Innovation Group Extends American Modern Partnership

HARTFORD, Conn.--(Business Wire)--
Innovation Group (LSE:TIG), a global provider of enterprise
software and BPO solutions to the property and casualty insurance
industry, announces they have finalized an application support and
maintenance contract with American Modern Insurance Group (American
Modern), the specialty insurance subsidiary of The Midland Company.
The contract extends the Innovation Group/American Modern relationship
to include customized support of Innovation Policy, the client
centric, end-to-end policy administration system for all lines of
property and casualty insurance.

"American Modern is rated A+ (Superior) by the A.M. Best Company
and, for 10 consecutive years, they have been named one of the Ward
Financial Group's Top 50 property and casualty companies in America,"
stated Euan King, chief operating officer for Innovation Group
Technology Solutions, North America. "Innovation Group is proud to put
our global property and casualty expertise behind a company that is so
widely regarded for their exemplary product line and unparalleled
commitment to customers."

The contract has been extended over the next 28 months and
continues the growth of a business partnership that began in 2003.
Innovation Policy went live at American Modern in December 2007.

About Innovation Group

The Innovation Group plc ('Innovation' or 'Group') provides
outsourcing services and software solutions to insurers and other risk
carriers. The software solutions are designed for the handling of
policy and claims administrative processes within the insurance
industry. The solutions can be utilized in connection with the Group's
outsourcing operations or implemented on a stand-alone basis.
Approximately 86% of the Innovation Group's total revenues are now
recurring with the remainder coming from the sale and support of its
software solutions. The Group provides software and outsourcing
services on a non-branded basis and does not perform insurance
underwriting functions.

Innovation has over 300 global clients including the Ford Motor
Company, Aviva, AXA Insurance, Royal & SunAlliance, Toyota (South
Africa) and Zurich (UK). The Group processes more than 3 million
claims per year with 20% direct claims cost saving achieved. The
software operates in 8 languages and the Group has approximately 2700
people across offices in North America, the UK, Germany, South Africa,
Australia and Japan. www.us.innovation-group.com.

About American Modern Insurance Group

American Modern Insurance Group (American Modern) is the specialty
insurance subsidiary of The Midland Company, with more than 43 years
of experience in the manufactured housing insurance sector. American
Modern specializes in writing physical damage insurance and related
coverages on manufactured housing as well as other specialty insurance
products, including coverage for site-built homes, motorcycles,
watercraft, snowmobiles, recreational vehicles, physical damage on
long-haul trucks, extended service contracts, excess and surplus lines
coverages, credit life and related products, as well as collateral
protection and mortgage fire products sold to financial institutions
and their customers. For more information, visit www.amig.com.

The Innovation Group
M. Meaghan Kenagy, 617-319-6032
KenagyM@us.innovation-group.com

Copyright Business Wire 2008