The statement which follows is in line with our policy of issuing regular updates on trading shortly after the end of the half year and year end periods. The figures in this statement are unaudited. The Group will comment on the trading outlook when the full year results are announced on 18 July 2002.

Overview
The trading performance of the Group since the announcement of the interim results in January 2002 has been in line with our expectations.

In the Banking and Securities Division, although customers have continued to be cautious in the timing and placing of orders, market conditions appear to have stabilised. It is too early to judge if there has been any upturn in demand but we are encouraged by the strength of our order book which includes a number of larger contracts signed in the latter months.

Misys Healthcare Systems in the US performed well, largely unaffected by the general weakness in the economic climate.

The Financial Services Division delivered a good performance in the face of adverse market conditions in the UK.

Exceptional charges (totalling approximately £22m), relating to the integration of the acquisitions made in the first half, the cost reduction programme within the Banking and Securities Division and the closure of the B2C Internet Services operations, remain substantially unchanged from those disclosed in the interim results.

As a result of the strong operating cash performance, we are confident that all three divisions will have achieved more than 100% cash conversion for the year.

Information on revenues, and order intake, for the financial year is as follows:

Initial licence fee ('ILF') order intake at £87m was 11% below last year but the closing ILF order book was up 31% at £31m from the position at the start of the year. The £8m increase in the order book this year compares with a reduction of £15m in the previous year. These movements in the order book and the reduced ILF order intake have resulted in ILF taken to revenue being 29% lower than last year.

There was a noticeable switch in demand by segment in the second half. The weakness in Securities & Asset Management, noted in the first half, continued into the second half, but further extended into the Investment Banking segment to cause a year-on-year reduction in Treasury & Capital Markets as well. However, the improved demand seen in Retail Banking at the time of the interim results continued strongly; total ILF orders in this segment were nearly twice the level of the previous year. There was also a notable performance by our Midas product where ILF orders in the full year were significantly higher than the previous year.

The lower level of ILF order intake continues to affect, in subsequent periods, the rate of growth in recurring licence fees and also results in lower levels of professional services revenues.

Net margins have been significantly affected by the decrease in ILF revenues and, as a result, the divisional profits before exceptional costs and goodwill amortisation are anticipated to be about 30% lower than last year, which is within the range of market expectations.

Information on revenues and order intake, for Physician Systems, for the financial year is as follows:

At Physician Systems demand remains strong across all product areas. ILF order intake was up 19% compared with last year while ILF taken to revenue was up 24%.

Order intake has been particularly strong in Electronic Medical Records ('EMR') and Homecare, with Tiger and Vision Practice Management Systems ('PMS') delivering continued good growth. The order book has grown over the last two years reflecting, in part, the longer implementation cycle for the Homecare, EMR and Vision products compared with Tiger PMS. Transaction processing revenues showed unusually strong growth this year partly as a result of increased transaction rates. The current ILF order book represents about four months' ILF revenue, which is typical for this business. Profits grew strongly in the second half resulting in full year profits before goodwill amortisation over 5% ahead of last year.

Demand for Hospital Systems products and services was encouraging and trading remained in line with our expectations. The integration of Sunquest is now substantially complete. Profits before exceptional costs and goodwill amortisation in the second half, while still satisfactory, are lower than those in the first half due to a number of factors including investment in the new sales organisation. However, overall order intake during the year has been very encouraging. The closing ILF order book at £22m represents about one year's ILF revenue, reflecting the longer implementation cycle for the contracts within Hospital Systems.

Profits before goodwill amortisation in the Financial Services Division (excluding DBS and the B2B portals) were, as expected, in line with last year. In the IFA networks (excluding DBS), adverse trading conditions reduced full year revenues by approximately 8% although margins remained largely unaffected. The assimilation of the DBS network continues to go well. The General Insurance businesses continued to make good progress.

The division is investing heavily in the development of technical solutions, such as mi-solution and the IFA portal, to improve the efficiency of compliance in the IFA networks and connectivity with providers.

As reported in January, we concluded an agreement with three product providers to provide funding for our B2B activities which has resulted in these achieving a breakeven result in the second half. Accordingly, full year investment costs, charged to profit, on the combined B2B activities will be under £4m.

Overall, divisional profits (including DBS and the B2B portals) before exceptional costs and goodwill amortisation are anticipated to be between 25% and 30% ahead of last year.

Paul Charles
Corporate Communications, Misys
020 7368 2315