Trading Statement

Nasstar plc

Trading Statement

19th January 2015

Nasstar plc ("Nasstar" or the "Company"; stock code: NASA), a provider of Hosted Desktop cloud computing, is pleased to provide the following trading update for the year ended 31 December 2014.

Trading during the second half of the year continued the progress made in the first half providing the Directors with confidence that full year revenues will be in line with expectations. At the same time, the integration of the three trading subsidiaries (Nasstar (UK) Limited, e-know.net Limited and Kamanchi Limited) was completed ahead of schedule, delivering more synergy savings than expected within the financial period, resulting in 2014 adjusted EBITDA* being ahead of previous expectations.

As previously reported, the restructuring of Nasstar UK yielded a first positive monthly EBITDA contribution in June 2014 and this was sustained during the second half with a positive EBITDA contribution for the second half of the year.

Trading from the recent acquisition of Kamanchi has been in line with Board expectations, which have remained unchanged since the time of the acquisition. Group financial working disciplines have already been rolled out within Kamanchi and the three group operating businesses are now working closely together to cross sell Kamanchi recruitment application consultancy services across the group.

Investment into management resource and skill set has been completed during 2014 and continues into 2015 to structure the business to more effectively integrate the three subsidiaries.

Strong cash control resulted in group cash at year end being ahead of expectations at £0.9m representing a net debt position of just £0.07m. This was achieved despite paying £1.5m from cash reserves as part of the Kamanchi consideration.

Group results for the full year ended 31st December 2014 are expected to be released on 7 April 2015.

*Comprising earnings adjusted for interest, taxation, depreciation, amortisation, exceptional items and share based payments

For further information, please contact:-

Nasstar plc +44 (0) 1952 225 000

Nigel Redwood, Chief Executive Officer

Niki Redwood, Finance Director

finnCap Limited (Nominated Adviser & Broker) +44 (0) 20 7220 0500

Julian Blunt, James Thompson (Corporate Finance)

Victoria Bates (Corporate broking)

About Nasstar plc

Nasstar (www.nasstar.com) and its wholly owned subsidiaries e-know.net (www.e-know.net) and Kamanchi (www.kamanchi.co.uk) provide hosted desktop and hosted exchange cloud computing services that enable subscribers to access their corporate desktop, files, applications and email in the Cloud rather than using local hard drives. Hosted desktop is a highly scalable service that provides benefits including anywhere access to computing, a standardised corporate desktop solution that can be accessed globally and in multiple languages and cost savings when compared to the traditional IT ownership model, replacing capital expenditure with a simple usage based payment model.

Nasstar (AIM:NASA) was founded in 1998, admitted to AIM in December 2005, acquired e-know.net Limited in a reverse takeover in January 2014 and acquired Kamanchi Limited in July 2014.

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