Contract Win

RNS Number:7828T
Innovation Group PLC
02 January 2004



                                                                2nd January 2004

                        THE INNOVATION GROUP PLC ("TiG")
                                  Contract win


The Innovation Group, which specialises in delivering profit improvement
solutions to the insurance and associated industries, is pleased to announce
that the evaluation licence it delivered to one of America's leading insurers
(previously announced in the preliminary results statement on November 24), has
now been converted into a full licence worth $2.3m (services and maintenance are
additional to this).

The majority of the benefits from this contract, won in conjunction with IBM,
are expected to accrue over the next 24 months.

Enquiries:

The Innovation Group plc      Hassan Sadiq                          01489 898300
                              Chief Executive Officer
                              Paul Smolinski
                              Group Finance Director

KBC Peel Hunt Ltd             Simon Hayes                          020 7418 8900

Weber Shandwick Square Mile   Sara Musgrave                        020 7067 0700



Notes to Editors

The Innovation Group delivers innovative technology and process improvement
solutions to insurance and associated industries that enable clients to increase
profit and improve the customer experience. To cater to the needs of each
individual client, and to maximise impact and return on investment, TiG's
solutions comprise two divisions: Technology Solutions Division (TSD) and
Specialised Business Process Outsourcing (SBPO).

The Group has provided services for leading blue chip companies around the globe
including: ACG, ACSC, Allianz, Aviva, Axa, BMW, Chubb, Direct Line, Ford Motor
Company, Jaguar, RSA, Yasuda, and Zurich.

Market leaders recognise that in order to improve profit margins they must
reduce the total cost of claims. Current industry averages show that average
European non-life expenditures are around 105% of premiums collected (combined
ratio), with nearly 80% of this expense being claims related (totalling more
than #20 billion a year in the UK alone)*. TiG's claims technology enables
insurers to decrease claims cost by around 5 to 20% and improve customer
experience.

* Source: The Economist Intelligence Unit, February 2003.





                      This information is provided by RNS
            The company news service from the London Stock Exchange

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