Trading Update

Sopheon PLC
8 May 2000


                           Sopheon plc
                                                                
                FIRST QUARTER 2000 TRADING UPDATE

Sopheon  plc ('Sopheon') issues its trading update statement  for
the  three  months  ended 31 March 2000 in  accordance  with  the
requirements of the Euro.NM in Amsterdam.

Sopheon Operations

Sopheon has commenced 2000 with strong first quarter revenues, in
line with its internal business plan.  Several important software
and  services contracts have been signed during the quarter,  the
most  significant being a £580,000 order received as  part  of  a
consortium led by the Defence Evaluation and Research Association
('DERA')  which will deliver a substantial e-commerce  site  with
comprehensive knowledge management capabilities for the UK Public
Records Office.

Product  development has also proceeded at a rapid pace with  new
releases  of most core products being made available  during  the
first  months of this year as well as the development and release
of innovative new components such as Sopheon Modeler.  During the
coming quarter further important product releases are planned and
also the first industry focused Knowledge Management applications
utilising  the  powerful integration of Sopheon Composer  (former
PolyDoc  software)  and  Sopheon  Agents  (formerly  AppliedNet's
KnowledgeAgents software) are expected.

Following  the £20m share placing in early March 2000, an  active
recruitment  programme  has  expanded  the  group's   sales   and
marketing activities with the appointment of excellent people  in
the UK, Netherlands and the USA.

Acquisition of Teltech Resource Network Corporation ('Teltech')

Following  the announcement in early March 2000 of  the  proposed
acquisition  of  Teltech for US$14m in cash  and  US$20m  in  new
ordinary  shares,  Sopheon has filed the  Form  F-4  registration
documents with US Securities and Exchange Commission ('SEC').  It
is  anticipated that the acquisition will be completed within the
next  6  to 8 weeks following the review of the documents by  the
SEC.

Meanwhile, the existing Business Partnership relationship between
Sopheon and Teltech is enabling the managements of both companies
to  work  together  closely to develop current sales  and  future
collaborative  strategies.   This  relationship  is  expected  to
contribute  to  a  rapid  and  successful  integration   of   the
businesses when the acquisition has been completed.

About Sopheon

Sopheon  is  a  supplier  of knowledge  management  software  and
services  capitalised  at approximately £220m.   Its  shares  are
quoted on the UK Alternative Investment Market ('AIM') and on the
Euro.NM   in   Amsterdam.   Sopheon  is   now   has   operational
headquarters in Guildford, UK, and has offices in the Netherlands
and the USA.  Information on Sopheon's products is available on :
www.sopheon.com.


For further information, please contact :

Barry Mence, Chairman ([e-mail])[phone]
Richard Maddocks, Managing Director 
([e-mail])                 [phone]
Arif  Karimjee,  Finance  Director
([e-mail])                    [phone]

Steve Liebmann at Buchanan Communications
([e-mail])                      [phone]

Sopheon intends to file a registration statement with the SEC  on
Form  F-4 in connection with its acquisition of Teltech.  Teltech
shareholders  are  urged  to read the proxy  statement/prospectus
which  will be mailed to them.  Sopheon's registration  statement
will  be  available  at  no  charge  from  the  SEC's  web  site,
www.sec.gov.