Interim Results

Workspace Group PLC
27 November 2000


                             Workspace Group PLC                              

                         WORKSPACE GROWTH ACCELERATES


Workspace  Group PLC ('Workspace'), today announces its results  for  the  six
months  to 30 September 2000.  Workspace provides approximately 6 million  sq.
ft  of flexible accommodation to over 3,000 small and medium sized enterprises
('SMEs') in London, the South East and the Midlands.

*  Pre-tax  profits  up  62.4% to £4.3 million  (30  September  1999:  £2.6
   million)

*  Basic earnings per share up 21.3% to 19.4p (30 September 1999: 16.0p)

*  Net asset value per share at 30 September 2000 up 22.1% to £11.04
   (31 March 2000: £9.04; 30 September 1999: £7.65)

*  Turnover at £16.9 million for the half year, up 32.6%

*  Annual rent roll increased by £1.26 million to £27.1 million
   (up 4.9% since 31 March 2000)

*  Acquisition  of  estates in Harrow and Maidenhead for £6.2  million  and
   disposal of Ensign Court, E1, for £4.65 million

*  Interim dividend up 8.3% to 6.5p (1999: 6.0p)

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

'  This  is  another excellent set of results for the Group.  On all measures,
Workspace  is performing extremely well.  The management team remains  focused
on  developing and adding value to the Group's properties either  through  its
active management or through the identification of alternative use potential.

'  The  rental performance of the Tonex portfolio acquired last year has  been
very  good and is reflected in the interim valuation.  Overall, the rent  roll
has increased by £1.1 million over the first half year.

'  The  SME  sector is doing well.  The economy is healthy and the climate  is
supportive  of  small  business  start ups and  development.   These  dynamics
coupled  with the Group's active management approach are driving our  business
forward.  The strong demand for our product is reflected in its rental growth
and, in turn, the value of our properties.

'  At  many of our sites there is significant regeneration potential.  We  are
exploring  actively how we can achieve maximum value from these opportunities.
During the first half, we exchanged contracts with Copthorn Homes for a  major
live/work scheme.  Meanwhile, our office development at Union Street, SE1,  is
now occupied by J Sainsbury, and the investment is now being marketed.

'  The  proceeds from disposals will be re-invested in properties with  growth
potential.   The Group is looking at a number of acquisition opportunities  in
its  core  areas,  including sites identified under  our  recent  co-operation
agreement with the Greater London Enterprise.

' Looking forward, the business is well positioned to continue its growth.'

                                       
For further information 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


Operating and Financial Review

Review of Activities

Demand  for space remains high supporting increasing rentals.  As a result  of
this  and  expansion of the portfolio, pre-tax profits are up  62.4%  to  £4.3
million  for  the half year.  Excluding property sales and exceptional  costs,
profits are up 17.8% on last year.

Over  the  first  half  the  rent roll increased by £1.26  million  to  £27.11
million,  whilst  the average rent (per square foot) increased from  £5.21  to
£5.42 (up 3.2%).  The Estimated Rental Value of the portfolio (excluding Union
Street) now stands at £34.4 million.

The  Group's properties were valued by Insignia Richard Ellis at 30  September
2000  at   £348.5 million yielding a surplus of £31.8 million,  an  uplift  of
10.0%  on the portfolio valuation at 31 March 2000 (as adjusted for subsequent
additions and disposals).  This has been incorporated in the interim accounts.
As a result the net asset value per share has increased to £11.04, compared to
£9.04 at 31 March 2000 and £7.65 at 30 September 1999 (an uplift of 22.1%  for
the half year and 44.2% year on year).

Following  the  completion of the refurbishment of 169 Union  Street  and  its
occupation  by  J  Sainsbury,  the property now appears  in  the  accounts  at
valuation (contributing £9.2 million to the valuation surplus reported for the
half  year).    It  is likely that the building will be sold  in  the  current
financial year.


Acquisitions and Disposals

The  Group  is  keen to expand the property portfolio. We target under-managed
business  centres  in good  locations which we believe will benefit  from  our
intensive management skills.

Three acquisitions were concluded in the first half year at Harrow, Maidenhead
and  on  Whitechapel  Road,  London E1 for a  total  of   £6.61  million.   In
addition,  following  the  period end, one small acquisition  adjacent  to  an
existing landholding and for a value of £0.29 million has been made.

