Trading Statement

GRESHAM COMPUTING PLC
5 August 1999


           GRESHAM COMPUTING PLC ('GRESHAM')
                           
                   TRADING STATEMENT

Gresham  announced  on  10 June 1999  that  'growth  in certain  sectors will
inevitably be impacted  by  short term  year  2000 freezes in new project
starts  in  the second half of this year.  We anticipate that this may result 
in our UK Financial Services and Specialist Contact Staff and Placement 
businesses being less buoyant in the second half'.

During  the  third quarter Gresham's  outlook  for  the second  half  of the
financial year to 31 October  1999 has been severely affected, in particular,
by: 

-  Extreme  pricing  pressure  in  the  major   market
   sectors  of  our  UK  Financial Services  division.
   This  has led to reduced contract rates, fewer than
   expected contract wins and the terminations of  one
   major  ongoing contract and also a new contract  in
   respect of which signed letters of intent had  been
   exchanged.
   
-  The  sale  of  certain  material  licences  in  the
   Financial  Services  division being  delayed  until
   after the start of the year 2000.
   
-  Slower  than  expected sales  of  our  new  Storage
   Management business in the US.
   
-  Whilst  Gresham's e-business solutions and  testing
   businesses are performing satisfactorily,  progress
   made has not mitigated shortfalls elsewhere in  the
   Group.

As  a  result  of these factors, Gresham will  incur  a significant loss in
the third quarter.  Over  the  last few  months  the  Group's senior 
management  has  been strengthened  and immediate action has  been  taken  to
improve  the  performance  of the  Group's  businesses,including a reduction
in the cost base, which will take effect through the fourth quarter.  Whilest
it is still too  early to determine the outcome of the second half, the 
Directors consider that the overall result for the current  financial year
will be significantly short  of current market expectations.

Gresham's markets are likely to remain highly uncertain for  the near future
and adverse conditions are  likely to  continue into the first quarter of
2000.   However,the Board believes that progress will continue in the e-
business  and  testing  areas  and  that  the   Group's Financial Services
business remains well placed to take advantage of the widely predicted upturn
in 2000.

ENQUIRIES:

Gresham Computing plc                                          01489 555 500
Trevor Read, Chief Executive
Dean Osman, Finance Director
                           
Square Mile Communications Limited                             0171 601 1000
Tim Jackaman/James Melville-Ross