1st Quarter Results

Workspace Group PLC
14 August 2000

                      ADDED VALUE SCHEMES BUOY WORKSPACE                      
                        AS RENTAL GROWTH ACCELERATES                          
                                       
Workspace  Group PLC ('Workspace'), today announces its results for the  first
quarter to 30 June 2000.  Workspace provides approximately 6 million sq. ft of
flexible   business  accommodation  to  over  3,000  small  and  medium   size
enterprises ('SMEs') in London, the South East and the Midlands.

*    Profit before tax on trading activities up 22.6% to £2.2 million 
     (1999: £1.8 million)
*    Annual rent roll during quarter up to £26.08 million (31 March 2000:     
     £25.86 million)
*    Turnover up 51% to £8.4 million (1999: £5.6 million)
*    Earnings per share up 18.4% to 10.3p (1999: 8.7p)
*    Net asset value per share up to £9.13  (31 March 2000: £9.04)

Commenting on the results, Harry Platt, Chief Executive, said

'    We  are  totally   focused  on  delivering value  to our shareholders. We
concentrate on  working  the  earnings  stream  from  all  our  properties  by
providing  flexible,  affordable  space  for  SMEs.  However, with a portfolio
predominantly  based  in  London, the  opportunities  for  achieving  enhanced
'super' returns from some  of our properties are excellent.

'   Recently,  we have signed an agreement with Copthorn Homes  to  develop  a
live/work residential scheme on part of the Three Mills Film Studios site.  We
expect that the scheme will have an end-value of approximately £5 million.  We
have  contracted  to sell Ensign Court, London E4.   This  building  has  been
extensively enlarged, refurbished and re-let to some excellent tenants on long
leases.   Again,  this  is a property that we have created  significant  extra
value from.

'  We are  specialists at regenerating buildings, giving  them a  new lease of
life.   At   Union   Street,  Southwark,  our   HQ  office   development   for
Sainsburys  is nearing  completion.   This  property was  acquired  two  years
ago  and  was  earmarked  for  development into a business  centre, before  we
pre-let the entire site  to  Sainsburys  for a major office development.  This
has  significantly enhanced the end-value of the site.

'  The  level  of  demand  for  space  and good  quality  services  from small
businesses continues  to  be strong.  We monitor our  markets closely  and the
environment  for  small  businesses  is  good.   With   support  from  central
government  for  the SME  sector and  continued favourable economic conditions
the outlook for small businesses we believe will continue to be excellent.'

                                   
Date: 14 August 2000 
For further information please contact:

Harry Platt, Chief Executive                 Simon Courtenay
Mark Taylor, Finance Director                City Profile Group
Workspace Group PLC                          020-7726-8588
020-7247-7614                                e-mail:[e-mail]
e-mail: [e-mail]
web: www.workspacegroup.co.uk

Highlights


*   Turnover  at £8.5 million for the quarter grew by 52.6% compared with  the
    same  period  in  1999.   This figure is affected  by  portfolio  changes,
    including the Tonex acquisition on 23 July 1999.

*   The  annual rent roll increased during the quarter from £25.86 million  to
    £26.08  million (after a reduction of £0.18 million income from  disposals
    during the quarter).

*   Pre-tax  profits grew by 22.6% to £2.2 million for the quarter  compared
    with the same period in 1999.

*   Earnings  per share at 10.3p for the quarter increased by 18.4%  over  the
    corresponding period in 1999.

*   Net  asset  value per share at 30 June 2000 rose to £9.13 (31 March  2000:
    £9.04).

Operating and Financial Review

Review of Activities

There has been continued good progress in the quarter, with steady demand  for
space at improving rentals, especially in London and the South East.  This has
resulted in pre-tax profits of £2.22 million for the quarter, 22.6% up on last
year.

The  rent  roll  has  increased from £25.86 million to £26.08  million  (after
elimination  of the rental income from disposals and Ferry Lane - see  below).
The  average  rent  has  increased from £5.25 to £5.33 (up  1.5%)  during  the
quarter.

Two  disposals and one new 'added value initiative' were contracted during the
quarter.   The  Group is currently looking at a number of  other  added  value
possibilities with partners.

