RED HOT BUY - (TIG) - INNOVATION GROUP

LONDON (AFX) - IT company Innovation Group PLC said it has won a contract
extension from a major UK insurer.
The client has extended the use of an existing licence and has also entered
into an agreement for the use of Innovation's new Policy Services software.
The deal follows the successful conclusion of a pilot phase. Innovation will
receive a licence fee of 1.75 mln stg, most of which will be recognised in the
first half of the financial year to September 2006.
Dependent on future usage, further payments may be due in subsequent
financial years, the group said.