Issue of Equity

Lok'n Store Group PLC
21 June 2002


                      Lok'nStore Group plc ('Lok'nStore')

                Placing and Open Offer by WestLB Panmure Limited

                    to raise £10.0 million (net of expenses)


Highlights

        •      Lok'nStore to raise £10.0 million (net of expenses) by way of a
        Placing and Open Offer

        •      The Placing and Open Offer has been fully underwritten by WestLB
        Panmure Limited

        •      The net proceeds of the Placing and Open Offer will provide the
        Company with funds to accelerate its acquisition of new sites and to
        make acquisitions of self-storage businesses

        Simon Thomas, Chief Executive, commented:

'I am very pleased to announce a placing and open offer raising £10.0 million
and am delighted to have received such strong support from both new and existing
institutional investors.

'Our ability to raise new equity in the current market conditions underlines the
strength of Lok'nStore's business model and growth plans and prospects.

'Lok'nStore is now well placed for the future and the funds raised will enable
us to invest in new centres and continue our focus on generating attractive
returns for our shareholders.'

Enquiries:

Lok'nStore Group plc                                   020 8547 2288
Andrew Jacobs
Simon Thomas
Chris Stevens

WestLB Panmure Limited                                 020 7020 4000
Dominic Morley

Biddicks                                               020 7448 1000
Katie Tzouliadis / Kathryn Burn


WestLB Panmure Limited, which is regulated in the United Kingdom by The
Financial Services Authority, is acting exclusively for Lok'nStore and will not
be responsible to anyone other than Lok'nStore for providing the protections
afforded to customers of WestLB Panmure Limited nor for providing advice in
relation to the contents of this announcement or any matter referred to herein.

This announcement has been approved by WestLB Panmure Limited solely for the
purposes of section 21 of the Financial Services and Markets Act 2000. It does
not constitute an offer or invitation to purchase or sell any securities.

This press announcement is not for distribution in or into the United States,
Canada, the Republic of Ireland, Australia or Japan. Neither the new Ordinary
Shares nor the application form has been, nor will be, registered under the
United States Securities Act of 1933, as amended, or under the securities
legislation of any state of the United States. The relevant clearances have not
been, and will not be, obtained in the Republic of Ireland nor from the
Securities Commission of any province or territory of Canada, no document in
relation to the Placing and Open Offer has been, or will be, lodged with, or
registered by, The Australian Securities and Investments Commission, and no
registration statement has been, or will be, filed with the Japanese Ministry of
Finance in relation to the Placing and Open Offer, the application forms or the
new Ordinary Shares. Accordingly, subject to certain exceptions, the new
Ordinary Shares may not, directly or indirectly, be offered, sold, renounced,
taken up or delivered within the United States, Canada, the Republic of Ireland,
Australia or Japan or offered to, sold to, renounced, taken up or delivered in
favour of, or to, a person within the United States or resident of Canada, the
Republic of Ireland, Australia or Japan.


                              Lok'nStore Group plc

                Placing and Open Offer by WestLB Panmure Limited

                    to raise £10.0 million (net of expenses)


Introduction

Lok'nStore proposes to raise £10.0 million (net of expenses) by way of a Placing
and Open Offer of 6,850,390 new Ordinary Shares at 155 pence per share on the
basis of 17 new Ordinary Shares for every 54 Ordinary Shares held on the Record
Date. The Placing and Open Offer has been fully underwritten by WestLB Panmure
Limited.

The net proceeds of the Placing and Open Offer will provide the Company with
funds to accelerate its acquisition of new sites and to make acquisitions of
self-storage businesses, in either case which meet the Company's stringent
acquisition criteria, and for the continued refurbishment and fit-out of the
Company's existing sites.


Information on Lok'nStore

History and Background

Lok'nStore was an early entrant into the relatively underdeveloped market of
self-storage in the United Kingdom and has now established itself as one of the
major operators in this fast expanding market. Lok'nStore was founded in
February 1994 and commenced business in self-storage in February 1995 when it
opened its first centre in Horsham. This was followed in April 1995 by the
opening of slightly smaller centre in Staines. Even at this relatively early
stage in Lok'nStore's development, its self-storage centres were becoming cash
flow positive relatively quickly. Lok'nStore has continued its strong focus on
cash generation in all of its subsequent centre openings.

