Trading Update

Big Yellow Group PLC
17 January 2007

                                                                 17 January 2007

                              Big Yellow Group PLC
                        ("Big Yellow" or "the Company")
                                        
                            Quarterly Trading Update
                                        
The Board of Big Yellow Group PLC, the FTSE 250 self storage company, is pleased
to provide the following update on trading for the quarter ending 31 December
2006.

Conversion to REIT status

   • As we noted in our Interim Statement in November, Big Yellow has been
     seeking clarification from HM Revenue and Customs ("HMRC") of one material
     point outstanding in relation to conversion to Real Estate Investment Trust
     ("REIT") status. The point in issue is the change of tax treatment of Big
     Yellow's self storage rental income from Schedule D to Schedule A, 
     necessary for qualification as a REIT. Whilst management has not yet been 
     able to reach agreement with HMRC it has nevertheless decided to make the 
     election for REIT status to preserve the expected benefits from the 
     earliest date. As expected, HMRC have objected to the notification whilst 
     at the same time agreeing to continue discussions with the Company. The 
     Board is firmly of the view that conversion to REIT status should be 
     ultimately successful, although not guaranteed, for the following reasons:

     -   extensive and robust advice from its professional advisers including 
         leading Counsel;

     -   varying treatment in the self storage industry by HMRC in relation to 
         the classification of self storage rental income;

     -   HMRC's own guidance published in November 2006 recognising that the 
         borderline between Schedule A and D had become less distinct and 
         indicating that provided that there is no loss of tax as a result of 
         transition they would not object in marginal cases;

     -   HMRC's historical VAT treatment of self storage rental income as 
         deriving from a licence to occupy land and hence as income from 
         property; and

     -   the Group's open storage centres are accounted for under IAS 40 as 
         investment properties and not as owner occupied properties, and are 
         held in the balance sheet at open market value.

   • As noted in our interim statement, the Company intends in due course to
     convene an EGM to seek shareholder approval for certain amendments to the
     Company's Articles of Association in connection with its intended 
     conversion to REIT status. The EGM circular will contain full details of 
     the proposed amendments and the reasons for them.

Quarterly highlights

   • Revenue for the quarter was £12.9 million
      - Up 19% from £10.8 million for the same quarter last year
      - Up 1% from £12.8 million for the quarter to 30 September 2006

   • Annualised revenue at 31 December was £48.9 million
      - Up 15% from £42.5 million at the same time last year
      - Down 2% from £50.0 million at 30 September 2006

   • 1,748,000 sq ft occupied at the quarter end
      - Up 6% from 1,642,000 sq ft at the same time last year
      - Down 2% from 1,792,000 sq ft occupied at 30 September 2006

   • Average annual rent per sq ft over the first 9 months is £24.01, up 7% from 
     £22.46 achieved for year ending 31 March 2006 following price increases in 
     May 2006.

   • We have opened two storage centres in the quarter, an 80,000 sq ft centre 
     in Edmonton (October) and a 50,000 sq ft centre in Gloucester (December). 
     We now have 43 storage centres open with a total self storage capacity of 
     2.57 million sq ft.

   • Since the announcement of our interim results we have acquired a site in 
     Nottingham to develop a 60,000 sq ft storage centre. This brings the total 
     sites acquired in the year to eight.

   • The number of stores open and sites in planning/under development now total 
     62. Three planning consents were granted in the quarter at Ealing, 
     Kennington and Barking Central and of the 19 sites in development, five 
     have planning permissions. The total capacity of the 62 stores and sites 
     when fully developed will be 3.79 million sq ft.

James Gibson, Chief Executive, commented:

"In the event that we succeed in our ambitions we believe the conversion to REIT
status  will be of significant benefit to shareholders creating an enhanced
level of future  dividends in a more tax efficient and transparent structure. In
addition we believe  that the self storage industry as a whole will benefit from
the creation of a growing  specialist REIT sector, with improved access to
capital, driving further development  of this relatively young market.

"December is historically our weakest month and this year there was a higher
loss  of occupancy than we have seen previously. We are pleased that we are
seeing the  usual pick-up in activity as we move to our seasonally stronger
spring/summer trading period. However, we remain cautious in relation to the
risks to the consumer and  this will not have been helped by the recent rise in
interest rates.

"We continue to make steady progress on planning consents, with two granted
since  the interim results in November, and are looking to achieve further
consents  over the remainder of the year."

                        - Ends -

For further information, please contact:

Big Yellow Group PLC                                               01276 477 811
Nick Vetch, Chairman
Jimmy Gibson, Chief Executive

Weber Shandwick Square Mile                                        020 7067 0700
Louise Robson or John Moriarty

Notes to Editors

Big Yellow Group PLC is one of the leading and most dynamic self-storage groups
in the UK. It was founded in 1998 by Nicholas Vetch, Philip Burks and James
Gibson and listed on AIM in May 2000, moving to the Official List of the London
Stock Exchange in 2002.

Big Yellow has expanded rapidly and now operates from 43 stores in London and
the South, and one in Leeds, with a further 19 stores in development and of the
62, 51 are held freehold and two long leasehold. All the stores have the
distinct yellow branding, in accessible main road locations, with the majority
being within the M25 or in strong urban conurbations. When fully built out the
portfolio will provide approximately 3.79 million sq ft of flexible storage
space.

The Group has pioneered the development of the latest generation of self-storage
facilities, which utilise state of the art technology and are located in high
profile, main road locations. Its focus on the location and visibility of its
buildings, coupled with excellent customer service, has created the most
recognised brand name in the UK self-storage industry.





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