Disposal

Workspace Group PLC
13 December 2005



                           WORKSPACE IN £10M DISPOSAL
                              OF DEVELOPMENT SITE


Workspace Group PLC ('Workspace'), the leading provider of flexible business
accommodation to small and medium sized enterprises (SME's) in London and the
south east, has exchanged contracts to sell a development site at 50 - 60 Wharf
Road, N1. The buyer is United House Ltd. The consideration will be partly in
cash and partly in the construction for Workspace of a new commercial building
on part of the site. The deal is worth in excess of £10 million to Workspace.

Workspace obtained planning consent in March 2005 for a mixed use redevelopment
of the site, which is situated in an attractive location with frontage to the
Regent's Canal and Wenlock Basin, north of the City and on the Hackney/Islington
border. The consent allows for the demolition of the existing buildings, to be
replaced by a development comprising 30,000 sq ft of small unit commercial space
and seventy-seven residential units in buildings of up to ten storeys in height.
The rental value of the commercial space and associated basement car parking is
estimated to be in the region of £550,000.

Harry Platt, the Chief Executive, commented,

' I am delighted to announce this deal, achieved after a lengthy planning
process which started in 2003 and which required two separate applications and a
planning appeal. United House will be developing the scheme, which includes the
replacement of old workspace with new. This allows us to maintain a long term
income from the site by meeting the needs of local small businesses in modern
purpose built accommodation, on flexible terms.'

' Alternative use potential is important to Workspace. In every situation we
consider carefully how we can take a building forward to add more value to
shareholders. Sometimes this process can be achieved quickly. It can also take
time. This announcement demonstrates how we work and the value we achieve.'

                                     -ends-

Date: 13 December
For further information:

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





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