Trading Statement

System C Healthcare plc
16 January 2007


             System C Healthcare plc ("System C" or "the Company")

                               Trading Statement


Current trading

As we said at the time of our preliminary results in September 2006, System C
continues to operate in challenging conditions in our core English market. 
Within the NHS National Programme for IT ("the National Programme"), Accenture's 
announcement in September 2006 of their withdrawal from the National Programme, 
and the final transfer of LSP responsibilities from Accenture to CSC in the 
North East and East clusters on January 8th 2007, led to a hiatus in deployments 
during this period.

Now that the LSP situation has been resolved, deployment progress on the 
National Programme is beginning to improve, but it is now clear that the ramp-up 
will be more gradual than the rapid acceleration we had previously expected. 
Under these circumstances, whilst prospects for the latter months of this 
financial year are improved, the Board now expects to announce results that, 
whilst profitable, will be significantly below current market expectations for 
the year ending 31st May 2007.  

Contract negotiations

Looking ahead, System C is currently concluding contract details with a number
of clients within the National Programme, and we are confident that, once these
negotiations have been successfully completed, we will have a contracted order
book that underwrites a significant proportion of our Services revenue in the
financial year ending 31st May 2008. Also, our specialist expertise and
excellent reputation in our marketplace puts us in a strong position to secure
additional work and expand upon the contracted minimum order book.

Contract wins

Outside the National Programme, we have continued to diversify into the private
sector and have secured a new contract to provide specialist IT healthcare
support services to a major player in diagnostic services.

We are also delighted to announce that we have signed a framework agreement for
a major multi-million pound contract to supply our MedWay Patient Management and
Electronic Patient Record system and various ancillary products and services to
an independent healthcare community. This is the first large-scale system
procurement of its type for some time, and it is very encouraging that we were
able to win it against competition from all the major global product suppliers.
This success demonstrates the strength of our MedWay product suite, and as a
result, we now have a forward order book that covers a significant proportion of
our Product revenues for the financial year ending May 31st 2008.

Interim results

We will be announcing our half-year results on 24th January 2007, and despite
the difficult trading conditions, the Company expects to announce a modest
profit before tax for the half year ending 30th November 2006.

Conclusion

The Board continues to believe that healthcare informatics has a strong future,
and despite these turbulent times, we continue to focus on building the long
term order book, expanding the client base, and protecting our strong cash
position. We are ensuring that we retain flexibility in our business to support
long term opportunities, and will be placing increasing focus on the creation of
new products for both the UK and international healthcare markets.


16 January 2007


Notes to Editors

About System C

System C Healthcare plc, established in 1983, specialises in the provision of
information systems and solutions to the healthcare sector. Its team of
professionals has an average of 14 years healthcare experience and can provide
all aspects of systems design, development and deployment services. System C is
founded upon the belief that IT solutions, when effectively implemented, can
significantly contribute towards improving patient care.

System C has installed patient-focused IT systems at over 30 NHS Trusts. The
company also offers a wide range of services to Local Service Providers, the NHS
and third-party suppliers. These include programme/project/change management,
design, build and test, implementation, training, data migration, interfacing
and helpdesk/support services.

System C employs around 180 staff who are divided between the company's offices
in Maidstone, Warrington and Bristol as well as being located throughout the UK
at customer sites. System C was recently voted 60th in the Sunday Times 100 best
SMEs to work for in 2006. The company has ISO 9001 quality accreditation and
encourages staff development through the National Standard, Investors in People,
and has accreditation from the Institute of IT Training. System C is a member of
Health Level Seven UK (HL7 UK), a group of leading suppliers promoting effective
and consistent implementation of healthcare information standards in the UK.
Website: www.systemc.com

For further information please contact

System C Healthcare plc
Jim Horsburgh, Chairman
Dr Ian Denley, Chief Executive
Andrew Coll, Finance Director                          Tel: [phone]

Maitland
Emma Burdett
Brian Hudspith                                         Tel: [phone]





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