Re Property Exceptionals

8 July 2010

The Innovation Group plc

Confirmation of consolidation of property requirements in UK and US

Additional property consolidation to be undertaken

At the time of the Group's Interim results announcement on 26 May 2010, The Innovation Group plc, (LSE: TIG.L; "Group" ) indicated that in light of the rapid progress made in restructuring the business, the Board was in a position to consider the Group's reduced property requirements in both the US and the UK. The Board today confirms the Group's decision to exit the two leases highlighted at the time of the interim results. Since the Interim results the Board has also identified two further leased properties in other geographies which will be subject to similar consolidation.

The Group's full year results will, therefore, show an exceptional charge of approximately £5.2 million, the cash impact of which will arise over the terms of the leases, concluding in August 2018. This charge includes both write-downs on fixed assets and a provision for the costs of the properties to the end of their respective leases although all efforts will be made to mitigate this charge through sub-leases. The Board also confirms that as a result of these actions, operating costs in 2011 and beyond will be reduced by approximately £1.2 million.

Enquiries:

The Innovation Group plc Tel: +44 (0) 1489 898 300

Andy Roberts, Chief Executive Officer

Jane Hall, Group Finance Director

FD Tel: +44 (0) 20 7831 3113

Ed Bridges

Erwan Gouraud

About The Innovation Group plc:

The Innovation Group plc 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 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 Insurance, 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, Netherlands, Pakistan, South Africa, Spain and United States. www.innovation-group.com

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