Our  tenants' business insurance product, under the Workspace Plus banner, won
the  Risk  Management  award at the Insurance Age  Awards  2000.   The  scheme
currently  provides  insurance cover for over 450 tenants,  and  a  number  of
former tenants.

Acquisitions and Disposals

The Group sold at book value one property during the quarter, the South Block,
Westminster Business Square, Vauxhall SE11.  This property was subject  to  an
option  in favour of the tenant.  The tenant simultaneously acquired an option
for  £95,000  of  a further piece of vacant land immediately adjacent  to  the
property at a purchase price of £500,000, subject to planning permission.


      Name of           Description       Sale Price       Annual Income
      Property                                        

      South Block,      Freehold          £1,235,000          £82,540
      Westminster       single unit
      Business Square   business centre
      London SE11       8,254 sq ft
           
During  the quarter contracts were exchanged for the establishment of a  joint
venture with Copthorn Homes for the development of a piece of vacant land at 3
Mills.   The  agreement is conditional on obtaining planning consent  for  the
proposed  residential  development.  At the quarter end discussions  with  the
planning authority and other interested parties were progressing.

Following the quarter end a conditional agreement was exchanged for  the  sale
of  Ensign  Court,  London  E1.   The  disposal  of  this  recently  enlarged,
refurbished   and  relet centre was disclosed in the Group's annual  accounts.
It is anticipated that the sale will be completed in the second quarter.

Cash Flow and Financing

There  was a net cash inflow of £1.8 million (1999: £0.25 million) during  the
period.  Net cash flow from operating activities was an inflow of £6.3 million
for the quarter (1999: £2.95 million).  Capital expenditure in the quarter net
of  disposal  proceeds  totalled £5.5 million (1999: £5.91  million).  At  the
quarter end gearing stood at 104.6% (1999: 66%).

Occupancy and Trading Statistics

The Group's key statistics relating to its trading operations are given in the
table below.
                                          
                                                   
                                  30 June 2000     31 March 2000
----------------------------------------------------------------              
                             
Number of Estates                           90                94
                                           
Total Floorspace  at end             5,649,753         5,677,521
 of period                      
                                          
of which:                                 
   Available for letting             5,554,472        
                      
   Undergoing development/              95,281        
   refurbishment
                                          
Lettable Floorspace of               5,554,472         5,539,351
 core portfolio                 
                                          
Lettable Units (number)                  3,546             3,523
                                          
Annual Rent Roll of                 26,077,673        25,855,226
 occupied Units                
                                          
Average Rent (£/sq ft)                    5.30              5.21

Average Rent of Core                      5.33              5.25
 Portfolio (£/sq ft)
                                          
Occupancy overall                        87.04%            87.35%

Occupancy of Core                        86.82%            87.04%
 Portfolio
                                          
                                          
Comparisons  of overall occupancy and rent roll are distorted by acquisitions,
disposals  and transfers.  The 'core portfolio' is defined as those properties
that  have  been  held throughout the quarter and which  are  not  subject  to
refurbishment/redevelopment  programmes  (the  property  subject  to  such   a
programme during the quarter was 1-10 Union Street).

In  common with previous reports, values relating to open storage land (Raynes
Park  and  Redhill)  have been excluded in calculating  areas,  occupancy  and
rental levels.

Growth  in overall rentals was held back both by the disposal of South  Block,
Westminster and by the exclusion of the rentals of £100,565 at Ferry Lane (the
Group's  property  which  was destroyed by fire in  July  1999).   Ferry  Lane
rentals  had been included in statistics throughout 1999/2000 since  insurance
compensation  for  loss  of  rent was received  during  this  period.   Before
adjustment  for  these items rentals increased during the period  by  £405,552
(1.6%).

Current Trading

The  Group  has  continued  to see good demand for its  product.   Its  market
remains  buoyant in a sound economy that encourages the growth and development
of  new  and small businesses.  This is particularly so in our main  areas  of
activity - London, the South East and the Midlands.

So  far  this year business performance is meeting our expectations with  good
demand  for our product assisting rental growth, especially in London.   There
remains  considerable  potential to extract greater  value  from  the  Group's
portfolio,  and to improve rents and occupancy over the next  2  to  3  years,
especially from the Tonex acquisition.



