FOR IMMEDIATE RELEASE

19 December 2003

SCIPHER PLC

MicroVue subsidiary ceases trading - removing cash burden from Scipher

Scipher to focus Displays business on microdisplay licensing

The technology development and licensing company, Scipher plc ("Scipher"),
today announces that the partners in its microdisplay production proving
subsidiary, MicroVue Limited ("MicroVue"), have not been able to raise further
investment and the board of MicroVue has decided to cease trading and commence
placing the company into voluntary liquidation.

Scipher and its partners in MicroVue, principally PicVue Electronics Ltd of
Taiwan, have been seeking investment to fund the further commercialisation of
the microdisplay manufacturing process developed by MicroVue. Despite intensive
efforts, they have not been successful and the Board of MicroVue has decided to
cease trading. Scipher regrets the need to take this action, particularly for
the employees of MicroVue who are affected by this decision.

Dr Rudolph Burger, Chief Executive Officer of Scipher said: "Our interest in
MicroVue has been a significant cash burden on the Company. It is regrettable
that the MicroVue partners have not been able to contribute further to the plan
that had been set out for MicroVue. Going forward, it is imperative that
Scipher's technologies are commercialised with appropriate partners."

The valuable intellectual property assets including production know-how
represented by Scipher's Displays technologies licensed to this venture remain
in Scipher's ownership and additional ways of realising value from them are
being sought.

CRL Opto, Scipher's displays technology business will continue working with its
customers to progress consumer product designs using its microdisplay
technology in rear-projection TV and front projection applications, and
professional applications for defence training and simulation. Interest in the
liquid crystal on silicon (LCOS) microdisplay technology has led to the design
of projection engines by UNEED Systems (South Korea), ITRI (Taiwan), and Qubic
Light (USA).

The financial effect of the decision to liquidate MicroVue is that an
exceptional charge of �0.7 million will be taken in Scipher's accounts for this
year. This charge comprises the writing-down of net assets and will reduce
Group shareholders' funds by �0.7 million.

Enquiries

Scipher plc:                                                                   
                                                                               
James Ellis-Rees, Company Secretary     Tel: 020 8848 6555                     
                                                                               
Michael Kendon, Corporate Development   Tel: 020 8848 6444                     
                                                                               
Financial Dynamics:                                                            
                                                                               
Juliet Clarke                           Tel: 020 7831 3113                     

About Scipher

Scipher is a technology development and licensing company that delivers value
from IP in two principal ways:

  * Product licensing and sale - commercialising Scipher-owned technology in
    high growth markets through licensing or the sale of developed products
   
  * Patent Licensing - building on Scipher's extensive experience on IP
    management to create value for clients by exploiting their IP assets
    through licensing.
   
Scipher's portfolio of advanced technology products and know-how covers the
markets for Displays, Secure Identification, Communications, and Sensors.
Approximately half of Scipher's revenues are earned outside the UK in
approximately 50 countries.

Scipher is backed by more than 70 years in advanced R&D, including developments
of such historic importance as stereo recording, television broadcasting and
the medical CT scanner, which in 1979 won a Nobel Prize for its inventor. For
more information on Scipher, visit the website: www.scipher.com



END