Contract Extension

18 March 2010

The Innovation Group plc

Contract Extension

The Innovation Group plc ('Innovation Group') (LSE: TIG.L), is pleased to announce that MMA Insurance plc ("MMA"), a UK general insurer and long-standing customer, has today chosen to extend its relationship with InFront Solutions Ltd ("InFront"), the Group's majority held specialist subsidence outsourcing company, by entering into a new five year contract.

The extension will see InFront continue to provide Innovation Group's market leading subsidence claims management solution for a further five years, helping MMA in its continuing efforts to maximise operational efficiency, enhance customers' claims experience and optimise savings in claims costs.

Commenting on the contract extension, Bob Perry, MMA Claims Director, said:

"Subsidence claims are a top priority for general insurers like MMA, affecting both our commercial and personal books of business. If these claims are not managed quickly and effectively, this can lead to significant claims inflation and make life difficult for our policyholders. We've been very pleased with the way in which InFront's combination of rapid diagnosis and repair has helped us settle subsidence claims and we look forward to working with them over the next five years."

Commenting on the contract extension, Andy Roberts, Chief Executive Officer of The Innovation Group, said:

"We are delighted MMA has chosen to extend its contract for a further 5 years for our subsidence claims management solution. This further proves the quality and effectiveness of our product set and we look forward to continuing our solid working relationship with them."

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About Innovation Group

The Innovation Group plc (LSE: TIG.L) 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 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 800 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

About MMA

One of the UK's leading broker-only general insurers, MMA Insurance plc is a wholly owned subsidiary of French multi-national insurer, MMA IARD Assurances Mutuelles, which was set up over 180 years ago. It is part of Europe's leading provider of household and motor insurance, Covéa Group. MMA has traded in the UK for over 50 years and enjoys an impressive track record of financial stability, emphasised by a robust Standard & Poor's credit rating (A Strong).

MMA Insurance offers a growing range of insurance products for individuals and small and medium sized businesses, all of which are distributed through a national network of over 3,200 brokers and intermediaries to ensure a local and expert service. In addition to its Reading headquarters, MMA has an expanding network of regional offices, which offers brokers a bespoke service for commercial insurance products.

www.mma-insurance.com