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Leeds University is developing a specialist computer software company as a result of its Pounds 20 million partnership with the Forward Group.

The company, Virtual Working Systems, designs and tests "virtual office" software packages. The Forward Group will see to the company's commercial development, allowing its employees to focus on more research. In return, it will have a controlling share of the university's spin-off company.

The Forward Innovation Fund, launched in December 1999, was set up to help academic staff turn ideas into independent commercial enterprises.