BLUE STAR CAPITAL PLC Investment in India Outsourcing Services plc

Blue Star Capital plc (AIM: BLU), the company created to provide seed capital for early stage companies, is pleased to announce it has taken a 56.7 per cent stake in India Outsourcing Services plc, a company that today begins trading on the Alternative Investment Market (AIM).

Blue Star led the formation of India Outsourcing Services (AIM: IOS), a company formed to capitalise on acquisition and investment opportunities in the Indian business process outsourcing (BPO) market.

Blue Star invested £285,000 in India Outsourcing Services, in return for 56.7 per cent of the company’s shares.

India Outsourcing Services is the first company to be formed by Blue Star following Blue Star’s flotation on AIM in October 2004.

Nigel Robertson, Blue Star’s Chairman, said: “The formation, funding and flotation of India Outsourcing Services marks a significant achievement for Blue Star, just two months after Blue Star’s flotation. The transaction highlights the pace and quality of dealflow we intend to deliver at Blue Star with the objective of creating value for our shareholders.”

For further information: