UK Contract Extension

9 September 2013

The Innovation Group plc

('Innovation Group' or the 'Group')

UK Contract Extension

- Direct Line Group agrees contract extension with Innovation Group for Subsidence Claims Management expertise-

The Innovation Group plc (LSE: TIG.L), a global provider of business process services and software solutions to the insurance, fleet, automotive and property industries, is pleased to announce that it has signed a significant contract extension with Direct Line Group ("DLG"), one of the UK's leading insurers.

The extended contract, which covers the period to 31 December 2017, will see the Group continue to handle all of Direct Line Group's newly notified subsidence claims. Based upon anticipated claims volumes and assuming normal weather conditions, the additional value of the contract from December 2014 to December 2017 is £20 million, bringing the total contract value from its start in August 2011 to £60 million.

Innovation Group continues to be successful in deploying its compelling proposition for the handling of subsidence claims. This proposition sees the Group provide the insurer with a fixed per-claim pricing structure, fully backed with reinsurance, that removes variability from the insurer's claims reserves and delivers certainty over indemnity spend.

Andy Roberts, Chief Executive Officer of The Innovation Group commented:

"I am delighted to announce this significant contract extension with the Direct Line Group. Working in partnership with them has enabled us to extend our proposition for subsidence claims handling, further leveraging our respective position for enrichment of customer experience and certainty of cost. This extension is another key indication that our offering in the UK subsidence market remains unique and unrivalled. We look forward to deepening our existing relationship with this leading UK insurer, as well as continuing to forge new product and client opportunities."

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About The Innovation Group plc:

Innovation Group (LSE: TIG) is a global provider of insurance software solutions and business process services. With revenues of £193m (US$ 302m) in 2012, it employs over 2,400 people across North America, Europe, Asia Pacific and South Africa and works with 15 of the top 20 global insurance markets, 16 of the top 20 global insurance companies and 3 of the world's top 5 fleet and lease management companies.

www.innovation-group.com