IP Group news 0

IP Group plc (LSE: IPO) ("IP Group"), the intellectual property commercialisation company, is delighted to announce that Modern Water plc ("Modern Water", "the Group" or "the Company") has published its Admission Document for its Admission to AIM after successfully raising £30 million, before expenses, by way of a placing with institutional and other investors at a placing price of 119p per Ordinary Share of 0.25p each (the "Placing Price"), valuing the Company at £70 million on Admission. Dealings in Modern Water's shares are expected to commence on 12 June 2007 under the ticker symbol MWG.

Following the placing, IP Group has beneficial ownership of 13,552,200 Ordinary Shares in Modern Water (worth £16.1 million at the Placing Price), representing 23%* of Modern Water's enlarged issued share capital. The admission of Modern Water to AIM will result in an incremental increase in value to IP Group (in the form of a fair value gain) of £14.1 million.

Modern Water has been established to source, develop and deploy technology-based solutions to meet the growing demand for the economic availability of fresh water and treatment of waste water. It is one of three IP Group 'Modern-themed' subsidiaries and will be the first of these subsidiaries to float on AIM. The other two 'Modern' subsidiaries are Modern Biosciences, set up to address the problem of poor product pipeline within major pharmaceutical companies, and Modern Waste, set up to establish and exploit a portfolio of innovative sensing, monitoring and control technologies and apply them to the waste and recycling markets.

Modern Water is initially concentrating on two distinct approaches to the water market being: (i) desalination; and (ii) the substitution of fresh water with sea water or recycled water for certain non-potable uses. The Group's strategy is to acquire key stakes in appropriate technologies within these areas and to date has made investments in Surrey Aquatechnology Limited and Poseidon Water Limited. The Group also has an investment in Cymtox Limited.

Placing Statistics 
 

Placing Price                                                                   119p
Number of Placing Shares                                               25,210,085
Number of Ordinary Shares in issue on Admission           58,862,685
Capitalisation at the Placing Price                                    £70 million
Gross proceeds of the Placing                                        £30 million
Estimated net proceeds of the Placing                             £28.6 million
Placing Shares as a percentage of the Enlarged Share Capital     42.8% 
 

Modern Water's Board of Directors 
 
Neil McDougall (45), Executive Chairman
Simon Humphrey (40), Chief Executive Officer and Finance Director
Dr Gerald Jones (56), Chief Scientific Officer
Michael Gradon (48), Senior Independent Non Executive Director
Paul Shepherd CBE DL (62), Non Executive Director
Trevor Jones (61), Non Executive Director
Mike Townend (44), Non Executive Director 
 
Commenting on the Group's Admission to AIM, Neil McDougall, Executive Chairman of Modern Water plc, said: "We are delighted with the positive response we have  received from investors. As a business at the forefront of water technology, particularly in the areas of desalination and fresh water substitution, we were pleased to note investors' enthusiasm for the potential that lies in Modern Water's business model. The management team and I look forward to a successful future as a public company."

KBC Peel Hunt Ltd is acting as Nominated Adviser and Broker to Modern Water.

*IP Group has a registered holding of 16,427,000 Ordinary Shares, of which 2,874,800 Ordinary Shares, representing 4.88% of the enlarged issued share capital, are registered under IP2IPO Nominees Limited (a wholly owned subsidiary of IP Group) in connection with an employee incentive plan.

For further information, please contact: 
 
IP Group plc                                                    020 7489 5200
Alan Aubrey, Chief Executive Officer
Liz Vaughan-Adams (Communications)               020 7489 5206/07979853802 
 

Buchanan
Tim Anderson, Mary-Jane Johnson, Mark Court      020 7466 5000 
 
Modern Water plc
Neil McDougall                                   07740 930 303
www.modernwater.co.uk 
 
HeadLand Consultancy
Howard Lee, Tom Gough                            020 7367 5222 
 
KBC Peel Hunt Ltd                                  020 7418 8900
 
 
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 31 December 2006, 53 spin-out companies had been created among IP Group's university partners. Of those, eight have listed on the AIM market of the London Stock Exchange, one on PLUS Markets and there have been two trade sales.

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

ENDS