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Orbital Soft Hldgs (ORB)

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Tuesday 10 July, 2001

Orbital Soft Hldgs

Trading Statement

Orbital Software Holdings PLC
10 July 2001


For Immediate Release                    Tuesday, 10 July 2001

ORBITAL SOFTWARE HOLDINGS PLC


                                TRADING UPDATE

Orbital Software Holding plc ('Orbital' or the 'Company'), a leading provider
of scaleable, person-to-person Q&A infrastructure for corporate portals,
announces an update on trading for the first quarter ended 30 June 2001:

At the time of its preliminary announcement of final results for the year
ended 31 March 2001 the Directors announced that they expected turnover growth
to be flat for the first two quarters of the current financial year with
growth resuming thereafter.  Since that statement the market conditions for
software sales have continued to deteriorate with the result that the sales
cycle has increased further and certain key orders have been postponed.  The
result of this is that Orbital's unaudited results for the three months ended
30 June 2001 are expected to show turnover of approximately £140,000, compared
with turnover of £402,000 for the three months ended 31 March 2001.

In the light of these results and the ongoing difficulty in achieving the
Company's sales targets, the Board has today accepted Kevin Dorren's
resignation as Chief Executive with immediate effect.  As an interim measure,
Brian Gray, currently Chief Operating Officer, will assume the
responsibilities of Chief Executive.

Commenting on the quarter, Ian Ritchie, Non-executive Chairman said:

'The visibility of our sales continues to deteriorate.  In particular a number
of orders which the Directors had believed would be completed in June were not
confirmed.

'On a positive note the Company's cash position remains healthy with
approximately £14.9 million at the end of the first quarter.  Interest in
Organik, Orbital's principal product offering, remains strong and the
Directors believe that the prospects for the Company's innovative technology
remain excellent in the longer term.

'However, given the uncertain short term outlook for sales of enterprise wide
software, the Board is undertaking a full review of the strategic options for
the Company and its operations.  It is intended that the result of this review
should be transmitted to shareholders at the Company's annual general meeting
in mid-August 2001.

'Many of the difficulties now facing Orbital are generic to the software
industry in the current economic climate.  I would like to take this
opportunity, on behalf of the entire Board, of thanking Kevin Dorren for his
valuable contribution to Orbital since he joined the Company in April 1997.
During this period Kevin helped secure a number of rounds of venture
capitalist funding and led the Company through its successful flotation on the
Official List of the UKLA.  I wish him well with his plans for the future.'


                                   - ENDS -


For further information, please contact:

Orbital Software
Ian Ritchie, Non-Executive Chairman           Tel: +44 (0) 7973 212 024
Brian Gray, Chief Executive Officer           Tel: +44 (0) 20 7466 5000


Buchanan Communications
Nicola How / Edward Cowdery                   Tel: +44 (0) 20 7466 5000