VET Verdant

RNS Number:3980M
Virtual Internet PLC
31 October 2001

31 October 2001

Enquiries:

Tom Turcan, CEO
Virtual Internet plc                       Tel: 0207 460 4060

John Bick, Holborn Public Relations        Tel: 0207 929 5599



                             Virtual Internet plc

  Virtual Internet completes strategic review of European hosting operations

Virtual Internet plc, which operates Net Searchers, a leading provider of
online brand and trademark protection services, and Virtual Internet, which
provides hosting services for SME businesses, announces the completion of the
strategic review of its hosting operations.

As reported at the half year, and in the results for the nine months ending 31
July 2001, the Board has carried out a review of the strategic and
restructuring options for the hosting division with a view to taking further
steps to minimise future cash requirements and accelerate the move to
profitability. That review concluded that with the successful roll-out of the
Group's CRM system and the proven ability to provision hosting services and
provide multi-lingual first and second level technical support from the UK, it
is now able to service a European-wide customer base centrally.  This enables
closure of the  sales/support offices in France and Italy.  In addition the
Group has disposed of its German hosting subsidiary.

Following on from a cost-reduction programme implemented across the hosting
division  earlier in the second half, action commenced in October to close the
Virtual Internet hosting offices in France and Italy in the most
cost-effective manner. Virtual Internet plc has also closed its operations on
the ground in Germany by entering into an agreement on 30 October 2001 to
transfer the shares it held in Webcontrol GmbH to Michael Weischelgartner and
Thorsten Shute, the original founders of the business, for nil consideration.
Under this agreement almost all shared-hosting customers acquired in Germany
will continue to be serviced from the UK. The transfer of Webcontrol GmbH has
the effect of saving further closure costs associated with the termination of
service contracts and other liabilities. All the goodwill arising on the
acquisition of Webcontrol has been written off in the results for the nine
month period ending 31 July 2001.

The resulting hosting division will continue to service customers throughout
Europe from its centralised multi-lingual operations centre in London, with
localised web presences for each major continental European market.

Commenting, Tom Turcan, CEO said:

"The Board is confident that following the decisive actions that have been
taken, the ongoing costs of the hosting division are now contained, with a
minimal ongoing cash requirement once the restructuring programme is concluded
early in the next financial year. Combined with strong revenue growth within
the Net Searchers business, the Group as a whole is on target to achieve its
objective of profitability within its existing financial resources."

                                   - Ends -

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