RNS Number:4527J
Innovation Group PLC
01 April 2003

                                                                 1st April 2003

                              THE INNOVATION GROUP PLC

                            Issue of consideration shares


The Innovation Group plc ("TiG" or "Company")  (LSE; TIG.L) today announces that
it has exercised its option to increase its stake in Corporate Warranty
Administrators (Proprietary) Limited  ("CWA") from 78.3 per cent to 88.95 per
cent as anticipated in the announcements of 4th May 2001 and 20th December 2002.
Accordingly, TiG has today allotted 193,965 new ordinary shares of 2p each in
the capital of the Company ("TiG Shares") in consideration for CWA shares.  Put
and call options remain over the balance of the CWA shares, whereby TiG can
acquire the whole of the share capital of CWA, for a further 294,180 Ordinary
Shares (as calculated at 31st March 2003 mid market closing price) during the
period to April 2004.

TiG paid #5 million in cash for its 50.001 per cent stake in CWA in May 2001 and
issued 636,617 shares to increase its stake to 78.3 per cent in December 2002.

Additionally, today TiG also announces that it has allotted a further 16,129,032
new TiG Shares as the first instalment of deferred consideration for the
acquisition of InterX Technology as anticipated in the announcement of 17th
April 2002.

TiG paid #1,305,275 at the time of the acquisition of InterX Technology.  The
deferred consideration is #4 million, payable in equal instalments on 1St April
2003, 1st October 2003, 1st April 2004 and 1st October 2004 and possible
additional deferred consideration based on InterX software licence sales above a
certain level.  However, the Directors do not believe any additional deferred
consideration will be due.

Application will be made to the Official List of the UK Listing Authority and to
the London Stock Exchange for admission of the new TiG Shares to the Official
List and to trading on the London Stock Exchange's markets for listed securities
in due course.  It is expected that dealings in the new TiG Shares, which will
rank pari passu in all respects with the existing ordinary share capital of TiG,
will commence on 7 April 2003.

Paul Smolinski, Group Finance Director said:

"CWA is a profitable and cash generative business. The increase in our stake in
CWA represents exceptional value to our shareholders. It is a key part of our
BPO division in South Africa and has proven to be an excellent purchase,
enabling the Group to leverage the significantly lower cost base in this region
as the backbone for its global BPO operations. In addition, after consultation
with representatives of our major stakeholders (which include customers, key
shareholders and staff), in order to maintain a strong cash balance post the
rights issue we have chosen to exercise our option to pay the first installment
of the InterX deferred consideration in shares at the current price of 6p which
is a 20% premium to the price of our recent rights issue. "



Enquiries:

 The Innovation Group plc                                        01489 898300
 Paul Smolinski, Group Finance Director

 KBC Peel Hunt                                                   020 7418 8900
 Simon Hayes

 Weber Shandwick Square Mile                                     020 7067 0700
 Sara Musgrave/ Katie Hunt                                       07736 979 302


                                      END


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

IOEEAXDFDAEDEFE