Xhost Limited Special Board Meeting Minutes

12th March 2003

Attendees:

Ian Robertson, Chairman	IR
Russell Clarke, Managing Director	RC
Carol Clarke, Director (taking minutes)	CC
John Foster - invited to attend	JF

The meeting was called as a special board meeting to consider the implications of the closure of the Cyberia Café in Ealing for the future of Xhost Limited. The meeting was held in the business lounge at Heathrow Airport.

RC confirmed that the Cyberia Cafe in Ealing was changing hands and that Xhost hosting services would need to be relocated.

A number of options were considered and discussed which then were distilled to four basic options:

1.	Move the servers to Easynet. Carry on as before.
2a.	Move the servers to Easynet. Edinburgh shareholders revert to "sleeping partner" status.
2b.	Sell Xhost as a going concern, offering customer base and assets to other ISPs.
3.	Xhost to "buy out" existing shares from Edinburgh shareholders.

A/P: IR agreed to circulate these options amongst the Edinburgh shareholders and to report back on their views of the way forward.

IR stated that as his preference would be to remove his involvement with Xhost Limited he would be seeking to resign as a director and therefore feels he can no longer be chairman.

A/P: RC to provide information on process for resigning as a director to IR

A/P: RC to continue investigating options for a new home for Xhost both within Easynet and without.