Xeros Tech Regulatory News (XSG)

TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARESi

1. Identity of the issuer or the underlying issuerof existing shares to which voting rights areattached: ii

XEROS TECHNOLOGY GROUP PLC

2 Reason for the notification (please tick the appropriate box or boxes):

An acquisition or disposal of voting rights

X

An acquisition or disposal of qualifying financial instruments which may result in the acquisition of shares already issued to which voting rights are attached

An acquisition or disposal of instruments with similar economic effect to qualifying financial instruments

An event changing the breakdown of voting rights

X

Other (please specify):

3. Full name of person(s) subject to thenotification obligation: iii

IP Group plc

4. Full name of shareholder(s)  (if different from 3.):iv

See section 9

5. Date of the transaction and date onwhich the threshold is crossed orreached: v

15 May 2017

6. Date on which issuer notified:

16 May 2017

7. Threshold(s) that is/are crossed orreached: vi, vii

Direct interests: unchanged

Indirect interests: 7% crossed

Combined direct and indirect interests: 19% crossed

8. Notified details:

A: Voting rights attached to shares viii, ix

Class/type ofshares

if possible usingthe ISIN CODE

Situation previousto the triggeringtransaction

Resulting situation after the triggering transaction

NumberofShares

NumberofVotingRights

Numberof shares

Number of votingrights

% of voting rights x

Direct xi

Indirect xii

Direct

Indirect

Ordinary 0.15p Shares

16,363,058

16,363,058

15,849,106

9,874,240

5,974,866

11.23%

6.80%

GB00BJFLLV84

B: Qualifying Financial Instruments

Resulting situation after the triggering transaction

Type of financialinstrument

Expirationdate xiii

Exercise/Conversion Period xiv

Number of votingrights that may beacquired if theinstrument isexercised/ converted.

% of votingrights

C: Financial Instruments with similar economic effect to Qualifying Financial Instruments xv, xvi

Resulting situation after the triggering transaction

Type of financialinstrument

Exercise price

Expiration date xvii

Exercise/Conversion period xviii

Number of voting rights instrument refers to

% of voting rights xix, xx

Nominal

Delta

Total (A+B+C)

Number of voting rights

Percentage of voting rights

15,849,106

18.03%

9. Chain of controlled undertakings through which the voting rights and/or thefinancial instruments are effectively held, if applicable: xxi

Direct interests:

IP Assist Services Limited: 5,928,000

IP2IPO Limited: 3,946,240

IP Assist Services Limited, formerly known as Techtran Group Limited, is a 100% owned subsidiary of IP Group plc. IP2IPO Limited is a 100% owned subsidiary of IP Group plc.

Indirect interests:

IP Venture Fund: 4,327,564

Share Nominees Limited: 1,555,303

Reyker Nominees Limited: 91,999

IP Venture Fund is a limited partnership fund that is managed by Top Technology Ventures Limited, a 100% subsidiary of IP Group plc.

Share Nominees Limited and Reyker Nominees Limited (the "Nominees") are the legal nominees for shares owned by investors in certain Parkwalk Advisors Limited ("Parkwalk") EIS funds. Parkwalk has the discretion to instruct the Nominees to exercise the voting and other rights attaching to such shares. Parkwalk is a 100%-owned subsidiary of IP Group plc following its acquisition on February 1 February 2017.

Proxy Voting:

10. Name of the proxy holder:

11. Number of voting rights proxy holder will ceaseto hold:

12. Date on which proxy holder will cease to holdvoting rights:

13. Additional information:

Based on 87,902,127 Ordinary Shares in issue

9 February 2017 notification based on 86,021,911 Ordinary Shares in issue

14. Contact name:

Greg Smith

15. Contact telephone number:

020 7444 0050