Germany Contract Wins

22 June 2011

The Innovation Group

("Innovation" or the "Group")

Germany Contract Wins

- Innovation Group pleased to report signing of three new deals in German market -

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

The Group has signed a four year contract with a Tier 1 insurer to provide software for the management of property claims. Enabled by the combination of intellectual property, products and services from both the Group and its partner, Symbility Solutions Inc., the contract will see Innovation Group provide the insurer with a streamlined end-to-end solution for the scoping and cost management of building repairs, thereby helping to improve operational efficiency, reduce indemnity spend and enhance customer experience. Implementation started in June with transactional software revenues due to start in October 2011. Based on current claims volumes, the contract is expected to generate approximately £3.0m (€3.5m) in revenue over the four year period.

The Group has also been selected by another Tier 1 insurer in Germany to provide it with an accident management solution to include full repair service, courtesy car provision, collection and delivery. This contract, which runs for three years, will initially generate low volumes but is expected to generate revenue of approximately £1.0m (€1.2m) per annum from calendar year 2012.

The third agreement announced today will see the Group manage the installation of telematic on-board-units across the automotive customer base of one of Germany's largest insurance groups. The technology, which automatically places a call to emergency services in the event of serious impact, is new in the context of the German market. The units will be sold in connection with a new range of insurance policies, targeted initially at families and young drivers. As such, the Group is unable at this stage to predict revenue but expects volumes to grow as these new policies are sold.

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

"I am extremely pleased to be reporting such a broad range of progress today within our German business. Germany represents the fourth largest insurance market in the world and it is a mark of the progress we have made in recent years to now be at the forefront of new developments in this marketplace. Our position in Germany is strong, with the Group now providing Accident Management services to half of the country's top ten insurers. I see more potential for growth in the years ahead, both in software and in BPO as more insurers embrace new approaches, new ideas and new services."

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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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