Contingent Share Awards

11 February 2010

The Innovation Group plc

("Innovation Group" or the "Company")

Nil Cost Contingent Share Awards

This notification is made by The Innovation Group plc ("Innovation" or "Company")  in accordance with DTR 3.1.4(1)(a).

On 11 February 2010 a contingent award of 3,423,321 ordinary shares of 2 pence each in the Company ("Shares") was made to incoming Chief Executive Officer, Andrew (Andy) Roberts under The Innovation Group Key Executive Recruitment Plan ("Recruitment Plan"). The award and the related Recruitment Plan constitute arrangements established in accordance with Rule 9.4.2(2) of the Listing Rules specifically to facilitate, in unusual circumstances, the recruitment of Andy Roberts as Chief Executive Officer of the Company.

On the same date, a nil cost contingent award of 2,208,594 Shares was made to the Group Finance Director of Innovation, Jane Hall under The Innovation Group Key Executive Retention Plan ("Retention Plan"). The award and the related Retention Plan constitute arrangements established in accordance with Rule 9.4.2(2) of the Listing Rules specifically to facilitate, in unusual circumstances, the retention of Jane Hall as Group Finance Director of the Company.

Each award has a three year vesting period and is subject to earnings per Share ("EPS") performance criteria with two thirds of the award vesting in full if the Company achieves EPS growth of 45 per cent. plus RPI over the vesting period and the remaining one third vesting in full on achievement of 100 per cent. EPS growth plus RPI.

The awards are subject to good leaver and change of control provisions and no consideration is payable for the grant of the award.

The Company was informed of the above grants on 11 February 2010.

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 About The Innovation Group

The Innovation Group plc (LSE: TIG.L) is the leading provider of enterprise software, business process outsourcing and repair and service network management solutions to the global property and casualty industry. Innovation 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 has over 8,000 global clients including AXA Insurance, RSA, AAA NCNU, 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. Our 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