Acquisition and Issue of Shares

19 November 2012

The Innovation Group plc

('Innovation Group' or the 'Group')

Acquisition of InFront Minority and Issue of shares

The Innovation Group plc (LSE: TIG.L), a global provider of business process services and software solutions to the insurance, fleet, automotive and property industries, is pleased to announce its acquisition of the 16% minority interest in the Group's subsidiary, InFront Solutions Limited ("InFront"), for £2.2m. As a result of this transaction, InFront will become a wholly-owned subsidiary of Innovation Group.

The consideration is to be satisfied by the issue of 10,519,172 new Ordinary shares of 2p each (the "Shares"). Application has been made to the Financial Services Authority and the London Stock Exchange for admission of the Shares. The Shares will rank pari passu with the Company's existing shares in issue. Completion of the acquisition will occur when the Shares are admitted to trading, which is expected occur at 8.00 a.m. on 21 November 2012. The acquisition of the minority interest is immediately earnings accretive.

Innovation Group has developed a compelling proposition in the UK for the handling of subsidence claims. This proposition, operated by InFront, provides the insurer with a fixed per-claim pricing structure, fully backed with reinsurance, that removes variability from the insurer's claims reserves and delivers certainty over indemnity spend.

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About Innovation Group:

The Innovation Group plc (LSE: TIG.L) is a global provider of business process services and software solutions to the insurance, fleet, automotive and property industries. Innovation Group provides contact centres, repair networks, process management, supply chain and technology operations and decision support analytics to support accident management, repair and estimation and claims management services. Innovation Group has over 800 global clients including AXA, RSA, American Modern Insurance Group, LeasePlan, The Ford Motor Company, Aviva, Toyota and Zurich. The Group processes more than 4 million claims per year with 20 per cent direct claims cost saving achieved. Innovation's 2,300 people are located in the United Kingdom, Australia, Belgium, Canada, France, Germany, Japan, India, Pakistan, South Africa, Spain and United States. www.innovation-group.com