Trading Update

microgen

www.microgen.com

23 January 2015

TRADING UPDATE

Microgen plc ('Microgen' or 'the Group') anticipates issuing its preliminary results for the year ended 31 December 2014 in late February 2015. Trading in the final months of the year continued satisfactorily and Microgen anticipates the results to be in line with Board expectations. Both operating businesses made progress on their strategic objectives.

At 31 December 2014, the Group had gross cash of £40.9 million and net funds of £24.6 million. In addition to the add-on acquisition completed in the Financial Systems business, the Board evaluated numerous potential larger opportunities during 2014. While continuing to evaluate add-on acquisitions, in the current market environment it is not anticipated that attractive larger opportunities to deploy the Group's substantial cash resources will arise in the foreseeable future. As a result, the Board has reviewed the cash requirements of the business and is evaluating the possibility of a material return of cash to shareholders, in the order of £15-20 million. Further details will be provided at the time of the preliminary results.

Contacts

Martyn Ratcliffe, Chairman 020-7496-8100

Philip Wood, Group Finance Director

Lucy Delaney, FTI Consulting 020-3727-1131