TiG and IBM Enter Five Year Agreement to Create a Client-focused Global Delivery Centre

1 March 2005 — The Innovation Group, which specialises in providing technology based business services to the global insurance community, its customers and suppliers, today announces it has entered into a five-year agreement with IBM to create a client-focused global delivery centre and strengthen client site capabilities.

Through this initiative, IBM and TiG will more tightly coordinate worldwide delivery capabilities, significantly improving client deployment effectiveness as well as increasing the availability of process-driven business solutions for the global insurance industry.

The IBM and TiG relationship will create a client-focused global delivery centre that offers scale and consistency in the implementation and deployment of TiG Policy and TiG Claims solutions. The centre will use methodologies and a range of tools from IBM and TiG Professional Services implementation practices to optimize the delivery of repeatable, high quality, lower-risk, cost effective solutions on a worldwide basis.

The new relationship will provide TiG greater depth in sales, distribution and delivery of solutions that are already supporting customers in more than six countries. For IBM, TiG represents the first supplier of vertical solutions to participate in the IBM Global Delivery model. As a part of this agreement, TiG will train IBM�s insurance delivery team on TiG technology and solution capabilities and the two organizations will work closely together on accounts from sales through delivery. The result will be a consistent approach to solution delivery and a standard of excellence that will lead the industry.

Mike Adler, IBM�s Global leader for Business Consulting Services for Insurance, said:

�The selection of TiG to our top tier PartnerWorld relationships will enable our teams to work closely together with mutually defined delivery standards and provide insurers throughout the world consistent results based on powerful technology and proven business processes.�

Hassan Sadiq, Chief Executive of The Innovation Group, said:

�The acceleration of our relationship with IBM has been in direct response to our mutual customers as well as new current prospective clients for Claims and Policy Administration Solutions in many key markets. The Global delivery center is a meaningful long term investment in people, processes and technologies that matter to insurers. We expect it will leverage and extend our joint capabilities while providing customers with widespread proof points and confidence in embarking on transformation strategies.�

About The Innovation Group

The Innovation Group (LSE:TiG) delivers profit improvement solutions for the insurance and associated industries through technology and specialized business process outsourcing solutions. TiG�s policy, claims and conversion technology solutions are recognized as robust and advanced, providing efficiency and costs benefits resulting in a 5 to 20 percent profit improvement. TiG technology is proven in many of the world�s leading insurance carriers. For more information, visit www.tigplc.com.

About IBM Business Consulting Services

With consultants and professional staff in more than 160 countries, IBM Business Consulting Services is the world’s largest consulting services organization. IBM Business Consulting Services provides clients with business process, organization optimization and industry expertise, and the ability to translate those capabilities into integrated, flexible, on demand business solutions that deliver bottom-line business value. For more information, visit www.ibm.com/bcs.

About IBM and The Innovation Group

Since 2002, IBM and TiG have worked together to deliver proven business solutions for insurance carriers that have set worldwide standards for business value and return on investment. Together they are enabling clients to realize the benefits of transformational change in core insurance functions such as Policy Administration and Claims Management, support that has won multiple customers awards for outstanding improvements in the industry.