Acquisition of Wintec AG

23 December 2010

The Innovation Group plc

("Innovation Group" or the "Company")

Acquisition of Wintec AG ("Wintec")

Innovation Group today announces that it has acquired Wintec, Germany's leading franchised windscreen repair network with over 250 mobile and fixed repair centres operating across Germany. Under the terms of the acquisition agreement, Innovation Group will pay an initial cash consideration of €1.25 million followed by a further €1.25 million payable on 1 April 2011. An additional cash consideration of up to €500,000 will be payable in 2013 dependent upon Wintec's post-tax profitability in the 12 month period from 1 October 2012 to 30 September 2013.

Commenting on the acquisition, Andy Roberts, CEO of Innovation Group, said today: "Wintec is Germany's market leader for repair quality, service quality and average repair cost which is reflected in the strength of its trading. Its nationwide coverage and technical expertise combined with Innovation Group's strong relationship with the insurance industry will enable us to significantly accelerate our penetration of the large and growing market for windscreen replacement and repair in Germany, where there are more than 2.5 million windscreen claims annually alone."

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Notes to Editors

The Innovation Group plc (LSE: TIG.L) is a global provider of business process outsourcing 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 Group'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