Trading Update

Intercede Group PLC
25 February 2002







INTERCEDE GROUP plc

                          ('Intercede' or 'the Group')

                                 Trading Update


Intercede, a leading developer of security management software, today provides
an update on trading ahead of its preliminary results for the year ended 31
March 2002.



In the period following its admission onto AIM, the Group has taken steps to
position itself as a global business, able to earn long term revenues for its
proprietary product, edefice. A great deal of time and effort has been devoted
to this purpose, culminating in the release of edefice 6.0, as announced on 16
October 2001.



At the time of the interim results announced in December 2001, the Board also
advised that, whilst a move away from UK based project work was inevitably
serving to reduce short term revenues, encouraging progress had been made with
the announcement of OEM agreements with two major smart card industry players.
This will result in the incorporation of edefice into those companies' core
product lines, thereby offering considerable scope for the generation of
significant future revenues.



Whilst further progress has been made in the second half of the financial year,
short term revenues have continued to be depressed in a difficult and slow
moving market. As a result, revenues for the second half are likely to be
broadly in line with the first half, prior to consideration of the $800,000 up
front commitment from our OEM partner referred to below.



Good progress is being made both with the existing partner relationships and
further potential partners. The Group's technology is now being actively
marketed as a core part of Oberthur's AuthentIC Security Manager solution. This
has already resulted in edefice effectively forming part of Oberthur's offering
for a number of high profile projects around the world which are expected to be
placed within the next 12 months.



The other OEM agreement, which was announced on 7 December 2001, included a
commitment to buy an initial number of licences to the value of $800,000 against
a series of development milestones. To date $400,000 has been paid over to
Intercede and it is anticipated that the balance will be received by 31 March
2002. Having due regard for current market concerns about revenue recognition,
the accounting treatment of the $800,000 will be determined as part of the year
end audit process.



Whilst the Directors believe that the two existing OEM agreements are
sufficiently significant to see the Group through to profitability in due
course, discussions with a number of other major industry players are already
taking place. Further updates on progress will be provided as and when
agreements are signed.







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



'I am pleased with the progress being made to consolidate Intercede's position
as a leading international supplier of security management software for smart
cards.



Although trading conditions have remained difficult throughout the current
financial period, the Group has made significant progress in establishing a
platform for the generation of significant future revenues. We will continue to
work closely with existing and future partners to fulfil our ambition of
becoming a major player in the global IT security management market.'




                                                                25 February 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]







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