Frontier IP Limited

FIPP

16 September 2009

FRONTIER IP GROUP PLC

(“Frontier IP” or “the Group”)

Announces

Launch of Investment Fund for University of Dundee Spin-Out Opportunities

Frontier IP, which specialises in the commercialisation of university intellectual property, is pleased to announce today that the second dedicated venture fund for investment in university intellectual property has been successfully established, with the First Closing now complete.

This second university fund has been established for investment in intellectual property developed by the University of Dundee and is called University of Dundee Venture Fund LP (“the Dundee Fund” or “the Fund”). Frontier IP is also pleased to announce that the Dundee Fund has secured partnership status with Scottish Enterprise’s Scottish Co-investment Fund. This makes a total of up to £1.5m potentially available to spinout companies from University of Dundee.

The Dundee Fund launches with committed funds at First Closing of £0.75 million. Frontier IP and University of Dundee are the first investors in the Fund with Frontier IP committing £500,000 to the Fund through its subsidiary, Frontier IP Investments Limited, and University of Dundee committing £250,000.

Scottish Co-Investment Fund partnership status enables the Scottish Co-investment Fund to invest alongside the Dundee Fund in individual university spin-out companies, matching, subject to other criteria, pound-for-pound the investment made by the Fund.

In addition, the Dundee Fund can remain open to new investors for a further two years.

It is intended that Frontier IP Limited, a Group subsidiary, will assume the management of the Fund once it has received approval to do so from the Financial Services Authority. In the interim, Sigma Technology Management Limited (“STM”), a subsidiary of Frontier IP’s major shareholder, Sigma Capital Group plc, will act as manager of the Fund, as part of the services management agreement between STM and Frontier IP Limited.

Frontier IP Limited has a 10-year partnership with University of Dundee and the First Closing of the Dundee Fund is further delivery of the Group’s strategy, announced at the time of flotation in May this year, to participate as a limited partner in dedicated venture funds for its university partners. The Fund will provide investment and support to commercial opportunities generated at the University of Dundee and has the first right to fund any spin-out company from the University of Dundee’s colleges and schools.

Neil Crabb, Chairman of Frontier IP, commented,

“I am delighted to announce this second dedicated venture fund. The University of Dundee is one of the UK’s leading universities, with renowned expertise across a number of disciplines, particularly engineering and life and biomedical science, and we are delighted to be supporting the exciting opportunities arising from the university’s cutting-edge research with the launch of this Fund. We are also delighted that we have gained partnership status with Scottish Enterprise’s Scottish Co-investment Fund, potentially doubling the funds to which the spin-outs have access.”

James Houston, Director of Research and Innovation Services, University of Dundee, commented,

“We are delighted to announce the establishment of our dedicated investment fund set up specifically for spin-out companies emerging from the University of Dundee. This is a welcome addition to our existing commercialisation infrastructure at the University, particularly during this tough financial climate and which taken together with our relationship with Frontier IP Ltd will accelerate access to capital and commercial expertise, respectively.”

The Directors accept responsibility for the content of this announcement.

For further information please contact:

Frontier IP Group

Neil Crabb, Chairman

T: 0131 220 9491

Biddicks

Sophie Lane/ Katie Tzouliadis

T: 020 7448 1000

Ruegg & Co Limited

Gavin Burnell

T: 020 7448 4400

About Frontier IP Group plc

www.frontierip.co.uk

Based in Edinburgh, Frontier IP specialises in the commercialisation of the intellectual property developed by universities and research institutions. It establishes partnerships with individual universities and research institutions to assist with their spin-out activities and so helps to maximise the commercial value of technologies emerging from their research programmes.

Frontier IP is traded on the PLUS-quoted market and is a subsidiary of asset management group Sigma Capital Group plc.

About the University of Dundee

www.dundee.ac.uk

The University of Dundee is one of the UK’s leading universities with an international reputation for excellence across a range of disciplines including science, medicine, engineering and art.

This global international reputation for research excellence includes the medical and life sciences - both rated 5* in the most recent Research Assessment Exercise.

Significant growth over the past decade means the University can now boast 18,000 students, 3,000 staff, and an annual turnover of £160m.

Today 70 % of students graduate into the professions – more than any other university in Scotland.

The University has a strong track record of commercialisation including the creation of a portfolio of 24 spin-out companies to exploit its intellectual property.

About Scottish Enterprise

Scottish Enterprise is Scotland’s main enterprise, innovation and investment agency and is focused on supporting business growth and developing a competitive business environment. Working in partnership with industry, academia and the public sector, SE aims to play its part in delivering the Scottish Government’s new economic strategy to increase productivity in Scotland by helping businesses grow, encouraging greater innovation and creating the right conditions for companies to access property, markets and finance. Further information can be found at www.scottish-enterprise.com.

Scottish Enterprise has a joined up investment approach which offers risk capital investment for Scottish businesses at various stages of growth. The Scottish Seed Fund provides equity and, in some cases, loan investments from £20,000 to £100,000 to early-stage businesses that meet the criteria and are keen to grow. The Scottish Co-investment Fund is a £72 million equity investment fund established by Scottish Enterprise, and partly funded by the European Regional Development Fund, to invest from £100,000 to £1 million in company finance deals of up to £2 million. The Scottish Venture Fund was set up by Scottish Enterprise in conjunction with the Scottish Government to invest £500,000 to £2 million in company finance deals of between £2 million and £10 million. Further information can be found at www.scottish-enterprise.com/equity

ENDS