The opening of Lok'nStore's centre at Staines was followed by a centre in
Kingston in November 1996, which also houses the head office facilities. A
further centre was opened in March 1997 at Woking.

Since then the Directors have accelerated Lok'nStore's pace of development,
opening 12 further centres, with the more recent acquisitions generally being
larger and more modern than Lok'nStore's first sites. Lok'nStore now has just
over 725,000 square feet of net lettable space available.

Business

Lok'nStore is a self-storage business focusing on residential and business
customers and currently operates from 16 sites in Southern England. Lok'nStore
buys or leases large warehouses or industrial buildings, sub-divides the space
and offers customers the units created.

Lok'nStore's self-storage facilities are designed to offer flexible, low cost,
accessible storage space for personal and business use, primarily on a month to
month basis. Lok'nStore aims to refurbish and open new storage centres within
eight weeks of acquisition and operates a phased fit-out approach, typically
refurbishing parts of a new site and making the remainder of the space available
to let as open storage. When a site has reached maturity, customers occupy fully
enclosed storage units for their exclusive use, may freely enter their storage
units during business hours and control access by providing their own locks.
Lok'nStore has 24 hour security systems at all of its sites and also offers free
use of trolleys and fork lift trucks with qualified operators. Lok'nStore aims
to give its customers a high degree of service as part of its offering.

Lok'nStore's centres are fitted out to a good standard and maintain a common
design and branding. They are well located, close to major urban centres, with
car parking and easy access.

Lok'nStore's operational centres are set out below:

Property                      Title                    Opening date              Net lettable space '000
                                                                                 square feet

Horsham                       Freehold                 February 1995             39.5
Staines                       Leasehold                April 1995                23.7
Kingston                      Freehold                 November 1996             34.7
Woking                        Freehold                 March 1997                19.0
Basingstoke                   Freehold                 December 1997             31.6
Reading                       Freehold                 January 1998              38.5
Portsmouth                    Leasehold                March 1999                39.6
Southampton                   Freehold                 June 1999                 117.7
Swindon West Units 2-3        Freehold                 May 2000                  25.0
Poole                         Leasehold                January 2000              52.5
Fareham                       Leasehold                June 2000                 33.6
Northampton                   Leasehold                February 2001             55.9
Swindon East                  Leasehold                February 2001             32.9
Swindon West Units 16-18      Leasehold                March 2001                25.0
Milton Keynes                 Leasehold                March 2001                53.9
Sunbury                       Leasehold                June 2001                 60.0
Ashford                       Freehold                 November 2001             42.6

Total                                                                            725.7


As well as its core self-storage business, Lok'nStore offers its clients a
number of additional services such as insurance and vehicle rental and it also
sells boxes and other packaging.

Residential customers constitute about 66 per cent. of Lok'nStore's users but
represent about 42 per cent. of turnover; commercial users represent the
balance, generally using more space than residential users. Lok'nStore has
around 4,000 customers, none of whom accounts for more than two per cent. of
Lok'nStore's turnover. Relationships with local removal companies have been
established at all of Lok'nStore's sites.

Customers initially sign a storage agreement for the term of the storage. There
is no minimum storage period. All customers must prepay the first 28 days'
storage charge and a security deposit equivalent to a 28 day storage charge
irrespective of their proposed period of occupancy. Lok'nStore has a lien over
its customers' goods, giving it a bad debt ratio of less than one per cent. over
each of the last six years.

The Directors consider that site selection, and in particular the price paid for
new sites, is critical to the rate of return that can be generated on
Lok'nStore's investments. Lok'nStore's specialist property and acquisitions
teams manage its opening programme with regard to a number of factors including
acquisition price, demographics, lease and freehold negotiations, accessibility
and car parking space.

In 2001 the Board decided to invest in new management with retailing expertise.
The Directors believe that Lok'nStore now has one of the strongest teams in the
sector and has established a platform for the business to grow considerably. The
Directors believe that this can be achieved without a further significant
increase in the size of the management team.