Unaudited Consolidated Profit and Loss Account
for the 3 months ended 30 June 2000

                                           3 months ended 30 June             
      
                                                 2000     1999
                                                 £000     £000
______________________________________________________________

Turnover - continuing operations                8,547    5,601

Rent payable and direct costs                  (2,304)  (1,487)
--------------------------------------------------------------    
Gross profit                                    6,243    4,114

Administrative expenses                        (1,179)    (925)
--------------------------------------------------------------
Operating profit - continuing operations        5,064    3,189
(Deficit) on Disposal of Investment Property      (12)      (4)
                                      
Interest receivable                               115       26                

Interest payable                               (2,946)  (1,399)
--------------------------------------------------------------
Profit on ordinary activities before taxation   2,221    1,812

Taxation on profit on ordinary activities        (600)    (453)         
--------------------------------------------------------------
Profit attributable to shareholders             1,621    1,359

Dividends                                           -        -
--------------------------------------------------------------
Retained for the period                         1,621    1,359
______________________________________________________________
Basic Earnings per share                         10.3p     8.7p
                                                  
Diluted Earnings per share                       10.1p     8.7p

Other than the profit for the period there were no other recognised gains or
losses during the period (1999 - nil).



Unaudited Cash Flow Statement
for the 3 months ended 30 June 2000
                                             3 months ended 30 June

                                                2000        1999
                                                £000        £000
________________________________________________________________
Net cash inflow from operating activities       6,301       2,947
 
Return on investment and servicing of         (3,187)     (1,088)
 finance

Taxation                                        (335)       (218)

Capital expenditure (net)                     (5,496)     (5,912)

Equity dividends paid                              -           -
----------------------------------------------------------------
Net cash outflow before use of liquid                           
 resources and financing                      (2,717)     (4,271)

Management of liquid resources                   871       1,569

Financing                                      3,615       2,949
----------------------------------------------------------------
Net cash inflow                                1,769         247
----------------------------------------------------------------              
                                                 
Reconciliation of net cash flow to 
movement in net debt                        

Increase in cash                               1,769         247

Decrease in liquid resources                    (871)     (1,569)

Cash inflow from (increase)/decrease in       (3,541)     (2,949)
 debt
----------------------------------------------------------------
Changes in net debt resulting from cash       (2,643)     (4,271)
 flows 
----------------------------------------------------------------
Net debt at 1 April                         (148,731)    (68,457)

Net debt at 30 June                         (151,374)    (72,728)
----------------------------------------------------------------



Consolidated Balance Sheet
                                             Unaudited      Audited
                                               30 June     31 March 
                                                  2000         2000
                                                  £000         £000
___________________________________________________________________
Fixed assets                                                       
Tangible assets                                                    
Investment properties                           308,381     304,248
Other fixed assets                                1,166       1,117
Investment in own shares                          1,015       1,015
-------------------------------------------------------------------
                                                310,562     306,380
-------------------------------------------------------------------
Current assets                                                     
Debtors                                           5,830       5,236
Investments                                      10,553      11,424
Cash at bank and in hand                            242         201
-------------------------------------------------------------------
                                                 16,625      16,861

Creditors:  amounts falling due within                             
 one year                                        
     Loans and overdrafts                        (4,179)     (5,511)
     Others                                     (20,274)    (19,867)
-------------------------------------------------------------------
Net current liabilities                         (24,453)    (25,378)
-------------------------------------------------------------------

Total assets less current liabilities           302,734     297,863
Creditors:  amounts falling due after                              
 more than one year                             
     Loans                                      (157,990)   (154,845)
-------------------------------------------------------------------
                                                144,744     143,018
-------------------------------------------------------------------

Capital and reserves                                               

Called up share capital                           1,594       1,591
Share premium account                            39,897      39,795
Revaluation reserve                              86,282      86,412
Profit and loss account                          16,971      15,220
-------------------------------------------------------------------
Shareholders' funds - equity interests          144,744     143,018
-------------------------------------------------------------------
Net asset value per share                         £9.13       £9.04
___________________________________________________________________

Movement in shareholders' funds               
                     
Profit for the financial period                   1,621       6,523
Dividends                                             -      (3,298)
___________________________________________________________________           
                                                       
