Axiom

Techtran raises £2M with IP2IPO in Strategic Investment

PRESS RELEASE
DATE: 19 July 2004

Techtran raises £2 Million with IP2IPO in strategic investment

University technology transfer specialist Techtran Group (Techtran), is pleased to announce a £2,000,000 investment from intellectual property company IP2IPO.

The deal sees AIM-listed IP2IPO receive 20 per cent equity share in the Techtran business in return for the investment. In addition, IP2IPO Chief Executive David Norwood will take a place on the Techtran Board as Non-Executive Director. The funding will be used to boost commercialisation of intellectual property at the University of Leeds, which appointed Techtran to manage its technology transfer operations in 2002.

Techtran’s business model is based on offering outsourced technology transfer services to research-intensive universities. Its groundbreaking long term contract with the University of Leeds saw the first university in the UK outsource its commercialisation activities. Under the terms of the contract, Techtran receives a 30 per cent interest in spinout companies created and technology licences negotiated in return for its services at the University, and has to date acquired significant interests in 15 University of Leeds spinout companies.

IP2IPO is an intellectual property company that commercialises university technology. It already has strong connections with the Yorkshire region: in November 2003, it announced a partnership with CNAP, the flagship genomics research centre within the University of York that focuses on plant and microbial gene discovery. It also has partnerships with the Universities of Oxford, Southampton and Kings College London. IP2IPO was listed on AIM in 2003.

Techtran Chief Executive Officer, Alan Aubrey said:

“This investment marks a major milestone for Techtran. It is a testament to the quality of the research base and the success of our relationship with the University of Leeds and provides us with an improved platform from which to grow our operations. In IP2IPO, we could not have found an investor who understands our business better and as a result there is enormous scope for the two companies to develop and prosper together.”

David Norwood, Chief Executive Officer of IP2IPO said:

“I am delighted that IP2IPO has taken a 20% strategic stake in Techtran. IP2IPO has known Techtran since its formation and there is a clear strategic fit between the two companies. The Techtran team broke new ground when it became the first group to take over the outsourced management of a university technology transfer office and since then it has established a strong process for creating value from the intellectual property assets of the University of Leeds. Now, as shareholders in the Techtran business, we look forward to sharing in the value.”

For further information, please contact:

TECHTRAN

Alan Aubrey Chief Executive Officer, Techtran: Tel 07866 436 737

www.techtran.co.uk

IP2IPO

David Norwood, Chief Executive Officer, IP2IPO: Tel 020 7071 4348

www.ip2ipo.com

Notes to Editors:

1. Techtran Group Ltd is a wholly owned subsidiary of venture capital company Axiomlab Group plc. www.techtrangroup.com

2. The University of Leeds is rated as one of the UK’s top-ten universities for research power. It has an annual turnover of some £320 million and research income of over £70 million. The University has a long history of successful entrepreneurial activity based on leading edge research and the first university in the UK to set up a dedicated technology transfer function. In 1977, electronics engineer Professor David Rhodes set up Filtronic plc to design and manufacture communications components. The rapid expansion of the mobile phone industry saw the company go public and win recognition as one of the UK's most successful examples of technology transfer. www.leeds.ac.uk

3. IP2IPO’s partnerships include:

Department of Chemistry, University of Oxford

A 50% share of the University’s interests in interest in spin-out companies and technology licences based on intellectual property created in the department until 2015.

University of Southampton

An investment of £5 million to secure a long-term partnership to work with the University to identify and facilitate spinout company creation 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, a company that has been formed to hold the University’s equity stakes in its future spin-out companies. This partnership has an initial term of 25 years.

Kings College London

An investment of £5 million to secure a long-term partnership to work with the University to identify and facilitate spinout company creation over a four year period in return for equity stakes in those companies. In addition, IP2IPO will receive 20% of King's College London’s interest in spin-out companies and technology licenses. The partnership has an initial term of 25 years.

Centre for Novel Agricultural Products (CNAP), University of York

IP2IPO has committed £1.15m to Amaethon Limited, the university company created to commercialise CNAP's IP for 25 years in return for a one third equity stake in the company. IP2IPO will also invest in the spin-out companies based on CNAP's IP which Amaethon creates.