The Directors believe that the demand for self-storage is likely to grow due to
continued pressure on space, particularly in the South of England and increased
awareness of self-storage as a service.

Market

Self-storage is a service to individual and commercial customers, providing
accessible secure storage of goods on a flexible contract.

Domestic users typically require self-storage space in a variety of
circumstances including when they are moving house, suffering divorce or
bereavement or simply because they lack space. Items stored can best be
described as anything that can be found in a typical attic, loft or garage.
Commercial users tend to require self-storage for storing documents, stock,
office equipment and as a small scale distribution facility.

In the United States the self-storage industry has grown strongly and is now
well established. Recent data indicates that there were just under 32,000
centres in operation at the end of 2000 providing a rental area of 3.87 square
feet per head of population. In contrast, the United Kingdom is estimated to
have only 325 centres and provides a rental area of only 0.16 square feet per
head of population. Whilst there are structural and economic differences, the
Directors believe that this data does give some indication of the latent
potential of the UK market.

                                                       United States             United Kingdom
Number of centres                                      31,947                    325
Rental area (millions sq ft)                           1,064                     9.8
Rental area (sq ft)per head                            3.87                      0.16


Sources: US Self-Storage Almanac 2000 and UK Self-Storage Association


The Directors believe that the United Kingdom could profitably accommodate a
considerable increase in the number of self-storage centres and that the number
of centres could increase materially without significant competitive pressures
arising.


Historic funding and expansion strategy


Lok'nStore's new sites have historically shown, and the Directors believe will
continue to show, a relatively predictable cash flow profile following opening.
Around 40 per cent. of new customers are generated by word of mouth and by
having seen Lok'nStore's signage. Whilst a new site attracts customers at a
faster rate than when it is more mature, it generally will not reach critical
mass and become cash generative for some months following opening. Based on
Lok'nStore's experience, a standard double mezzanine storage centre has become
cash generative on a monthly basis after around 36 months and has become cash
generative on a cumulative basis after around 46 months. Lok'nStore has
historically generated an operating profit on a freehold site within 12-18
months and on a leasehold site within 18-24 months.


Lok'nStore aims to refurbish and open new storage centres within eight weeks of
acquisition and operates a phased fit-out approach, typically refurbishing parts
of a new site and making the remainder of the space available for open storage
letting. In this way, Lok'nStore aims to minimise the period within which an
investment in a new site is repaid, maximise revenues at an early stage and
spread capital expenditure more effectively over the life of new sites. Once
Lok'nStore's sites have reached maturity, they are highly cash generative.


Applying its stringent acquisition criteria, Lok'nStore has historically
invested in new sites using the cash generated by its mature sites as well as
using external debt and equity funding. Lok'nStore is currently achieving the
highest return on equity in the quoted self storage sector.


Future expansion


The Placing and Open Offer will provide funds with which Lok'nStore can
accelerate its expansion whilst maintaining what the Directors consider to be
acceptable levels of gearing. Lok'nStore's established specialist property and
acquisitions teams manage a fast store opening programme, which Lok'nStore has
demonstrated by opening four additional sites in four months. In the current
market climate, with appropriate funding it expects to add up to 35 centres over
the next four to five years bringing the total number of storage centres to
around 50.


The Company has identified a number of opportunities to acquire new sites which
fit Lok'nStore's stringent acquisition criteria. In addition, the sector is
fragmented with only 150 of the 325 sites in the United Kingdom being operated
by the largest seven businesses, and many businesses owning only one or two
sites. The Directors believe that there are a number of opportunities in this
market to acquire existing self-storage operations at attractive prices.


