Conversion of Securities

Gresham Computing PLC
1 October 2001



For immediate release                                           1 October 2001


                            Gresham Computing plc

                         ('Gresham' or 'the Company')

                 Conversion of convertible preference shares

 Conversion of outstanding 13% gross cumulative convertible preference shares

                    of 20 pence each ('Preference Shares')

The Company announces that all the holders of its 2,551,550 outstanding
Preference Shares have exercised their right to convert the Preference Shares
into 2,551,550 new ordinary shares of 5p each on 30 September 2001, the last
available date for conversion. As a result, 2,551,550 new ordinary shares have
been issued today, taking the total number of outstanding ordinary shares of
5p each to 46,630,328.

As a result of the conversion the notifiable interest of the directors in the
ordinary shares has changed as follows:

                     Previous      Conversion of            New    Percentage of
                   notifiable  preference shares     notifiable  ordinary shares
                     interest                          interest

S W Purchase        3,488,969            765,465     4,254,434            9.13%
A J S Walton-Green    420,465             42,525       462,990            0.99%
S J Green           4,965,473            660,018     5,625,491           12.06%

Other Significant shareholder

Following the conversion of her holding of 814,212 Preference Shares the
notifiable interest of Mrs M A Green has increased to 3,923,290 ordinary
shares representing 8.41% of the outstanding ordinary share capital.

The new ordinary shares will rank pari passu in all respects with the existing
issued shares. Application has been made to the UK Listing Authority to admit
the new ordinary shares to the Official List. Trading in the new shares is
expected to commence on 8 October 2001.


For further information please contact:               www.gresham-computing.com

Square Mile BSMG Worldwide                                        020 7601 1000
Edward Macquisten/Sally Lewis