Re: Outsourcing Contract

Land Securities Group Plc
14 January 2005


14 January 2005

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

DRIVER AND VEHICLE LICENSING AGENCY ('DVLA')

Land Securities Trillium selected by DVLA as preferred bidder for property
outsourcing contract

Land Securities announces that its property outsourcing business, Land
Securities Trillium, has been selected as the preferred bidder for a proposed
property outsourcing deal with DVLA.  DVLA is set to embark on a modernisation
programme to refurbish its 1960s built headquarters and to outsource its estate
management and the provision of Facilities Management services on its entire UK
estate, comprising approximately 90,000 sq m of accommodation via a 20-year
outsourcing contract.  It is anticipated that the contract will commence on 1
April 2005.

Ian Ellis, Chief Executive of Land Securities Trillium, said 'We are delighted
to be appointed preferred bidder by DVLA for their property outsourcing contract
and look forward to working closely together over the coming weeks to finalise
and commence the contract.  This provides an exciting opportunity to capitalise
on our experience of providing wide-ranging and flexible outsourcing solutions
in order to work with a forward-looking client.

'This contract is all about working with government to support change, whilst
delivering better workplaces and value for money.  It is a good example of what
the Government's efficiency programme aims to achieve.'

Clive Bennett, Chief Executive of DVLA, said 'This contract provides an
important step forward for DVLA to improve its estates services with the help of
a 'best in class' service provider. It gives us the opportunity to improve
working practices that will benefit our customers, update working conditions for
our staff and reduce our running costs.'


                                    - Ends -


For further information, please contact:

Land Securities
Ian Ellis / Cat Ley
Tel: [phone]

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

DVLA
Press office
Tel: [phone]


NOTES TO EDITORS:

DVLA

DVLA placed an advertisement for a property partner for its estates
refurbishment programme in December 2003, which also marked the formal
commencement of the refurbishment project.

The contract allows for further expansion that will be flexible enough to meet
DVLA's future accommodation needs and the inclusion of the UK-wide Local Office
network within the estates management and FM services functions. The decision to
develop an outsourcing project was the culmination of a detailed estates
strategy review prepared jointly by DVLA and IBM (Business Consulting Services).
The estates strategy confirmed that the Agency would stay in Swansea in its
existing location, but recognised the need for greater flexibility in the future
to respond to changing space and service requirements of the Agency.

The project includes:

  • Refurbishment of the 16 storey tower block and some of the other premises
    on the Morriston site

  • Delivery of facilities management services (excluding security, messengers
    and archiving)

  • Delivery of estates management services

  • New build office and other accommodation at sites in Swansea from which
    principally DVLA services are provided

  • Commitment by Land Securities Trillium of £30 million to fund these
    improvements.

DVLA is being assisted in this procurement by its team of professional advisers,
principal advisers being IBM (Business Consulting Services) and PUK.

Land Securities Trillium

Land Securities Trillium, part of the Land Securities Group, is one of the UK's
leading providers of property outsourcing solutions.  Capital, estate strategy,
property management, facilities management and risk management services are
combined to meet the particular needs of corporate and public sector
organisations.  Land Securities Trillium currently owns or manages over 8,400
properties throughout the UK.  Clients include the Department for Work and
Pensions, the BBC, BT, Norwich Union and Barclays Bank.

Land Securities Group PLC

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 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
     •    Central London offices and
     •    Property outsourcing.

Its £8 billion investment portfolio includes more than 810,000 sq m of office
space in Central London and substantial retail holdings in Oxford Street,
Tottenham Court Road and Notting Hill Gate.  In addition the Group owns 18
shopping centres and 25 retail parks located across the UK.



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