Trading Statement

15 April 2004

                 The Sage Group plc - Half-year trading update                 
                                                                               
The Sage Group plc ('Sage'), a leading supplier of accounting and business     
management software solutions and services for small to medium-sized           
enterprises ('SMEs'), is today providing an update on trading performance for  
the six months ended 31 March 2004. Full details of the Group's financial      
performance for the period will be provided in Sage's interim results          
announcement on 11 May 2004.                                                   
                                                                               
Pre-tax profit was ahead of expectations at approximately £87m, showing growth 
of 17% on the prior year period.                                               
                                                                               
Group revenues were in line with expectations at approximately £332m, with     
revenue growth of 23%* on the prior year period.                               
                                                                               
The geographical presentation of financial results has been modified to reflect
the addition and integration of new businesses into the Group. We have created 
one additional reporting unit, 'Rest of World', which encompasses the South    
African and Asia-Pacific businesses of both the Softline and ACCPAC            
acquisitions, and our pre-existing CRM business. The new geographical analysis,
including prior period comparatives, is shown in full at www.sage.com/News.htm 
                                                                               
UK                                                                             
                                                                               
In the UK, revenues grew 7% to approximately £91m and the operating margin was 
approximately 40% (2003: 38%).                                                 
                                                                               
Mainland Europe                                                                
                                                                               
In Mainland Europe, revenues grew 23%* to approximately £89m (2003: £72m*) and 
the operating margin was approximately 23% (2003: 21%).                        
                                                                               
The SP acquisition (Spain, October 2003) contributed revenues of approximately 
£12m, at an operating margin of approximately 20%.                             
                                                                               
North America                                                                  
                                                                               
North American revenues grew 21%* to approximately £136m (2003: £113m*) and the
operating margin was approximately 23% (2003: 24%).                            
                                                                               
The Timberline acquisition (September 2003) contributed revenues of            
approximately £17m, at an operating margin of approximately 10%.               
                                                                               
ACCPAC (acquired in March 2004) contributed total revenues of approximately £6m
at an operating margin of approximately 7%. Of these revenues, approximately £ 
4m, at an operating margin of approximately 11%, was generated in North        
America. The remainder of ACCPAC's contribution was in the other regions, and  
has been allocated accordingly within the Group results.                       
                                                                               
Rest of World                                                                  
                                                                               
This region principally comprises the South African, Australian and Far Eastern
businesses of Softline (acquired in November 2003) and ACCPAC. Its revenues of 
approximately £16m generated an operating margin of approximately 16%.         
                                                                               
Softline's total revenue was approximately £16m, with an operating margin of   
approximately 15%. Of these revenues, approximately £14m, at an operating      
margin of approximately 15%, was generated in the Rest of World region. The    
remainder of Softline's contribution was in North America, and has been        
allocated accordingly within the Group results.                                
                                                                               
*Figures stated at constant exchange rates based on the average for the six    
months ended 31 March 2004.                                                    
                                                                               
Enquiries                                                                      
                                                                               
Tulchan Communications 020 7353 4200                                           
                                                                               
Julie Foster and Kirstie Hamilton