IP Group Companies Funding

IP Group PLC
10 May 2006


For immediate release                                                10 May 2006

                                   IP GROUP PLC

                 Two IP Group plc portfolio companies complete
                       successful second round financings


IP Group plc (AIM: IPO) ('IP Group' or 'the Group'), formerly IP2IPO Group plc,
the intellectual property commercialisation company, is pleased to announce the
completion of second round financing for the following two University spin-outs
in which the Group holds an equity stake, collectively generating IP Group fair
value gains of £15.8 million.

Oxford Nanolabs Limited ('ONL'), a spin-out company from the University of
Oxford Chemistry Department has successfully raised a minimum of £5.5 million in
its second financing round. Following completion of the fundraising, IP Group
will recognise a fair value gain of £10.3 million.

ONL is a nanobiotechnology diagnostic company developing highly innovative
products for applications in genomics, pharmacogenomics and high throughput drug
discovery as well as for the Home Defence and Security sectors.  ONL aims to
apply its platform technology to initially provide hand-held diagnostic devices
for medical testing. Longer-term applications include drug discovery involving
membrane proteins and genome sequencing.

Ilika Technologies Limited ('Ilika'), a spin-out company from the University of
Southampton has successfully raised £1.5 million in its second cash financing
round.  Following this fundraising, IP Group has a beneficial interest in Ilika
of 21.7% and recognises a fair value gain of £5.5 million.

Ilika has proprietary high throughput technology for the discovery and
development of novel materials. The technology has been demonstrated to
significantly accelerate the creation and assessment of materials in a range of
markets and successfully establish strong intellectual property (IP) positions
in new materials. Products whose development has been accelerated through
research undertaken by Ilika to date include fuel cell electrodes, hydrogen
storage alloys and electronic materials as well as polymer formulated products
and biomedical materials.


For further information contact:

IP Group                                                                     020 7489 5200
Alan Aubrey, Chief Executive Officer

Oxford Nanolabs Limited                                                      0870 4861966
Dr Gordon Sanghera, Chief Executive Officer

Ilika Technologies Limited                                                   023 8059 3095
Graeme Purdy, Chief Executive Officer

KBC Peel Hunt Ltd                                                            020 7418 8900
Megan MacIntyre

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


About IP Group plc

IP Group is an intellectual property (IP) company that specialises in
commercialising university technology. The Company was founded in 2001 and
listed on the AIM Market of the London Stock Exchange plc in October 2003. IP
Group's first partnership was with the University of Oxford. In return for an
investment of £20 million, IP Group 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, IP Group 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, IP Group entered into a second long-term partnership with the
University of Southampton. Under the terms of this partnership, IP Group 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, IP Group 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 spin-out companies. The partnership has a term
of at least 25 years.

IP Group entered into its third long-term partnership in May 2003 with King's
College London. IP Group works 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, IP Group receives
20 per cent of King's College London's equity in spin-out companies and
technology licenses. The partnership has a term of 25 years.

In October 2003, IP Group 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. IP Group
has invested £1.15m in Amaethon Limited in return for a 40 per cent. 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 June 2004, IP Group acquired Top Technology Ventures Limited, an investment
adviser to early stage technology funds. This combines IP Group'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.

In January 2005, IP Group acquired Techtran, a company set up in 2002 to
commercialise university intellectual property under a long-term technology
commercialisation contract with the University of Leeds. Under the terms of the
contract Techtran receives a significant (30 per cent.) interest in spin-out
companies created and technology licences negotiated, in return for the
provision of technology transfer services to the University.

In May 2005, IP Group announced the launch of Modern Biosciences, which will
in-license life science intellectual property created by medical researchers at
universities with which IP2IPO already has partnerships, other universities in
the UK and similar academic and charitable research institutions. Modern
Biosciences' objective is to further develop the intellectual property which it
in-licenses with a view to creating substantial value either by subsequently
licensing these development programmes to the pharmaceutical industry or via the
creation of new ventures.

In December 2005, IP Group entered into its sixth long-term partnership with the
University of Bristol. IP Group will work with the University of Bristol to help
identify and progress commercialisation opportunities as well as invest an
initial £5 million in seed capital in spin-out companies from the University of
Bristol over a five year period in return for equity stakes in those companies.
In return, IP Group will receive 13.3 per cent of equity spin-out companies from
the University of Bristol at the time that the spin-out company is established
prior to investment. The partnership has a term of 25 years.

In February 2006, IP Group entered into its seventh long-term partnership with
the University of Surrey. IP Group will work with the University of Surrey to
help identify and progress commercialisation opportunities as well as invest an
initial fund of up to £5 million in seed capital in spin-out companies from the
University of Surrey in return for equity stakes in those companies. In
addition, IP Group will receive 13.3% per cent of in spin-out companies at the
time that the company is established prior to investment. The partnership has a
term of 25 years.

In March 2006, IP Group entered into an exclusive long-term partnership with the
University of York. The partnership is in addition to IP Group's current
partnership with the Centre for Novel Agricultural Products, IP Group will work
with the University of York to help identify and progress commercialisation
opportunities as well as invest an initial fund of £5 million in seed capital in
spin-out companies from the University of York in return for equity stakes in
those companies. In addition, IP Group will receive 25% of the equity in any
spin-out company from the University at the time that the company is
established, prior to investment, if IP Group invests in the company from the
fund and 15% of the equity if it does not invest from the Fund. IP Group will
also receive 10% of any income which the University of York receives from
licencing during the lifetime of the partnership.  The partnership has a term of
25 years.

To date, 7 spin-out companies from the IP Group portfolio have listed on the AIM
Market of London Stock Exchange plc: Offshore Hydrocarbon Mapping plc, Synairgen
plc, VASTox plc, Proximagen Neuroscience plc, GETECH Group plc, Syntopix Group
plc and Oxford Catalysts Group plc. There has been one trade sale: Toumaz
Technology Limited was sold to Nanoscience Inc.

END


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