iomart to enter BT local exch

Iomart Group PLC
22 September 2000

                                                           
             IOMART TO ENTER BT LOCAL EXCHANGES

iomart    Group   plc   ('iomart'),   the   Glasgow    based
telecommunications and internet services company, is pleased
to  announce that it is one of the successful applicants  to
be  given  the  right  to  install  its  own  broadband  DSL
infrastructure in BT's local exchanges.

Focusing  initially  on  the Scottish  market,  iomart  will
commence   installation   in  BT   exchanges   in   Glasgow,
Edinburgh, Aberdeen and Dundee during early 2001. This forms
the first phase of a wider UK programme.

iomart is already one of the first operators to be providing
ADSL services in the UK, using BT's IP Stream product range.
These  services are available now under iomart's Copperburst
brand and also to consumers through Madasafish. However with
the  progressive  introduction of its own  equipment  to  BT
exchanges, iomart will be able to participate fully  in  the
local loop unbundling process, allowing iomart to take  over
responsibility  for the copper line 'last  mile'  between  a
customers' premises and the BT exchange.

Angus MacSween, iomart CEO, commented:-

'This  is  another major step forward in the development  of
iomart.  For  us, ADSL is the entry point to  building  long
term customer relationships to which we can add web hosting,
telephony services and our business class out-sourced e-mail
product from Sendmail. As a licensed telco with no legacy to
protect, we can move swiftly to offer our customers the full
potential from this new broadband technology.'

                                           22 September 2000
Enquiries

iomart Group plc                   Tel: [phone]
Angus MacSween

College Hill                       Tel: [phone]
Matthew Smallwood
Chelsea Allen