The Placing and Open Offer


The Placing and Open Offer will raise approximately £10.0 million after
expenses. In order to give Qualifying Shareholders and Qualifying Individual
Optionholders the opportunity to participate in the issue of the new Ordinary
Shares, Lok'nStore has arranged for WestLB Panmure as its agent to invite
applications from Qualifying Holders to acquire new Ordinary Shares at the
Placing Price under the Open Offer. Qualifying Holders may apply for new
Ordinary Shares on the basis of:


              17 new Ordinary Shares for every 54 Ordinary Shares


held or deemed to be held at the Record Date and so in proportion for any
greater or lesser number of Ordinary Shares then held or deemed to be held. The
new Ordinary Shares will rank pari passu with the existing issued Ordinary
Shares.

Individual entitlements will be rounded down to the nearest whole number of new
Ordinary Shares. Fractions of new Ordinary Shares that would otherwise arise
will not be allocated.

Andrew Jacobs and connected parties, Simon Thomas, Steven Hourston, Christopher
Stevens, Richard Holmes, the Directors' pension fund and certain other investors
have undertaken not to take up 3,475,597 new Ordinary Shares which constitute
their entitlement to new Ordinary Shares under the Open Offer and these shares
have therefore been placed firm by WestLB Panmure. The Placing and Open Offer is
being underwritten by WestLB Panmure.

Marcus Stanton has indicated that he intends to take up his entitlement to 2,203
new Ordinary Shares and to subscribe for 7,797 Firm Placed Shares under the
Placing and Open Offer.

Qualifying Holders should note that the Open Offer is not a rights issue and
that new Ordinary Shares not applied for under the Open Offer will not be sold
in the market for the benefit of Qualifying Holders who do not apply under the
Open Offer. Entitlements under the Open Offer are not transferable unless to
satisfy a bona fide market claim and the application form, not being a document
of title, cannot be traded.

The Placing and Open Offer are conditional, inter alia, on Admission becoming
effective. Application has been made to the London Stock Exchange for the new
Ordinary Shares to be admitted to trading on AIM. It is expected that Admission
will become effective and that dealings in the new Ordinary Shares will commence
on 17 July 2002.

The net proceeds of the Placing and Open Offer will provide the Company with
funds to accelerate its acquisition of new sites and to make acquisitions of
self-storage businesses, in either case which meet the Company's stringent
acquisition criteria, and for the continued refurbishment and fit-out of the
Company's existing sites.

Current trading and prospects

Trading at Lok'nStore's existing sites continues to be strong and the Company
continues to trade in line with market expectations.

The Directors have considerable confidence in the self-storage market as a whole
and believe that Lok'nStore remains resilient to prevailing macro-economic
conditions. Lok'nStore's healthy levels of trading this calendar year reinforce
the Directors' belief in the defensive nature of the sector and the ongoing
investment opportunities offered.

Over the last few months there has been an increase in the number of
opportunities to acquire new sites fulfilling Lok'nStore's stringent acquisition
criteria. This reinforces the Board's optimism that the proceeds of the Placing
and Open Offer can quickly and successfully be invested in assets that can
generate attractive returns to Shareholders.

Enquiries:

Lok'nStore Group plc                                   020 8547 2288
Andrew Jacobs
Simon Thomas
Chris Stevens

WestLB Panmure Limited                                 020 7020 4000
Dominic Morley

Biddicks                                               020 7448 1000
Katie Tzouliadis / Kathryn Burn


APPENDIX

Timetable of principal events                                                                         2002

Record date for the Open Offer                                                Close of business on 19 June
Ex-entitlement date                                                                                21 June
Latest time and date for splitting of application                                     3.00 p.m. on 10 July
forms (only to satisfy bona fide market claims)
Latest time and date for receipt of completed                                         3.00 p.m. on 12 July
application forms and payment in full under the Open
Offer
Latest time and date for receipt of forms of proxy                                   10.00 a.m. on 13 July
Extraordinary General Meeting                                                        10.00 a.m. on 15 July
Commencement of dealings in the new Ordinary Shares                                                17 July
and CREST accounts credited
Despatch of definitive share certificates                                                       by 23 July


The Company expects to post the Prospectus and application form to Qualifying
Shareholders today. Applications forms will be personal to shareholders and may
not be transferred except to satisfy bona fide market claims.


