Social Housing: Contract win

Inspace Plc
16 July 2007


Press Release                                                       16 July 2007


                                  Inspace plc

                                  ('Inspace')

                         Social Housing - Contract Win

Inspace plc (AIM:INSP), one of the UK's leading specialist service providers to
the social housing market, today announces that, through its social housing
division, it has signed a contract to design and build key worker accommodation
at St. George's Hospital in Tooting, South West London. The contract is expected
to be worth approximately £37.5 million over a three year period.

Chris Durkin, the Chief Operating Officer of Inspace's social and affordable
housing divisions, said: 'We are delighted to be playing a major role in the
provision of these important key worker homes for St. George's Hospital. This
scheme is in accord with the Government's commitment, recently outlined by Prime
Minister Brown, to substantial long-term growth in affordable housing. Being
part of this consortium further strengthens our existing working relationship
with Thames Valley Housing Association ('TVHA') with whom we have successfully
delivered two other key worker schemes at Burlington Danes and Hillingdon
Hospital. We look forward to working with them again on this exciting project.'

The award of this contract follows financial close being reached on a PFI
agreement between TVHA and the South London NHS Trust. As the design and build
partner for TVHA, Inspace is responsible for delivering the construction phase,
which consists of providing 557 units as well as a further 78 shared ownership
units and a nursery. Work starts in September this year and when completed in
December 2010, it will provide accommodation for nurses, doctors and other key
workers at St George's Hospital.

This new contract comes just after Inspace's social housing division won
industry magazine Contract Journal's 'Best Place to Work in Construction' award
for businesses with between 201 and 500 employees. It followed a process where
staff from over 100 companies responded to an online survey from Contract
Journal, the sector's highest circulation weekly newspaper. Inspace was the only
social housing specialist to win an award, which remains the industry's key way
to identify its most contented workforces.


                                    - Ends -

For further information:
Inspace plc
Andrew Telfer, Chief Financial Officer                 Tel: [phone]
[e-mail]                                    www.inspace.co.uk

Dresdner Kleinwort
Christian Littlewood                                   Tel: [phone]

Media enquiries:
Abchurch
Henry Harrison-Topham                                  Tel: [phone]
[e-mail]                               www.abchurch-group.com


Notes to editors

Inspace plc is a property based services group, and one of the UK's leading
specialist service providers to the social housing market. Inspace has three
complementary areas of activity: social housing, affordable housing and
corporate assets.

Social Housing - creating and maintaining sustainable homes

The division is one of the UK's leading specialist service providers to social
housing landlords through long term framework contracts. Its services comprise
major 'repair and maintenance', 'stock reinvestment' and new build programmes
for local authorities, Arms Length Management Organisations (ALMO) and
Registered Social Landlords (RSLs).

Total spending on social housing is currently around £14 billion per annum, of
which around £10.3 billion is spent on repair, maintenance and improvement. Of
this, £4 billion is spent on ongoing repair and maintenance, with the remaining
£6 billion being spent on capital projects such as major refurbishment and
improvement. This includes a contribution of between £1 billion and £2 billion a
year from the Decent Homes initiative. The provision of new housing, which is
currently running at around 35,000 units a year, adds a further £3.5 billion to
this sum.

Affordable Housing - developing integrated communities

The affordable housing division specialises in the provision of low cost homes
for sale in partnership with RSLs, usually alongside social housing built by the
Social Housing division, as part of more extensive mixed tenure schemes. It has
already established a number of joint venture companies with RSLs and through
its involvement in the Key London Alliance consortium, has been appointed to
provide mixed tenure developments under the Government's London Wide Initiative.

Corporate Assets - improving and maintaining public and private real estate

The corporate assets division provides a comprehensive repair, maintenance,
capital works and interior design service across public and private sector
non-residential real estate. It delivers 24/7 integrated maintenance services
across England, Scotland and Wales through its national network of branches and
'home based' mobile engineers. Its specialist design-led service offers
customers an integrated interior design, installation and furnishing 'one stop'
solution.


Further information on Inspace can be found at www.inspace.co.uk


                      This information is provided by RNS
            The company news service from the London Stock Exchange