The statement that follows is in line with our policy of issuing regular
updates on trading, shortly after the end of the first half and the full year.
The figures in this statement are unaudited. Within this statement all comments
relating to operating profit are pre goodwill amortisation.

"Misys' performance as a Group is in line with expectations. We have seen an
improved second half in both Banking and Securities and Healthcare with
increases in order intake in both and significant customer wins that validate
our product and market focus. However, in Banking and Securities conditions
continue to be challenging. In Healthcare we continue to invest heavily in our
clinical products suite. In Sesame there are signs that the environment may be
improving, but we are also investing in the delivery of new market offerings
ahead of the various regulatory changes expected at the turn of the current
calendar year. General Insurance continues to perform well".

The trading performance of the Group since the announcement of the interim
results in January 2004 has been in line with expectations and consistent with
the guidance we gave then. Overall Group revenues for the year are expected to
be 10% below last year. Continued weak market conditions led to a reduction in
revenues in both the Banking and Securities Division and the Financial Services
Division, and the disposal of two non-core Banking and Securities businesses
further reduced revenues in that division. In contrast, Misys Healthcare
performed well although the further strengthening of Sterling against the US
Dollar means that reported revenues will be slightly below those in the prior
year.

Group operating margins for the first half were around two percentage points
below those reported in the comparable period last year and the margins for the
full year are expected to show about the same level of reduction.

There were, nevertheless, signs of improvement in both the Banking and
Securities Division and in Sesame. In Banking and Securities, Initial Licence
Fee (ILF) order intake, on a comparable basis, was 8% ahead of last year in the
second half and marginally up for the year as a whole. This increase reflects a
number of large orders signed in the second half. In Sesame there was evidence
towards the end of the year of stabilisation in the number of our registered
individuals (RIs), a positive trend in RI productivity and strong uptake of our
new mortgage and general insurance offerings.

Total divisional revenues for the full year are expected to be down by 14% on
last year although total revenues in the second half, on a comparable basis,
were broadly in line with the prior period. While there is evidence that some
banks' IT budgets are starting to grow again, banks remain cautious in
initiating larger IT projects.

Against this background, the Division's increased product and market focus led
to a number of high value deals being signed during the year. Misys Wholesale
signed contracts for Midas plus, our new global processing solution, with a
number of leading banks including HBOS, OCBC, Banco do Brasil and Bayerische
Landesbank. The ILF order intake on these larger deals averaged more than £
1.6m. Misys Wholesale also saw progress in emerging markets, including five new
customer wins at domestic banks in China. Loan IQ, which we acquired during the
second half, and Crossmar Matching Service (CMS) have both performed well.

Our increased strategic focus on the retail market is bearing fruit, with Misys
Retail closing a number of significant deals during the year. These included a
major deal with CC Bank in Germany, the consumer finance organisation of
Santander Group. This deal has a substantial services component and will be
implemented over the next three years. In addition, we have also signed a
number of large services only contracts including Fundacion and Bank of
Butterfield. This activity, together with several high value deals from Summit,
which included Bayerische Landesbank, FHLB, Bank of China and Mitsui,
contributed to the increase in both ILF and Professional Services backlog.

Expected revenues and order intake for the financial year are as follows:

            

Analysis of results on a comparable basis. While ILF order intake for the full
year was 1% above last year, ILF order intake in the second half at £38m was 8%
ahead of the comparable period last year. ILF taken to revenue was lower by
10%, but the closing ILF order book at £27m was higher than at the end of both
May and November 2003. The lower level of ILF revenues over the last 12 months
has continued to hold back the growth in maintenance revenues. Professional
Services revenues in the second half were, as anticipated in January, ahead of
those in the first half and only just below the equivalent period last year.
Operating margins, excluding the effects of acquisitions and disposals from
both years, are expected to be below those achieved last year, principally as a
result of the reduced revenue.

Acquisitions and disposals. Towards the end of the first half we announced the
sale of the UK back office products business from within Misys Asset Management
Systems and certain equities trading products from within Misys Securities
Trading Systems (MSTS), with the remaining elements of MSTS sold in early
December 2003. From 1 June 2003 up to the dates of their respective disposal,
these businesses recorded revenue of £13m (year to 31 May 2003: £44m) and
operated at breakeven (2003: operating profit £7m).

In late April 2003 we acquired Crossmar Matching Services (CMS) which, during
the year to May 2004, recorded revenues of £7m (all of which were transaction
services revenues). In January 2004 we acquired Loan IQ, which recorded
revenues of £5m from then to the end of the year. Both businesses had operating
margins broadly in line with the rest of the Division.

Total underlying divisional revenues in US Dollar terms, and excluding the
effect of the Misys CPR (formerly Patient1) acquisition, are expected to be 3%
ahead of last year. The further strengthening of Sterling against the US Dollar
has continued to impact reported sterling revenues which, including Misys CPR,
are expected to be 1% below the equivalent period last year.

Over the past year, we signed significant contracts that further support our
areas of clinical focus in each of the venues of care - hospitals, physician
offices and the patient's home.

In the hospitals venue we signed two significant contracts, with POH Medical
Center, our first CPR/EMR contract, and with Pascack Valley Hospital, our first
CPR/Laboratory contract. We were also successful in expanding our business with
existing CPR and departmental clients. In physician offices, Misys EMR showed
strong growth in order intake, including a new contract with Genesys Health
Ventures, our largest ever EMR deal. It is clear that the rate of growth in the
EMR market is accelerating. Given this opportunity we are bringing forward our
investment in product development in this area. This will result in an
incremental research and development spend of around £3m in the current year.
Within the expanding patient homecare market, Misys Homecare experienced
continued strong growth highlighted by several large deals including Catholic
Healthcare West, St. Vincent's Medical Center and New England Home Care. We
also announced Misys Optimum, our enterprise clinical product suite, that
operates across all venues of care.

