Exercise of Options and Issue of Equity

3 July 2012

Nasstar plc

("Nasstar" or the "Company")

Exercise of Options and Issue of Equity

Nasstar, the cloud service provider, announces that the Company has received notice from a former employee of Nasstar to exercise options over 100,000 new ordinary shares of 1p each in the Company ("the Option Shares"). These options were granted on 25 September 2009 under Nasstar's unapproved share option scheme. The exercise price for the Option Shares is 6p.

Application will be made for the Option Shares, which will rank pari passu with the Company's existing ordinary shares in issue, to be admitted to trading on AIM ("Admission"). It is expected that Admission will be effective and that dealings will commence on or around 09 July 2012.

Following Admission, the enlarged issued share capital of the Company will be 53,760,053 ordinary shares of 1p each. The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Disclosure and Transparency Rules.

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About Nasstar plc

Nasstar (www.nasstar.com) provides Hosted Desktop, a cloud computing service that enables subscribers to access their desktop, applications and data 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 was founded in 1998 by Charles Black. Nasstar plc was admitted to trading on the London Stock Exchange Alternative Investment Market in December 2005 (AIM: NASA).