CNAP Spin-out

IP2IPO Group PLC
22 December 2004


For immediate release                                           22 December 2004

   Investment in spin-out company from CNAP at the University of York

IP2IPO Group plc (AIM: IPO) ('IP2IPO'), the intellectual property company that
specialises in commercialising university technology, is pleased to announce
that it has acquired a stake of up to 43.8% in Bioniqs Limited ('Bioniqs'), a
spin-out company from the Centre of Novel Agricultural Products at the
University of York.

Bioniqs designs and develops ionic liquids, a novel class of non-aqueous
materials with multiple applications in the specialty and fine chemicals
industry.  Bioniqs has developed unique expertise in ionic liquids that can
facilitate and improve bio-chemical and bio- catalytic processes that are
difficult to undertake using conventional technologies.

The founding academics of Bioniqs are Dr. Adam Walker and Prof. Neil Bruce, who
are acknowledged as world leaders in the areas of biocatalysis, biomolecular
engineering and ionic liquids chemistry. Neil Bruce is one of the UK's leading
biocatalysis researchers and a co-founder of the DTI ProBio Faraday Partnership
(the UK industry/academic research forum for biocatalysis). Neil is also a
Science Director of the new Centre of Excellence in Biocatalysis,
Biotransformations and Biocatalytic Manufacturing (CoEBio3) at the University of
Manchester.

IP2IPO's stake in Bioniqs is comprised of a 15% interest received as a result of
IP2IPO's shareholding in Amaethon Limited, the company established by IP2IPO and
the University of York to commercialise the IP from CNAP, and an interest of up
to 28.8% acquired as a result of a direct investment.

For more information please contact:

IP2IPO                                                020 7242 9900
David Norwood, Chief Executive Officer

Bioniqs                                               01904 328 777
Neil Bruce

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

Notes for editors

About IP2IPO

IP2IPO is an intellectual property (IP) company that specialises in
commercialising university technology. The Company was founded in 2001 and
listed on AIM in October 2003. IP2IPO's first partnership 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 November 2003, IP2IPO created a £5 million seed
capital fund for investing in spin-out companies across the University of
Oxford, not just those originating within the Chemistry Department. In March
2002, IP2IPO 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
also 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 entered into its third long-term partnership in May 2003 with King's
College London. IP2IPO will work with King's College London to help identify and
progress commercialisation opportunities as well as invest £5 million in seed
capital in spin-out companies from King's College London over a five year period
in return for equity stakes in those companies. In addition, IP2IPO 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 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.

In July 2004, IP2IPO acquired a strategic 20% stake in Techtran Group Limited
('Techtran'). Techtran has a long-term technology commercialisation contract
with the University of Leeds. Under the terms of the contract Techtran receives
a significant (30%) interest in spin-out companies created and technology
licences negotiated in return for the provision of technology transfer services
to the University.

In June 2004, IP2IPO acquired Top Technology Ventures Limited, an investment
adviser to early stage technology funds. This combines IP2IPO's expertise in the
creation of new ventures based on world leading university IP with Top
Technology's focus on making early stage venture capital investments.


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