Trading Statement

Embargoed for 7.00am Friday 11 April 2003

The Sage Group plc

Period-end trading update and Board change

Results (unaudited) for the half-year ended 31 March 2003 in line with
expectations

Following completion of the half-year ended 31 March 2003, and as announced on
21 March, the Sage Group plc ('Sage') is providing an update on its trading
performance.

Group profit before tax for the period was approximately £74m, in line with
market expectations. Pre-tax profit growth on the prior year period was
approximately 14%. 

Group revenues were approximately £282m, also in line with market expectations.
Revenue growth on the prior year period at constant exchange rates was
approximately 4%.*

UK

Revenue growth of approximately 5% was generated largely from the continued
strong performance of the SME business, but also from a stabilisation of
revenue in the mid-market 'enterprise' division.

Operating margins rose to approximately 40% from the prior year period's 36%.

Mainland Europe

Underlying market conditions were more challenging than in the equivalent
period last year, which had also benefited from the introduction of the Euro.
Consequently, revenues were approximately 1% below the prior year period.*
However, revenues were higher than in the second half of 2002.

As a result of lower revenues, operating margins were lower than the 26%
achieved in the prior year period, but were maintained at similar levels to the
second half of 2002.

US

Overall revenues grew by approximately 7%.* The entry-level accounting software
business continued to perform well. The mid-market accounting software
businesses, despite challenging market conditions, maintained revenues at
similar levels to the prior year period.

CRM revenues grew approximately 21%, led by the ACT! contact management
product, and with SalesLogix also growing.

US operating margins (including CRM) showed significant growth over the prior
year period's 19%.

Board change

Graham Wylie, one of the founders of Sage, and Managing Director of UK
operations, has decided to retire from his current role, and from the Board,
with effect from 31 May 2003 after 22 years of service. The Board would like to
acknowledge Graham's considerable contribution to the business and wish him
well. The Board is pleased to announce that Paul Stobart will move from his
current role in Sage Group to become Managing Director of the UK business. Paul
has been with the Group, and a member of the Board, since 1996.

Chairman Michael Jackson commented: 'The Board would like to thank Graham Wylie
for his substantial contribution to Sage's success over the past 22 years, and
particularly for his strong leadership of the UK business, which is well-placed
for continuing growth.'

A conference call for analysts is being held today to discuss this
announcement. No further new material information will be discussed during the
call. Full details on the Group's financial performance for the half-year ended
31 March 2003 will be given in Sage's interim results announcement on 7 May
2003.

*Revenue comparisons are at constant exchange rates based on the period ended
31 March 2003

Enquiries

The Sage Group 0191 255 3055

Paul Harrison, Finance Director

Phil Branston, Investor Relations

Financial Dynamics 020 7831 3113

Harriet Keen

Emma Rutherford