Trading Statement

Intercede Group PLC
31 March 2006

31 MARCH 2006



                              INTERCEDE GROUP PLC

                         ('Intercede' or 'the Company')



               Trading Update for the Full Year to 31 March 2006



Intercede today provides an update on trading at the end of its financial year
ended 31 March 2006.



Intercede is pleased to report significant progress over the past year in
continuing to strengthen its position in the identity and smart card management
market. This market is relatively new, but is expected to grow rapidly as a
result of the increasing need for digital identities for employees, citizens and
individuals. It is likely that every citizen, and especially every employee, in
the US and EU will have a digital identity within the next 3 to 5 years.  We see
this becoming a global trend within the next 10 years.



During the financial year, we have added RSA Security and VeriSign to our
growing OEM partner list. SafeNet has also become an active OEM partner
following its acquisition of Datakey, a long term Intercede partner. RSA
Security, SafeNet and Verisign are the top three corporate IT security solutions
companies in the world. It is an outstanding achievement for Intercede to have
penetrated the main supply chains which service its target market. The fact that
large, global entities such as these are choosing to
partner with Intercede is a major endorsement for its MyID identity and smart
card management software.



The US Federal Government's, Homeland Security Presidential Decision-12, known
as HSPD-12, is creating a major new and specific market opportunity for
Intercede's MyID technology. This directive stated that smart card identity
badges will be issued to all US Federal Government employees and contractors
starting in October 2006. HSPD-12 is also accelerating the use of smart cards in
the rest of the US market. Through its partner network, Intercede is in an
excellent position to exploit this rapid growth as the US becomes the largest
single market for smart card technology. It is too early to say with certainty
when the contracts to procure the necessary technology will be awarded.
However, Intercede has developed strong links with a range of partners who will
be actively involved in this process and is therefore well placed to exploit
this market opportunity at its earliest stages.



The outturn for the current year is now expected to result in revenues that will
be slightly lower than previously expected and a small loss is expected to be
incurred. The year end cash balance will, however, close ahead of target. This
is primarily the  result of the accounting treatment of a non-refundable payment
of £0.3m for OEM licences. Although the payment was received in January 2006, it
will nevertheless be taken as revenue in the financial year ending 31 March
2007.



Intercede expects to announce its full year results towards the end of May 2006.


About Intercede

Intercede Group plc is a leading developer and supplier of smart card and
identity management software listed on the London Stock Exchange (IGP LN)
(IGP.L). The Group's MyID 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, Department of Transport Ireland, Fujitsu, Getronics PinkRoccade,
GemPlus, Lloyds TSB, National Health Service (NHS), Metropolitan Police,
Oberthur Card Systems, RSA Security, Royal Bank of Scotland, SafeNet, Siemens,
Thales, Ubizen, VeriSign and various US and UK Government agencies and
departments. For more information, visit www.intercede.com

Intercede and MyID are registered trademarks or trademarks in the UK and/or
other countries.




ENQUIRIES


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

Pelham Public Relations                            Tel.      [phone]
Archie Berens




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