Disposal

Workspace Group PLC
29 July 2004



WORKSPACE SELLS 3 MILLS STUDIOS
FOR £22.6 MILLION

Workspace Group PLC ('Workspace'), the leading provider of flexible business
accommodation to small and medium sized enterprises ('SMEs') in London and the
South East today announces that it has exchanged contracts for the disposal of
its 3 Mills Studios (including its adjacent Sugar House Business Centre and
Sugar House Lane properties) in London, E3, to the London Development Agency for
a cash consideration of £22.54 million.

£10m of the consideration has has been paid on exchange with the balance due on
completion of the transaction which is scheduled for 25 August 2004. The
property was valued at 31 March 2004 at £22.5m with a gross rental income
(before running costs) of £3.0m p.a. The consideration will be applied initially
in reducing the Group's borrowings but will subsequently be reinvested as part
of the Group's annual £65m investment programme in additional properties to add
to its portfolio.

The 3 Mills estate was acquired initially by Workspace in 1995 as a
semi-derelict site of a former bottling plant and distillery. Workspace has
transformed the estate into a media complex, focused on the film industry, that
is now at the heart of the regeneration of this part of East London. This
transition whilst successful, had created a property with operations which were
specialised and differed in many respects to the Group's mainstream business.
With its disposal the Group will be free to focus on its core activity of
providing space for SMEs in London and the South East.

Harry Platt, Workspace Chief Executive commented,

' 3 Mills has been a great example of our approach to adding value to our
properties. When we acquired the site, it was a redundant industrial complex
that had a bleak future. We have created a thriving and successful film studio
complex, that now has an enviable reputation and has attracted talent from all
over the world.

We have now decided that the site has achieved critical mass and that our
management efforts are best focused on our core business. We are delighted that
we have found an excellent partner in the London Development Agency, who intend
to continue the development of Three Mills as a centre of excellence in the
media sector.'

                                     -ends-
Date: 29 July 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
e-mail: [e-mail]
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web: www.workspacegroup.co.uk
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