Trading Statement

Ingenta PLC
13 October 2004

          
Date:     Embargoed until 09.00am, Wednesday 13 October 2004

Contacts: Martyn Rose, Chairman
          Mark Rowse, Chief Executive
          Ingenta
          Tel:  [phone]
          Website:  www.Ingenta.com

          Alistair Mackinnon-Musson
          Philip Dennis
          Hudson Sandler
          Tel:  [phone]
          Email:  [e-mail]



                                  Ingenta plc

                                 Trading Update

                          Board and Management Changes


Trading update: 12 months to 30 September 2004

Ingenta plc, the technology and services provider to the publishing and
information industries, announced in June 2004 that it had changed its financial
reporting period end from 30 September to 31 December.  This announcement
includes unaudited results for the 12 months ended 30 September 2004 in order to
provide shareholders with information on the Group's progress prior to the
announcement in March 2005 of the audited results for the 15 months to 31
December 2004.

Overall trading results for the 12 months to 30 September 2004 have shown a
modest but nevertheless improving trend compared to 2003. On the basis of
unaudited management accounts for the period, turnover in the 6 months ended 30
September 2004 is expected to be broadly in line with the £3.6m achieved in the
6 months to 31 March 2004. Whilst top line revenue has not met management's
expectations, largely due to delays in the signature and recognition of revenue
from new contracts, the Group has, however, halted the trend of declining
turnover over the previous 18 months. Gross margins for the period were steady
and overheads continued to decline, as expected, producing an improved net
trading performance in the second half of the year.

At the time of the Interim Statement in June 2004 it was anticipated the Company
would be required to apply the International Reporting Standards for software
design and development costs by capitalising such items which, at the time, were
£0.4m. The Board has subsequently taken the view that a more conservative
approach should be taken and therefore it does not intend to capitalise these
costs but instead continue to expense all software design and development costs
as they arise through the profit and loss account. On this basis, the Group
produced a restated unaudited loss before tax and exceptional items of £(1.1)m
for the first 6 months (6 months to 31 March 2003: £(1.8)m).

As previously announced, the Group has been seeking to broaden its addressable
market, building on a proven track record of delivery of technology-based
services to academic and professional publishers by creating products and
services which are attractive both to the larger academic publishers who already
have an in-house Internet delivery capability, as well as many new prospective
customers in other publishing markets.

The first step in the successful execution of this strategy was marked by the
signing during the period of two major sales based around the Group's new
Information Commerce initiative.  A sale of the Company's new licenced software
product to Institute of Physics Publishing and a contract to provide a managed
service for the British Standards Institute will together generate over £0.8m of
revenue, of which £0.6m will be recognised during 2005. Benefiting from over £1m
of investment, of which some £0.7m has been written-off in the 12 months to 30
September 2004, this product allows publishers to manage their digital rights;
to link their Internet publication systems with their traditional paper-based
systems; and to create and market new products and generate new revenues from
their published material.

Board and Management changes

The Board has concluded it is the right time for a change in the mix of skills
within the management team and structure to ensure delivery of the Group's 2005
and 2006 plans. It is therefore pleased to announce that with effect from 13
October 2004 Simon Dessain will be appointed CEO, responsible for delivering the
Group's results and pursuing its opportunities for growth whilst maintaining its
traditional strengths in the academic and professional publishing markets. Mark
Rowse will become a Non-executive Director and will pursue new business and
corporate development activities.

As part of the new management structure certain sales reporting lines are being
consolidated in order to provide the Group with a greater sales focus. These and
other changes will streamline the Group's management team and will provide
improved efficiency for the 2005 financial year.

In connection with his appointment, Simon Dessain has been granted options to
subscribe for up to 2.5m new Ordinary Shares of 5p each in Ingenta at 5p per
share, of which 1.0m options are conditional on the Company producing an audited
net profit before tax for the year ending 31 December 2005 and up to a further
1.5m options, on a sliding scale basis, are conditional on the Company's net
profits before tax for the year ending 31 December 2006 exceeding £1.0m, up to a
maximum of £2.0m.  His salary remains unchanged.

Current trading and prospects

The Board expects the results for the final three months of the current
reporting period to 31st December 2004 to produce near break even trading at the
EBITDA level.  This continued strengthening of the Group's market position,
taken together with the benefits beginning to be felt from the stronger new
order pipeline and continuing cost reduction initiatives, should place it in an
improved position as it enters its 2005 financial year.



                                 - ENDS -




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