Team Internet Regulatory News (TIG)

RNS REACH

13 February 2013

The Innovation Group plc

('Innovation Group' or the 'Group')

South African Contract Renewal

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 the renewal and extension of an important existing contract in South Africa for one of its software products.

The contract, which has been renewed for a three year period, will see Innovation Group continue to deploy its hosted policy and claims software in to one of South Africa's largest banks. Pricing for the contract is volume based and, on historic billing rates, is expected to contribute between £1.8m and £2.5m to Group revenue over the contract term.

The bank client currently uses Innovation Group software in nine African countries where it operates. Across these countries, more than 200,000 policies are carried on the Innovation Group system. Under the terms of the renewed contract, the client now intends to extend the use of Innovation Group's software to a total of 16 African countries over the three year period, with corresponding revenue uplift for the Group as this new volume is added.

Andy Roberts, Chief Executive Officer of The Innovation Group, commented:

"This is excellent news for our South African team and serves to prove just how effective our software can be in helping global, blue-chip firms manage high volume insurance processes. We look forward to working closely with this client as we extend the roll-out of our software in to other fast-growing, exciting African economies."

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About 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'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