Acquisition

Iomart Group PLC
6 July 2001

                               iomart Group plc

                        Acquisitions enhance strategy

iomart today completed successfully the second of two separate transactions in
a week being the acquisitions of the businesses of Actis Technology and OnCue
Telecommunications Limited. Together they strengthen iomart's position in the
key market areas of messaging and business broadband.



iomart has purchased for £200,000 the ADSL customer base of OnCue
Telecommunications Limited which went into liquidation on 28 June. This will
add revenues of approximately £1 million per annum from some 600 ADSL
installed connections with a satisfactory margin.  The Directors believe that
this places iomart firmly in second position for ADSL installations in the UK
after BT Openworld.



CEO Angus MacSween commented: 'This is an excellent piece of business for
iomart; it is a good price and keeps us at the forefront of ADSL delivery in
the UK. However the demise of OnCue highlights the ongoing difficulties of
rolling out broadband Britain under the current regulatory and competitive
environment.'



Earlier in the week iomart completed the acquisition of the assets of Actis
Technology and its proprietary Net Intelligence product from the liquidator at
an undisclosed price. Net Intelligence is a leading edge product which manages
intelligently an enterprise's online activity and fits strategically into
iomart's messaging product portfolio alongside Thinkmail, iomart's managed
e-messaging solution. Actis was valued at £16 million in early 2000.



Chairman Nick Kuenssberg said: 'These two moves underline iomart's
determination to focus on the revised core strategy announced in May and
demonstrate the value of being able to act proactively and swiftly to enhance
our product range.'