Trading Statement

Intercede Group PLC
31 March 2005


Intercede Group plc


Press Release - Trading Statement

Trading Update for the Full Year to 31 March 2005

Intercede are delighted to report significant progress in the second half of the
year ending 31 March 2005. Several significant new contracts have been closed
and the Group's international distribution channels have started to generate
both revenues and new prospects. As a result of this success, we anticipate
being able to report financial breakeven for the second half of the current year
in both profit and cashflow terms. Additionally, we can report our largest ever
forward order book and sales pipeline for the next financial year.

Since 30 September 2004, the following orders have been received:
     
1.   DoT Ireland

     Intercede has been selected by the Irish Department of Transport to provide 
     its MyID smart card and identity management software for the secure 
     enrolment, processing and management of digital tachograph cards.

2.   Gemplus

     An order in excess of £0.5m has been received from Gemplus, a leading 
     provider of smart card solutions, for a major European customer.

3.   RSA Security

     Partnered with RSA Security to win an initial order with a prestigious 
     European aerospace contractor.

4.   European Notaries

     Secured a strategically important win with an Association of European 
     Notaries to issue smart cards to all of the notaries in that country.

5.   The British Library

     Following a public tender, Intercede was awarded a contract to issue smart 
     cards to all of the British Library's employees.

6.   Major Russian Telecoms Company

     After a successful test installation, the rollout of production licences 
     has commenced to a major Russian Telecoms Company.

Within the last few weeks, we have also been advised that we have been
successful in bids for a major US aerospace contractor, a major UK clearing bank
and a major European insurance group. Further details will be provided as
appropriate as contracts are finalised.

All of these wins are encouraging, although the US aerospace order is perhaps
the most worthy of note given the potential scale of the US Federal Government
market.

This is a major new market that is opening up rapidly as a result of Homeland
Security Presidential Directive #12 and the subsequent publication of the
FIPS-201 standards document on 8 March 2005. This publication opens the way to
the rebadging of all Federal employees with smart cards. This is a massive
undertaking and the major industry providers have started to build their product
portfolios in anticipation of the first Invitations for Tender being issued
later this year. MyID is perceived to be one of a small number of suitable
commercial products and the US Government demands multiple sources of supply.

The Directors believe that Intercede is in a very strong position to harvest a
portion of this market - we have the technology and the US partners either in
place or under late stage negotiations. Furthermore, recent Intercede contract
wins have led to the viral marketing of our reputation as one of the 'best
products' for the job within US smart card circles.

About Intercede

Intercede Group plc is a leading developer and supplier of smart card and
identity management software traded on AIM, a market operated by the London
Stock Exchange (IGP LN) (IGP.L). The Group's MyID(TM) software manages the 
secure registration, issuance and lifecycle of digital identities for a wide
range of uses. This requires the integration of multiple technologies and
products from many different vendors, including smart cards, biometrics, digital
certificates and Open Platform applets.

Intercede's customers cover a range of industries and include Athena Smartcard
Solutions, Barclays Bank, BEWAG, Department of Transport Ireland, Fujitsu,
Lloyds TSB, the UK National Health Service (NHS), the Metropolitan Police,
PinkRoccade, Royal Bank of Scotland, RSA Security, Ubizen and various US and UK
Government agencies and departments.

For more information, visit www.intercede.com.

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




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