TIDMIGP 
 
RNS Number : 3501A 
Intercede Group PLC 
07 October 2009 
 

7 OCTOBER 2009 
 
 
INTERCEDE GROUP plc 
("Intercede" or "the Company") 
 
 
Trading Update 
 
 
Intercede, a leading producer of Identity and Credential Management Systems 
(IDCMS) software, today announces excellent progress in the six months ended 30 
September 2009. 
 
 
Sales for the first half of the current financial year are more than 40% higher 
than for the comparable period last year. The Directors are also pleased to 
report that the Company has strongly increased its operating profit before 
exceptional items during the period. 
 
 
The growth in sales is especially encouraging, because it is based both on 
existing customers expanding deployments installed in earlier periods and on new 
licence sales into new markets for actual end-customer projects. As a result, we 
are now experiencing a return on the investment made in development and sales 
efforts in previous years. Our expansion into new sectors and territories is 
also producing a fresh and immediate stream of revenue. This is evidence of the 
ongoing strength and viability of Intercede's business model and of a strategy 
that is being successfully executed. 
 
 
Key achievements during the period include: 
 
 
  *  Maintaining and expanding existing major projects for Lockheed Martin, UK 
  Government, US Federal Government, NHS and others. 
  *  Winning new contracts to supply MyID to customers in Australia, Austria, 
  Czech Republic, Romania, Slovakia, Switzerland and the US. 
  *  Deploying MyID systems at a major security printing and smart card manufacturer, 
  at a major Scandinavian bank and within a European government agency. 
  *  Adding the US Social Security Administration to Intercede's Federal HSPD-12 
  customer list. 
 
Further details will be provided when Intercede announces its Interim Results 
for the six months ended 30 September 2009, which is expected to take place in 
December 2009. 
 
 
The reported period includes exceptional costs for defending a previously 
reported patent infringement case in the US filed by ActivIdentity Corporation. 
Intercede's answer and counterclaims deny that its products infringe 
ActivIdentity's patent and allege further that this patent is invalid and 
unenforceable. In addition, Intercede has filed counterclaims against 
ActivIdentity, including alleging violations of US antitrust law. The court 
recently rejected ActivIdentity's challenge to Intercede's antitrust claims and 
one basis for a declaration of unenforceability.  While the court dismissed 
other counterclaims alleging fraud, unfair competition, and an additional basis 
for a declaration of unenforceability, it gave Intercede the right to re-plead 
those claims with more factual detail. Intercede filed its amended counterclaims 
on 28 September 2009.  Intercede intends to pursue its defence and its 
counterclaims vigorously. 
 
 
Costs and cash collections have also been kept under control throughout the 
period, as evidenced by a half year cash balance of GBP3,913,00, compared to 
GBP3,711,000 at 31 March 2009 and GBP1,839,000 at 30 September 2008. The cash 
position as at 30 September 2009 is thus more than double that of a year ago, 
notwithstanding the legal costs incurred to date in defending the patent 
infringement case brought by ActivIdentity and in pursuing the Company's 
counterclaims against ActivIdentity. 
 
 
Richard Parris, Intercede's Chairman and Chief Executive, said: 
 
 
"Our order book indicates that Intercede is on track to continue our planned 
growth trajectory for this year and beyond. I am delighted that our sales 
pipeline is stronger than ever and that a number of our existing larger projects 
are set to exceed expectations in terms of future growth. In particular our 
entry into the national identity market is proving to be particularly rewarding 
while our partnerships with Lockheed Martin, Thales and VeriSign are making 
continuing and growing contributions to operating profit." 
 
 
About Intercede 
Intercede is the producer of the MyID  Identity and Credential Management System 
(IDCMS). Intercede's MyID is the only IDCMS software product that enables 
organizations to easily and securely manage the identities of people and their 
associated identity credentials within a single, integrated, workflow driven 
platform. This includes enabling and managing: secure registration, biometric 
capture, application vetting and approval through to smart card personalization, 
issuance and management. 
 
 Intercede's MyID is being used around the world 
by large corporations, governments and banks to manage millions of identities 
for employees, citizens and customers. Notable deployments in the US include 10 
Federal Agencies, a programme with Lockheed Martin and two major US financial 
institutions. In Europe and the Middle East, Intercede's MyID is being deployed 
in support of government identity, health and corporate employee ID security 
projects. 
 
 
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.    +44 (0)1455 558111          | 
+-----------------------------------------+-------------------------------------+ 
| Richard Parris, Chairman & Chief        |                                     | 
| Executive                               |                                     | 
+-----------------------------------------+-------------------------------------+ 
| Andrew Walker, Finance Director         |                                     | 
+-----------------------------------------+-------------------------------------+ 
|                                         |                                     | 
+-----------------------------------------+-------------------------------------+ 
| FinnCap                                 |                                     | 
+-----------------------------------------+-------------------------------------+ 
| Charles Cunningham                      | Tel.    +44 (0)20 7600 1658         | 
+-----------------------------------------+-------------------------------------+ 
|                                         |                                     | 
+-----------------------------------------+-------------------------------------+ 
| Pelham Public Relations                 |                                     | 
+-----------------------------------------+-------------------------------------+ 
| Archie Berens                           | Tel.    +44 (0)20 7337 1509         | 
+-----------------------------------------+-------------------------------------+ 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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