SND.L Regulatory News (SND)

For Immediate Release 5 November 2010

SANDERSON GROUP PLC

Trading Update

"Good trading momentum with strong cash generation"

Sanderson Group plc ('Sanderson'), the software and IT services business specialising in multi-channel retail and manufacturing markets in the UK and Ireland, announces the following trading update ahead of the announcement of its preliminary results for the year ended 30th September 2010, due to be released on 30th November 2010.

As reported in the Interim Statement, the Group has continued to trade well with revenues and profitability expected to be above market expectations. Cash generation has been very strong and Group net debt again fell substantially during the year, ahead of market expectations. At 30th September 2010, net debt was just below £8.0million, compared with £9.96million at the end of the previous financial year.

Following the successful introduction of the Factory Automation and Business Assurance suites of products and services, the Group has continued to expand organically and to develop its managed service business. During the coming year, using the strong platform of this managed service business, the Group plans to launch a number of products and services based on the 'Software as a Service' model. The Group is also introducing a range of Green IT products which will enable customers to reduce power consumption from existing, as well as new, IT systems

Notwithstanding a degree of uncertainty regarding the general economic outlook, the Group continues to experience good trading momentum. The Group has continued to win an increasing level of business from new customers, which provides the Board with a good level of confidence going into the new financial year ending 30th September 2011.