09 November 2009

University enterprises set to grow with Fusion IP deal

Fusion IP plc (LSE: IPO), the university IP commercialisation company that turns world class research into business, has today announced that it has successfully raised £3.2 million to continue investing into its university spin-out companies. The fundraising is subject to shareholder approval at a General Meeting in December. The Company has also today entered into a new Co-investment Agreement with its leading peer company, IP Group, that will combine the knowledge and resources of IP Group and Fusion to evaluate and assist new portfolio companies.

Fusion IP has a 10 year agreement with the University of Sheffield under which it has exclusive rights to commercialise all of the university´s intellectual property, through either licensing or the creation of spin-out companies in fields as varied as alternative energy, drug discovery and engineering. The Fusion IP team based within the University of Sheffield is well integrated into key university departments, enabling the commercialisation to be an integral part of the university process.

Commenting on today´s announcement, Professor Richard Jones, Pro-Vice-Chancellor for Research and Innovation at the University of Sheffield, said: "The University of Sheffield is delighted with Fusion IP's success in raising additional funds, and that they will now be working alongside IP Group. Fusion IP continues to go from strength to strength and this new investment is a vote of confidence in the company´s impressive and strong portfolio, and in the potential commercial value of the University´s research excellence across a wide-range of disciplines.

"This is exciting news for the University of Sheffield and our researchers; we will have access to more funding to help create successful enterprises from our world-class research. This is another example of the University´s innovative approach to turning its research into high-impact commercial applications for the benefit of our economy and society."

David Baynes, Chief Executive Officer of Fusion IP, said: "We are delighted to be working with IP Group and welcome them, both as a new shareholder in Fusion and a co-investment partner. Their investment, combined with the strength of our IP pipelines, will enable us to continue to create long term value from Cardiff and Sheffield´s world class research.

"Fusion currently has a strong portfolio of 20 active spin-out investments, including successful companies such as Simcyp which has reported its fifth consecutive year of both revenue and profit growth, with revenues up by 24% to £3.9m and profits up by 26% to £1.2m this year alone. We are expecting to spin-out up to three new companies during the period ending July 2010 and anticipate spinning out further companies in 2011 and 2012. The funds raised today will allow us to continue this momentum to spin out further high quality portfolio companies.

"IP Group´s investment in Fusion is a strong endorsement of Fusion´s investment proposition and ability to identify and commercialise IP. Together, Fusion and IP Group will make a powerful combination of knowledge and resources and we look forward to working with Alan and his team."

The Company has also announced today its preliminary results for the year ended 31 July 2009.

Notes for Editors: For a more detailed press release outlining in full the financial implications of the new agreement please contact Catherine Breen at Buchanan Communications on (0)20 7466 5000.

For further information please contact: Lindsey Bird, Media Relations Manager, on 0114 2225338 or email l.bird@sheffield.ac.uk

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