Aptitude Regulatory News (APTD)

microgen

www.microgen.com

13 May 2013

INTERIM MANAGEMENT STATEMENT

Microgen plc ('Microgen' or 'Group') provides its Interim Management Statement covering the period from 1 January 2013 to the date of this announcement. Microgen released its final results for the year ending 31 December 2012 on 25 February 2013.

There have been no significant changes since 1 January 2013 in the financial position of Microgen and its balance sheet remains strong. The Group had net cash at 30 April 2013 of £32.3 million (31 December 2012 : £32.1 million) before payment of the dividend and special dividend totalling £6.1 million, scheduled for 28 May 2013.

The Board remains satisfied with the financial performance of the Group with benefit continuing to be received from its conservative operational approach and annual licencing model. The Financial Systems Division has commenced delivery of a significant 5Series project with a large global bank and continues to perform satisfactorily. The Microgen Aptitude Solutions Division ("MASD") has started implementation of a major new financial services project in North America based on both Microgen Aptitude and Accounting Hub. In addition, MASD has further strengthened its intellectual property portfolio with three new patents being granted by the US Patent Office since 1 January 2013 in respect of the Microgen Aptitude technology.

Strategic Review

The Microgen Group continues to be financially very robust with a strong balance sheet and consistent profitability/cash flow. Following payment of the dividend and special dividend, through the Board's pro-active shareholder realisation programme, Microgen will have returned to shareholders 100% of the market capitalisation as at 13 October 2008 via dividends, special dividends, tender offers and share buy-backs.

The Microgen Aptitude technology and related applications (e.g. Microgen Accounting Hub) continue to be affirmed as being market leading. Originally targeted at the financial services sector, which remains the core of the business, Microgen Aptitude has also established a strong reputation in the digital media sector and is now developing opportunities in both the telecom and healthcare sectors.

The Financial Systems Division operates in more established product categories with high recurring revenues. The core business which operates within the financial services sector has been stable for a number of years and continues to provide predictable cash flows. Furthermore, the investment in the development of the 5Series Trust & Fund administration product and an increasingly active wealth management market, have resulted in a number of new customer wins during the past year as well as upgrades from the previous 4Series product version.

Notwithstanding these strengths and the success of the shareholder realisation programme since October 2008, Microgen is constrained as a result of being a small, independent public company. As a provider of enterprise solutions in a risk-averse market environment, the size of the group can be an inhibitor given the very large enterprise software companies with which MASD typically competes. As a result, the Board has determined this to be an appropriate time to evaluate the Group's future strategy to maximise the potential of Microgen's market-leading technology and applications and has therefore decided to undertake a strategic review of the Group.

Given the financial strength of Microgen, continuing with the current strategy and structure remains a viable option. Nevertheless, the strategic review will be wide-ranging and may, or may not, result in the disposal of one or both of the operating divisions. Alternatively, the Board will also consider the merits of acquisition(s) to increase the scale of the Group, including acquisition(s) which may or may not provide operating synergies with the current operating divisions. Investec Bank Plc has been appointed to assist the Board in the strategic review.

The Board anticipates that this process will take several months. Further announcements will be made as appropriate.

Contacts

Martyn Ratcliffe, Chairman 020-7496-8100

David Sherriff, Chief Executive Officer

Philip Wood, Group Finance Director

James Melville-Ross, FTI Consulting 020-7831-3113

Lucy Delaney, FTI Consulting

Rowena Murray, Investec Bank Plc 020-7597 5970

Andrew Pinder, Investec Bank Plc