Team Internet Regulatory News (TIG)

15 February 2013

The Innovation Group plc

("Innovation" or the "Group")

Interim Management Statement

The Innovation Group plc (LSE: TIG.L), a global provider of Business Process Outsourcing ("BPO") and software solutions to the insurance, fleet, automotive and property industries today publishes its Interim Management Statement for the period from 1 October 2012 to date, in accordance with DTR 4.3 of the FSA Handbook.

The Group has delivered a solid start to the financial year, driven by successful sales of both its software and BPO solutions. The Group continues to generate good levels of cash from its operations, and the conversion rate of EBITDA to operating cash flow remains strong and a key focus for management.

During the period, the Group achieved some notable new customer wins, particularly in the North American marketplace. These include Homesite, which purchased Insurer Claims and Insurer Analytics, and Austin Mutual Insurance Company, which purchased Innovation Auto to provide end-to-end auto claims and repair services for its personal and commercial auto business across nine states.

The Group has also established a number of exciting new partnerships this year, both internationally and in the UK, to help broaden its reach and to access new customers. These include an agreement with Xuber to offer insurers in multiple markets access to new Analytics solutions; an agreement with AutoRestore to incorporate the Group's Rapid Assess software into its UK network of 130 bodyshops; and an agreement with DAC Beachcroft to offer an extended motor claims handling service in the UK.

The Board is confident that the Group's performance is on track to meet its expectations for the current financial year.

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About The Innovation Group:

The Innovation Group plc (LSE: TIG.L) is a global provider of business process outsourcing and software solutions to the insurance, fleet, automotive and property industries. Innovation Group provides contact centres, repair networks, process management, supply chain and technology operations and decision support analytics to support accident management, repair and estimation and claims management services. Innovation Group has over 800 global clients including AXA, RSA, American Modern Insurance Group, LeasePlan, The Ford Motor Company, Aviva, Toyota and Zurich. The Group processes more than 4 million claims per year with 20 per cent direct claims cost saving achieved. Innovation Group's 2,300 people are located in the United Kingdom, Australia, Belgium, Canada, France, Germany, Japan, India, Pakistan, South Africa, Spain and United States.

www.innovation-group.com