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IP Group announces Perachem to join PLUS Markets via reverse takeover

08 Jan 2007

IP Group plc (LSE: IPO) (“IP Group”), the intellectual property commercialisation company, is pleased to note that Perachem Ltd (“Perachem”), a speciality chemicals company held within the IP Group portfolio and a spin-out company from the University of Leeds, is to join PLUS Markets Group (“PLUS Markets”) via a reverse takeover of Primavera Capital plc (PLUS: PRCO) (“Primavera”).

On completion of the transaction, IP Group's holding in Primavera will total 1,950,545 Ordinary Shares (worth £1.1 million at the placing price of 55p per share), representing 24.5% of the enlarged share capital.

Primavera has announced today that it has agreed, subject, inter alia, to existing shareholder approval, to issue 5,407,272 new Ordinary Shares in consideration for the  entire issued and to be issued share capital of Perachem. Primavera has also proposed to raise £250,000 (before expenses) by means of a placing of 454,545 new Ordinary Shares at 55p per share. These funds will be used to finance the development of Perachem and provide additional working capital for the enlarged group. On completion of the transaction, Primavera has proposed that it change its name to Eco Chemical Enterprises plc.

Perachem’s business is focussed on developing the following products:

(i) chlorine-free shrink resistant treatments for wool;

(ii) flame retardant textiles that do not release potentially carcinogenic halogens and formaldehyde during their manufacture or use;

(iii) peroxide-free bleaching agents; and

(iv) textiles with long lasting microbial protection against antibiotic resistant bacteria.

The acquisition of Primavera is classified as a reverse takeover under the PLUS Markets Rules by virtue of its size and is conditional, inter alia, on the approval of Primavera shareholders.

For further information, please contact:

IP Group plc                                                      020 7489 5200
 
Alan Aubrey, Chief Executive Officer

Liz Vaughan-Adams (communications)                0207 4895206/07979 853802

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

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.

The 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 2006, 44 spin-out companies had been created among the group's university partners. Of those, eight have listed on the AiM market of the London Stock Exchange and there have been two trade sales.

For more information, please visit our website at www.ipgroupplc.com.