Trading Update

7 October 2014

Intercede Group plc

("Intercede" or the "Group")

Trading Update

We are pleased to report high levels of interest in the Group's new and exciting mobile digital identity technology. This further validates the size of the opportunity for Intercede's technology as people better understand the security implications of areas such as the Internet of Things, the Cloud, and the inherent limitations of usernames and passwords.

As previously reported, Intercede continues to invest heavily in research and development resulting in the recent launch of MyID v9 Service Pack 2 and MyID v10.1 to meet the US government's new FIPS 201-2 standard. On 29 September 2014, Intercede announced the first customer for the deployment of a derived credentials based identity solution for mobile devices.

In the meantime, Intercede's smart card related identity business remains strong. However, the order book and associated revenues are subject to the timing of receipt of a relatively small number of large orders and seasonal variations mainly due to the US government fiscal year.

Against this backdrop, revenues in the first half of the current financial year will be in the region of £4.0 million (2013: £4.6 million) and cash balances at the end of September totalled £6.3 million (30 September 2013: £7.4 million) reflecting the investment outlined above.

Management remain optimistic that full year growth expectations will be achieved subject to the timing of receipt of orders, both from smart card related projects and from a number of mobile related opportunities.

A further update will be provided when the Group's Interim Results are released towards the end of November 2014.

Enquiries

Intercede Group plcTel. +44 (0)1455 558111Richard Parris, Chairman & Chief ExecutiveAndrew Walker, Finance Director

finnCap LtdTel. +44 (0)207 220 0500Stuart Andrews, Corporate FinanceJoanna Weaving, Corporate Broking

Bell PottingerTel. +44 (0)7802 442486Archie Berens

About Intercede

Intercede is a software company specialising in identity and credential management with a global team of experts located in the US and UK.

Intercede's MyID software enables organisations to create and use trusted digital identities for employees, citizens and machines. This allows secure access to services, facilities, information and networks.

MyID meets the highest government standards yet is simple enough to be deployed onto consumer devices such as smartphones and tablets. Critically, MyID provides an easy, convenient and secure alternative to passwords.

Millions of identities are managed using MyID and Intercede has provided identity verification and management services to global customers for more than twenty years. MyID is a commercial-off-the-shelf software product, designed and developed to be configurable so it can be embedded as the cornerstone of cybersecurity infrastructure for governments and corporations.

Customers trusting Intercede for secure digital identity include the US and UK governments and some of the world's largest corporations, telecommunications providers and information technology partners.

For more information visit: www.intercede.com