Acquisition Disposal & Update

Mentmore PLC
27 September 2002

For immediate release                                          30 September 2002



                                  MENTMORE plc

                 IMPORTANT STEPS IN ONGOING STRATEGIC RE-ALIGNMENT



As part of its stated strategy of focussing on the high growth areas of its
business Mentmore plc, Europe's leading space management group, announces that:


•       It has acquired Aardvark Self Storage Limited for a total consideration
(including assumed debt) of £30.0 million.  Aardvark is the largest privately
owned self-storage operator in the UK and operates nine centres.

•       It proposes to sell a portfolio of mature serviced business space assets
having a market value approximating to the cost of Aardvark, hence maintaining
existing debt levels.

•       These transactions and consequent reductions in investment and other
plans will lower expected earnings in the short term.

•       It has signed a new £250 million bank facility providing capacity for
the group's medium term requirements.

•       It continues to search for a new chief executive as a matter of
priority.

•       It has appointed Hoare Govett as its sole broker.



Further details of these initiatives and the resultant short term impact on
group trading are set out below.



Acquisition of Aardvark

Aardvark operates nine centres with 420,000 square feet of net lettable capacity
of which 42% is currently let.  This occupancy level reflects the age profile of
the centres and indicates the growth opportunities for the business under the
Spaces brand.  Annualised storage revenues currently stand at £3.0 million.
Aardvark has four centres in Scotland giving a strong presence in Edinburgh and
Glasgow where Spaces is not currently represented.  The remaining centres also
provide a good geographic fit with other Spaces locations.  Aardvark's freehold
properties have been independently valued at £22.2 million.



In the year ended 30 September 2001 Aardvark reported revenues of £1.4 million
and a loss before tax of £0.47 million and at that date had net assets of £3.3
million.



The total consideration is £30.0 million (including debt assumed on
acquisition), of which £15.7 million was paid in cash on completion.  Loan notes
to the value of £7.3 million have been issued as part of the consideration,
which are redeemable between two and four years from completion.



The transaction will be marginally earnings dilutive in the current year but
will enhance earnings thereafter.  Aardvark is expected to contribute EBITDA of
approximately £0.8 million to Mentmore in the current financial year rising to
approximately £2.5 million next year.



Mentmore's personal storage business now has 46 centres in the UK and seven in
Paris representing  2.4 million square feet of lettable space.



Disposal of a portfolio of serviced business space assets

As an important step in refocusing on high growth areas, Mentmore also announces
that it proposes to sell a portfolio of serviced business space properties
having a market value approximating to the cost of Aardvark.  These Imex
properties have limited growth potential but should prove attractive to a
different owner.



The sale will reduce annualised operating profits in serviced business space by
£3.3 million but should generate significant property profits.



Trading

As stated at the time of the AGM, general trading across the group continues
broadly in line with plan.  Nevertheless, some weakness in the market means
occupancy growth in serviced business space is now projected to be slower than
original expectations.



The two transactions described above will reduce group earnings in the short
term.  In addition, earnings in the current year will be lower by approximately
£1.8 million due to related decisions to reduce investment in income producing
assets and in the time taken to bring some newly refurbished sites on stream.



Bank facility

The group also confirms that it has signed a new £250 million syndicated bank
facility which provides more appropriate funding for the medium term.
Unamortised loan costs amounting to £0.6 million relating to the group's
previous banking arrangements will be written off in the current year.



Chief executive

The search for a new chief executive remains active and a priority.



Nick Smith, Chairman and acting Chief Executive, said:



 'These moves are important strategic steps.  The Aardvark transaction
consolidates our leading market position in personal storage.  The high quality
of the centres and the available capacity provides excellent growth
opportunities.  The proposed disposal of a portfolio of serviced business assets
marks a further step in the process of re-aligning our business.



Short term earnings will be affected by the steps announced but they are
undoubtedly the right ones to take for the longer term benefit of the group.'





Enquiries:


Mentmore plc                                                      020 8946 3159
Nick Smith, chairman and acting chief executive
Clive Drysdale, group finance director

Bridgewell                                                        020 7003 3000
Ian Dighe / Greg Algridge

Buchanan Communications                                           020 7466 5000
Charles Ryland / Catherine Miles

Hoare Govett                                                      020 7678 1816
Ranald McGregor-Smith


End


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