Proposed Investment

Blue Star Capital plc
18 January 2005


For immediate release                                          18 January 2005





                            BLUE STAR CAPITAL PLC

                                 ('Blue Star')



               Proposed Investment in Black Raven Properties plc



Blue Star Capital plc (AIM: BLU), the company created to provide seed capital
for early stage companies, is pleased to announce it has led the formation and
is planning to invest in Black Raven Properties plc, a company that today
revealed plans to float on the Alternative Investment Market (AIM).



Black Raven Properties is a property company that plans to purchase and develop
commercial, residential and leisure sites through the formation of a joint
venture with a construction firm and an experienced architectural practice.



This is the second investment to be proposed, and second flotation candidate to
be generated, by Blue Star Capital since its flotation in October 2004. Its
first investment, India Outsourcing Services plc, successfully floated on AIM in
December 2004.



Blue Star intends to invest £275,000 in Black Raven Properties in return for 30
per cent of Black Raven's shares.



Nigel Robertson, Blue Star Capital's Chairman, commented: 'This is Blue Star's
second investment, after India Outsourcing Services, and highlights the
diversity of investment themes to which Blue Star intends to gain exposure. We
believe that Black Raven Properties has the potential of bringing a highly
promising, asset-backed dimension to Blue Star's portfolio.'





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



The full text of Black Raven Properties' press announcement follows:





                           BLACK RAVEN PROPERTIES PLC

                        ('Black Raven' or 'the Company')





            Intention to Float on the Alternative Investment Market
                          of the London Stock Exchange



Black Raven Properties plc, a property company formed to purchase and develop
commercial, residential and leisure sites, is pleased to announce its intention
to seek Admission for its shares to trade on the Alternative Investment Market
(AIM) by way of a Placing.



Blue Star Capital (AIM: BLU), the recently floated investment company, has been
instrumental in the formation of Black Raven and proposes to make a significant
investment in the Placing.



Highlights



  • Black Raven has been formed to seek, purchase and develop commercial,
    residential and leisure sites with the objective of generating the majority
    of its profits through the sale of long leaseholds of developed units. The
    Company's strategy is to sell properties following the completion of the
    construction and site development phase rather than to hold a large
    portfolio of completed developments.



  • It is the Company's intention to establish a joint venture with a
    construction firm and an experienced architectural practice. It is intended
    that the joint venture will provide the Company with expertise and resources
    in addition to  site acquisition opportunities.



  • Black Raven's Board currently comprises Nigel Robertson, the Chairman of
    Blue Star Capital, as Non-Executive Chairman and Haresh Kanabar, the Chief
    Executive of Blue Star Capital, as Business Development Director. Further
    Board members are expected to be appointed at the time the first site is
    acquired.



  • Black Raven is raising gross proceeds of  £1 million by way of a Placing.



  • The funds raised by the Placing will be used for carrying out due
    diligence, planning evaluations and marketing appraisals on potential site
    acquisitions and for the Company's initial working capital requirements.



  • On Admission, the Company will have no investments or trading businesses
    although a number of potential site acquisitions have been identified.



  • It is expected that trading in Black Raven shares will commence on AIM in
    early February.



  • Arden Partners is the Company's nominated adviser and broker.





On the plans for the flotation, Nigel Robertson, Black Raven Properties'
Chairman, said: 'The property sector offers considerable opportunities that we
will be in a strong position to exploit through joining the Alternative
Investment Market and assembling a team of joint venture partners.'





For further information:


Black Raven Properties plc                           Tel: [phone]
Haresh Kanabar


Arden Partners                                       Tel: [phone]
Paul Davies

Buchanan Communications                              Tel: [phone]
Mark Court

Elly Williamson




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