Interim Management Statement

16 February 2012

The Innovation Group plc

("Innovation" or the "Group")

Interim Management Statement

The Innovation Group plc (LSE: TIG.L), a global provider of Business Process Outsourcing ("BPO") and software solutions to the insurance, fleet, automotive and property industries today publishes its Interim Management Statement for the period from 1 October 2011 to date, in accordance with DTR 4.3 of the FSA Handbook.

Results to date show the strength of the Group's strategy of operating with both a technology and services portfolio. Revenue growth, at constant currency and the ratio of EBITDA / cash generation is in line with the Group's plan.

During the period, the Group completed the acquisition of Claims Services Australia PTY Ltd ("CSA"). CSA, combined with the Group's existing Australian business, creates Australia's leading specialist outsourced claims management company. The acquisition has been well received by both clients and staff and new opportunities for cross selling our BPO and Technology services are already very apparent.

The Board is pleased with overall progress and remains confident that the Group will meet its expectations for the financial year.

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About The Innovation Group:

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