United States Update

15 December 2011

The Innovation Group

("Innovation" or the "Group")

United States Update

- Innovation Group makes significant new business progress in North America -

- New multi-year BPO client secured, in addition to two existing BPO client extensions -

The Innovation Group plc (LSE: TIG.L), is pleased to announce news of a number of significant new business achievements in the US marketplace. The Group's recently strengthened North American sales team has extended two existing Business Process Outsourcing ("BPO") mandates in the region, in addition to signing a new, multi-year BPO client agreement.

The new BPO agreement will see the Group support the auto insurance operations of a major regional insurer, which provides insurance directly to consumers via storefronts, call centres and the web across 12 US states. Under the terms of the agreement, the Group will provide the insurer with a range of auto direct repair and independent adjuster services, delivered via the Group's own repair network. The agreement, which recently commenced, is expected to generate approximately US$3.0m in Group revenue over a three year term.

In addition, the Group has extended two existing and significant North America client mandates. The first mandate, with one of the United States' largest insurance groups, Selective Insurance, will see the Group provide Selective Insurance with after hours and overflow First Notice of Loss services over a three year term. The agreement, which recently commenced following a pilot during Hurricane Irene, is expected to generate approximately US$2.3m in Group revenue over its term.

The second mandate, with the subsidiary of a global Tier one insurer based in the US, has also been renewed for a further three years. Under the terms of the extended agreement, the Group will continue to provide the insurer with property claims services. This three year agreement, which recently commenced, is expected to generate approximately US$3.0m in Group revenue over its term.

Welcoming the news Andy Roberts, Chief Executive Officer of The Innovation Group added:

"This is excellent progress by our North America team and a clear, credible example of the attractiveness of our BPO offering in this important marketplace. These new and extended mandates are illustrative of the positive momentum we are seeing across our global markets at present, driven by the increasing numbers of insurers considering how best to secure, service and sustain their customer bases."

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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

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