Result of Placing

11 May 2005

IP2IPO is pleased to announce the completion of the placing announced earlier today (the “Placing”). A total of 2,157,837 new ordinary shares of 10 pence each (the "Placing Shares") have been placed with institutions at £6.37 per share, raising approximately £13.7 million before expenses. The Placing Shares represent 5 per cent. of the Company's existing issued share capital.

The Placing Shares were placed by Lehman Brothers International (Europe), as sole bookrunner, and KBC Peel Hunt Ltd, as joint lead manager and the Placing is conditional on admission of the Placing Shares to trading on the AIM Market of the 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 16 May 2005. 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 10p 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:

IP2IPO 020 7489 5200
David Norwood, Chief Executive Officer  
Buchanan Communications 020 7466 5000
Tim Anderson, Mark Court  
Lehman Brothers International (Europe) 020 7102 1000
Stephen Pull, Mark Hutt  
KBC Peel Hunt Ltd 020 7418 8900
Simon Hayes, Megan MacIntyre 020 7882 7910

Notes for editors

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 will work 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 will receive 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 per cent. 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 per cent.) interest in spin-out companies created and technology licences negotiated, in return for the provision of technology transfer services to the University. To date, 4 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 and Proximagen Neuroscience plc.

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