                                                  1,621       3,225
Issue of Shares                                       3           3
Share premium account                               102         127
Revaluation reserve - increase                        -      31,209
___________________________________________________________________

Net movement in shareholders' funds               1,726      34,564
 for the financial period                                           

Shareholders' funds as at 1 April               143,018     108,454
 2000/1999
___________________________________________________________________
Shareholders' funds as at 30 June               144,744     143,018
 2000/31 March 2000
-------------------------------------------------------------------



Notes to the Quarterly Results

1.   Basis of Preparation

The  unaudited financial information contained in this quarterly  report  does
not  comprise  statutory accounts within the meaning of  Section  240  of  the
Companies  Act 1985.  The statutory accounts for the year ended 31 March  2000
included  an  unqualified  report  of  the  auditors.  The  Group's  unaudited
quarterly accounts for the period ended 30 June 2000 have been prepared on the
basis of the accounting policies set out in the Annual Report and Accounts for
the year ended 31 March 2000.

                                    3 months ended 30 June
                                        2000       1999
2.  Segmental Analysis                  £000       £000
_______________________________________________________
Rental Income                          6,677      4,464
Service   charge   and    other        1,477        934
 recoveries
Fees,  commissions, and  sundry          393        203
 income
_______________________________________________________
                                       8,547      5,601
-------------------------------------------------------
                                                       
                                    3 months ended 30 June
                                        2000       1999
                                        £000       £000
3.  Interest Payable         
-------------------------------------------------------                       
                                                         
Convertible  loan   stock   and          662        662
 debenture stock interest
Mortgage interest                      2,608        788
Bank and other interest                   23         97
Development interest capitalised        (347)      (148)

-------------------------------------------------------
Charged  to  profit  and   loss        2,946      1,399
account
-------------------------------------------------------


4.   Taxation

The  taxation charge for the three months ended 30 June 2000  is based on  the
estimated  effective tax rate for the year ending 31 March 2001 of  27%  (2000
estimated: 25%).

5.   Earnings Per Share and Net Assets Per Share

Earnings per share have been calculated by dividing the profit after  tax  for
each  period  attributable to shareholders by the weighted average  number  of
ordinary  shares in issue during the period less investment in own  shares  of
200,000.  Net assets per share have been calculated by dividing net assets  at
the  end of each period less investment in own shares by  the number of shares
in issue at that time less  200,000.

6.   Valuation

No  valuation of investment properties has been carried out at 30  June  2000.
The  valuation  shown in the unaudited accounts is based  on  the  independent
valuation  at  31  March 2000, plus additions at cost less disposals  at  book
value.

7.   Creditors

Creditors  falling  due  within one year include tenants'  deposits  of  £2.66
million (31 March 2000: £2.60 million) and deferred rental and service charges
of £4.20 million (31 March 2000: £4.29 million).

8.   Financial Instruments

In accordance with the requirements of FRS 13, an assessment of the fair value
of  the  Group's  financial instruments held for financing purposes  has  been
undertaken as at 30 June 2000.  The results are summarised as follows:


                                    Book       Fair   Difference
                                   Value      Value       
                                £Million   £Million     £Million
----------------------------------------------------------------              
                                    
Short   term   borrowings   and                            
 current   part  of  long   term    (4.2)      (4.2)           -
 borrowings
                                                   
Long term borrowings              (158.0)    (167.6)        (9.6)
Financial Assets                    10.8       10.8            -
Interest rate Cap / Collar           0.3       (1.2)        (1.5)
----------------------------------------------------------------
                                  (151.1)    (162.2)       (11.1)
________________________________________________________________              
                                            

This represents 71 pence per issued ordinary share and if applied to net asset
value  per  share at 30 June 2000 would reduce the latter to £8.42.   However,
the  Group  has no obligation or present intention to repay its Debenture  and
Convertible  borrowings other than at maturity, when they will  be  repaid  at
par.   Cash  outflows arising from these borrowings will  be  limited  to  the
future  fixed  interest payments  and redemption at par.  These  outflows  are
unaffected by the notional market or fair values referred to above.

9.   Interim Statement

Copies of this statement will be dispatched to shareholders on 14 August  2000
and will be available from the Group's registered office at Magenta House,  85
Whitechapel Road, London, E1 1DU from 9.00am on that day.