Ultrasis - The Classic Turnaround

Valuation?? - Ultrasis v Healthstar
those who read this board will have questioned the Ultrasis valuation £3m
now make a comparison with Healthstar ( hsr ) market cap £2.25m

RNS Number:9879F
Healthstar Group plc
03 December 2004


For Immediate Release 3 December 2004


Healthstar Group plc

First Day of dealings on the Alternative Investment Market ("AIM")

Healthstar Group plc ("Healthstar Group" or "the Company") (LSE: HSR), the
holding company of a newly formed group which intends to build a substantial and
profitable business developing, marketing and selling life improvement products,
is pleased to announce its flotation on AIM today.

The Company has raised #2.25 million via a placing at 50 pence per share.
Marshall Securities is acting as the Company's nominated adviser and broker.

Key points

* Healthstar has acquired Mindtech which has the exclusive right to exploit
products and intellectual property rights of Ultrasis in English speaking
consumer markets worldwide.

* The Group's first consumer products will use the Ultrasis product and
technology platform to address problems associated with compulsive behaviour,
stress, anxiety and depression.

* The Board expects that Healthstar's revenue in the UK will derive
primarily from premium rate calls made to Healthstar helplines. Healthstar
intends to offer advice on topics of concern by means of pre-recorded telephone
messages, with the caller being guided through a series of voice prompts in
order to receive helpful and relevant information and guidance. The subject of
the first such product is intended to be alcohol management. Healthstar also
intends to develop information packs, CDs, books, merchandise and other products
and services for marketing and delivery through conventional channels.

* The Group intends to carry out a test marketing in the US to establish
the potential for selling a sensor-based interactive product to consumers by
means of an "infomercial". This product will teach consumers relaxation
techniques in order to alleviate stress, anxiety and sleeping problems.

* The Group aims to generate revenues from its own sales of products and
services and potentially from third party sub-licence income.

* The net proceeds of the Placing will be used primarily to acquire
Mindtech and repay its indebtedness and to complete the development of the
Group's initial products. The balance will be used for working capital and,
potentially, for complementary small scale acquisitions.

Commenting on the flotation, Jim Merriman, Managing Director of Healthstar,
said:

"We are delighted to be joining AIM today. The placing will provide funds for
the development and implementation of our product offering in the UK and for the
test marketing of our sensor-based product in the US. We see significant market
potential for life improvement products based on proven technology to be
delivered directly to individuals using modern communications channels. We look
forward to reporting our progress to the market over the coming months."

For further information, please contact:

Healthstar Group 020 7490 3788
Jim Merriman, Managing Director
(via Marshall Securities)
Marshall Securities 020 7490 3788
Robert Luetchford

Details of the placing

Placing price 50 pence

Number of Ordinary shares being placed 4,500,000

Number of Ordinary shares in issue at the time of admission 4,500,000

Market capitalisation at placing price #2.25 million

Net proceeds of the placing receivable by the Company #2.04 million