QUADSTONE ANNOUNCES NEW BOARDROOM APPOINTMENTS

Joining Quadstone as chairman is Mr Mike Winn, currently group managing director of global software giant DST International Limited (DSTi) in Surbiton, Surrey.

With a career spanning some thirty years in the IT and computing sectors, Mr Winn has driven DSTi's revenue up from BP4.2million to BP62million in just seven years. He has also seen employment figures grow from around 70 to over 700 and has established the company as a worldwide market leader in asset management software. Today, DSTi has a pre-tax profit of BP9.4million with 12 offices servicing over 500 clients in 40 countries.

Speaking from his DSTi base in Boston, MA -- home of Quadstone's first US office, which opened there last year -- Mr Winn said he is very excited at the prospect of steering Quadstone towards similar global success. "Quadstone has already gained terrific market share and financial confidence in the fast-emerging sector of database marketing and customer behavior modeling. The company's flair and innovation have earned it some of the industry's greatest accolades in just over four years since it began trading -- this is a trend that I am very much looking forward to continuing and developing. I am confident that together, we can further expand Quadstone's recognition as an international market leader and primary supplier of IT-based marketing software."

Also appointed to the board are Mr Graham Scott who has been promoted to finance director and Mr James Cook who takes up a position as non-executive director.

Graham Scott originally joined Quadstone from Ernst & Young, Corporate Finance in December 1998 and was immediately instrumental in securing the company's BP6.3million investment package signed in May this year. The deal was cited as the largest single investment in an early-stage software company in the history of the Scottish software industry, and comprised a unique consortium of investors including 3i plc, British Linen Bank, Aberdeen Asset Management, Scottish Enterprise and Northern Venture Managers.

James Cook joins the Quadstone board from his previous position as finance director of listed Edinburgh company Meconic plc, the world's largest manufacturer of controlled drugs. He was a founder member of the Meconic team that acquired Macfarlan Smith from Glaxo in 1990, and he played a key role in supporting the development of Meconic's turnover from BP17million in 1990 to BP58million in 1999. Mr Cook brings to the Quadstone board considerable corporate finance experience and recent credits include the flotation of Meconic in June 1995. He is also chairman of The Object Factory, a leading provider of project management solutions to the software industry.

Neil Heywood, Quadstone's CEO sees the new appointments as central to the company's continued worldwide expansion. He says: "The high calibre of Quadstone's products and people has always been paramount to our fast-track growth in the UK and wider international markets. These most recent appointments represent another significant strategic step in the company's development and I am delighted that they can join the Quadstone board at such an exciting time in our globalization plans."