Re Contract

Intercede Group PLC
7 December 2001

                             INTERCEDE GROUP plc
                         ('Intercede' or 'the Group')

Intercede announce new OEM contract

Intercede, a leading developer of security management software for smart
cards, today announces an agreement with a world leader in digital identity
technology. This new OEM Partner is to license Intercede's edefice(TM) software
to web-enable its new range of authentication infrastructure products.

Intercede Group plc (AIM: IGP) today announces that a Nasdaq listed technology
company has signed an OEM agreement to embed elements of Intercede's edefice(TM)
distributed security management system across its range of smart card and
digital identity software products. The details of this contract are
confidential at the Partner's request, pending the market release of its next
generation products.

This new contract is in addition to Intercede's existing OEM contract with
Oberthur Card Systems, and consolidates Intercede's position as a leading
international supplier of security management software for smart cards.

Under the terms of the OEM agreement, the Partner will license edefice(TM) on a
per user basis for each digital ID device (smart card, USB key or token) that
is managed by the Partner's products in a Microsoft environment. The agreement
includes a commitment by the Partner to buy an initial number of licences to
the value of  US$800,000 against a series of development milestones which are
scheduled for completion by March 2002.

The Partner will use edefice(TM) software components to web-enable its smart 
card and token solutions for enterprises, service providers and governments 
engaged in e-business over any IP-based network including the Internet and 
wireless. The edefice(TM) technology will provide the user interface to allow 
the Partner's customers to securely issue and manage the lifecycle of smart 
cards, authentication tokens, PKI certificates and other credentials from any 
web browser equipped with a smart card reader according to centrally defined
policies.

Richard Parris, Chairman and Chief Executive of Intercede, commented:

'We are delighted that this industry leader has chosen edefice(TM) to web-enable
their new range of authentication infrastructure products. This contract
demonstrates that Intercede is developing security software to the standards
required by the best 'Silicon Valley' companies. As a major global provider of
digital ID solutions, our Partner has wide access to a number of significant
international channel partners including security service companies, computer
hardware manufacturers, operating systems developers and systems integrators.
Additionally, as a major supplier to the US Government, our Partner is
exceptionally well positioned to benefit from significant growth in the smart
card network security market. We at Intercede are excited at the potential to
share in this growth.'

                                                               7 December 2001

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 is a leading developer of security 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. Through its edefice(TM) software suite, Intercede
provides organisations with the tools they require to efficiently deploy,
maintain and manage smart card and PKI technology. Intercede's customers cover
a range of industries and include Barclays Bank, Lloyds TSB, the Government,
the NHS, Compaq and ICL. For more information, visit Intercede's home page at
http://www.intercedegroup.com or call [phone].