Acquisition and Update

Workspace Group PLC
22 October 2007


                   

                    WORKSPACE SCORES DOUBLE SUCCESS IN LONDON

Workspace Group PLC ('Workspace'), the leading provider of flexible business
accommodation to small and medium sized enterprises in London, today announces
that it has completed a £10.8 million acquisition in central London and, that it
has been granted planning permission for its £85 million joint venture
development in Wandsworth.

Acquisition - Neil House, Whitechapel Road, London, E1

Workspace has acquired Neil House, Whitechapel Road, London, E1 from Panther
Securities PLC. This property is well located on the corner of Whitechapel Road
and Osborne Street, just on the edge of the City.  The building totals 43,592
sq. ft with retail units at ground level and offices above.  The purchase price
is £10.8 million and the property is currently producing an income of £415,260
per annum with 40% of the building vacant.  The estimated rental value is
£879,000 which represents an income yield of 8.1%.

Workspace Glebe Joint Venture Secures First Planning Permission

Workspace has also announced that its development joint venture with Glebe has
secured its first planning permission. The application to regenerate the
existing Wandsworth Business Village commercial site with a mixed-use scheme,
has been approved by Wandsworth Borough Council. The scheme represents an
investment of £85 million.

The Wandsworth scheme includes a new business centre, providing 94,000 sq. ft of
commercial space for small and medium sized businesses, 209 homes made up of
both private and affordable units, a nursery/creche, a new cafe/retail space and
a landscaped public square. Alongside several other major projects, the
Workspace Glebe joint venture development will play a key role in the
regeneration of Wandsworth town centre.

Harry Platt, Chief Executive of Workspace commented,

' The current downturn in the market is creating opportunities for us to buy
properties that offer significant potential to release value in the future.

' We are delighted to have acquired Neil House. It has been on our target list
for some time. We know the location extremely well, as we have already
established a cluster of properties in the area.

' We are confident that by implementing our active asset management skills we
will be able to grow the rental income significantly. The recent Crossrail
announcement underpins our confidence in this part of London, which we expect to
deliver above average performance over time.'

Referring to the planning permission granted for the Wandsworth regeneration
scheme Harry added,

' The granting of planning permission for our redevelopment scheme in Wandsworth
is a significant milestone for the Glebe joint venture.

' This is a classic example of the appealing nature of our mixed use projects
that find favour with local authorities. We aim to invest in local communities
to create vibrant and sustainable developments.

' By establishing a very clear understanding of the local planning issues, we
have the skills and experience to deliver proposals that fit with the long-term
regeneration initiatives being sought by local authorities.'

                                     -ends-


Date: 22 October 2007

For further information:

Workspace Group PLC                      cityPROFILE
Harry Platt, Chief Executive             Simon Courtenay
Graham Clemett, Finance Director         William Attwell
020-7247-7614                            020-7448-3244
web: www.workspacegroup.co.uk





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