New Contract with Datakey

Intercede Group PLC
24 April 2002

                              INTERCEDE GROUP plc

                          ('Intercede' or 'the Group')



             Intercede Signs US$1 million OEM Contract with Datakey



Intercede, a leading developer of electronic identity management software, today
announces a new US$1 million contract to licence the latest version of its key
web-based management product, edeficeTM.



Intercede Group plc (IGP LN) (IGP.L), a leading developer of electronic identity
management software, and Datakey Inc., a leading US based developer of smart
card technology for securing e-business, announce that they have signed a
contract whereby Datakey will licence Intercede's edeficeTM technology for
incorporation into the Datakey product line.



Under the terms of this agreement, Datakey will purchase a minimum number of
licences on a quarterly basis, to a minimum revenue value of US$1m over a two
year period, subject to Datakey's inventory of licences not exceeding an agreed
maximum. The total value of this contract to Intercede during the financial year
ending 31 March 2003 will be at least US$260,000.



Richard Parris, Chief Executive of Intercede, said today:



'This is Intercede's third OEM contract with a smart card industry major, and
the second such partner in the United States. It provides further validation of
the strength of Intercede's technology in the global market, especially given
Datakey's reputation for delivering smart card solutions for high security
applications. Datakey's global distribution channels should significantly
enhance the revenue potential of our business by opening up new and fast growing
markets.'



Tim Russell, Vice President and General Manager of Datakey, added:



'Datakey identified the global market opportunity to incorporate smart card
management technology into our product lines more than a year ago. EdeficeTM
provides Datakey and its customers with a best of breed solution for simplifying
the issuance and management of Datakey cryptographic smart cards. We look
forward to a long and mutually beneficial relationship with Intercede.'

24 April 2002






ENQUIRIES:


Intercede Group plc                                 Tel. [phone]
Richard Parris, Chairman & Chief Executive
Andrew Walker, Finance Director

College Hill                                         Tel. [phone]
Archie Berens                               E-mail:[e-mail]
Clare Warren                                E-mail:[e-mail]





NOTES FOR EDITORS



About Intercede


Intercede Group plc (IGP LN) (IGP.L) is a leading developer and supplier of
electronic identity management software. Intercede is one of only three quoted
security software companies on the London Stock Exchange following its admission
to the Alternative Investment Market in January 2001. Intercede's edeficeTM
provides any organization with the tools required to quickly deploy, maintain
and manage smart cards, tokens, biometric and PKI technology. Intercede's
customers cover a range of industries and currently include Barclays Bank,
Lloyds TSB, the Department for Education and Skills, the NHS, Compaq and ICL.
For more information, visit Intercede's home page at http://
www.intercedegroup.com/ or call [phone].



About edeficeTM



Intercede's edeficeTM is powerful electronic identity management software
designed to enable secure, cost-effective and easy-to-deploy smart card, token,
biometric and PKI solutions ranging from logical and physical access to email
and transaction signing.



EdeficeTM enabled security solutions allow end users to enjoy faster and more
secure smart card-based access to PCs, networks and buildings, while providing
administrators with an intuitive web-based electronic identity issuance and life
cycle management tool.



For more information, visit the edeficeTM home page at http://www.edefice.com/
or call [phone].



                      This information is provided by RNS
            The company news service from the London Stock Exchange