Acquisition

Workspace Group PLC
27 January 2003





                    WORKSPACE INCREASES WEST LONDON PRESENCE

                        WITH CANALOT STUDIOS ACQUISITION



Workspace Group PLC ('Workspace'), the leading provider of flexible business
accommodation to small and medium sized enterprises ('SMEs') in London and the
South East has bought Canalot Studios on Kensal Road, North Kensington, London,
W10, for £10.8 million in cash.

The property comprises 100 units of small workspace and studio accommodation
averaging approximately 520 sq. ft. It is a former engineering works overlooking
the Grand Union canal, which has been converted to provide small unit space for
SMEs. The current rental income is £915,000 per annum, which represents an
initial yield of 8.5%. The current occupancy level is over 90%.

Workspace has also acquired for £1.5 million in cash, from the same vendor, a
0.3 acre site immediately adjacent to Canalot, which has planning consent for
30,000 sq. ft of office and studio workspace.

Commenting on the acquisition, Chief Executive Harry Platt said:

' We are delighted to have made this purchase. We have followed the scheme for a
long time and we are confident that it will perform well with our style of
management. Canalot Studios complements our existing West London portfolio. We
already have a number of very successful schemes nearby and this part of London
is a very popular location for small businesses. This acquisition is a further
example of our strategy of acquiring clusters of properties in areas where SMEs
are most active.

' We can now offer a comprehensive range and style of accommodation to the
businesses in the rapidly growing arts, media and creative sector in West
London. We are confident that these properties will benefit from the
developments in Paddington and White City.'

                                     -ends-

Date: 27 January 2003

For further information:

Workspace Group PLC                     City Profile Group
Harry Platt, Chief Executive            Simon Courtenay
Mark Taylor, Finance Director           Alex Lowe
020-7247-7614                           020-7448-3244
e-mail: [e-mail]       e-mail: [e-mail]
web: www.workspacegroup.co.uk



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