Trading Statement

21 October 2002

                              The Sage Group plc                               

Pre-tax profit for year ended 30 September 2002 in line with expectations

Following completion of the financial year ended 30 September 2002, The Sage
Group plc ('Sage') expects to report full-year pre-tax profit in line with
current market expectations.

This performance, in challenging market conditions, was encouraging, notably
the progress made by Interact, acquired in May 2001.

Further details will be provided in Sage's preliminary results which will be
announced on 3 December 2002.

Contact:

Harriet Keen, Financial Dynamics                   020 7831 3113