Preferred Development Partner

Inspace Plc
08 October 2007


Press Release                                                     8 October 2007




                                  Inspace plc



                          ('Inspace' or 'the Company')



               Preferred Development Partner - Dee Park, Reading



Further to the announcement on 17 September 2007, Inspace plc (AIM:INSP), one of
the UK's leading specialist service providers to the social and affordable
housing market, confirms that its status as a preferred development partner for
the regeneration of the Dee Park estate has been ratified by Reading Borough
Council after a two year selection process.  Dee Park represents the largest
ever housing regeneration scheme handled by the Company and is worth an
estimated £140 million.  Inspace will work in joint venture with Catalyst
Housing Group, a leading London-based RSL (together called the 'Dee Park
Partnership').



Dee Park estate's regeneration will see Inspace replace existing housing stock
by building 763 new homes of mixed tenure, along with a new commercial centre,
community centre and primary school, plus roads and infrastructure. The new
homes will include 482 for private sale and 281 for affordable rent including a
sheltered block providing 60 homes for the elderly. The development will be
built in three phases, with work starting on site in late 2008 and completed by
2017.



The regeneration combines Inspace's social and affordable housing divisions,
with all construction work carried out by Inspace Partnerships, while private
development arm Inspace Homes will lead the process of selling the 482 private
homes in a joint venture with Catalyst Housing Group, which also becomes
landlord for the affordable rent homes.



Key sustainable features on the estate include installing a bio mass plant that
will supply heating to the sheltered block, solar water heating for all
affordable homes and a wind turbine providing renewable energy for the primary
school.



Dee Park is the latest in a series of major estate regenerations that Inspace
and Catalyst have successfully carried out together. In the mid-90s, they
transformed the Blackbird Leys estate in Oxford and are currently in the final
stages of a regeneration programme to provide over 600 homes in Neasden, North
London.



Chris Durkin, the Chief Operating Officer of Inspace's social and affordable
housing divisions, said: 'Dee Park is a good example of Inspace's ability to
bring its skill sets together to carry out major regeneration projects combining
private development with homes for affordable rent.  We see this as an important
opportunity to further establish our credentials in the growth market to provide
affordable housing'



                                    - Ends -



For further information:
Inspace plc
Andrew Telfer, Chief Financial Officer                                          Tel: [phone]
[e-mail]                                                             www.inspace.co.uk


Dresdner Kleinwort
Christian Littlewood                                   Tel: [phone]



Media enquiries:
Abchurch
Henry Harrison-Topham                                  Tel: [phone]
[e-mail]                               www.abchurch-group.com



Notes to editors



Inspace plc is a property based services group, and one of the UK's leading
specialist service providers to the social and affordable housing market.
Inspace has three complementary areas of activity: social housing, affordable
housing and corporate assets.



Social Housing - creating and maintaining sustainable homes

The division is one of the UK's leading specialist service providers to social
housing landlords through long term framework contracts. Its services comprise
major 'repair and maintenance', 'stock reinvestment' and new build programmes
for local authorities, Arms Length Management Organisations (ALMO) and
Registered Social Landlords (RSLs).



Total spending on social housing is currently around £14 billion per annum, of
which around £10.3 billion is spent on repair, maintenance and improvement. Of
this, £4 billion is spent on ongoing repair and maintenance, with the remaining
£6 billion being spent on capital projects such as major refurbishment and
improvement. This includes a contribution of between £1 billion and £2 billion a
year from the Decent Homes initiative. The provision of new housing, which is
currently running at around 35,000 units a year, adds a further £3.5 billion to
this sum.



Affordable Housing - developing integrated communities

The affordable housing division specialises in the provision of low cost homes
for sale in partnership with RSLs, usually alongside social housing built by the
Social Housing division, as part of more extensive mixed tenure schemes. It has
already established a number of joint venture companies with RSLs and through
its involvement in the Key London Alliance consortium, has been appointed to
provide mixed tenure developments under the Government's London Wide Initiative.



Corporate Assets - improving and maintaining public and private real estate

The corporate assets division provides a comprehensive repair, maintenance,
capital works and interior design service across public and private sector
non-residential real estate. It delivers 24/7 integrated maintenance services
across England, Scotland and Wales through its national network of branches and
'home based' mobile engineers. Its specialist design-led service offers
customers an integrated interior design, installation and furnishing 'one stop'
solution.



Further information on Inspace can be found at www.inspace.co.uk




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