Acquires Web Hosting Company

Iomart Group PLC
28 September 2000


             IOMART ACQUIRES WEB HOSTING COMPANY

iomart    Group   plc   ('iomart'),   the   Glasgow    based
telecommunications and internet services company, is pleased
to  announce  that it has acquired the whole of  the  issued
share  capital of  NSL (Internet) Ltd ('NSL') for a  nominal
consideration.

NSL,  based  in Edinburgh, provides web hosting, co-location
and  domain name registrations. The company has been trading
since  1995  and  during this time has worked  with  a  wide
number  of  business and public sector customers.  Currently
NSL employs 27 staff.

iomart  intends to merge its existing web hosting activities
with  those  in  NSL,  combining  NSL's  proven  skills  and
expertise  with  the  resources available  from  the  larger
iomart   organisation.   NSL's   Edinburgh   location   fits
strategically as iomart is already establishing a new  point
of  presence  in  Edinburgh for  the  rollout  of  its  ADSL
service.

Based on the audited accounts of NSL for the 12 months ended
31  March  2000, revenues were £298,000 and the loss  before
tax  was £323,000. Net liabilities at that date amounted  to
£138,000.  During  its  current  financial  year,  NSL   has
experienced  substantial growth in  revenues  but  has  also
invested   significantly   in   its   infrastructure,   with
particular emphasis on appropriately qualified staff,  which
has resulted in increased losses.

Angus  MacSween,  Chief  Executive  of  iomart  Group   plc,
commented:-

'NSL  should significantly enhance iomart's capabilities  in
web hosting and co-location. They have an excellent team  of
people  with  strong  technical skills.  iomart  is  rapidly
establishing  itself  as  one of  the  key  players  in  the
delivery  of broadband internet access using ADSL technology
and  NSL's services fit naturally as an added value  service
to iomart's growing business-oriented customer base.'

                                           28 September 2000

Enquiries

iomart Group plc            Tel: [phone]
Angus MacSween

College Hill                Tel: [phone]
Matthew Smallwood
Chelsea Allen