Pre-close Trading Statement

20 September 2012

Nasstar plc

("Nasstar" or the "Company")

Pre-close Trading Statement

Nasstar (AIM: NASA), the hosted desktop cloud service provider, is pleased to provide a pre-close trading statement ahead of its full year results for the year ending 30 September 2012.

Hosted Desktop subscribers have risen over 60% during the year (compared to a 25% growth the previous year) to over 3,200. Trading during the second half of the year improved compared to the first half, and turnover for the full year will be in the region of £2.4m, with earnings inline with the market expectations.

Nasstar's sales pipeline gives the Directors confidence that revenue for the forthcoming year will continue to improve, in line with market expectations. As anticipated, the Company's four year contract with Allied Healthcare expires this month. Despite the expiry of the Allied Healthcare contract, which was for a material number of users, the Board are confident that the total number of Hosted Desktop subscribers will increase significantly during the next half year period, to 31 March 2013, and we look forward to providing updates on new business during the period.

Charles Black, CEO of Nasstar, said:

"It has been a very positive year in terms of both subscriber growth and the Company's development. The increase in subscribers of our core Hosted Desktop service proves our growth strategy is working and that awareness of the cloud computing market for delivery of business applications is opening up. As well as the sales growth we have bolstered our infrastructure and, despite additional costs incurred to go for growth, we have operated EBITDA positive during the period."

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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).