Trading Update

Intercede Group PLC
03 October 2007

3 OCTOBER 2007

                              INTERCEDE GROUP PLC

                         ('Intercede' or the 'Company')



                                 Trading Update



Intercede, one of the world's leading developers and suppliers of smart card and
identity management software, is pleased to report excellent progress in the six
months ended 30 September 2007. As reported in the 2007 Annual Report, the
Company has continued to execute its strategy to:



•                     position MyID as the critical product that enables
convergence of IT and physical security systems;

•                     work with OEM partners on new releases which further
integrate MyID into the core of their product suites;

•                     work on key projects in the US and beyond; and

•                     strengthen the team in order to deliver the highest
quality products and customer support to partners and customers.



As a result of all of these efforts, sales for the first half of the current
financial year are more than 20% higher than those for the corresponding period
last year.



Costs and cash have also been kept under control throughout the period, as
evidenced by a half year cash balance of £1,575,000, compared to £653,000 at 31
March 2007. This means that the Company generated £244,000 of cash during the
period, in addition to the Placing in May 2007 which raised a further £678,000
net of expenses.



Further details will be provided when Intercede announces its Interim Results
for the six months ended 30 September 2007, which is expected to take place in
December 2007.



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



ENQUIRIES


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

KBC Peel Hunt (Nominated Adviser and Broker)                       Tel.     [phone]
Richard Kauffer/Gordon Suggett

Pelham Public Relations
Archie Berens                                                      Tel.     [phone]




                      This information is provided by RNS
            The company news service from the London Stock Exchange