Response to Host announcement and Trading Update

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iomart Group plc

("iomart", or "the Group")

Response to announcement by Host

Pre-close Trading Update

The Board of iomart notes the announcement by Host Europe Holdings Ltd ("Host"), a company controlled by funds managed by Cinven Capital Management (V) General Partner Limited (of which Cinven Partners LLP ("Cinven") is the adviser), that it does not intend to make a formal offer for iomart. Accordingly, iomart is no longer considered to be in an offer period for the purposes of the City Code on Takeovers and Mergers.

Pre-close Trading Update

The Board is pleased to report that the business has continued to perform strongly in the first half of the financial year. Trading in the six months ending 30 September 2014 has been in line with management expectations, with both revenue and profits expected to be substantially ahead of the comparative period last year.

These expected results build on the growth of the business in recent years, which has seen iomart deliver a compound annual growth rate in revenues of 32% since 2010 and 66% at the adjusted EBITDA level.

Demand for the Group's services remains strong and growing as the market continues to move towards the provision of products and services over the internet. These strong market drivers leave the Board confident in the outlook for the full year and optimistic for continued long-term success.

Angus MacSween, CEO of iomart Group plc, commented:

"The Group has delivered strong growth as we continue to execute on our focussed strategy of providing high quality and high margin managed solutions. With an outstanding track record and an established reputation as the UK's leading cloud computing company, we look forward to the future success of iomart."

For further information:

iomart Group plc Tel: 0141 931 6400

Angus MacSween

Richard Logan

Peel Hunt LLP Tel: 020 7418 8900

(Nominated Adviser and Broker)

Richard Kauffer

Daniel Harris

Newgate Threadneedle Tel: 020 7653 9850

Caroline Forde

Josh Royston

Hilary Buchanan