Uni of Southampton spin-out

IP2IPO Group PLC
13 September 2004


For immediate release                                         13 September 2004

                                IP2IPO Group plc

       Formation of new MEMs spin-out from the University of Southampton

(AIM: IPO) ('IP2IPO'), the intellectual property company that specialises in
commercialising university technology, is pleased to announce that it has
acquired a 28.2% stake in Perpetuum Limited, a spin-out company from the
University of Southampton's Electronics and Computer Science department.
IP2IPO's stake in Perpetuum is comprised of a 9.2% interest received as a result
of its long-term agreement with the University of Southampton and a 19% interest
acquired as a result of a direct investment.

Perpetuum develops integrated Micro-Electrical-Mechanical Systems ('MEMs') that
generate power by harvesting vibrational energy from their surroundings.  The
company aims to exploit the long term trend towards smaller, lower power and
wireless electronic devices, many of which currently depend on batteries. In
contrast to batteries however, Perpetuum's self-powered microsystems are capable
of generating power indefinitely, without maintenance or pollution.

The company's four academic founders, Professor Neil White, Dr Steve Beeby, Dr
John Tudor and Dr Nick Harris, have worked together for over fifteen years and
are based in the University of Southampton's prestigious Electronics and
Computer Science department.  Between them they bring a unique combination of
skills to the company and have patented technology for microelectronic
generators with optimum efficiency and minimal size.  Furthermore, Perpetuum's
founders have expertise in sensors, wireless communications and fabrication
techniques enabling the company to produce fully integrated self-powered silicon
devices that can interact with their environment and transmit data via a
wireless link to an external source, i.e. autonomous self-powered sensors.  It
is envisaged that these devices will have applications across many markets
including defence, health, plant monitoring, automotive and consumer devices.

Commenting on today's announcement Neil White, Professor of Intelligent Sensor
Systems at the University of Southampton, said: 'Perpetuum represents the
culmination of many years of research and development.  The formation of the
company will enable us to respond to the strong customer demand that we have
received across many different sectors. I am delighted that IP2IPO has been
involved with the company and I look forward to working with the team to
accelerate Perpetuum's development/'

For more information please contact:

IP2IPO
David Norwood, Chief Executive Officer                    020 7242 9900

Perpetuum
Neil White                                                02380 59 3765

University of Southampton
Andrew Monk                                               02380 59 8341

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

Notes to editors

About IP2IPO

IP2IPO is an intellectual property (IP) company that specialises in
commercialising university technology. The Company was founded in 2001 and
listed on AIM 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 future 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 an initial 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
committed to invest £1.15m in Amaethon Limited in return for a one third 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 July 2004, IP2IPO acquired a strategic 20% stake in Techtran Group Limited ('
Techtran'). Techtran has a long-term technology commercialisation contract with
the University of Leeds. Under the terms of the contract Techtran receives a
significant (30%) interest in spin-out companies created and technology licences
negotiated in return for the provision of technology transfer services to the
University.

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.

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