Acquisition

Workspace Group PLC
3 January 2002



                     WORKSPACE ANNOUNCES INNOVATIVE DEAL

                        WITH GLE TO SUPPORT CUSTOMER'S

                              EXPANSION STRATEGY

Workspace Group PLC ('Workspace'), the leading provider of flexible business
accommodation to small and medium sized enterprises ('SMEs') in London and the
South East has today announced the acquisition a 1.75 acre plot of land from
Greater London Enterprise ('GLE') at Alpine Way, Beckton, London E6.

The site has been acquired under Workspace's co-operation agreement with GLE.
Workspace is financing the development of a 35,000 sq. ft distribution
warehouse for an existing customer that has outgrown its existing premises.
Workspace has retained GLE as developer and has agreed to pre-let the
completed development to Easy Managed Transport Ltd ('EMT'), a clothing
distributor. The scheme will be completed by April 2002, at a total cost of 
£3.53 million including land acquisition costs.

The completed development will be let on a 20-year lease for an annual rent of
£350,000. This represents a 10% yield on the total development costs. The
tenant has an option to acquire the freehold interest during the first five
years of the lease.

EMT has existing premises on Workspace's Bow Industrial Estate. It first
occupied premises there in April 1990 as a start-up business, and now occupies
10 units. The acquisition at Beckton facilitates their further expansion and
releases space at Bow for other new and small businesses.

Commenting on the deal, Workspace Chief Executive, Harry Platt said,

' We are determined at Workspace to work closely with our customers to support
the development of their businesses. Through our strong relationship with GLE
we have created a valuable additional property asset and continued our
commitment to the regeneration of 'brownfield' sites.

' The deal has also enabled us to free up space at an existing site where
demand for space continues to be strong. We are confident that we will re-let
this space rapidly to a broad range of customers'

                                    -ends-

Date: 3 January 2002

For further information contact:

Workspace Group PLC                    City Profile Group

Harry Platt, Chief Executive           Simon Courtenay

Mark Taylor, Finance Director          Ed Senior

020 7247 7614                          020 7448 3244

e-mail: [e-mail]      e-mail: [e-mail]

Web: www.workspacegroup.co.uk