Sysgroup Regulatory News (SYS)

31 March 2014

Daily Internet plc

("Daily Internet" or "the Company" or "the Group")

Update on Netplan

New US contract signed

Daily Internet plc (AIM: DAIP), the hosting and cloud infrastructure provider, is pleased to provide an update on Netplan Internet Solutions Limited ("Netplan") following its acquisition by the Group in November 2013.

Netplan is an established UK based internet Infrastructure as a Service ("IaaS") provider focused on high security, e-commerce and cloud based infrastructure, and specialises in VMware cloud hosting, PCI hosting and managed dedicated hosting services.

Netplan's revenue growth following the acquisition has been ahead of management's internal expectations following new customer wins and increases in contract sizes with existing customers. Daily Internet was also able to rationalise costs across the enlarged Group following the acquisition and as a result has reduced overhead costs and improved Group EBIT.

Netplan has signed a new contract with an existing US based customer, a leading global supplier of IT systems management solutions, for the provision of an additional VMWare private cloud infrastructure and disaster recovery ("DR") platform to be hosted in two US data centres. This additional new contract has a current value of approximately £160,000 per annum and represents Netplan's first steps into the provision of hosting infrastructure in the US.

Netplan continues to have a strong pipeline of opportunities in a wide range of sectors and is also looking to further expand its customer base geographically. In addition, Netplan continues to invest in research and development with the goal of further expanding its range of IaaS offerings. It has recently launched a virtual real-time replication product, Zerto, and this has already been deployed for a leading customer relationship management ("CRM") service provider.

Daily Internet is able to offer customers a much greater suite of products, with higher value offerings, following the Netplan acquisition and continues to look at cross-selling opportunities within the Group. The existing Daily Internet branded business is performing in-line with management's expectations and the Group will release a Pre-close Trading Update in respect of the financial year ended 31 March 2014 in April 2014.

Abby Hardoon, Managing Director of Daily Internet, commented:

"The acquisition of Netplan is pivotal to Daily Internet's strategy of becoming a one-stop-shop provider of IaaS hosting and cloud services covering the entire value chain. We are delighted that Netplan is performing well, and its pipeline of opportunities gives us confidence in its continued strong growth. The new US customer contract underlines the growing global demand for Netplan's core PCI and DR hosting products and expertise."

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