Trading Statement

31 Mar 2005 07:00

Intercede Group PLC31 March 2005 Intercede Group plc Press Release - Trading Statement Trading Update for the Full Year to 31 March 2005 Intercede are delighted to report significant progress in the second half of theyear ending 31 March 2005. Several significant new contracts have been closedand the Group's international distribution channels have started to generateboth revenues and new prospects. As a result of this success, we anticipatebeing able to report financial breakeven for the second half of the current yearin both profit and cashflow terms. Additionally, we can report our largest everforward order book and sales pipeline for the next financial year. Since 30 September 2004, the following orders have been received: 1. DoT Ireland Intercede has been selected by the Irish Department of Transport to provide its MyID smart card and identity management software for the secure enrolment, processing and management of digital tachograph cards. 2. Gemplus An order in excess of £0.5m has been received from Gemplus, a leading provider of smart card solutions, for a major European customer. 3. RSA Security Partnered with RSA Security to win an initial order with a prestigious European aerospace contractor. 4. European Notaries Secured a strategically important win with an Association of European Notaries to issue smart cards to all of the notaries in that country. 5. The British Library Following a public tender, Intercede was awarded a contract to issue smart cards to all of the British Library's employees. 6. Major Russian Telecoms Company After a successful test installation, the rollout of production licences has commenced to a major Russian Telecoms Company. Within the last few weeks, we have also been advised that we have beensuccessful in bids for a major US aerospace contractor, a major UK clearing bankand a major European insurance group. Further details will be provided asappropriate as contracts are finalised. All of these wins are encouraging, although the US aerospace order is perhapsthe most worthy of note given the potential scale of the US Federal Governmentmarket. This is a major new market that is opening up rapidly as a result of HomelandSecurity Presidential Directive #12 and the subsequent publication of theFIPS-201 standards document on 8 March 2005. This publication opens the way tothe rebadging of all Federal employees with smart cards. This is a massiveundertaking and the major industry providers have started to build their productportfolios in anticipation of the first Invitations for Tender being issuedlater this year. MyID is perceived to be one of a small number of suitablecommercial products and the US Government demands multiple sources of supply. The Directors believe that Intercede is in a very strong position to harvest aportion of this market - we have the technology and the US partners either inplace or under late stage negotiations. Furthermore, recent Intercede contractwins have led to the viral marketing of our reputation as one of the 'bestproducts' for the job within US smart card circles. About Intercede Intercede Group plc is a leading developer and supplier of smart card andidentity management software traded on AIM, a market operated by the LondonStock Exchange (IGP LN) (IGP.L). The Group's MyID(TM) software manages the secure registration, issuance and lifecycle of digital identities for a widerange of uses. This requires the integration of multiple technologies andproducts from many different vendors, including smart cards, biometrics, digitalcertificates and Open Platform applets. Intercede's customers cover a range of industries and include Athena SmartcardSolutions, Barclays Bank, BEWAG, Department of Transport Ireland, Fujitsu,Lloyds TSB, the UK National Health Service (NHS), the Metropolitan Police,PinkRoccade, Royal Bank of Scotland, RSA Security, Ubizen and various US and UKGovernment agencies and departments. For more information, visit www.intercede.com. ENQUIRIES:Intercede Group plc Tel. 01455 558111Richard Parris Chairman & Chief ExecutiveAndrew Walker Finance Director This information is provided by RNS The company news service from the London Stock Exchange