Preferred Development Partner

Inspace Plc
17 September 2007





Press Release                                                  17 September 2007


                                  Inspace plc

                          ('Inspace' or 'the Company')

               Preferred Development Partner - Dee Park, Reading


Inspace plc (AIM:INSP), one of the UK's leading specialist service providers to
the social and affordable housing market, announces that Reading Borough Council
has recommended Inspace as a preferred development partner for the regeneration
of the Dee Park Estate. Once formally ratified during the course of October,
Inspace will work in joint venture with the Catalyst Housing Group, a leading
London based RSL. This major scheme, which is estimated to be valued at
£140million, reinforces Inspace's credentials in this growth market and will see
480 new open market homes for sale, 280 new homes for rent and a community
school to be finally completed by 2017.



                                    - 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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