Frontier IP Limited

FIPP

16 September 2009

Frontier IP Group Plc

(“Frontier”, “the Group” or “the Company”)

Preliminary Statement of Results for the year ended 30 June 2009

Frontier IP Group plc is focused on the commercialisation of university IP.

>>>Download full statement including financial results here (PDF-138K)

Key Points

• Completion of reverse takeover in May 2009

• Placing to raise £633,000 (gross) completed

• At 30 June 2009 £710,000 cash available to underpin implementation of business strategy

• Two long-term university partnerships in place and earning revenues in line with business model:

- share in licensing income

- retainers from clients

- two equity stakes in spin-out companies

- investment uplift from stake in one spin-out

Post year end

• In July, first dedicated venture capital fund launched for university partner - The RGU Ventures Investment Fund LP. Total potential funds for investment of £2.2m including partnership status with Scottish Enterprise’s Scottish Co-Investment Fund.

• Second dedicated venture capital fund for university partner announced today (see separate announcement) - The University of Dundee Venture Fund LP. Total potential funds for investment of £1.5m, including partnership status with Scottish Enterprise’s Scottish Co-Investment Fund

Neil Crabb, Chairman, said:

“In the relatively short period since the reverse takeover of ARH Leisure Investments PLC, we have made good progress on the delivery of our strategy, with the establishment of two funds to support our existing University partners. We are confident that we will be able to build on those relationships and expand our business.”

Enquiries

Frontier IP Group plc

Neil Crabb, Chairman T: 0131 220 9491

Alister Minty, Managing Director T: 0131 220 9491

Biddicks

Katie Tzouliadis / Sophie Lane T: 020 7448 1000

Ruegg & Co

Gavin Burnell / Guy Miller T: 020 7448 4478

Company website: www.frontierip.co.uk

Frontier IP Group Plc

Preliminary Statement of Results

for the year ended 30 June 2009

CHAIRMAN’S STATEMENT

Introduction

In May 2009, Frontier IP Limited, a subsidiary of Sigma Capital Group plc (“Sigma”), an AIM-quoted company, agreed the reverse takeover of ARH Leisure Investments PLC (“ARH”). On the completion of the takeover, ARH’s name was changed to Frontier IP Group Plc (“Frontier”) to reflect the fundamental transformation which had occurred in terms of the Company’s business, board composition and voting control. I am now pleased to present Frontier’s maiden set of results as a PLUS-quoted group.

Frontier is focused on the commercialisation of intellectual property originating from universities and their research programmes. It already has two long term partnerships, a 10-year agreement with Dundee University and a 25-year agreement with Robert Gordon University as well as a fledgling equity portfolio.

Business Model

The Frontier business model is low cost, with potential for high quality earnings and capital appreciation.

The model is based on assisting universities and research organisations in the commercialisation of the intellectual property produced from their substantial research budgets. In return for this service, Frontier receives a share of the founder equity and licence revenue that the universities receive from being the source of these research projects. In addition Frontier will generate revenue from board retainers and fees for bespoke advisory work. Also, where required, Frontier will establish a dedicated fund for each relationship. This will help to accelerate the commercialisation process and will also create recurring fund management income for Frontier. Our intention is also to participate as a limited partner in these funds.

Our objective is to increase the number of Frontier’s commercialisation relationships and thereby generating value both from recurring revenue and from the capital appreciation of equity in spin outs and of direct investment in the dedicated funds.

Results

Prior to the reverse takeover, ARH was a cash shell with no trading business. At the same time as ARH agreed the reverse takeover of Frontier IP Limited for £3.5m in shares in May 2009, a placing was conducted which raised £633,000 before expenses. This has considerably strengthened the Company’s balance sheet. At 30 June 2009, Frontier had cash balances of £710,000 with which to continue the development of its business.

At a trading level, revenue from services consists of retainers from clients, a first payment from Robert Gordon University under our agreement which allows us to share in licensing income, and the receipt of equity stakes in spin-outs from both Robert Gordon University and Dundee University. There was also an investment gain of £30,000 as one of the companies in which we have a holding conducted a successful fundraising at an increased valuation.

A loss of £89,000 was reported for the year, in part affected by costs in relation to the reverse and the associated fundraising. Prior year comparisons for Frontier IP Limited have been provided but are not particularly meaningful as the business was not operated independently, but rather as a newly incorporated subsidiary of Sigma.

Operational Review

This operational review covers the period from the reverse takeover which was completed in May 2009.

I am pleased to report that Frontier has made good progress on delivering the strategy outlined at the time of the reverse. In July 2009, Frontier announced the establishment and First Closing of the first dedicated private equity fund for investment in intellectual property developed by Robert Gordon University, Aberdeen. The private equity fund, named The RGU Ventures Investment Fund LP (“the RGU Fund”), launched with committed funds at First Closing of up to £1.1 million, with Frontier and Robert Gordon University comprising the first investors. It obtained partnership status with Scottish Enterprise’s Scottish Co-investment Fund, potentially doubling the amount available to invest to £2.2m. I am delighted to report today the establishment of a similar £750,000 fund dedicated to spin-outs from Dundee University, full details of which are given in a separate announcement. This fund has also obtained partnership status with Scottish Enterprise’s Scottish Co-investment Fund, potentially doubling the amount available to invest to £1.5m.

The RGU Fund has already completed its first investment in B1 Medical Limited, an orthopaedics business that has a long term pipeline agreement to selectively commercialise intellectual property from Robert Gordon University, the University of Aberdeen and NHS Grampian.

The Company benefits from a formal services agreement covering the provision of both corporate resources and premises with Sigma, which remains the major shareholder. This enables us to keep costs tightly under control. These services include the initial management of the two venture funds on behalf of Frontier while Frontier obtains its own independent Financial Services Authority authorisation.

Outlook

Frontier is well placed to build on its two existing university partnerships, with each now having a dedicated venture fund in place to support its spinouts. Both of these funds remain open to new investors for a further two years from first close. Significant effort will now be put into expanding these funds and ensuring their successful deployment in building their portfolios which, in turn, will drive our own revenue growth.

The economic environment is likely to remain fragile for some time and while this clearly presents some challenges, we believe it will also help drive demand for our services from institutions keen to maximise the value of their intellectual property. More widely, we expect that there will be ongoing consolidation in our sector and we aim to be proactive in this process. Our independent quoted status leaves us well placed to participate where such opportunities arise.

Neil Crabb

Chairman

15 September 2009

>>>Download full statement including financial results here (PDF-138K)