Avacta-AIM via Reverse

IP Group PLC
14 July 2006


PRESS RELEASE                                                       14 July 2006
                                                             
                                  IP GROUP PLC

              AVACTA TO JOIN AIM VIA REVERSE TAKEOVER OF READYBUY


IP Group plc (LSE: IPO) ('IP Group'), the intellectual property
commercialisation company, is pleased to note that Avacta Ltd ('Avacta'), a
bio-detection and analysis spin-out from the University of Leeds, is to join AIM
via a reverse takeover of Readybuy plc (AIM: RBUY ) ('Readybuy'), the AIM quoted
cash shell.

On completion of the transaction, IP Group's holding in Avacta will total
174,517,228 Ordinary Shares (worth £3.9 million at the placing price),
representing 26.07% of the enlarged share capital. The proposed admission of
Avacta to AIM will generate a fair value gain of £3.5 million for IP Group.

Readybuy has announced today that it has agreed, subject, inter alia, to
existing shareholder approval, to acquire the entire issued and to be issued
share capital of Avacta in consideration of the issue of 500,000,000 new
Ordinary Shares. Readybuy has also proposed to raise £1,012,500 (before
expenses) by means of a placing of 45,000,000 new Ordinary Shares at 2.25p per
share. These funds will be used to finance the development of Avacta and provide
additional working capital for the enlarged group.

Avacta is a biophysics company with two core activities. Avacta operates a
profitable analytical services division, Avacta Analytical, where it provides
analytical services relating to the chemical and physical analysis of materials
to a range of companies principally in the pharmaceutical, healthcare and
personal care sectors including Unilever R&D Port Sunlight and Domantis Ltd.

Avacta's other core activity is the development of detection technology
platforms where it is developing proprietary technologies for the rapid
detection and identification of biological and chemical hazards aimed at
customers in homeland security and defence. Following the increasing prevalence
of international terrorism in recent years, homeland security has become a high
priority to many governments. The potential threat posed to public health by
diseases such as SARS and pandemic flu is also a concern within this market.
Avacta is developing technologies to help combat these threats. In particular,
Avacta is developing a 'remote hazard detection' application with the MoD. This
application is intended to be vehicle mounted and is being primarily designed to
detect chemicals, including weapons material, at distances of up to 20 metres.
Laboratory trials of the proof-of-principle prototype device are currently under
way.

The technologies will also be applied to the biopharmaceutical and clinical
diagnostics markets.

In addition, Avacta is currently in advanced discussions with the UK government
with regard to a co-development project and with UCB's Celltech Antibody Centre
of Excellence in relation to a collaboration funded by the Department of Trade
and Industry. Avacta is also in early stage discussions with a number of other
organisations in respect of the formation of additional co-development projects.

The acquisition of Avacta is classified as a reverse takeover under the AIM
Rules by virtue of its size and is conditional, inter alia, on the approval of
Readybuy shareholders. In view of the significance of the Acquisition, the
Directors of Readybuy have also proposed to change the name of Readybuy to
Avacta Group plc.


For further information about IP Group plc, please contact:


IP Group plc                                           020 7489 5200
Alan Aubrey, Chief Executive Officer
Liz Vaughan-Adams (communications)                     0207 4895206/07979 853802

KBC Peel Hunt Ltd                                      020 7418 8900
Megan Macintyre

Buchanan Communications                                020 7466 5000
Mark Court, Tim Anderson, Mary-Jane Johnson


Notes for Editors


About IP Group

IP Group Plc is an intellectual property (IP) commercialisation company that
specialises in commercialising university technology. Founded in 2001, IP Group
listed on AIM in October 2003 and moved to the Official List in June 2006. It
has made two acquisitions to date - Techtran, a company set up to commercialise
university intellectual property under a long term contract with the University
of Leeds, in 2005 and Top Technology Ventures, an investment adviser to early
stage technology venture capital funds, in 2004.

IP Group has formed long-term partnerships with seven universities - the
University of Oxford, King's College London, CNAP/University of York, the
University of Leeds, the University of Bristol, the University of Surrey and the
University of Southampton.

As at 13 June 2006, 42 spin-out companies had been created among IP Group's
university partners. Of those, seven have listed on the AIM market of London
Stock Exchange plc and there has been one trade sale.

For more information, please visit our website at www.ipgroupplc.com


ENDS



                      This information is provided by RNS
            The company news service from the London Stock Exchange