Investment in Stingray Geophy

QinetiQ Group plc
23 March 2006


QinetiQ Group plc
23 March 2006

INVESTMENT IN STINGRAY GEOPHYSICAL LIMITED

QinetiQ Group plc announces that one of its Group companies, QinetiQ Limited
('QinetiQ'), has signed a transaction for the sale of shares in Stingray
Geophysical Limited ('SGL').

SGL has been set up as a wholly owned subsidiary of QinetiQ for the purposes of
developing a commercial fibre optic seismic monitoring system which can be
deployed permanently on the seabed to provide high quality data on hydrocarbon
reservoirs. The system will use QinetiQ's OptaSeisTM technology.

Under the terms of the transaction, a venture capital consortium led by Energy
Ventures II KS and including CTTV Investments LLC and Hydro Technology Ventures
has committed to investing up to £6.6million in SGL in return for a combined
73.1% shareholding in SGL. QinetiQ will grant a licence to SGL for the use of
its OptaSeisTM technology and will retain a 19.9% shareholding in SGL. The
remaining 7% shareholding in SGL will be transferred to three of the founding
managers of SGL.



Lynton D. Boardman

Company Secretary

23 March 2006

END




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