Re: Letting

Land Securities Group Plc
12 July 2006



PRESS RELEASE


12 July 2006


LAND SECURITIES GROUP PLC ('Land Securities'/'Group')


Microsoft to base London Headquarters at Cardinal Place


Latest deal completes letting of 100 Victoria Street


Land Securities today announces that it has exchanged contracts with Microsoft
to let 92,802 sq ft at Cardinal Place in Victoria, SW1.


Microsoft will locate the UK headquarters of its new Online Services Group at
Cardinal Place.  The Group comprises Microsoft's MSN and Windows Live
businesses.



The 15-year lease involves Microsoft taking 53,275 sq ft over floors one to five
in 100 Victoria Street and a further 39,527 sq ft on the first floor of 80
Victoria Street. This deal means that 100 Victoria Street is now fully let.



Mike Hussey, Managing Director of the London Portfolio, Land Securities, said:

'This is a fantastic deal for Land Securities. We feel that the high quality
office space we are offering in Cardinal Place would appeal to a high profile
and prestigious user. We are delighted that one of the world's largest and
well-known brands has chosen it for its UK headquarters.



'This latest letting is a further endorsement that Victoria is fast-becoming a
choice location for high profile companies who seek a combination of top grade
office facilities and excellent amenities for their staff.'



Sharon Baylay, General Manager, Microsoft Online Services Group said:

'Our UK business continues to grow rapidly.  With the upcoming Windows Live and
Microsoft adCenter launches, we're projecting even stronger growth, and we
needed new premises that would allow us to achieve our full potential.



'Cardinal Place is very well located in the heart of Victoria, offering us
excellent space and will be somewhere the staff will enjoy coming to work. The
scheme is very vibrant and we look forward to moving in.''



Land Securities was advised by CBRE and Jones Lang LaSalle represented MSN
Microsoft.



-Ends-





For further information please contact:

Mike Hussey
Land Securities
Tel: [phone]



Chris McCafferty
Microsoft
Tel: [phone] / [e-mail]



Stephanie Highett/Dido Laurimore
Financial Dynamics
Tel: [phone]


NOTES TO EDITORS



Land Securities Group PLC

Other office occupiers in the Cardinal Place estate include: P&O, 3i plc,
Canaccord Adams Ltd, Experian Ltd, Wellington Management International and
Kazakhmys plc.



The restaurant and leisure element of the estate is 95% let and trading.
Retailers include Marks & Spencer, Monsoon, Zara, Molton Brown and Hawes and
Curtis.



Land Securities is a FTSE 100 company, quoted on the London Stock Exchange.  It
has been at the forefront of the UK's commercial property industry for over 60
years.



Today, the Group maintains its market leading position as the UK's largest
quoted property company by providing commercial accommodation and property
services to a wide range of occupiers. The Group's objective is to create
attractive and sustainable returns for its shareholders through its activities,
which include property investment, development and property outsourcing.



Land Securities holds a market leading position in three areas of the UK
commercial property market:



Retail,
London offices and
Property outsourcing



Its £12.9 billion combined investment portfolio totals six and a half million sq
feet, including office and retail space in Central London, 30 shopping centres,
30 retail parks and 10 supermarket properties located across the UK.



It has a substantial development programme including major retail-led urban
regeneration schemes and Central London mixed-use developments.  The Group is
also master planning one of Europe's largest regeneration schemes in Kent
Thameside.

The Group leads the market in property outsourcing where, through Land
Securities Trillium, it provides accommodation and property-related services to
the Department for Work and Pensions, the BBC, Norwich Union, Barclays Bank,
DVLA and through Telereal to BT.



The Group is committed to environmental initiatives and community involvement
recognised by the Group's inclusion in the BiTC Corporate Responsibility Index,
FTSE4Good Index and the Dow Jones Sustainability Index.



For more information on Land Securities visit www.landsecurities.com





About MSN.co.uk

MSN is a division of the Microsoft Corporation

MSN is the UK's largest portal attracting over 16.8 million visitors per month
in the UK (Nielsen//NetRatings April 2006) and more than 465 million unique
users worldwide (MSN Internal Data). Owned by Microsoft, MSN is available in 42
markets and 21 languages.

MSN offers a wide range of Subscription products including Hotmail Plus and MSN
Premium with state of the art parental controls, spam filtering software and
photo editing tools.

MSN provides a number of world class innovative communication and information
services including:

•         MSN Hotmail, the UK's most popular free web-based e-mail service with
over 8.9 million users in the UK (Nielsen//NetRatings April 2006) and over 230
million active accounts worldwide (MSN Internal Data)

•         MSN Messenger, the UK's number one instant messaging service on the
internet with 10.9 million monthly users (Nielsen//NetRatings April 2006) and
over 205 million active users worldwide (MSN Internal data)

•         MSN Search, one of the UK's top search sites with 6.4 million users.
(Nielsen//NetRatings April 2006).  MSN Search is available in 33 markets
worldwide and 13 languages. MSN Toolbar with Windows Desktop Search is available
in 37 markets and 15 languages.



•         MSN Spaces, the UK's leading free blogging service has over 100
million unique users worldwide (comScore Networks, April 2006)




                      This information is provided by RNS
            The company news service from the London Stock Exchange