Trading Statement

Microgen PLC
7 January 2002


Trading Update
Profitability and cash position at the upper end of expectations

Microgen plc is providing the following update on trading activity for the 12 
months to 31 December 2001.

Microgen expects to report group revenues of approximately £21 million, in line 
with expectations, and profit before tax and goodwill amortisation of not less 
than £1.3 million which is towards the upper end of expectations. In the more 
difficult market environment for IT Services companies during 2001, the benefits
of the Group's disciplined financial management have been re-affirmed. The two 
operating divisions, Microgen-Telesmart and Microgen-Kaisha, remain cash 
generative and the year end net free cash position of the Group is expected to 
be significantly ahead of last year. Preliminary results for the year ended 31 
December 2001 will be announced in mid February.

Mike Phillips, Group Finance Director                   01753 847123 

Steve Liebmann, Buchanan Communications                 020 7466 5000