Modern Water Admission

IP Group PLC
07 June 2007


    IP GROUP PLC -- MODERN WATER PLC SUCCESSFUL PLACING AND ADMISSION TO AIM


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



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