21 December 2009

Innovation Group plc 

("Innovation Group" or the "Company")

Result of Placing and Open Offer

On 4 December 2009, Innovation Group announced the proposed Placing and Open Offer of 210,019,700 New Ordinary Shares at 10 pence per share. 84,019,700 New Ordinary Shares, which were conditionally placed with institutional and other investors subject to clawback under the Open Offer, were offered to Qualifying Shareholders by way of the Open Offer on the basis of 2 Open Offer Shares for every 17 Existing Ordinary Shares. 126,000,000 New Ordinary Shares were placed with institutional and other investors and are not subject to clawback. 

The Company announces that valid acceptances have been received in respect of 57,614,194 Open Offer Shares representing a total of approximately 68.6 per cent of those Open Offer Shares available under the Open Offer.  Following the number of valid acceptances received from Qualifying Shareholders under the Open Offer, 26,405,506 Open Offer Shares, representing the remaining 31.4 per cent of Open Offer Shares, will therefore be subscribed for by placees procured by Investec. 

The Placing and Open Offer remains conditional, inter alia, upon the resolutions to be put to the General Meeting due to be held at 10.00 am on the 21 December 2009 being passed, admission of the New Ordinary Shares to listing on the Official List of the UK Listing Authority and to trading on the London Stock Exchange's market for listed securities. It is expected that Admission will become effective and that dealings in the New Ordinary Shares will commence at 8.00 am on 22 December 2009. 

The Company expects to announce the result of the General Meeting as soon as practicable after the meeting concludes on 21 December 2009. 

Terms defined in the prospectus dated 4 December 2009 have the same meaning in this announcement, save where the context otherwise requires.