Completion of sale of MIPS

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

25 October 2017

Imagination Technologies Group plc

Completion of sale of MIPS

Imagination Technologies Group plc (LSE: IMG, "Imagination", "the Group"), a leading multimedia, processor and communications technology company, has today completed the sale of its MIPS CPU business ("MIPS") to Tallwood MIPS Inc., a company indirectly owned by Tallwood VC of Palo Alto, CA ("Tallwood"), following the announcement on 22 September 2017.

This follows completion of the corporate reorganisation to separate MIPS from the remainder of the Group.

As part of the preparations for completion, the parties agreed to vary the payment schedule for the sale consideration, with $20m paid in cash at completion, $20m payable in January 2018 and $25m payable in April 2018 (subject to customary adjustments), in order to accommodate certain aspects of Tallwood's funding arrangements for the acquisition.

Cash proceeds will be used to reduce the Group's debt, with the balance applied for general corporate purposes.

The sale of MIPS was a condition to the recommended cash offer for the Group by CBFI Investment Limited (the "Offer"), as set out in the scheme document published on 9 October 2017 (the "Scheme Document"); accordingly, this condition to the Offer has now been satisfied. The Offer remains subject to the other conditions set out in the Scheme Document.

Disclaimer

Except as stated above, there has been no significant change affecting any matter contained in Imagination's announcements relating to the sale of MIPS on 22 and 27 September 2017 and no other significant new matter has arisen which would have been required to be mentioned in such announcements if it had arisen at the time of the preparation of such announcements.

A copy of this announcement will be made available, subject to certain restrictions relating to persons resident in Restricted Jurisdictions (as defined in the Scheme Document), on Imagination's website at https://www.imgtec.com/sales-process/. The content of the website referred to in this announcement is not incorporated into and does not form part of this announcement.