With the aim of improving the rate and success of spin-out commercialisation of its world class research, the University of Glasgow is delighted to announce that it has entered into partnership with the intellectual property commercialisation company, IP Group plc.

The 25 year partnership ﾖ agreed by the University's Court, meeting yesterday (11 October) ﾖ will see IP Group make available an initial £5 million to accelerate Glasgow University spin-out projects towards the marketplace. They will also provide an expert to work with the University commercialisation team and assist the spin-out process.

IP Group ﾖ who already have similar partnerships with nine other UK universities including Oxford, King's College London, Southampton and Bristol - are leaders in the field of research commercialisation with an outstanding track record, a strong network of investors and a proven ability to raise capital for University spin-out companies.

Steve Beaumont, Vice Principal (Research and Enterprise) at Glasgow University said: "We are delighted to have signed this agreement with IP Group which will greatly benefit the University. This long-term partnership will make the process for spinning-out companies quicker, simpler and better funded than we would have been able to deliver alone. The advantages of the partnership mean we will have fast access to seed funds, rapid commercial evaluation and decision-making on spin-out opportunities, increased post-incorporation support and access to IP Group's network of follow-on investors. Glasgow has one of the largest research bases in the UK and this deal with enable the university to maximise the commercialisation of its research and alternative routes to market. I believe it will also provide better outcomes for the academic staff involved with the formation of spin-outs"

Alan Aubrey, Chief Executive of IP Group, said: "Today's partnership agreement with Glasgow is particularly significant for IP Group as the university is our first partner in Scotland and brings our total number of partners in the UK to ten. It is also the fourth new partnership agreement that IP Group has signed this year, following similar collaborations with Queen Mary, University of London, the University of Surrey and the University of Bath together with the extension of our partnership with the University of York to cover the entire university. In entering into this partnership with Glasgow, IP Group has reached a further major milestone in its development. Glasgow has an excellent reputation with a number of exciting commercialisation opportunities and we are very much looking forward to working with the team there and to completing our first investment in the near future."

Glasgow University has over 3,400 researchers across nine faculties. New research grants and contracts at Glasgow University exceeded £100 million in 2005/6.

The most recent independent survey of research quality, the Research Assessment Exercise of 2001, reported that 96% of the University's research staff were working in subject areas producing research of international quality. Twenty-three subject areas received the highest research quality rating of '5' while a further 20 subject areas received the research quality rating of '4'. Glasgow also has one of Europe's largest grouping of life scientists working in the Institute of Biomedical & Life Sciences and has one of the largest medical schools in Europe.

Under the terms of the partnership, IP Group has agreed to work with Glasgow to identify and facilitate the formation of spin-out companies and to invest an initial fund of up to £5 million in such companies in return for equity stakes in them. In addition, IP Group will receive 12% of the equity in spin-out companies from Glasgow at the time that the company is established prior to investment. The partnership has a term of 25 years dependant on performance measurements for both partners.

IP Group

IP Group Plc is an intellectual property (IP) commercialisation company that specialises in commercialising university technology. Founded in 2001, IP Group listed on AiM in October 2003 and moved to the Official List in June 2006. It has made two acquisitions to date ? Techtran, a company set up to commercialise university intellectual property under a long term contract with the University of Leeds, in 2005 and Top Technology Ventures, an investment adviser to early stage technology venture capital funds, in 2004.

The group has formed long-term partnerships with nine universities ? the University of Oxford, King?s College London, CNAP/University of York, the University of Leeds, the University of Bristol, the University of Surrey, the University of Southampton, Queen Mary, University of London and the University of Bath.

As at 30 June 2006, 44 spin-out companies had been created among the group?s university partners. Of those, eight have listed on the AiM market of the London Stock Exchange and there have been two trade sales.

Further information:

University of Glasgow Professor Steven Beaumont, Vice Principal, Research and Enterprise 0141 330 2112 Martin Shannon, Media Relations Officer 0141 330 8593

IP Group plc

Alan Aubrey, Chief Executive Officer 020 7489 5200

Liz Vaughan-Adams (communications) 020 7489 5206/07979853802

First published: 12 October 2006