Capsant second round finance

IP2IPO Group PLC
05 March 2004


For immediate release                                               5 March 2004

                                IP2IPO Group plc

         Capsant Neurotechnologies secures £1m in second round finance

IP2IPO Group plc (AIM: IPO) ('IP2IPO'), the intellectual property company that
commercialises university technology, is pleased to announce that Capsant
Neurotechnologies Limited ('Capsant'), a spin-out company from the University of
Southampton in which IP2IPO holds a major stake, has succeeded in raising £1
million in second round finance.

Capsant, which was formed in October 2002, has developed a robust technology
platform for the testing and discovery of drugs for central nervous system 
('CNS') diseases. Since formation, Capsant has met a number of significant
milestones. Its platform technology has made considerable progress, and the
company has developed drug discovery screens for epilepsy, trauma and stroke. As
a result, Capsant has already started to win repeat business from a number of
biotechnology and pharmaceutical company clients. At the end of 2003, the
company recruited Dr Colin Picton as Chief Executive Officer. Colin has over 17
years of drug discovery experience, predominantly with GSK, where he was
formerly a Research Director and Head of UK-Japan drug discovery.

This second round of finance, which was oversubscribed, capitalises the company
at £4million. Both private and institutional investors supported the financing
and the new capital will be used by Capsant to build up its business development
and R&D strengths.  In line with its business model, IP2IPO did not subscribe
for new shares. Post the completion of the fundraising, IP2IPO holds a 20.5%
shareholding in Capsant.

Dr Lars Sundstrom, Capsant's founder and Chief Scientific Officer, said: 'I am
absolutely delighted that we have been backed so wholeheartedly by our
investors. This will now allow us to drive Capsant forward to the front line as
a leading edge company in drug development technology.'

Dave Norwood, IP2IPO's Chief Executive, commented: 'I am extremely pleased with
the way Capsant has developed as a business; generating early revenues and
validating its technology platform. This second round will finance the
acceleration of the company's R&D programmes, allowing it to expand its
portfolio of high value services.'


For more information contact:

IP2IPO
David Norwood, Chief Executive Officer                             020 7071 4348
Capsant
Dr. Colin Picton, Chief Executive Officer                          07976 822 535
Dr. Lars Sundstrom, Chief Scientific Officer                       07974 191 957
Buchanan Communications
Tim Anderson, Mark Court, Mary-Jane Johnson                        020 7466 5000


Notes to editors

IP2IPO

IP2IPO is an intellectual property (IP) company that specialises in
commercialising university technology. The Company has already formed four
long-term partnerships with UK universities and listed on AIM in October 2003.
IP2IPO's first such collaboration was with the University of Oxford. In return
for an investment of £20 million, IP2IPO has acquired 50 per cent of the
University of Oxford's equity in spin-out companies and technology licenses
based on intellectual property created at the Chemistry Department until 2015.

In March 2002, IP2IPO Limited entered into a second long-term partnership with
the University of Southampton. Under the terms of this partnership, IP2IPO is
committed to working with the University of Southampton in the identification
and facilitation of spin-out companies from across the University of Southampton
and to investing £5 million in early-stage University of Southampton spin-out
companies over a four year period in return for equity stakes in those
companies. In addition, IP2IPO Limited received a 20 per cent stake in
Southampton Asset Management Limited, a company that has been formed to hold the
University's equity stakes in its future spin-out companies. The partnership has
a term of at least 25 years.

IP2IPO Limited entered into its third long-term partnership in May 2003 with
King's College London. IP2IPO Limited will work with King's College London to
help identify and progress commercialisation opportunities as well as invest £5
million in King's College London's spin-out companies over a five year period in
return for equity stakes in those companies. In addition, IP2IPO Limited will
receive 20 per cent of King's College London's equity in spin-out companies and
technology licenses. The partnership has an initial term of 25 years.

In October 2003, IP2IPO announced a fourth partnership with the Centre for Novel
Agricultural Products ('CNAP'), based at the University of York. CNAP is a
flagship research centre that specialises in plant and microbial gene discovery.
Under the terms of the partnership a new company, Amaethon Limited, has been
created which has the right to commercialise CNAP's IP for 25 years. IP2IPO
Limited has committed to invest £1.15m in Amaethon Limited in return for a one
third equity stake in Amaethon Limited (the remaining equity being owned by the
University of York) and will also invest in the spin out companies based on
CNAP's IP which Amaethon Limited creates.


                      This information is provided by RNS
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