Placing

Intercede Group PLC
16 May 2007

16 MAY 2007



                 Intercede Group plc ('Intercede' or 'Company')

                         Placing to raise £0.7 million


Intercede, one of the world's leading developers and suppliers of smart card and
identity management software, is pleased to announce today the conditional
placing of 2,130,303 new Ordinary Shares of 1 pence each at a price of 33 pence
per new Ordinary Share with institutional and other investors to raise
approximately £0.7 million (approximately £0.7 million after expenses).

Over the past year, Intercede has made excellent progress in establishing its
MyID product as the software of choice in the US Government's programme of
issuing new identity cards to all federal employees and contractors.  The new
funds are intended to facilitate the further exploitation of this opportunity,
as well as providing general working capital in advance of longer term revenue
streams accruing to the Company as a result of the contracts that it has already
won.

The Board considers that the raising of further equity capital by means of a
placing was acceptable having due regard for the time and cost considerations of
raising money through pre-emptive mechanisms.

On 27 March 2007, Intercede reported that it expected revenues for the full year
ended 31 March 2007 to be no less than 20% ahead of the previous financial year.
The Board expects to confirm this when the Company's preliminary results are
announced, which will take place within the next two weeks. Interest in
Intercede's MyID product remains strong and the Company's prospects are thus
encouraging.

The placing is conditional on admission of the new Ordinary Shares to AIM ('
Admission'), though is not conditional on the prior approval of shareholders.
The placing has been conducted using authorities approved at the Company's last
AGM held on 5 July 2006.

Application will be made to London Stock Exchange for the placing shares to be
admitted to trading on AIM and it is anticipated that dealings in the placing
shares will commence on 22 May 2007.  The placing shares have been issued
credited as fully paid and will rank pari passu in all respects with the
existing Ordinary Shares in the Company, including the right to receive all
dividends and other distributions declared or paid thereon following Admission.
The placing shares will represent approximately 5.9 per cent. of the enlarged
issued ordinary share capital of the Company immediately following Admission.


Richard Parris, Chief Executive Officer, commented:

'We are pleased to have secured new institutional backing for the Group. This is
the first time that Intercede has raised funds since July 2003. The cash raised
will provide additional working capital and will also enable the Group to
exploit more fully the various opportunities around the world that are
increasingly presenting themselves. The opportunity in the United States is the
most immediate, a situation that we have anticipated for some time, but which
has now produced formal contracts and which is poised to translate into
meaningful revenues.'



ENQUIRIES:


Intercede Group plc                                 Tel.    [phone]
Richard Parris, Chairman & Chief Executive
Andrew Walker, Finance Director

Pelham Public Relations
Archie Berens                                       Tel.    [phone]
Kate Catchpole                                      Tel.    [phone]
KBC Peel Hunt                                       Tel:    [phone]
Julian Blunt
Gordon Suggett



About Intercede

Intercede Group plc is a leading developer and supplier of smart card and
identity management software listed on the London Stock Exchange (IGP LN)
(IGP.L). Intercede's MyID software manages the secure registration, issuance and
lifecycle of digital identities for a wide range of uses. This requires the
integration of multiple technologies and products from many different vendors,
including smart cards, biometrics, digital certificates and Open Platform
applets.

Intercede works with a number of market leading OEM, re-seller and technology
partners that supply MyID technology including: Athena Smartcard Solutions,
Gemalto, Oberthur Card Systems, RSA Security, SafeNet, Thales, VeriSign and a
variety of systems integrators and other security product and service providers.

Intercede and MyID are registered trademarks or trademarks in the UK, US and/or
other countries. For more information visit http://www.intercede.com




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