Holding(s) in Company

TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARESi

1. Identity of the issuer or the underlying issuerof existing shares to which voting rights areattached: ii

Avacta Group plc

2 Reason for the notification (please tick the appropriate box or boxes):

An acquisition or disposal of voting rights

X

An acquisition or disposal of qualifying financial instruments which may result in the acquisition of shares already issued to which voting rights are attached

An acquisition or disposal of instruments with similar economic effect to qualifying financial instruments

An event changing the breakdown of voting rights

Other (please specify):

3. Full name of person(s) subject to thenotification obligation: iii

IP Group plc

4. Full name of shareholder(s)  (if different from 3.):iv

See section 9

5. Date of the transaction and date onwhich the threshold is crossed orreached: v

18 January 2012

6. Date on which issuer notified:

19 January 2012

7. Threshold(s) that is/are crossed orreached: vi, vii

30%

[ Direct interest ]

8. Notified details:

A: Voting rights attached to shares viii, ix

Class/type ofshares

if possible usingthe ISIN CODE

Situation previousto the triggeringtransaction

Resulting situation after the triggering transaction

NumberofShares

NumberofVotingRights

Numberof shares

Number of votingrights

% of voting rights x

Direct xi

Indirect xii

Direct

Indirect

Ordinary 0.1p Shares

1,033,642,664

1,033,642,664

1,025,644,530

941,341,946

84,302,584

29.82%

2.67%

GB0033519546

B: Qualifying Financial Instruments

Resulting situation after the triggering transaction

Type of financialinstrument

Expirationdate xiii

Exercise/Conversion Period xiv

Number of votingrights that may beacquired if theinstrument isexercised/ converted.

% of votingrights

C: Financial Instruments with similar economic effect to Qualifying Financial Instruments xv, xvi

Resulting situation after the triggering transaction

Type of financialinstrument

Exercise price

Expiration date xvii

Exercise/Conversion period xviii

Number of voting rights instrument refers to

% of voting rights xix, xx

Nominal

Delta

Total (A+B+C)

Number of voting rights

Percentage of voting rights

1,025,644,530

32.49%

9. Chain of controlled undertakings through which the voting rights and/or thefinancial instruments are effectively held, if applicable: xxi

Direct interests:

Techtran Group Limited - 174,987,150

IP2IPO Limited - 758,184,143

IP2IPO Management II Limited - 7,317,443

Top Technology Ventures Limited - 853,210

IP2IPO Limited, Techtran Group Limited and Top Technology Ventures Limited are 100% owned subsidiaries of IP Group plc. IP2IPO Management II Limited is a 100% owned subsidiary of IP2IPO Limited.

Indirect interests:

IP2IPO Nominees Limited - 3,536,043

IP Venture Fund - 80,766,541

IP Venture Fund is a limited partnership fund that is managed by Top Technology Ventures Limited, a 100% subsidiary of IP Group plc. IP2IPO Nominees Limited, a 100% owned subsidiary of IP2IPO Limited, is the registered holder of shares beneficially owned by current and former IP Group plc members of staff.

Proxy Voting:

10. Name of the proxy holder:

11. Number of voting rights proxy holder will cease to hold:

12. Date on which proxy holder will cease to hold voting rights:

13. Additional information:

Based on 3,156,844,912 ordinary Shares in issue

14. Contact name:

Greg Smith

15. Contact telephone number:

020 7444 0050