Trading Update

microgen

Information Management Solutions

www.microgen.co.uk

11 January 2005

                                Trading Update                                 

Microgen plc ('Microgen'), the IT software and services company, provides its
trading update for the year ended 31 December 2004.

In the second half of the financial year, operating margins have remained
strong due to high consultant utilisation and increasing average fee rates, as
consultancy resources have been migrated into sectors where Microgen has
experienced increased demand, particularly Financial Services. The successful
integration of the Group's acquisitions over the past three years, and the
organic development of Microgen's businesses during 2004, have strengthened the
Group's focus on the Financial Services sector, such that software, consultancy
and services delivered into this sector in Q4 accounted for over 60% of Group
revenue.

In addition, following the acquisition of AFA Systems plc, which was declared
wholly unconditional on 13 September 2004, the rapid integration programme has
resulted in a positive profit contribution from the business in both November
and December, ahead of schedule.

As a result, it is now anticipated that the full year revenue will be in line
with expectations and profit before tax, goodwill and exceptional items will be
ahead of expectations.

Microgen will announce its preliminary results for the year ended 31 December
2004 on Wednesday 23 February 2005.

Enquiries:                                                                  
                                                                            
Microgen plc                          www.microgen.co.uk                    
                                                                            
Mike Phillips, Group Finance Director 01753-847122                          
                                                                            
Financial Dynamics                                                          
                                                                            
Giles Sanderson                       020-7831-3113                         
                                                                            
Ben Way