In  May 2000  we entered  a co-operation  agreement  with  the  Greater London
Enterprise  (GLE).  This  agreement will  enable the Group to source new sites
and opportunities.   The  opportunity to work together with local  authorities
to stimulate local business creation is massive.  We aim  to use the agreement
to continue  to grow  the provision of good quality,  flexible business  space
and ancillary  services  to  SME's.  We are delighted to report that contracts
have  been   exchanged  with  GLE   for  the  first  acquisition   being   the
Wandsworth Business Village in South West London, for £6.94 million.

The  sale  of  Ensign  Court for £4.65 million was  concluded  in  the  second
quarter,  yielding a surplus of £0.05 million on the book value  at  31  March
2000  and  some  £2.27 million over cost.  Following the period end  contracts
have  been exchanged for the sale of Phoenix Business Centre, Bow Common Lane,
E3 for £1.5 million, a £0.6 million surplus over book value at 31 March 2000.

The table below shows the main details of acquisitions and disposals in the
second quarter.

   Name of           Description     Acquisition/sale       Annual
   Property                              Price              Income
                                    
Acquisitions:                                    
Barratt Way,          49,296 sq. ft                   
Harrow                multi-let          
                      industrial        £3.21m              £262,826

Clyde House,          30,156 sq. ft                   
Maidenhead            of industrial      
                      and offices       £3.0m               £298,610
57/59                                            
Whitechapel           Retail and         
Road, E1              offices           £0.4m                £30,000

Disposal:     
Ensign Court,        19,552 sq. ft    
London, E1           let to Oddbins
                     and News
                     International     £4.65m               £411,000

Cash Flow and Financing

There  was  a  net cash inflow of £2.02 million (1999: £1.81 million  outflow)
during the half year. Net cash flow from operating activities was an inflow of
£8.16 million for the half year (1999: £7.96 million). Capital expenditure  in
the  half  year,  net  of  disposal proceeds, totalled £10.18  million  (1999:
£82.47  million). At the quarter end gearing stood at 89% (1999:  124%);  with
interest cover at 1.75 times (1999: 1.91 times).

Occupancy and Trading Statistics

The Group's key statistics relating to its trading operations are given in the
table below.

                            30 September        30 June       31 March
                                    2000           2000           2000
______________________________________________________________________        
   
Number of estates                     93             90             94

Total floorspace at end of     5,723,014      5,649,753      5,677,521
period                                                 

of which:                                                
          Available for       
          letting              5,627,733      5,554,472  

          Undergoing        
          development/
          refurbishment            95,281         95,281   

Lettable floorspace of 
 core portfolio                5,548,312      5,554,472      5,539,351        
                        

Lettable units (number)            3,568          3,546          3,523

Annual rent roll of
 occupied units               27,114,761     26,077,673     25,855,226        
       

Average rent (£/sq ft)              5.42           5.30           5.21
 
Average rent of core 
 portfolio (£/sq ft)                5.42           5.29           5.22

Occupancy overall                  87.38%         87.04%         87.35%

Occupancy of core 
 portfolio                         86.98%         86.77%         86.99%
            
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 year to date and which are not subject  to
refurbishment/redevelopment programmes.  The rent on Union Street (£2  million
per annum commencing 25 March 2001) is excluded from the above figures.

Current Trading

The  rent  roll  improvements recorded over the first half of  the  year  have
continued  since  30  September 2000. Many estates are at occupancy  rates  in
excess  of  90% with good and continuing demand from new or existing customers
seeking  to  expand.  This, together with the favourable economic environment,
particularly in London and the South East, is enabling good rental growth.

The  co-operation  agreement  with GLE referred  to  earlier  is  particularly
exciting.  Together we have a platform to pursue a range of  opportunities  in
regeneration.   Workspace  has  the capacity for  future  growth  and  we  are
confident that this association will contribute to this.

Meanwhile,  we continue to secure significant value from our disposal,  'added
value'  and partnership programme, and to target new acquisitions particularly
in the London area.

Interim Dividend

The  Board has declared an interim dividend in respect of the six months ended
30  September  2000 of 6.5p per ordinary share payable on 1 February  2001  to
shareholders on the register at 8 January 2001.  This compares with an interim
dividend of 6.0p per ordinary share paid for the same period in 1999 and is an
increase of 0.5p or 8.3%.


