Trading Update

Unite Group PLC
14 July 2005

                    
Date:               14 July 2005
On behalf of:       The UNITE Group plc ('UNITE')
Embargoed until:    0700hrs

The UNITE Group plc - Trading Update
     
•    Business performance in line with expectations
•    Group will operate 30,996 bedrooms in 2005/06 academic year
•    Reservation levels for 2005/06 healthy at 78%
•    UCAS figures show graduate applications up 8% year on year

The UNITE Group plc, the UK's largest provider of student accommodation, today
provides a trading update prior to entering its close period.  The update
reports solid performance in the year to date, in line with the Board's
expectations.

Reservations performance

The Group will be operating 30,996 bedrooms in the forthcoming academic year and
marketing of the portfolio is continuing to attract customers at a healthy rate.
As at 30 June, approximately 78% of available rooms in the Group's portfolio had
already been reserved for 2005/06 compared to 80% at the same time last year.

Sales mix continues to be an important driver of revenue growth. The Group has
again been successful in letting a proportion of its portfolio on tenancies of
between 50 and 52 weeks in duration, rather than the shorter academic year lets,
with 4,095 rooms having been let on this basis for the forthcoming academic year
(2004: 3,468).

Development activity

Construction in respect of the Group's 2005 deliveries remains on track and in
total the Group will deliver 4,677 new bed spaces into its portfolio for the
2005/06 academic year.  Acquisition and development activity is also continuing
in respect of the Group's 2006 and 2007 pipeline and the Group has been
successful in securing several new projects in this regard in recent months.

As part of this on-going activity, a 750-bed project in Birmingham, previously
scheduled for delivery in 2006 as part of a larger urban regeneration project,
will now be the subject of a wider planning judicial review. Consequently
construction work will be delayed and the project will not now be completed
before summer 2007.   As a result of this, the Group now expects to deliver
approximately 4,250 new bed spaces for 2006 occupation.

Student numbers outlook

The Group continues to benefit from positive market conditions. The UK higher
education sector is performing strongly with figures released by UCAS in April
showing that applications for full-time undergraduate courses have increased by
8% compared with the same time last year. In addition, External Research
forecasts a 6% - 9% year-on-year growth in overseas students studying at UK
universities which is also reflected in the UCAS figures with applications from
international students up by 7.5% on the same point last year.

Commenting on the Trading Update, Nicholas Porter, Chief Executive Officer of
The UNITE Group plc, said:

'The update illustrates continued solid performance in all areas of UNITE's
business activities. Reservations are again strong, development activity is on
track and our pipeline sees the Group well-placed to take advantage of the
continued demand for quality, affordable accommodation.'

                                    - ends -

Enquiries:

The UNITE Group plc
Nicholas Porter, Chief Executive Officer                 Tel: [phone]
Mark Allan, Group Finance Director

Redleaf Communications Ltd                               Tel: [phone]
Emma Kane, Wendy Timmons                                 Mob: [phone]

Further information on UNITE is available at www.unite-group.co.uk


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