Acquisition and Disposal

Workspace Group PLC
24 November 2003



                         WORKSPACE COMPLETES TWO DEALS
                                IN NORTH LONDON

Workspace Group PLC, ('Workspace'), the leading provider of flexible business
accommodation to small and medium sized enterprises ('SMEs'), has completed two
property deals totalling over £21 million.

Acquisition of the Atlas Business Centre, NW2

The Group has completed the purchase of the Atlas Business Centre, a freehold
industrial estate at Staples Corner, London NW2 for a cash consideration of
£12.6 million. The property is a 108-unit multi-let business centre, comprising
155,000 sq ft of lettable space laid out in a two-storey office building, that
operates as a serviced office centre, together with an estate of small
industrial warehousing units to the rear. It is well located close to the
intersection of the North Circular Road, M1 motorway, and A5 Edgware Road. The
property currently produces a net rental income of £1.13m per annum at an
average gross rent of £8.37 per sq. ft and with scope for improvement. The
current occupancy level of the estate is 87%. The property has been acquired
from the Ashtenne Industrial Fund Limited Partnership.

Disposal of Kingsland Viaduct, Hackney, E1

At the same time it has also sold its leasehold interests in Kingsland Viaduct,
Hackney for £8.25m to London Underground Limited. The sale paves the way for the
proposed East London Line Extension (ELLX). Workspace acquired the leasehold
interests in this mile long length of railway arches in 1996 and has undertaken
a capital investment programme to refurbish a number of the arches. London
Underground Limited exercised compulsory purchase powers in 2001 to obtain
management and operational control of the viaduct, and has agreed to acquire the
Group's interests for £8.25m, including compensation.

Harry Platt, Chief Executive, commented

'Atlas is an important acquisition for the Group. It fits our criteria
perfectly and it will complement our existing properties in Bounds Green and
Park Royal. The Group is now able to offer a range of flexible, affordable
accommodation along the North Circular Road.

'The sale of Kingsland Viaduct scheme frees London Underground to pursue the
commissioning of the East London Line Extension and provides an appropriate exit
for Workspace. We intend to reinvest the proceeds in further property assets in
London.

'As we have announced in our interim results today, our stated aim is to double
the size of the business over the next five years, strengthening our position as
the leading supplier of space in London for the SME sector. With the capacity
for significant further investment, Workspace will continue to seek further
opportunities to realise this strategy.'

                                     -ends-
Date: 24 November 2004
For further information:

Workspace Group PLC                            City Profile Group
Harry Platt, Chief Executive                   Simon Courtenay
Mark Taylor, Finance Director                  020-7448-3244
020-7247-7614
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e-mail: [e-mail]
web:    www.workspacegroup.co.uk
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