Team Internet Regulatory News (TIG)

27 November 2013

The Innovation Group

("Innovation" or the "Group")

United States Business Progress

- New contract wins in software and a contract renewal and win in BPS -

- Combined revenue contribution of £14m (US $23m) over term of contracts -

- Significant momentum demonstrates strength of US offering -

The Innovation Group plc (LSE: TIG.L), a global provider of business process services and software solutions to the insurance, fleet, automotive and property industries, is pleased to announce three new contract wins for Innovation Insurer Software, a significant BPS client renewal and a new BPS tier one contract win, all in the US marketplace.

Software contract wins

The first contract win the Group has signed is with a new tier 3 start-up commercial lines insurer who will implement the full Innovation Insurer suite using a SaaS model. The initial contract is valued at £1.2m (US $2m) which will be recognised equally over the five year term of the agreement.

The second software agreement is with a tier 3 motor and property insurer and will see the Innovation Group implement Insurer Claims and Analytics. The contract is valued at £1.3m (US $2.2m) over five years, with an impact of £1.1m (US $1.8m) in FY 2014.

Thirdly, the Group has signed a new contract with a tier 3 personal and commercial lines insurer, to implement Insurer Analytics across multiple companies as an enterprise data mastery solution. The initial contract is valued at approximately £0.46m (US$0.75m), of which £0.15m ($0.25m) represents license and will be recognised upfront; and £0.3m ($0.5m) relates to professional services which will be recognised over the life of the implementation.

The contracts for the SaaS model demonstrate how flexible the deployment of the Group's Insurer suite can be, providing a large number of smaller insurers with the option of best in class, modern technology.

BPS contract win and renewal

The Group has secured a number of new BPS agreements within its motor division. These new agreements, which are for both Innovation's direct repair program as well as its motor recovery offering, are expected to generate revenues of £3.7m (US$6m) over a three year term.

The contract renewal is a two year agreement with the world's leading provider of fleet and vehicle management solutions. The contract, valued at £7.4 million (US $12m) net revenue over the two year period, with £3.7m (US $6m) recognized in FY2014, will see the Innovation Group continue to be the sole provider of accident management services for this client in the US market. The Group will manage an expected 240,000 transactions over the period, consisting primarily of collision management, rental, road side assistance, glass and subrogation.

Welcoming the news Andy Roberts, Chief Executive Officer of The Innovation Group said:

"I am extremely pleased to announce a number of new contracts and a renewal, which evidence our continued momentum and growth in the US market. These new mandates are illustrative of the success of our software offerings and the uptake of the SaaS model demonstrates the flexibility of our suite. The SaaS model, which is an upfront license spread across a term, provides us with even greater clarity on our forecasts. We look forward to deepening the collaboration with our partners, enhancing their customer relationship and by doing so, helping them achieve their overall business goals."

Enquiries:

About The Innovation Group plc:

Innovation Group (LSE: TIG) is a global provider of insurance software solutions and business process services. With revenues of £193m (US$ 302m) in 2012, it employs over 2,400 people across North America, Europe, Asia Pacific and South Africa and works with 15 of the top 20 global insurance markets, 16 of the top 20 global insurance companies and 3 of the world's top 5 fleet and lease management companies.

www.innovation-group.com