Issue of New Ordinary Shares

The Board of Intercede announces that it has today issued 20,281 new ordinary shares of the Company (“the New Ordinary Shares”).

The New Ordinary Shares, which will rank pari passu in all respects with the existing ordinary shares in issue, are being allotted to Royston Hoggarth at the current market price of 35.5p per share, as remuneration for his services as a non-executive director of the Company. Mr Hoggarth will not be receiving any other form of remuneration during the current financial year.

Application has been made for admission of the New Ordinary Shares to trading on the Alternative Investment Market (AIM).

Admission of the New Ordinary Shares to AIM is expected on 26 August 2002.

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About Intercede
Intercede Group plc (IGP LN) (IGP.L) is a leading developer and supplier of electronic identity management software. Intercede is one of only three quoted security software companies on the London Stock Exchange following its admission to the Alternative Investment Market in January 2001. Intercede’s edefice™ provides any organization with the tools required to quickly deploy, maintain and manage smart cards, tokens, biometric and PKI technology. Intercede’s customers cover a range of industries and currently include Barclays Bank, Lloyds TSB, the Department for Education and Skills, the NHS, Compaq and ICL. For more information, visit Intercede’s home page at http://www.intercedegroup.com/ or call +44 (0) 1455 558 111.

About edefice™
Intercede’s edefice™ is powerful electronic identity management software designed to enable secure, cost-effective and easy-to-deploy smart card, token, biometric and PKI solutions ranging from logical and physical access to email and transaction signing.

Edefice-enabled security solutions allow end users to enjoy faster and more secure smart card-based access to PCs, networks and buildings, while providing administrators with an intuitive web-based electronic identity issuance and life cycle management tool.

For more information, visit the edefice™ home page at http://www.edefice.com/ or call +44 (0) 1455 558 111.

06 August 2002