Technology venture fund

QinetiQ Group plc
27 June 2007


QinetiQ Group plc
27 June 2007

QinetiQ launches new technology venture fund in partnership with Coller Capital

QinetiQ today announces the creation of a new technology venture fund (QinetiQ
Ventures LP) to accelerate the development and realisation of seven of its
venture investments. The fund has been launched by QinetiQ and Coller Capital, a
leading global investor in corporate venture assets.

QinetiQ has established the new fund to drive faster growth from its venture
portfolio by creating an independent team with exclusive management focus and
long term capital commitment. The creation of the fund is expected to enhance
value creation for the QinetiQ Group and is a logical step in the
commercialisation strategy which QinetiQ set out at IPO.

The fund, which will be structured as a Limited Partnership ('LP') managed by an
independent Investment Manager, will have initial assets of £40m. QinetiQ and
Coller Capital will each contribute up to £20m of follow-on funding to
accelerate development of the fund's portfolio companies. Depending on the
performance of the fund, QinetiQ will own up to 75 per cent of future economic
value.

The new fund's portfolio will comprise partial or wholly owned interests in
seven venture assets. QinetiQ's core venture businesses - such as QinetiQ
Airport Technologies (with its Tarsier runway debris detection systems) and the
high-sensitivity GPS business - will remain within QinetiQ's internal venture
structure.

The creation of the new fund will free QinetiQ's existing venture team, led by
Hal Kruth (Chairman, QinetiQ Ventures) and Mike O'Connor (Managing Director,
QinetiQ Ventures), to bring greater focus on incubating core businesses and
developing QinetiQ's pipeline of new commercial ventures.

Stephen Lake will leave QinetiQ to become a managing partner of Cody Gate
Ventures LLP, the Investment Manager of the new fund and will be joined in the
managing partner role by Michael Summers, a former Vice President of SRI
International, based in Menlo Park, California. Collectively Michael and Stephen
have more than 55 years' experience in forming, accelerating the development of
and realising value from a wide range of early-stage technology ventures.

Hal Kruth, Chairman of QinetiQ Ventures said: 'The creation of QinetiQ Ventures
LP reflects a continuing focus on enhancing QinetiQ's value creation from
cutting edge technologies. It enables us to accelerate value creation within our
existing portfolio and provides a long-term model for scaling up our future
venturing activities.

He added: 'Coller Capital brings to the partnership not only additional capital
but a wealth of experience in accelerating value creation from corporate
technology venture portfolios. The new fund will allow us to focus QinetiQ's
internal resources more effectively on creating a steady pipeline of additional
venture opportunities.'

Jeremy Coller, Chief Executive Officer of Coller Capital whose corporate venture
activity includes British Telecom, Shell and Lucent said: 'QinetiQ is a world
leader in cutting-edge defence and security technologies. Through this joint
venture, we will help QinetiQ to make more money faster through an enhanced
engagement with commercial markets.'

The assets to be transferred into QinetiQ Ventures LP at inception (and
QinetiQ's interest in these businesses pre-transaction) are:

   • Aurix Limited - Real-time audio mining (88 per cent subsidiary)
   • Metalysis Limited - Manufacture of high value metals from low-cost
    oxides (16 per cent investment)
   • Omni-ID - Low cost passive RFID technology that works anywhere (100 per
    cent owned)
   • QinetiQ Nanomaterials Limited (QNL) - Nanomaterials IP creation, design
    and manufacturing (100 per cent subsidiary)
   • Quintel Technology Limited - Next generation antenna systems for mobile
    networks (50 per cent joint venture)
   • Stingray Geophysical Limited - 4D sea bed reservoir monitoring systems
    (19.9 per cent investment)
   • ZBD Displays Limited - Zero power point of purchase display solutions
    (31.6 per cent investment)

Completion of the transaction is expected by the end of July 2007 and is
conditional upon the transfer of certain of the Ventures' assets into the fund.
The LP will be accounted for as a joint venture by QinetiQ using the equity
method of accounting. Cody Gate Ventures LLP, the Investment Manager of the
fund, is in the process of obtaining final FSA Authorisation.

QinetiQ is also hosting an investor and analyst site visit at its Malvern site
today. The visit will be hosted by  Graham Love, Group Chief Executive. For
those attending the site visit a presentation about this transaction will be 
given at 12.45pm as part of the site visit. This presentation will be broadcast
via a teleconference facility for  analysts and investors not at the event and
can be accessed by dialling [phone], quoting 'QinetiQ' as the 
password. The presentation materials will be available on the QinetiQ website
www.QinetiQ.com in advance of the  teleconference. No other new trading or price
sensitive information will be disclosed during the site visit.


Notes to Editors:

About QinetiQ:

QinetiQ (pronounced ki net ik as in 'kinetic energy') is a leading international
defence and security technology business that was formed in July 2001 from the
UK Government's Defence Evaluation & Research Agency (DERA). QinetiQ has
approximately 13,500 employees, who deliver technology-based services and
exploit QinetiQ's strengths in technology research by selling systems solutions,
products and licences to government and commercial customers in a spectrum of
defence, security and related commercial markets.

In February 2006, QinetiQ Group plc was listed on the London Stock Exchange
(main market) and joined the FTSE250 in June 2006.  In the year to 31 March
2007, QinetiQ delivered a 17.4 per cent rise in underlying operating profit
before tax to £106.0m on turnover which rose by 9.3 per cent to £1,149.5m.

For further information see www.QinetiQ.com

About Coller Capital:

Coller Capital is the leading global investor in private equity secondaries and
corporate venture assets. The firm, founded in 1990, has approximately $8
billion under management. It has positions in more than 200 private equity funds
and stakes in over 2,000 private companies worldwide, investing from $1 million
to $1 billion plus in individual transactions.

Contacts:

QinetiQ Investor Relations: Adrian Colman [phone]; [phone]
QinetiQ press office: David Bishop, [phone], [e-mail],
[e-mail]




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