Australian Software Contract

21 February 2012

The Innovation Group plc

("Innovation" or the "Group")

Australian Software Contract

The Innovation Group plc (LSE: TIG.L), a global provider of Business Process Outsourcing ("BPO") and software solutions to the insurance, fleet, automotive and property industries is pleased to announce the signing of a software contract extension, with one of Australia's largest insurers.

The contract extension, for the Group's policy software, starts immediately and will generate software license revenues of approximately £1.7m (AUD 2.5m), in this financial year. Innovation's policy software enables the insurer to consolidate their policy administration for multiple insurance brands onto one system, replacing a number of separate policy software systems. As a result the insurer will be able to administer all of their Australian personal-lines business on Innovation's Policy software.

Welcoming the news, Andy Roberts, Chief Executive Officer of The Innovation Group commented:

"This news is further evidence of the power of our technology platform and its attractiveness to Tier One insurers. The ability of Innovation's policy software to encapsulate the functionality of multiple existing systems, demonstrates the depth of functionality and its extensibility."

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About The Innovation Group:

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