Placing and Open Offer

Bizspace PLC
29 October 2003

                                  Bizspace plc

                    Placing and Open Offer to raise £5m


Bizspace plc ('Bizspace' or the 'Company'), the provider of flexible managed
workspace for small to medium sized businesses, announces that it is proposing
to raise approximately £4.95m (net of expenses) through a Placing and Open
Offer, to provide the Company with further funding to continue its expansion
policy.



Highlights:



•   Conditional Placing of 19,013,175 New Ordinary Shares at a price of 28p per 
    share to raise approximately £4.95m (net of expenses)



•   Shares conditionally placed by Teather & Greenwood with institutional
    investors, subject to applications by Qualifying Shareholders under the Open
    Offer



•   Safeland plc and Safeland Holdings Corporation will not to take up
    their entitlement under the Open Offer, representing approximately 27% of 
    the New Ordinary Shares to be issued, to facilitate a wider institutional
    shareholder base



•   Neil Corderey, Managing Director, and Paul Davis, Finance Director, to
    apply for 30,000 New Ordinary Shares and 16,936 New Ordinary Shares 
    respectively under the Open Offer



•   The Directors have undertaken to vote in favour of the EGM resolutions
    in respect of their beneficial holdings, approximately 3.8% of the Existing
    Ordinary Shares.



Reasons for the Issue:



•   To take advantage of potential acquisitions of multi-let properties to
    further consolidate and expand Bizspace's position as one of the largest
    providers of managed workspace accommodation in the UK



•   Net proceeds plus bank loans should enable the Company to acquire
    seven further centres at an assumed cost of £1.5m each and to partially upgrade
    some existing sites



Neil Corderey, Managing Director of Bizspace plc, said:

'Our recent Interim Results have shown the progress that has been made in
building shareholder value. We hope to continue to progress and believe that
these funds will enable us to take advantage of opportunities when they arise
and to selectively acquire multi-let properties as and when they become
available.'



For further information, please contact:


Bizspace plc                                          Binns & Co PR Ltd
Neil Corderey, Managing Director                      Paul McManus
Paul Davis, Finance Director                          Nathalie Ells

Tel: [phone]                                    Tel: [phone]
www.biz-space.co.uk                                   Mob: [phone]

Teather & Greenwood Ltd
Christopher Hardie
David Galan

Tel: [phone]



The following is extracted from a circular that will be posted to Shareholders
on 29 October 2003:



'Introduction

In order to provide the Company with appropriate levels of funding to continue
its expansion policy, 19,013,175 New Ordinary Shares are being conditionally
placed with institutional investors at a price of 28p pence per share to raise
approximately £4.95 million after expenses.  Qualifying Shareholders are invited
to participate in the Issue at the Placing Price on the basis of 1 New Ordinary
Share for every 2 Ordinary Shares held on the Record Date.



This requires the approval of Shareholders and an EGM is to be held at 10.00am
on 21 November 2003, at which the necessary resolution will be put.



Background

At the time of the Company's flotation on AIM in July 2000, the Group owned
three workspace centres. Today the Group operates 19 centres nationwide, the
expansion having been funded by three earlier fundraisings. The 19 centres
comprise almost 1.5m sq ft of lettable accommodation, encompassing some 850
individual units and occupied by approximately 700 businesses and individuals of
which almost 1.3m sq ft is currently occupied or available for rent. As at 31
August 2003 core occupancy levels across the portfolio averaged 83% of the
lettable space. The Group's annualised gross income was approximately £5.7m as
at 28 February 2003.



Reasons for the Issue, Strategy and Prospects

The managed workspace sector is still very much in its infancy and is
fragmented.  There are few branded organisations currently operating nationwide
with multiple sites.  Therefore whilst the Directors believe that Bizspace is
already one of the largest providers of managed workspace accommodation in the
UK, they also consider that there are many multi-let properties available which
could be suitable for acquisition to further consolidate and expand Bizspace's
position within this market.  In order to be in a position to take advantage of
opportunities when they arise and having regard to the optimal levels of bank
borrowing, the Directors consider it is in Shareholders' best interests for
Bizspace to raise further cash resources to take advantage of potential
acquisitions.



The Directors believe that the net proceeds of the Placing and Open Offer,
amounting to approximately £4.95 million, should enable the Company to acquire
seven further centres and to partially upgrade some of its existing sites.  This
assumes a purchase price averaging £1.5 million for each newly purchased centre
and on the further assumption that the Company will be able to borrow on a
loan-to-value ratio on terms consistent with its existing facilities.



Banking Facilities

The Director's intend to continue the Company's strategy of acquiring workspace
centres funded by seeking further bank borrowings, on terms similar to its
existing facilities, based on cash flow generated from those centres.  The
Company's bankers, Anglo Irish Banking Corporation plc, have indicated that it
is their present intention to grant additional facilities of approximately £11.8
million conditional, inter-alia, on the Placing and Open Offer.



Placing and Open Offer

The Company is proposing, inter alia, to raise approximately £5.32 million gross
(approximately £4.95 million net of expenses) by the issue of 19,013,175 New
Ordinary Shares pursuant to a Placing and Open Offer. The New Ordinary Shares
have been conditionally placed by Teather & Greenwood with institutional
investors, subject to clawback to satisfy valid applications by Qualifying
Shareholders under the Open offer.



Under the Open Offer, Qualifying Shareholders will have the right to subscribe
for



               1 New Ordinary Share for every 2 Ordinary Shares



held on the Record Date at a price of 28p per New Ordinary Share. An irrevocable
undertaking has been obtained from each of Safeland and SHC (Safeland Holdings
Corporation) not to take up their respective entitlements under the Open Offer
in respect of 5,090,898 New Ordinary Shares in aggregate, representing
approximately 27 per cent. of the New Ordinary Shares to be issued under the
Placing and Open Offer, and, accordingly, Teather & Greenwood has conditionally
placed these shares firm.



Recommendation and Directors' Intentions

The Directors consider that the Placing and Open Offer is in the best interests
of the Company and its Shareholders.



Accordingly, the Directors unanimously recommend you to vote in favour of the
Resolution to be proposed at the Extraordinary General Meeting as they have
undertaken to do in respect of their beneficial holdings of 1,440,576 Ordinary
Shares in aggregate (representing approximately 3.79 per cent. of the Existing
Ordinary Shares).



In addition, irrevocable undertakings have been received from Bizspace Managing
Director Neil Corderey and Finance Director Paul Davis to apply for 30,000 New
Ordinary Shares and 16,936 New Ordinary Shares respectively under the Open
Offer.'


Expected timetable of principal events                        2003



Record date for the Open Offer                                24 October



Latest time and date for splitting of Application Forms
(to satisfy bona fide market claims only)                     3.00pm on 17 November



Latest time and date for receipt of Application Forms
and payment in full under the Open Offer                      3.00pm on 19 November



Extraordinary General Meeting                                 10.00am on 21 November



Announcement of the results of the Open Offer                 21 November



Dealings in the New Ordinary Shares on AIM
expected to commence                                          24 November



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