Third Quarter Trading Update

Sopheon PLC
1 December 2000


FOR IMMEDIATE RELEASE                                           1 December 2000

                                 Sopheon plc


                      THIRD QUARTER 2000 TRADING UPDATE

Sopheon plc ('Sopheon'), the international knowledge management software,
services and content group, issues its summary trading update statement for
the three months ended 30 September 2000 in accordance with the requirements
of the Euronext in Amsterdam, incorporating statements already issued during
the period.  Sopheon has operations in the UK, USA and the Netherlands; its
shares are traded on AIM in London and on the Euronext in Amsterdam.


Corporate Developments


As previously announced the two most significant events in the third quarter
were the completion of the Teltech acquisition and the finalisation of the
agreement with Product Development Institute ('PDI').

On 15 September 2000 we completed the acquisition of Teltech Resource Network
Corporation. The final net consideration was $35 million (£24 million) using a
price per Sopheon share of $7.95, a computed average based on a formula in the
merger agreement.  $15 million (£10 million) of the total consideration was in
cash with the remainder being satisfied by the allotment of shares and
options. The cash element for this transaction was raised earlier in the year
together with the working capital required for the further development of the
enlarged group.  As a result of the Teltech acquisition, Sopheon has
significant operations in each of the UK, USA and the Netherlands with over
250 employees worldwide.

Following the completion of this acquisition we also announced a number of
changes to our board and management structure, led by the appointment of Andy
Michuda the former CEO of Teltech becoming the Sopheon CEO. In addition, Joe
Shuster the Chairman and founder of Teltech Resource Network Corporation
became a non-executive director of Sopheon Plc.

In line with our objective to develop a number of long term, strong and
profitable business partnerships, we cemented our partnership with the
Ontario-based Product Development Institute ('PDI') during the period. The
partnership has focused initially on the development of an automated version
of PDI's Stage-GateTM* new-product development system, with the working name
Accolade. It will provide a complete, integrated set of tools, research
capabilities and software solutions that will serve as the backbone of a
company's product development process and dramatically boost new product
success rates.  Accolade was unveiled at the recent PDMA conference in New
Orleans and was very well received.

This strategic relationship between Sopheon and PDI is an excellent
illustration of the potential power of the synergy between Sopheon's software
technologies and Teltech's research and knowledge management competencies,
that typifies the benefits we perceive from the merger of the two
organisations.


Further developments in the area of new strategic partnerships are planned and
we look forward to announcing developments in this area in the short term.

Operational Review and Outlook

Alongside the daily running of the separate businesses the primary emphasis of
management during the third quarter was to plan and prepare for the
integration and restructuring of Teltech and Sopheon into one Global company.
This includes the integration, repackaging and rebranding of existing services
and products to offer knowledge intensive business solutions providing
software, services and content from one source to targeted industries.

Our customer group of major teaching hospitals in the Netherlands went live
with Sopheon's healthcare solution and we also secured an agreement to add to
the system with the development of an automated agent to read and forward
relevant information to support evidence-based medicine.  The production of
content for our healthcare solution is well under way and we expect further
hospitals to take our system as we go forward. Our prospect list includes
healthcare organisations in Holland, Germany, the UK and North America.

The former Teltech business continues to be acknowledged for its
industry-leading best practices and was recognized by KM World magazine as one
of the '100 Companies That Matter' in knowledge management. Teltech's research
solution was also awarded Chief Information Officer magazine's July edition
international Web Business 50/50 award as a premier online site. Other
significant events during the quarter include the completion of a
sophisticated content taxonomy for the extranet of one of the world's top
research firms and the deployment of Teltech's portal for organisation-wide
use by a leading chemical company. Introduction of Teltech solutions into our
European markets is gathering pace, and early signs of success give us
confidence in the growth potential.

Investment in development, marketing and sales support for new products and
services has continued throughout the period. We are focusing on developing
applications that integrate our joint offering, and are building the
organisation to deliver accelerated software sales through 2001 and the
consulting and content services we expect such products would pull through in
our European and North American markets. Accolade is the first of these
integrated solutions. We have also invested in repackaging and integrating our
software components such as Sopheon Composer and Sopheon Terms, to facilitate
customers more rapidly to develop content creation and management applications
with the help of our consultants. This effort also involves updating of the
core modules with a specific emphasis on web integration. The other principal
area of product investment was to build on the portal products acquired with
Teltech, and we look forward to making announcements on this subject very
shortly.

The integration and refocusing of our organization, together with the impact
of current market conditions in the software integration industry, has
resulted in a flattening in our traditional consultancy and application
development businesses on both sides of the Atlantic. Accordingly, while the
outlook for the current year is for pro-forma combined revenue to show
reasonable growth compared with the previous year, we do not expect that
growth to meet market expectations for 2000. Operating losses for the year
will be higher than in the past, reflecting the accelerated investment in the
business in preparation for deployment of our new integrated solutions during
2001.  We are establishing the building blocks for more significant growth in
revenue as the new offerings start to penetrate our markets, and would expect
this to contribute to reduced losses next year.

'During the first 9 months of 2000 we have brought together two companies from
each side of the Atlantic and raised the working capital to support the
development of the combined businesses' said Barry Mence, Sopheon's Chairman.
'We recognise the challenges that lie ahead for Sopheon as we progress through
these rapid stages of development and I firmly believe that the Group is well
positioned and equipped to meet them. We view the future with confidence and
optimism. We are particularly excited by the significant interest shown in
Accolade by the new-product development community since PDMA, and are already
working on a number of opportunities for launching customers for the product.'


For further information contact :


Barry Mence,   ([e-mail])   Sopheon plc     + 44 (0)1483-883000
Chairman                                                           

Arif Karimjee, ([e-mail]) Sopheon plc     + 44 (0)1483-883000
CFO 
                                                               
Steve Liebmann  ([e-mail]) Buchanan         + 44 (0)207-466-5000
                                         Communications
            
Terry Davidson  ([e-mail])      Eurocommunications + 32 (0)2 640 92 07
                                        Group