IP2IPO Group plc - 25 year university-wide partnership with the University of York

13 Mar 2006

IP2IPO Group plc (AIM: IPO) ("IP2IPO"), the intellectual property commercialisation company, is pleased to announce that it has entered into an exclusive long-term partnership with the University of York. The partnership is in addition to IP2IPO's current partnership with the Centre for Novel Agricultural Products, a flagship research centre that specialises in plant and microbial gene discovery.

The University of York was founded in 1963 and now has 10,700 students and 3,000 staff with more than 30 academic departments and research centres. It has been ranked in the top ten of UK universities in a number of university league tables and 18 departments received a 5 or 5* rating in the most recent Research Assessment Exercise, including the departments of Computer Science, Biology, Chemistry and Mathematics Under the terms of the partnership, IP2IPO has agreed to work with the University of York to identify and facilitate the formation of spin-out companies from across the University and to invest an initial fund of £5 million in such companies in return for equity stakes in them. In addition, IP2IPO will receive 25% of the equity in any spin-out company from the University at the time that the company is established, prior to investment, if IP2IPO invests in the company from the fund and 15% of the equity if it does not invest from the Fund. IP2IPO will also receive 10% of any income which York receives from licencing during the lifetime of the partnership. The partnership has a term of 25 years.

Alan Aubrey, Chief Executive of IP2IPO, commented: "We are very pleased to be entering into this wider partnership with the University of York. We have developed an excellent working relationship at all levels within the University over the last two and a half years and we believe that the quality of research together with the entrepreneurial spirit at York provide the potential for us to create an exciting portfolio of spin-out companies and to generate further value through licensing."

Professor Brian Cantor, Vice-Chancellor of the University of York, said : "I welcome this broadening of the University relationship with IP2IPO. It will complement our world-class research and enable us to create new knowledge-based businesses for the benefit of the University and the economy, locally, regionally and nationally."

For more information please contact:

IP2IPO 020 7489 5200
Alan Aubrey, Chief Executive Officer  
Buchanan Communications 020 7466 5000
Tim Anderson, Mark Court, Mary-Jane Johnson  
University of York 01904 432153
David Garner, University of York  

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 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 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.

In May 2005, IP2IPO announced the launch of Modern Biosciences, which 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 return, IP2IPO will receive 13.3 per cent of equity spin-out companies from the University of Bristol at the time that the spin-out company is established prior to investment. The partnership has a term of 25 years. In 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 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.

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