Ansar Beit al-Maqdis -- which has pledged allegiance to IS and renamed itself "Sinai Province" -- has carried out a spate of deadly attacks on the peninsula since last year.
In the video distributed on Twitter and YouTube today, the Egyptian man accused of being a "spy" for the security services was shot in the neck by the jihadists.
Before the killing, the man identified himself in front of the camera and said the security services had charged him with infiltrating the Sinai-based extremists and collecting information about them.
They are seeking to establish a province of the self-declared IS "caliphate" straddling parts of Syria and Iraq and say the attacks are retaliation for a deadly government crackdown on Morsi's supporters since his ouster.
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