Australia Contract Wins

25 October 2011

The Innovation Group

("Innovation" or the "Group")

Australia Contract Wins

- The Innovation Group is pleased to report two important new contracts in Australia -

- Contracts involve both the Group's Software and BPO capabilities -

The Innovation Group plc (LSE: TIG.L), is pleased to announce that it has signed two new contracts in Australia, utilising the Group's Business Process Outsourcing ("BPO") and Software capabilities.

The first contract is a three year software license agreement with one of Australia's best known mid tier Property and Casualty Insurers. Under the terms of the agreement, the insurer will utilise the Group's Innovation Insurer Suite software to implement multiple new lines of business and will also migrate a number of existing legacy systems on to the Insurer platform. This contract is the Group's first sale of its entire Insurer Suite offering, which includes Claims, Analytics and Policy, also making it the first sale of the new Insurer Policy product. The agreement is expected to generate approximately AU$7.0m (£4.4m) in revenue over its three year period.  

The second contract is a three year software license and BPO agreement with the Australian arm of a global insurance company headquartered in the United States. As part of its agreement with this insurer, the Group will provide its Innovation Insurer Policy software to the insurer's Australian arm via a Software as a Service ("SaaS") model, as well as hosting the software and providing application support. The Group will also provide the insurer's Australian arm with outsourced services to support the administration of certain policy types sold through the insurer's Australian distribution network. This contract, the first to combine Innovation's software and BPO capabilities, is expected to generate between AU$2.0m and AU$4.8m (£1.25m and £3.0m) in Group revenue over its term, dependent on the volume of policies sold.

Welcoming both deals Andy Roberts, Chief Executive Officer of The Innovation Group added:

"This is excellent progress for us in Australia and for our Group as a whole. These successes validate our investment in the Insurer software platform, which is winning over new customers with its flexibility, capacity and speed of implementation. I am also pleased to unveil further evidence of our ability to win business that involves both of our key service lines. It is this combination of sophisticated software and highly capable service teams which, I believe, sets The Innovation Group squarely apart from its peers."

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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

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