Third Quarter Trading Update

Microgen PLC
23 October 2001


For Immediate Release                          23 October 2001


                              MICROGEN PLC

                         Third Quarter Trading Update


In the current market environment, the Board believe that it is appropriate to
provide an update on performance for the 9 months to 30 September 2001.
                              

The Microgen-Kaisha consultancy division has continued to deliver strong
profitability during the third quarter, managing the cost base in line with
the business growth rate and maintaining high utilisation levels.


The Microgen-Telesmart division has continued the progress made during the
first half of the year with consistent profitability. The transition to
e-services continues to be satisfactory with notable contract successes.


While it is undeniable that the IT sector has slowed during the year, the
Board's financial control continues to prove effective in maintaining both
profitability and positive cash flow. Overall the Board anticipate that the
Group will continue with the positive trend seen during the first nine months
which would produce revenue in line with, and profitability towards the upper
end of, our expectations for the current year and position the Group well for
2002.



Contact :


Mike Phillips, Group Finance Director                              01753-847123

Steve Liebmann, Buchanan Communications                           0207-466-5000