Trading & Acquisition

Microgen PLC
13 July 2005


microgen
Information Management Solutions

www.microgen.co.uk


13 July 2005

For release at 7-00am


                                 Trading Update

     Acquisition of Lynx Wealth  Management Systems (Guernsey) Limited ('LWMS')


The strong performance in Q1, as reported in the AGM trading update in April,
provided a solid foundation for the first half of the year, although the
customer caution experienced at that time continued through Q2. However through
prudent management the Board expects that results for the 6 month period ended
30 June 2005 will be in line with the increased profit expectations, producing a
strong performance in the half-year. Net funds at 30 June 2005 were £17.1
million before the acquisition of R/Base Limited and LWMS.

In recent years, Microgen has reported results in a timely manner. However, the
period ended 30 June 2005 is the first reporting period under IFRS and,
therefore, the Board intends to defer the release of the interim results to
September. Current indications are that the accounting changes required by the
adoption of IFRS will not have a material impact on the results of Microgen plc.


Acquisition of LWMS


Microgen plc has acquired the entire issued share capital of LWMS, a leading
provider of trust, fund and private banking systems. Further information on LWMS
can be found at www.lynx-wms.com.


The cash consideration paid in respect of the issued share capital of LWMS is
£2.1 million. The net debt of LWMS as at 30 June 2005 was £1.6 million which
Microgen intends to repay. There are no deferred payments.


LWMS is headquartered in Eastleigh, Hampshire, with sales/support offices in
Guernsey, Isle of Man and Cayman. For the 12 month period to 30 September 2004,
unaudited consolidated management accounts report revenue of £5.6 million and an
operating profit before exceptional items of £0.06 million, although operating
performance has deteriorated in the current financial year. As at 30 June 2005,
LWMS had unaudited net liabilities of £2.4 million, including the net debt of
£1.6 million.


LWMS will be integrated into Microgen's Asset Management business within the
Group's Financial Services division. LWMS's current premises in Eastleigh will
be vacated in September without further liability to Microgen. Restructuring
charges associated with the integration are estimated to be in the order of £0.4
million which will be incurred in the current financial year.


Contact :


Mike Phillips, Group Finance Director                    01753-847122

Giles Sanderson, Financial Dynamics                      020-7831-3113
Ben Way, Financial Dynamics


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