AGM Statement

Slough Estates PLC
                  

                          SLOUGH ESTATES plc
                        ANNUAL GENERAL MEETING
                         TUESDAY 17th MAY 2005

                         CHAIRMAN'S STATEMENT

We reported fully on our current activities in the Annual Report published a few
weeks ago but I think that it is appropriate for me to update that report with a
few comments today.

In general terms the markets in which we operate are continuing to develop in a
satisfactory manner. The latest IPD indices indicate a continuing yield
compression driven to a large extent by the weight of money entering the
property investment market and consequently current investment prices are
distinctly warm. Conversely, occupancy markets have remained on the cool side
and, whilst we have noted a significant improvement in the level of enquiries
with many more big players in the market, the actual demand for space evidenced
by completed deals continues to be quite shallow. With some doubts as to the
strength of world economies, we do anticipate a slight increase in demand as we
feel that there are now more businesses who are contemplating expansion.

The Group has had an active start to 2005 with a number of significant lettings,
most notably of 11,000 sq.m. to an investment bank at Slough. We have acquired
at Faggs Lane, Feltham 3.4 hectares of land and at Voyager Park, Portsmouth 13
hectares of land. These two sites will strengthen our landbank for future
development.

With a new Government returned in the recent General Election, we are now
looking forward to our industry discussing with them further progress on the
plans to introduce Real Estate Investment Trusts into the United Kingdom and
will no doubt have more to report on this as we consider the consultative stages
prior to legislation.

In Europe we have sold the office property in Avenue Kléber to a French owner
occupier at a price of €32 million which is ahead of our budget expectations.

In the USA the letting market for health science laboratories in the Bay area of
San Francisco and in San Diego has been strong and we have attracted a number of
existing and new tenants to take space, including a lease to Rinat Neuroscience
of 9,850 sq.m. In our report we mentioned the sale of Quail West to an American
partnership. I can now confirm that this sale has been consummated for a net
price of £32 million receivable in instalments over 4 years, the first
instalment of £9 million having been received.

Finally, I would mention that we announced last week that we were launching a
debt exchange programme whereby five historic high coupon debt issues totalling
some £321 million, carrying an average interest rate of 11%, would be exchanged
into about £437 million of new debt at an average interest rate of 5.9%, subject
to bondholder approval. Whilst the transaction will result in an exceptional
close-out charge of approximately £116 million, it will reduce the cash interest
charge by £9.5 million per annum and will improve earnings per share. Your Board
considers that this transaction, when completed, will improve the Group's debt
profile, will be earnings-enhancing, and will not greatly reduce the NAV per
share.

Slough Estates is a leading provider of flexible business space in business
parks in Western Europe and North America, with over 1500 customers occupying
2,996,967 square metres of business space, with a total value of £3.9 billion.
Slough Estates' properties are in suburban locations in close proximity to the
main business centres, where there is long term demand for business
accommodation to serve these key economic regions. The company's main activities
are currently based around London, Brussels, Paris, Düsseldorf, San Francisco
and San Diego and the company continues to develop new business parks with the
long term objective of building shareholder value and enhancing its reputation
for quality buildings offering excellent value to customers.

www.sloughestates.com

For further information contact:

Andrew Best / Emily Bruning
Shared Value Ltd
Tel: [phone] / 5027