The following definitions have been used in this announcement:

'Admission'                                   the effective admission of the new Ordinary Shares to
                                              trading on AIM pursuant to paragraph 6 of the AIM Rules

'AIM'                                         the Alternative Investment Market of the London Stock
                                              Exchange

'AIM Rules'                                   the rules issued by the London Stock Exchange from time to
                                              time for AIM companies and their nominated advisers and
                                              brokers

'Directors' or 'Board'                        the board of directors of Lok'nStore

'Firm Placed Shares'                          the 3,475,597 new Ordinary Shares in respect of which
                                              irrevocable undertakings not to apply under the Open Offer
                                              have been received by WestLB Panmure and the Company

'Individual Options'                          options granted over Ordinary Shares pursuant to the Option
                                              Agreements

'Lok'nStore' or 'Company'                     Lok'nStore Group PLC

'Lok'nStore Group' or 'Group'                 Lok'nStore and its subsidiary undertakings

'London Stock Exchange'                       London Stock Exchange plc

'new Ordinary Shares'                         the Ordinary Shares which are the subject of the Placing and
                                              Open Offer

'Open Offer'                                  the conditional offer by WestLB Panmure on behalf of the
                                              Company to Qualifying Holders to apply for new Ordinary
                                              Shares on the terms and conditions set out in the prospectus
                                              and the application form

'Option Agreements'                           the option agreements between the Company and certain of its
                                              directors and employees

'Ordinary Shares'                             ordinary shares of 1 pence each in the capital of Lok'nStore

'Placing'                                     the conditional placing of the Open Offer Shares at the
                                              Placing Price subject to the right of Qualifying Holders to
                                              apply for such shares pursuant to the Open Offer and the
                                              conditional placing of the Firm Placed Shares at the Placing
                                              Price

'Placing Price'                               155 pence per new Ordinary Share

'Qualifying Individual Optionholders'         persons holding Individual Options at the Record Date save
                                              for those in relation to whom the Directors have resolved
                                              that the Company shall not be required to procure that the
                                              Open Offer is made to them

'Qualifying Shareholders'                     Shareholders (other than certain overseas Shareholders) on
                                              the register of members of the Company at the Record Date

'Qualifying Holders'                          Qualifying Shareholders and Qualifying Individual
                                              Optionholders

'Record Date'                                 the close of business on 19 June 2002

'Shareholders'                                holders of Ordinary Shares

'United States', 'US' or 'United States of    the United States of America, its territories and
America'                                      possessions, any state of the United States of America and
                                              the District of Columbia and any other area subject to its
                                              jurisdiction

'WestLB Panmure'                              WestLB Panmure Limited




WestLB Panmure Limited, which is regulated in the United Kingdom by The
Financial Services Authority, is acting exclusively for Lok'nStore and will not
be responsible to anyone other than Lok'nStore for providing the protections
afforded to customers of WestLB Panmure Limited nor for providing advice in
relation to the contents of this announcement or any matter referred to herein.


This announcement has been approved by WestLB Panmure Limited solely for the
purposes of section 21 of the Financial Services and Markets Act 2000. It does
not constitute an offer or invitation to purchase or sell any securities.


This press announcement is not for distribution in or into the United States,
Canada, the Republic of Ireland, Australia or Japan. Neither the new Ordinary
Shares nor the application form has been, nor will be, registered under the
United States Securities Act of 1933, as amended, or under the securities
legislation of any state of the United States. The relevant clearances have not
been, and will not be, obtained in the Republic of Ireland nor from the
Securities Commission of any province or territory of Canada, no document in
relation to the Placing and Open Offer has been, or will be, lodged with, or
registered by, The Australian Securities and Investments Commission, and no
registration statement has been, or will be, filed with the Japanese Ministry of
Finance in relation to the Placing and Open Offer, the application forms or the
new Ordinary Shares. Accordingly, subject to certain exceptions, the new
Ordinary Shares may not, directly or indirectly, be offered, sold, renounced,
taken up or delivered within the United States, Canada, the Republic of Ireland,
Australia or Japan or offered to, sold to, renounced, taken up or delivered in
favour of, or to, a person within the United States or resident of Canada, the
Republic of Ireland, Australia or Japan.



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