New science spin-out formed

IP2IPO Group PLC
20 May 2004


For Immediate Release                                               20 May 2004



                                IP2IPO Group plc


                  Formation of new materials science spin-out
                       from the University of Southampton


IP2IPO Group plc (AIM: IPO), the intellectual property company that specialises
in commercialising university technology, is pleased to announce that it has
acquired a 28.8% stake in Ilika Technologies Limited ('Ilika'), a spin-out
company from the University of Southampton.

Ilika is focused on high-throughput methods of screening, synthesising and
characterising very large numbers of new materials. The four founders of Ilika,
Professors Bradley, Hayden and Hursthouse and Dr Guerin, all of whom are based
at the University of Southampton's chemistry department, combine expertise in
robotics, combinatorial chemistry, materials science and informatics.

High-throughput combinatorial chemistry has already had a significant impact on
the pharmaceutical industry where the technique is widely used within the drug
discovery process to synthesise and screen large numbers of new compounds.
Ilika has been formed to introduce high-throughput combinatorial chemistry
techniques to other chemical and materials industries, with the objective of
dramatically accelerating the discovery of new materials with commercial value.
This is a technology with applicability in a range of markets including fuel
cells, polymers, ceramic coatings, lubricants, bio-medical materials,
semiconductor materials, liquid crystals, catalysts, anti-corrosion materials
and pigments.

Ilika has appointed Graeme Purdy as Chief Executive Officer. Mr Purdy, a
chemical engineer, spent the early part of his career with Shell in various
international roles before joining Avantium Technologies BV, a successful Dutch
start-up company that markets experimentation services to the chemistry and
pharmaceutical industries.

Commenting on today's announcement, Dave Norwood, Chief Executive Officer of
IP2IPO, said: 'Ilika is a fantastic opportunity. The University of Southampton
has developed a competitive lead in this area and the founders of Ilika have
repeatedly demonstrated the extent to which industry is demanding access to
their expertise.'


For more information contact:


IP2IPO
David Norwood, Chief Executive Officer                      020 7071 4348

University of Southampton
Rosy Jones                                                  02380 59 5378

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 licences
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 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 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.



The University of Southampton

The University of Southampton is a leading UK teaching and research institution
with a global reputation for leading-edge research and scholarship. The
University, which celebrated its Golden Jubilee in 2002, has 20,000 students and
over 4,500 staff and plays an important role in the City of Southampton. Its
annual turnover is in the region of £235 million.




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