Agreement with Nedbank

26 April 2010

THE INNOVATION GROUP PLC

MAJOR OUTSOURCING AGREEMENT SIGNED

WITH LEADING SOUTH AFRICAN BANK

The Innovation Group plc (LSE: TIG.L), ('Innovation' or 'the Group'), is pleased to announce the signing of a significant five year contract to provide Nedbank, one of the largest banks in South Africa, with a range of outsourced insurance services. The agreement is expected to generate approximately £31.0m (ZAR 350m) in revenue for the Group over the term, with low initial volumes increasing to full run rate by the start of the 2011 financial year.

Nedbank, and its subsidiary Motor Finance Corporation, finances vehicles in the South African market. This agreement will see Innovation Group act as the ultimate sole provider of outsourced insurance services to the bank's motor vehicle finance clients through the sale and administration of value added insurance products such as extended warranties, service plans, maintenance contracts and roadside assistance.

This agreement is focused on improving Nedbank's penetration of value added insurance products to their motor vehicle finance clients, whilst mitigating the risk of these products through innovative claims control processes.

Welcoming this agreement Andy Roberts, Chief Executive Officer, The Innovation Group, commented:

"We are delighted to announce this significant agreement which boosts our volumes in the South African region and reaffirms our standing as a market leader in the provision of these products and services to the motor and financial services industry."

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About The Innovation Group plc:

The Innovation Group plc is a leading provider of enterprise software, business process outsourcing and repair and service network management solutions to the global insurance, financial services, motor and fleet 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 Insurance, 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, Netherlands, Pakistan, South Africa, Spain and United States. www.innovation-group.com