Publication of Prospectus

THIS ANNOUNCEMENT (AND THE INFORMATION CONTAINED HEREIN) IS NOT FOR FORWARDING, RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO OR FROM THE UNITED STATES, CANADA, AUSTRALIA, JAPAN OR SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

8 December 2010

Imperial Innovations Group plc

Publication of prospectus

Further to the Company's announcement on 7 December 2010 (the "Equity Raise Announcement") in relation to a Rights Issue and a Warrant Issue to raise gross proceeds of approximately £140 million, the Company announces that a prospectus relating to the Equity Raise (the "Prospectus") was approved by the UK Listing Authority earlier today.

The Prospectus, which includes a notice convening a general meeting of the Company to be held at 52 Princes Gate, Exhibition Road, London SW7 2PG at 12.00 p.m. on 6 January 2011, is to be posted to Shareholders today.

A copy of the Prospectus has been submitted to the National Storage Mechanism and will shortly be available for inspection at www.Hemscott.com/nsm.do. In addition, the Prospectus will shortly be available to view on the Company's website (www.imperialinnovations.co.uk) and will be available for inspection at the offices of Mayer Brown International LLP, 201 Bishopsgate, London EC2M 3AF.

Words and expressions used in this announcement have the meanings given in the Equity Raise Announcement.

Enquiries:

This announcement has been issued by and is the sole responsibility of the Company.

This announcement is an advertisement and not a prospectus and investors should not subscribe for or purchase any Nil Paid Rights, Fully Paid Rights, New Ordinary Shares, Warrants or New Convertible B Shares except on the basis of the information contained in the Prospectus.

The distribution of this announcement into jurisdictions other than the UK may be restricted by law. Persons into whose possession this announcement comes should inform themselves of and observe any such restrictions.

This announcement is for information purposes only and is not intended to and does not constitute or form any part of any offer or invitation to subscribe for, purchase or otherwise acquire any securities.

J.P. Morgan Cazenove, which is authorised and regulated in the UK by the Financial Services Authority is acting as Nominated Adviser, broker, bookrunner and (in respect of the Rights Issue only) underwriter exclusively to the Company and, save as regards the Relevant Major Shareholders in respect of the Warrant Placing, no one else in connection with the Equity Raise and will not regard any other person (whether or not a recipient of this announcement) as its client in relation to the Equity Raise and will not be responsible to anyone other than the Company and the Relevant Major Shareholders for providing advice in relation to the Equity Raise or any transaction or arrangement referred to in this announcement.

Neither the content of the Company's website (or any other website) nor the content of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.