESS


iomart Group plc ('iomart'), the Glasgow based internet services company,
announces that it has completed the sale of its Madasafish internet service
provider business for a cash consideration of £3.0 million.


The business sold incorporates the dial up internet access services provided
with either '0845' or 'unmetered' products and marketed under the brand names
Madasafish and Jings. These services generated revenues of £2 million during
the year ended 31 December 2000 and gross profits after marketing costs (but
before allocation of any staff, network, support or overhead expenses) of £0.4
million. The value of the net assets sold is minimal as the transaction
effectively represents a payment for goodwill created by iomart.


The purchaser, paid the entire consideration of £3.0 million cash on
completion. Under transitional arrangements, iomart will continue to operate
the service for up to four months on normal commercial terms.


Angus MacSween, Chief Executive of iomart, commented: -


'Over the past nine months we have been developing and implementing a strategy
to move iomart into services and away from consumer related activities. Our
intention is for iomart to become a world class ASP messaging business,
building on the success of our recently launched Thinkmail product for
outsourced e-mail management. The sale of Madasafish will make us more focused
and provide additional funding for the implementation of our revised
strategy.'


                                                                   11 May 2001

Enquiries:

iomart Group plc                       Tel: [phone]

Angus MacSween

David Harrison

College Hill                           Tel: [phone]

Matthew Smallwood

Chelsea Allen