Expected revenues and order intake for the financial year are as follows:

Analysis of results on a comparable basis. Overall, the Division reported good
growth in revenues with both ILF and maintenance revenue achieving 7% growth.
The slower growth in transaction services revenues continues the trend that has
been evident over the last 18 months and is in line with the experience of
other suppliers in the market.

Total ILF order intake was 3% ahead of the prior year and reflects a relatively
weaker H1 (down 8%) but a considerably stronger H2 (up 13%). The closing ILF
order book, on a comparable basis (excluding Misys CPR), at £27m, is above
November 2003 but below May 2003. ILF revenues were ahead in H1 by 14%. This
principally reflects the fact that Hospital Systems have made good progress,
particularly in the first half, completing the final phase of a number of older
orders, enabling us to recognise the related revenues. In H2 ILF revenues were
in line with the prior year period.

Operating margins in Healthcare, excluding Misys CPR and the associated
integration costs, are expected to be slightly ahead of last year. (For more
information on the impact of exchange rates see "Notes for Guidance" at the end
of this statement).

Acquisitions. Misys CPR (formerly Patient1), acquired in July 2003, has made a
strong start with ILF order intake, at £3m, well ahead of our expectations. We
have signed a number of large orders including our first combined Misys EMR/
Misys CPR deal. During the year Misys CPR recorded revenues of £15m (including
£2m ILF) and, as expected, operated at breakeven before integration costs. In
the full year these one-off integration costs were approximately £3m. The total
integration costs are expected to amount to approximately £7m and nearly all of
the balance of these costs will be incurred in the current financial year.
These costs will not be treated as exceptional costs and will be charged to
operating profits.

Revenues in Sesame for the full year are expected to be 18% below last year. As
anticipated in January, while we have continued to see a reduction in the
overall number of registered individuals (RIs) in our regulated network, the
rate of decline has slowed in the second half. The overall number of RIs in our
regulated and unregulated networks has stabilised in the second half as set out
below. In addition the productivity of our members has improved during the
period. Ahead of the forthcoming regulation of the mortgage and general
insurance markets, the take up of our new service offerings to members has been
well ahead of expectations.

Operating margins in Sesame in the second half are expected to be about half
those in the first half. This reduction is due to the reduced number of RIs in
the network, the full six month effect of the harmonisation of pricing rates
introduced in August 2003, the increased cost of compliance and regulation
together with the additional investment required ahead of the introduction of
the regulation of mortgage and general insurance in October 2004 and January
2005. The continuation of this investment together with preparations for the
introduction of multi-tie arrangements will result in Sesame operating at just
above break even in the first half of the year. The revenues associated with
the new products will start to come through in the second half.

The General Insurance business has delivered another good performance with
increased levels of order intake and a record level of operating profit. The
business also saw record levels of EDI transactions and successfully launched a
number of new products including Premium Finance, FSA Regulation and OASys
Commercial software modules.

Interest charged during the year will be below that for last year mainly
reflecting lower average interest rates

As reported in January, in the first half the Group reached agreement with
various revenue authorities, particularly in the US, covering a number of prior
years. The provisions at 31 May 2003 relating to these outstanding periods
exceeded the additional cash payments arising from the agreements and, as a
result, there will be a prior year tax credit in the Profit and Loss Account
amounting to £14.6m. Given the size of this prior year item we intend to
exclude it from our adjusted EPS figures. The underlying tax rate for the full
year, before prior year credits, is expected to be an effective rate on profit
before taxation, non-operating exceptional items and goodwill amortisation of
no more than 15%.

During the year the Group has purchased 45.4m shares (either into the ESOP, or
into Treasury or to be cancelled) all of which have the effect of reducing the
average number of shares in issue used for the EPS calculation to 544m compared
with 564m last year.

A conference call for analysts and investors, chaired by Howard Evans, Group
Finance Director will be held at 09.30hrs. To access this call dial 0208 996
3950; Passcode 029034#. The call will be available for replay on 01296 618 700;
Passcode 264710 until 10.00hrs UK time on 26 June 2004.

Trading update for the year to 31 May 2004

These guidance notes are provided to assist assessment of the performance of
Misys from this trading update.

All figures below, unless otherwise stated, are as reported in their respective
periods and have NOT been adjusted for constant exchange rates or for
acquisitions/disposals. Operating margin information is presented pre goodwill
amortisation.

 

Misys EMR FY04/05 incremental research and development expenditure:            £3m

Foreign Exchange: the further strengthening of Sterling against the US Dollar
means that both revenues and profits in Healthcare have been adversely impacted
this year compared with last year by approximately 9%. The year end rate of US
$1.83:£ is a further 6% lower than the average exchange rate used to translate
the results for the year under review (i.e. if the results for the year ended
31 May 2004 had been translated at the closing rate of US $1.83:£ then they
would have been reduced by a further 6%).

Andrew Farmer      Head of Investor Relations                                 
                                                                              
Tel: +44 (0) 20 7368 2307                                                     
Mob: +44 (0) 7909 895 094                                                     
                                                                              
Susan Cottam       Group Communications Director                              
                                                                              
Tel: +44 (0) 20 7368 2305                                                     
Mob: +44 (0) 7957 807 721