RNS Number:4024J
Innovation Group PLC
31 March 2003


NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO THE
UNITED STATES, CANADA, JAPAN, AUSTRALIA, SOUTH AFRICA OR IRELAND



FOR IMMEDIATE RELEASE 31 March 2003


                    THE INNOVATION GROUP PLC (the "Company")

                             Result of Rights Issue


The Company announces that the 1 for 1 rights issue of up to 198,680,665 new
Ordinary Shares at 5 pence per share, as detailed in the prospectus published by
the Company on 14 February 2003, closed at 9:30 a.m. on 28 March 2003.


Valid acceptances have been received in respect of 155,026,413 Rights Shares
from Qualifying Shareholders, which represents an aggregate take-up of Rights
Shares of approximately 78.03 per cent. This figure includes 41,318,585 Rights
Shares subscribed pursuant to irrevocable undertakings from each of the
Directors (and their associates) to take up their rights.


It has not been possible to procure, nor does KBC Peel Hunt, as underwriter,
consider there to be a prospect of procuring, at a price (net of expenses) in
excess of the Issue Price, subscribers for those Rights Shares for which valid
acceptances were not received. Accordingly, KBC Peel Hunt or its
sub-underwriters will be required to subscribe at the Issue Price of 5 pence per
share the balance of 43,654,252 Rights Shares for which valid acceptances were
not received.


There are therefore no net proceeds which fall to be distributed to the
Qualifying Shareholders who did not take up their entitlements in accordance
with the terms of the Rights Issue.


It is expected that definitive share certificates in respect of the Rights
Shares will be despatched by 7 April 2003. New Ordinary Shares are being
credited to CREST accounts today.


Directors' shareholdings


Following the Rights Issue, and as notified to the Company today by each of the
Directors, the shareholdings of the Directors are as follows:

Director              No. of shares       Total holding             % of issued
                         acquired                                 share capital

Edward Ossie              500,000             1,000,000                  0.25%
Hassan Sadiq            2,829,329             5,342,348                  1.34%
Stephen Scott           6,114,286            12,228,572                  3.08%
Paul Smolinski            217,000               434,000                  0.11%
Geoffrey Squire         2,107,899             2,231,672                  0.56%
Robert Terry           34,122,188            65,972,695                 16.60%



Terms in this announcement shall bear the same meaning, unless the context
otherwise requires, as defined in the Prospectus.


Enquiries:

The Innovation Group plc            Hassan Sadiq            01489 898300
                                    Paul Smolinski

KBC Peel Hunt Ltd                   Simon Hayes             020 7418 8900
                                    Jonathan Marren

Weber Shandwick Square Mile         Sara Musgrave           020 7067 0700
                                    Katie Hunt



KBC Peel Hunt is acting for the Company, and no one else, in connection with the
Rights Issue and will not be responsible to any other person for providing the
protections afforded to its clients or for providing advice in relation to the
proposed Rights Issue.


This announcement does not constitute or form part of, and should not be
construed as, an offer for sale or subscription of, or solicitation of an offer
to buy or subscribe for, any securities of The Innovation Group plc nor should
it, or any part of it, form the basis of, or be relied on in connection with any
contract or commitment whatsoever. Any decision in connection with the Rights
Issue should be made solely on the basis of the information contained in the
Prospectus.


This announcement is not for publication or distribution or release, directly or
indirectly, in the United States, Canada, Japan, Australia, South Africa or
Ireland. This announcement does not constitute or form any part of any offer to
sell, issue or to acquire any securities of the Company in the United States,
Canada, Japan, Australia, South Africa, Ireland or in any other jurisdiction.
Neither the Company's new Ordinary Shares, Fully Paid Rights nor the Provisional
Allotment Letters are being or will be registered under the US Securities Act of
1933, as amended (the 'Securities Act') and may not be offered or sold in the
United States (as such term is defined in Regulation S under the Securities Act)
at any time except pursuant to the terms of an applicable exemption under the
Securities Act and applicable securities laws of the states of the United
States.






                      This information is provided by RNS
            The company news service from the London Stock Exchange

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