Kainos Group Regulatory News (KNOS)

ANNOUNCEMENT

6 September 2016

Kainos Group plc

("Kainos" or "the Group")

Trading Update

- Group maintains guidance for current year -

Kainos Group plc (KNOS), a leading UK-based provider of IT, consulting and software solutions, today issues a trading update for the period from 1 April 2016 to 31 August 2016.

In the Digital Services division, the Group is experiencing good growth in the public sector. Demand from central and regional government clients continues to strengthen, with notable new contract wins at the National Offender Management Service and the Home Office.

Demand for WorkSmart services is strong in the UK and mainland Europe, where the Group has added a number of new enterprise clients, including Tullett Prebon Group Limited. Take-up of the Group's SaaS-based automated testing product, Smart, is solid and the Group continues to invest in both product development and sales and marketing for Smart.

The Evolve division continues to make progress with its Integrated Care SaaS platform and has signed a five-year subscription agreement with Hygieia to use Evolve to power its insulin therapy navigation application which aims to help diabetics systematically manage their changing insulin requirements. In the UK, the Evolve for iPad™ offering, which allows clinicians to access electronic patient records on the move, is now in live operation at the South East Coast Ambulance Service. Market conditions in the NHS remain challenging, with limited additional funding to drive demand.

Although the outcome of the UK's referendum on Europe ('Brexit') brings with it some uncertainties, the Group continues to see immediate opportunities for growth.

Kainos has a robust balance sheet with strong reserves, no debt and strong cash generation, as well as a growing level of recurring revenue. The Group expects results for the full year to be in line with market expectations.

-ENDS-

For further information, please contact:

Kainos via FTI Consulting LLP

Brendan Mooney, Chief Executive Officer

Brian Gannon, SVP Corporate Development

Investec Bank plc +44 20 7597 5970

Dominic Emery/Sebastian Lawrence

Patrick Robb/Matt Lewis

FTI Consulting LLP +44 20 3727 1000

Matt Dixon/Chris Lane

About Kainos

Kainos is a UK-based provider of IT services, consulting and software solutions. It specialises across multiple sectors in the development of digital technology solutions, including software design and agile software development. The Group's Evolve Electronic Medical Records (EMR) product provides a market-leading comprehensive suite of digital services to healthcare providers such as hospitals and community care organisations. Kainos has also developed an automated testing product, Smart, to complement its Workday implementation services.

Kainos Group plc (KNOS) is listed on the main market of the London Stock Exchange. At 31 March 2016, it had almost 800 staff working in eight offices in the USA, UK, Ireland, Poland and the Netherlands.

For further information please visit the company website: https://www.kainos.com/