Update on Trading and UK Motor BPS Acquisition

1 October 2014

The Innovation Group plc

("Innovation Group" or the "Group")

Update on Trading and UK Motor BPS Acquisition

- Trading in line with expectations -

As stated in the Interim Management Statement issued on 18 August 2014, Innovation Group confirms that it remains confident that the Group will meet its expectations for the financial year ended 30 September 2014.

The Group has previously stated that it is in advanced negotiations regarding a UK Motor BPS acquisition, which it had expected to complete by the close of the financial year ended 30 September 2014. Due diligence and contract negotiations continue to progress, but are taking longer than originally anticipated. The Group will keep the market informed as these activities continue to develop.

Enquiries:

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