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

                          3 months ended               6 months ended 
                           30 September                30 September

                                           Trading    Other               
                                        Operations    Items   Total       
                                                             
                          2000     1999                       2000     1999
                          £000     £000       £000    £000    £000     £000
___________________________________________________________________________   
                                                              
Turnover - continuing    
 operations              8,386    7,166     16,933       -  16,933   12,767

Rent payable and
 direct costs          (2,325)  (1,843)    (4,629)       - (4,629)  (3,330)
---------------------------------------------------------------------------
Gross profit             6,061    5,323     12,304       -  12,304    9,437

Administrative
 expenses              (1,246)  (1,204)    (2,425)       - (2,425)  (2,129)
---------------------------------------------------------------------------
Operating profit -    
 continuing operations   4,815    4,119      9,879       -   9,879    7,308  

Profit/(Loss) on                                                  
 Disposal of        
 investment property        74      (1)          -      62      62      (5)

Interest receivable        142       34        257       -     257       60

Interest payable and
similar charges        (2,991)  (3,340)    (5,937)       - (5,937)  (4,739)
___________________________________________________________________________   
Profit on ordinary                                                
 activities before
 taxation                2,040     812       4,199      62   4,261    2,624

Taxation on profit on                                             
 ordinary activities     (551)   (282)     (1,134)    (17) (1,151)    (735)
___________________________________________________________________________   
                                          
Profit attributable
 to shareholders         1,489     530       3,065      45   3,110    1,889

Dividends              (1,070)   (941)     (1,070)       - (1,070)    (941)
---------------------------------------------------------------------------
Retained for the
 period                    419   (411)       1,995      45   2,040      948
---------------------------------------------------------------------------
Earnings per shares
 (basic)                  9.4p    3.4p       19.4p    0.3p   19.7p    12.0p

Diluted earnings per
 share                    9.3p    3.7p                       19.4p    12.3p



Statement of Total Recognised Gains and Losses

                                             6 months ended 30 September

                                                    2000      1999
                                                    £000      £000
___________________________________________________________________________   
                                                        
Profit for the financial period                    3,110     1,889

Unrealised surplus on revaluation of
 investment properties                            31,768    10,491

Taxation on revaluation surpluses realised on 
 sale of properties                                (510)         -
---------------------------------------------------------------------------   
                                                                 
Total gains relating to the financial period      34,368    12,380




Consolidated Balance Sheet

                                        Unaudited   Audited
                                     30 September  31 March
                                             2000      2000

                                             £000      £000
_______________________________________________________________               
                                
Fixed assets                                               

Tangible assets                                            

Investment properties                     348,225   304,248

Other fixed assets                          1,013     1,117

Investment in own shares                    1,015     1,015
_______________________________________________________________  
                                          350,253   306,380
_______________________________________________________________  
Current Assets                                             

Debtors                                     7,418     5,236

Investments                                 5,201    11,424

Cash at bank and in hand                      223       201
_______________________________________________________________
                                           12,842    16,861
_______________________________________________________________

Creditors:  amounts falling due                            

within one year

   loans and overdrafts                   (3,930)   (5,511)

   others                                (22,245)  (19,867)
_______________________________________________________________
Net current liabilities                  (26,175)  (25,378)
_______________________________________________________________

Total assets less current
 liabilities                              336,920   297,863

Creditors:  amounts falling due                            
 after more than one year

      loans (including Convertible
      Loan Stock)                       (159,827) (154,845)
_______________________________________________________________ 
                                         177,093   143,018
_______________________________________________________________
Capital and reserves                                       

Called up share capital                     1,614     1,591

Share premium account                      40,549    39,795

Revaluation reserve                       115,777    86,412

Profit and loss account                    19,153    15,220
_______________________________________________________________
Shareholders' funds - equity
 interests                                177,093   143,018
_______________________________________________________________
Net asset value per share                  £11.04     £9.04
_______________________________________________________________

Movement in shareholders' fund                             

Profit for the financial period             3,110     6,523

Dividends                                 (1,070)   (3,298)
_______________________________________________________________
                                            2,040     3,225

Issue of Shares                                23         3

Share premium account                         754       127

Revaluation reserve - increase             31,768    31,209

Taxation on valuation surpluses 
 realised on sale of properties             (510)         -
_______________________________________________________________

