IP Group plc - Oxford Advanced Surfaces Group plc first day dealings on AIM after reverse takeover

31 Dec 2007

IP Group plc (LSE: IPO) ("IP Group"), the intellectual property commercialisation company, is pleased to note that Oxford Advanced Surfaces Group plc ("OAS" or "the Company"), a specialist coatings and materials company held within the IP Group portfolio and a spin-out company from the University of Oxford, has today joined AIM via a reverse takeover of Kanyon plc (AIM: KNYN) ("Kanyon") (the "Reversal"). First day dealings on AIM of Ordinary Shares ("Ordinary Shares") in OAS commence today. Concurrent with the Reversal, OAS has completed a placing raising proceeds (before expenses) of £3 million.

OAS (AIM: OXA) is engaged in the development and commercialisation of technology which enables the modification of the surface properties of a broad range of materials. Initial applications for the technology include colouration, adhesion, bio-activity and tailored wetting properties.

IP Group is the registered owner of 27,995,045 Ordinary Shares in OAS (worth £7 million at the placing price of 25 pence per share), representing 15.7% of OAS' enlarged issued share capital. The Reversal will result in a total fair value gain to IP Group of £6.4 million.

OAS is the twelfth of IP Group's portfolio companies to have floated on either AIM or PLUS Markets and is the fourth IP Group portfolio company to have achieved a flotation this year. Green Chemicals plc floated on PLUS Markets in January while Modern Water Plc and Tracsis plc floated on AIM in June and November respectively.

For further information, please contact:

IP Group plc 0845 074 2929
Alan Aubrey, Chief Executive Officer
Liz Vaughan-Adams (Communications) 020 7444 0062/07979853802

Buchanan
 Tim Anderson, Mary-Jane Johnson, Mark Court 020 7466 5000

Notes for Editors

About IP Group

IP Group Plc is an intellectual property (IP) commercialisation company that specialises in commercialising university technology. Founded in 2001, IP Group listed on AIM in October 2003 and moved to the Official List in June 2006. It has made two acquisitions to date - Techtran, a company set up to commercialise university intellectual property under a long term contract with the University of Leeds, in 2005 and Top Technology Ventures, an investment adviser to early stage technology venture capital funds, in 2004.

IP Group has formed long-term partnerships with ten universities - the University of Oxford, King's College London, CNAP/University of York, the University of Leeds, the University of Bristol, the University of Surrey, the University of Southampton, Queen Mary (University of London), the University of Bath and the University of Glasgow.

As at 30 June 2007, 60 spin-out companies had been created among IP Group's university partners. Of those, ten have listed on the AIM market of the London Stock Exchange, one on PLUS Markets and there have been two trade sales. IP Group also has three 'Modern-themed' subsidiaries - Modern Biosciences, Modern Water and Modern Waste. Modern Water was the first of these subsidiaries to float on AIM in June 2007.