US

Modern Biosciences enters into a Memorandum Of Understanding with the University of Manchester

08 Mar 2006

IP2IPO Group plc (AIM: IPO) ("IP2IPO"), the intellectual property commercialisation company, is pleased to announce that Modern Biosciences (MBS), its specialist life science intellectual property (IP) in-licensing subsidiary, has entered into a Memorandum of Understanding with The University of Manchester relating to the commercialisation of drug related IP. The University of Manchester is one of the leading centres for life science research in the UK. In the past this has led to a number of successful spin outs such as Neutec Pharma plc, Renovo Limited, Gentronix Ltd, AI2 Ltd and Medeval Ltd and licences to major corporations. Under the terms of the agreement, MBS will work with The University of Manchester to identify and assess drug related investment opportunities arising from research carried out across the University. It is intended that MBS will provide investment for suitable opportunities and also take on responsibility for the development and commercialisation of the appropriate IP. MBS will enter into royalty sharing agreements with the University and the relevant academic research group.

Dr Alex Stevenson, Chief Operating Officer of Modern Biosciences, commented: "We are very pleased to have entered into this agreement with The University of Manchester. Having reviewed a number of opportunities from the University's pipeline, we are confident of being able to add value to the outstanding research in drug discovery that is being carried out and look forward to working with the University to achieve this. This is a good example of the way in which MBS can work with research institutions, providing an alternative channel from the lab bench to industry for drug related IP."

Mr Clive Rowland, Chief Executive of The University of Manchester Intellectual Property Limited (UMIP), commented: "The University is very pleased to conclude this agreement with Modern Biosciences. It further strengthens our dynamic enterprise and entrepreneurial activities for which Manchester is well known. We look forward to working with Modern Biosciences in commercialising drug related research thereby realising further value for the University and its staff."

For more information please contact:

IP2IPO Group plc 020 7489 5200
Alan Aubrey, Chief Executive Officer  
Buchanan Communications 020 7466 5000
Tim Anderson, Mark Court, Mary-Jane Johnson  
Modern Biosciences 020 7489 5225
Alex Stevenson, Chief Operating Officer  
Buchanan Communications 020 7466 5000
Tim Anderson, Mark Court, Mary-Jane Johnson  
The University of Manchester 0161 606 7216
Dr Rich Ferrie, Senior Business Manager, UMIP  

Notes for editors

About IP2IPO

IP2IPO is an intellectual property (IP) company that specialises in commercialising university technology. The Company was founded in 2001 and listed on the AIM Market of the London Stock Exchange plc in October 2003. IP2IPO's first partnership was with the University of Oxford. In return for an investment of £20 million, IP2IPO has acquired 50 per cent of the University of Oxford's equity in spin-out companies and technology licenses based on intellectual property created at the Chemistry Department until 2015. In November 2003, IP2IPO created a £5 million seed capital fund for investing in spin-out companies across the University of Oxford, not just those originating within the Chemistry Department. In March 2002, IP2IPO entered into a second long-term partnership with the University of Southampton.

Under the terms of this partnership, IP2IPO is committed to working with the University of Southampton in the identification and facilitation of spin-out companies from across the University of Southampton and to investing £5 million in early-stage University of Southampton spin-out companies over a four year period in return for equity stakes in those companies. In addition, IP2IPO also received a 20 per cent stake in Southampton Asset Management Limited, a company that has been formed to hold the University's equity stakes in its spin-out companies. The partnership has a term of at least 25 years. IP2IPO entered into its third long-term partnership in May 2003 with King's College London. IP2IPO works with King's College London to help identify and progress commercialisation opportunities as well as invest £5 million in seed capital in spin-out companies from King's College London over a five year period in return for equity stakes in those companies. In addition, IP2IPO receives 20 per cent of King's College London's equity in spin-out companies and technology licenses.

The partnership has a term of 25 years. In October 2003, IP2IPO announced a fourth partnership with the Centre for Novel Agricultural Products ("CNAP"), based at the University of York. CNAP is a flagship research centre that specialises in plant and microbial gene discovery. Under the terms of the partnership a new company, Amaethon Limited, has been created which has the right to commercialise CNAP's IP for 25 years. IP2IPO has invested £1.15m in Amaethon Limited in return for a 40% equity stake in Amaethon Limited (the remaining equity being owned by the University of York) and will also invest in the spin-out companies based on CNAP's IP which Amaethon Limited creates. In June 2004, IP2IPO acquired Top Technology Ventures Limited, an investment adviser to early stage technology funds.

This combines IP2IPO's expertise in the creation of new ventures based on world leading university IP with Top Technology's focus on making early stage venture capital investments. In January 2005, IP2IPO acquired Techtran, a company set up in 2002 to commercialise university intellectual property under a long-term technology commercialisation contract with the University of Leeds. Under the terms of the contract Techtran receives a significant (30%) interest in spin-out companies created and technology licences negotiated, in return for the provision of technology transfer services to the University. In May 2005, IP2IPO announced the launch of LifeUK, a new subsidiary company. LifeUK, which has since been renamed Modern Biosciences, will in-license life science intellectual property created by medical researchers at universities with which IP2IPO already has partnerships, other universities in the UK and similar academic and charitable research institutions. Modern Biosciences' objective is to further develop the intellectual property which it in-licenses with a view to creating substantial value either by subsequently licensing these development programmes to the pharmaceutical industry or via the creation of new ventures. In December 2005, IP2IPO entered into its sixth long-term partnership with the University of Bristol. IP2IPO will work with the University of Bristol to help identify and progress commercialisation opportunities as well as invest an initial £5 million in seed capital in spin-out companies from the University of Bristol over a five year period in return for equity stakes in those companies. In addition, IP2IPO will receive 13.3% per cent of in spin-out companies at the time that the company is established prior to investment. The partnership has a term of 25 years.

On 9th February 2006, IP2IPO entered into its seventh long-term partnership with the University of Surrey. IP2IPO will work with the University of Surrey to help identify and progress commercialisation opportunities as well as invest an initial fund of up to £5 million in seed capital in spin-out companies from the University of Surrey in return for equity stakes in those companies. In addition, IP2IPO will receive 13.3% per cent of in spin-out companies at the time that the company is established prior to investment. The partnership has a term of 25 years. To date, 5 spin-out companies from the IP2IPO portfolio have listed on the AIM Market of the London Stock Exchange plc: Offshore Hydrocarbon Mapping plc, Synairgen plc, VASTox plc, Proximagen Neuroscience plc and GETECH Group plc. There has been one trade sale: Toumaz Technology Limited was sold to Nanoscience Inc.

About Modern Biosciences

In May 2005, IP2IPO announced the launch of LifeUK, a new subsidiary company. LifeUK, which has since been renamed Modern Biosciences, will in-license life science intellectual property created by medical researchers at universities with which IP2IPO already has partnerships, other universities in the UK and similar academic and charitable research institutions. Modern Biosciences' objective is to further develop the intellectual property which it in-licenses with a view to creating substantial value either by subsequently licensing these development programmes to the pharmaceutical industry or via the creation of new ventures. About UMIP (www.umip.com) UMIP is the University of Manchester's managing agent for IP commercialisation and was set up in October 2004.