SOPHEON PLC

NEW ORDERS AND Q3 TRADING UPDATE

In accordance with the requirements of the Euronext
Amsterdam stock exchange, Sopheon plc ("Sopheon";
stock code : SPE) issues its trading update for the
third quarter of 2002 together with further
information on new business development.

Within the Business Process Solutions (BPS)
division, Sopheon's flagship Accolade solution has
continued to show real progress in the face of an
economic environment which remains stubbornly
challenging. The interim statement released at the
end of August noted that four new licence orders
and four pilots had been concluded since the start
of the year. At the end of November this has been
extended by a further three full licence orders
including the substantial sale to Pall Corporation
announced in October, and six pilot installations
or assessment studies. To date, all assessments
have converted, or are on track to convert, into
full licence sales. In addition, the pipeline of
opportunities to close in the remaining month of
the year remains substantial, with both new licence
and extension activity anticipated. While there is
much work to do, all efforts are focused on
securing the business required to achieve
expectations and secure a sound footing for 2003.
In support of this, the installed licence base for
Accolade provides an increasingly broad and deep
reference base.

Certain Accolade customers have also taken up
subscriptions or projects with the group's more
traditional Information Management (IM) services,
validating the strategic fit of this independently
managed business. Nevertheless, as previously
announced, the core IM business was affected coming
out of 2001 both by the economic climate and by
customer M&A activity, in Germany in particular.
These challenges have been met by new sales and
product initiatives, as well as organisational
change, and there are signs that the business is
recovering with subscription renewal rates
increased compared to the prior year.

The drive to reduce cash burn has remained at the
top of the board's agenda; the need to achieve
positive cash flow generation and to sustain cash
resources remain key ongoing priorities. As well as
looking to revenue growth in the short term, from
Accolade in particular, control of the cost base
remains focused. Since January 2002, the total
headcount has been reduced by approximately 70
people to around 190 today, the majority of this
adjustment taking place in the third quarter
following the successful release of Accolade 4.0
and completion of other integration activities
linked to Sopheon's acquisitions in 2001. This
compares with a total of approximately 350
employees a year ago. The board will continue to
seek to match resources to business expectations as
we go forward into 2003.

Other major developments announced in the third
quarter include the appointment of Seymour Pierce
Limited as the Company's nominated adviser and
broker, and the appointment of Dan Metzger, a
senior and experienced veteran of the ERP and
Collaborative Software industry, as a non-executive
director.

Andy Michuda CEO of Sopheon said: "We remain on
course to become a leading supplier of software and
expert services that enable major corporations to
improve critical processes within R&D, and new
product development in particular.  Momentum is
building with Accolade which, in line with our
overall strategy, should pull through the group's
other services.  Our ever-strengthening base of
reference clients  and the  high level of market
interest in our solution continue to affirm our
expectations that the pace will accelerate in the
near term and deliver the improved returns that we
and our shareholders require."





About Sopheon

Sopheon (LSE:SPE) is an international provider of
software tools, experts and content that help
organizations improve the business impact of
product development. Sopheon serves nearly half of
the technology-driven companies on the Fortune 500,
enabling higher, faster return on innovation and
product development investments through technology
and human-based decision support. The company's
products and services include its flagship Accolade(r)
product development system, the award-winning
Teltech.com(r) Web-based research portal for technical
and business professionals, and Organik(r) expertise-
sharing software.  Sopheon is listed on the
Alternative Investment Market of the London Stock
Exchange and on the Euronext in the Netherlands.
For more information, please visit www.sopheon.com.




FOR FURTHER INFORMATION CONTACT :
Barry Mence,
Chairman
Sopheon plc
Tel : + 44 (0)1483-883000
Arif Karimjee, CFO
Sopheon plc
Tel : + 44 (0)1483-883000
Steve Liebmann
Buchanan Communications
Tel : + 44 (0)207-466-5000
Barbara Jansen
Citigate First
Financial
Tel : + 31 (0)205-754-010

Sopheon : Q3 update / page 4