Trading Statement

RNS Number:4855X
InTechnology PLC
08 April 2004

8 April 2004

                            Pre-close trading update


The Board of InTechnology announces that the encouraging signs of momentum seen
across the business during the third financial quarter have continued, producing
a very strong half-year for the business and a result for the year which is in
line with market expectations.

The Storage Solutions and Services division had its best second half year's
trading for three years. Full year revenue is marginally below last year
reflecting a poor first half year, which was 20 per cent down on 2002/03.  The
contribution from the Enterprise Storage Software business, formed eighteen
months ago, has grown substantially, and contributed to an increase in gross
profit margins for the whole Division.

The Allasso acquisition, a specialist security software distributor, completed
in July 2003, is now fully integrated into InTechnology and is performing in
line with expectations.  Allasso UK now reports as part of a single UK
specialist distribution division.

The Managed Data Services division has continued to see a steady increase in the
level of contracts won in the last quarter from central government as well as
the private sector.  Cumulative contracts won increased 51 per cent and now
total #60.5 million, (2003: #40 million), generating recurring annualised
revenues of #18.1 million, an increase of 72 per cent (2003: #10.5 million).

The Board remains confident that following the installation of approximately #65
million of cumulative contract wins this division will achieve operating
breakeven, after depreciation.

The division has broadened its sales and marketing activities to target system
integrators and business process and IT outsourcing companies in addition to
InTechnology's existing corporate resellers.

Charles Cameron, Chief Executive of InTechnology plc, said: "I'm pleased that
the encouraging trading conditions witnessed in the third quarter have continued
into the fourth financial quarter.  Trading has been consistent with
management's expectations and has resulted in a solid outcome for the year.  The
combination of improving margins in SSS, Allasso's integration and continuing
growth and strong pipeline in MDS, give me great confidence in InTechnology's
future profitability."

InTechnology is intending to announce its full year audited results for the
period ended 31 March 2004 in the second week of June.

         -ends-


For further information:

InTechnology plc                                       020 7786 3400
Charles Cameron

Financial Dynamics                                     020 7831 3113
James Melville-Ross / Juliet Clarke



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