First Day of Dealings on AIM

Blue Star Capital plc
29 October 2004

For immediate release                                            29 October 2004


                              BLUE STAR CAPITAL PLC

                         ('Blue Star' or 'the Company')


           First Day of Dealings on the Alternative Investment Market

Blue Star Capital plc (AIM: BLU), a newly established company created with the
aim of providing initial seed capital for the development of early stage
companies, is pleased to announce its flotation on the Alternative Investment
Market of the London Stock Exchange ('AIM') today.

•    Blue Star will offer institutions and other investors the ability to invest 
     at founder stage in future opportunities that should offer strong growth
     prospects and significant opportunities for capital appreciation.

•    £5.55 million gross was raised for Blue Star via a Placing at the price of 
     10 pence per share.

•    Durlacher Limited is the Company's nominated adviser and broker.

•    Blue Star has an experienced Board led by executive chairman Nigel
     Robertson, the founder and former chief executive of scoot.com, who has 
     broad experience of forming, funding and floating companies and of sourcing 
     potential investments.

•    Blue Star's chief executive is Haresh Kanabar, a certified accountant who 
     also has significant experience of identifying, evaluating and financing
     business opportunities and of managing public companies.

•    Blue Star's Board includes John Vergopoulos, the finance director of
     Spiritel plc, as a non-executive director. Mr Vergopoulos has broad 
     experience of the SME market particularly in the formation, financing and 
     management of companies.

•    The directors aim to achieve capital appreciation from a portfolio of 
     quoted and unquoted investments in businesses that offer strong growth 
     prospects across a range of sectors and industries, with a defined 
     timeframe to exit.

•    The Company will have two principal avenues of investment:

     - the funding of shell companies at the founder stage, on IPO and 
       subsequently if required; and

     - the funding of unquoted operating businesses with a defined timeframe to
       IPO / alternative exit.



PLACING STATISTICS

Number of existing Ordinary Shares prior to the Placing                      50,000,000
Placing Price                                                                       10p
Number of Placing Shares                                                     55,500,000
Number of Ordinary Shares in issue following the Placing and Admission      105,500,000
Percentage of enlarged issued share capital subject to the Placing       52.61 per cent
Market capitalisation at the Placing Price                                  £10,550,000
Gross proceeds of the Placing                                                £5,550,000
Estimated net proceeds of the Placing receivable by the Company              £5,100,000


                                      ENDS

For further information:

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

Durlacher Limited                                             Tel: [phone]
Jonathan Retter
Katherine Roe

Buchanan Communications                                       Tel: [phone]
Mark Court
Elly Williamson



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