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Westchester Advises Melstar Limited on Sale of its Solutions Business -- Successful completion of sale to IconMedialab/Lost Boys Group

LONDON — May 24, 2004 — Westchester Associates Limited (www.westchester.co.uk) today announced that it has advised its client, Melstar Limited, on the sale of its Business Solutions business to IconMedialab/Lost Boys Group (LBI).

Melstar Limited was founded in 1990 as Linkhand Limited, a business solutions company with a focus on delivering document management and process related solutions to the Insurance sector, and subsequently expanded into the financial services and government sectors as well.

The existing business of the Icon/Lost Boys Group in the UK will be combined with the acquired Melstar Limited Solutions Business and renamed - LBI-Linkhand. LBI-Linkhand will increase LBI's overall company's revenue in the UK to over £ 4 million ($6 million USD) and will bring the number of LBI staff in the UK to a total of 40.

Tony Gale, founder and CEO of Melstar Limited stated, "Having used Westchester's services previously, we believed they were the right choice when Melstar Limited decided to sell Business Solutions. Westchester's depth of knowledge in the IT Sector, combined with the attentive service provided by the Principals, resulted in the engagement of seven potential buyers, four of whom were prepared to extend an offer for the business".

Mr. Gale went on to add, "Once the ultimate buyer was selected, Westchester's experience and knowledge ensured that the transaction progressed smoothly with managed expectations and closed within eight weeks after the initial offer".

About Westchester Associates

Westchester Associates are specialists in technology mergers and acquisitions (M&A) services. We represent and advise Sellers and Buyers in M&A projects in the UK, Europe and the USA, with specific focus in software and service businesses.

About IconMedialab/Lost Boys Group (LBI)

IconMedialab and Lost Boys merged in January 2002 to become one of the world-leading Internet consulting service providers. The Group has developed solutions for a broad range of multinational client companies. Offices are located in Amsterdam, Berlin, Lisbon, London, Madrid, Milan, Munich, New York, San Francisco, St. Louis, Stockholm, Washington and Zürich.

The Icon Medialab International AB stock is traded at the Stockholm Stock Exchange O-List (ICON) with net sales of K SEK 481,569 (¤ 52.0 million) and 559 employees per year-end 2003.