Net movement in shareholders' fund
 for the financial period                  34,075    34,564

Shareholders' funds as at 1 April
 2000/1999                                143,018   108,454
_______________________________________________________________

Shareholders' fund as at 30
 September 2000/31 March 2000             177,093   143,018
_______________________________________________________________


Unaudited Consolidated Cash Flow Statement
for the six months ended 30 September 2000

                                        6 months ended 30
                                            September

                                          2000       1999
                                          £000       £000
_______________________________________________________________               
                                         
Net cash inflow from operating           8,155      7,963
 activities

Return on investment and servicing     (6,196)    (3,575)
 of finance

Taxation Refund/(Payment)                  287      (218)

Capital expenditure (net)             (10,180)   (82,474)

Equity dividends paid                  (2,391)    (2,116)
_______________________________________________________________

Net cash outflow before use of
 liquid resources and financing       (10,325)   (80,420)

Management of liquid resources           6,223    (3,299)

Financing                                6,122     81,910
_______________________________________________________________

Net cash inflow/(outflow)                2,020    (1,809)
_______________________________________________________________

Reconciliation of net cash flow to                       
 movement in net debt

Increase/(decrease) in cash              2,020    (1,809)

(Decrease)/Increase in liquid          (6,223)      3,299
 resources

Cash inflow from increase in debt      (5,399)   (81,893)
_______________________________________________________________
Changes in debt resulting from cash 
 flows                                 (9,602)   (80,403)
_______________________________________________________________

Net debt at 1 April                  (148,731)   (68,457)
                                             
Net debt at 30 September             (158,333)  (148,860)
_______________________________________________________________               
                             


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 September 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.

2.  Segmental Analysis   3 months ended 30   6 months ended 30
                              September           September
                           2000       1999      2000     1999
                           £000       £000      £000     £000
_______________________________________________________________               
                                                    
Rental Income             6,636      5,911    13,313   10,375

Service charge and
 other recoveries         1,480        937     2,957    1,871

Fees, commissions, and
 sundry income              270        318       663      521
_______________________________________________________________               

                          8,386      7,166    16,933   12,767
_______________________________________________________________
                                                     
3. Interest Payable      3 months ended 30    6 months ended 30
                              September           September
                           2000       1999      2000     1999
                           £000       £000      £000     £000
_______________________________________________________________
                                                     
Convertible loan stock                                       
 and debenture 
 stock interest             662        662     1,324    1,324

Mortgage interest         2,732      1,874     5,340    2,662

Bank and other 
 interest                    19         37        42      134

Net development      
 interest capitalised     (422)      (170)     (769)    (318)

Loan breakage costs           -        937         -      937
_______________________________________________________________

Charged to profit and
 loss account             2,991      3,340     5,937    4,739
_______________________________________________________________


4.  Taxation

The taxation  charge for the three months ended 30 September 2000  is based on
the estimated  effective  tax rate  for  the year ending 31 March 2001 of  27%
(2000 estimated: 28%).

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  (15,826,293  shares).  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
(15,942,393 shares).

6.  Valuation

The Group's investment properties were valued by Insignia Richard Ellis at  30
September  2000  on an open market existing use basis in accordance  with  the
guidance notes issued by the Royal Institute of Chartered Surveyors.

7.   Creditors

Creditors  falling  due  within one year include tenants'  deposits  of  £2.82
million (31 March 2000: £2.60 million) and deferred rental and service charges
of £4.68 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 September 2000.  The results are summarised as follows:

                                        Book     Fair   Difference
                                       Value    Value       
                                           
                                     £Million  £Million  £Million
__________________________________________________________________            
                                          
Short  term borrowings and  current                           
 part of long term borrowings           (3.9)     (3.9)        -

                                                       
Long term borrowings                  (159.8)   (165.4)     (5.6)

Financial Assets                          5.4       5.4         -
 
Interest rate Cap / Collar                0.3     (0.5)     (0.8)
__________________________________________________________________            

                                      (158.0)   (164.4)     (6.4)
__________________________________________________________________            
                                                             

This represents 40 pence per issued ordinary share and if applied to net asset
value  per  share  at  30 September 2000 would reduce the  latter  to  £10.64.
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  Monday  27
November  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.