Funding Retroscreen Virology

IP Group PLC
24 August 2006



For Immediate Release                                             24 August 2006

                                  IP Group plc

                         ('IP Group' or the 'Company')

        Retroscreen Virology Limited receives funding from IP Group plc


IP Group plc (code: IPO), the intellectual property commercialisation company,
is pleased to announce that it has invested £1,000,000 for 51,133 ordinary
shares in Retroscreen Virology Limited ('Retroscreen'), a spin-out company from
Queen Mary, University of London. Following the investment, IP Group will have a
25% stake in Retroscreen.

Retroscreen is Europe's leading contract virology research company. Founded by
Professor John Oxford, the scientific director of Retroscreen and a
distinguished expert in virology, Retroscreen's turnover for the year ended 31
July 2005 was £1.1 million and profits after taxation were £0.1 million.
Unaudited turnover and profits after taxation for the year ended 31 July 2006
were £2.4 million and £0.5 million respectively.

Retroscreen's work is dedicated to creating the next generation of Antivirals
and Vaccines specifically for the treatment of, amongst other viruses, avian
influenza (bird-flu), HIV, SARS and rhino-virus. Retroscreen undertakes and
co-ordinates several clinical trials per year involving student and staff
volunteers or patients in General Practice, particularly involving influenza or
common cold viruses or vaccines. Retroscreen also undertakes pre-clinical
projects.

The investment by IP Group in Retroscreen represents the first investment as part 
of the partnership with Queen Mary, University of London announced in July 2006. 
Bruce Campbell, Chief Scientific Officer of IP Group, will become a non-executive 
director of Retroscreen.

Alan Aubrey, Chief Executive of IP Group, said: 'We are delighted to have made
our first investment in a Queen Mary spin-out company less than one month after
signing a long term partnership with the college. Retroscreen is a profitable,
fast growing business that is well positioned to benefit from the need for
pharmaceutical companies to develop drugs to counter the threats to human health
posed by viruses such as SARS and avian-influenza (bird flu). In addition we
believe that Retroscreen can benefit from synergies with certain other IP Group
technologies and portfolio companies'

Rob Lambkin, Managing Director of Retroscreen, said: 'The entire team at
Retroscreen Virology Ltd is very excited by this investment. The investment will
allow us to further develop and expand the wide range of contract virology
research services we offer to companies from around the world, these include
simple laboratory testing to large scale clinical trials. We have solid
scientific plans for the future including new disinfectants to stop virus caused
diarrhoeal outbreaks on cruise ships and hospitals, as well as global threats
from West Nile and avian influenza viruses.'


For further information, please contact:

IP Group plc                                    020 7489 5200
Alan Aubrey, Chief Executive Officer
Liz Vaughan-Adams (communications)              020 7489 5206/07979853802


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.

The group has formed long-term partnerships with eight 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, the
University of Southampton and Queen Mary, University of London.

As at 30 June 2006, 44 spin-out companies had been created among the group's
university partners. Of those, eight have listed on the AiM market of the London
Stock Exchange and there has been one trade sale.

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


ENDS



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