US

Completion of the Placing by Lehman Brothers International (Europe) and KBC Peel Hunt Ltd.

12 May 2006

IP Group, formerly IP2IPO, is pleased to announce the completion of the Placing by Lehman Brothers International (Europe) and KBC Peel Hunt Ltd announced yesterday. 11,452,650 new ordinary shares of 2 pence each (the "Placing Shares") were placed with institutional investors for cash at 147p per Placing Share (the Placing) raising approximately £16.8 million before expenses for the Company. The proceeds of the Placing will be used primarily to finance the entry into further long-term partnerships with leading research universities with which the Company is already in discussions. The Placing Shares are being placed conditional on admission to trading on the AIM Market of London Stock Exchange plc ("Admission"). Application has been made for Admission of the Placing Shares and it is expected that Admission will become effective and dealings in the Placing Shares will commence on 17 May 2006. The Placing Shares to be allotted will be credited as fully paid and will rank pari passu in all respects with the Company's existing ordinary shares of 2p each, including the right to receive all dividends and distributions declared, made or paid on or after the date of their allotment.

For more information please contact:

IP Group plc  
Alan Aubrey, Chief Executive Officer  
Alan Aubrey, Chief Executive Officer 020 7489 5200
Buchanan Communications  
Tim Anderson, Mark Court 020 7466 5000
Lehman Brothers International (Europe)  
Stephen Pull, Mark Hutt 020 7102 1000
KBC Peel Hunt Ltd  
Megan MacIntyre 020 7418 8900