Acquisition

Workspace Group PLC
06 October 2003



                     WORKSPACE INVESTS £19M IN ACQUISITIONS


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 today announced that it has completed a number of acquisitions
in London for a total of £18.91 million.

Workspace has bought a portfolio of seven industrial estates from the London
Borough of Lambeth for a cash consideration of £15.53 million. The Lambeth
portfolio comprises 152,000 sq. ft in 82 units. The occupancy level at the time
of acquisition is 83%. The current rental income is £1.056 million representing
an average rent of £8.37 per sq. ft. The initial yield on the portfolio is 6.8%.
All of the properties are in Workspace's core markets and complement its
existing holdings.

The estates comprise:

•    Zennor Road Industrial Estate, Balham, London SW12
•    Rudolph Place, South Lambeth Road, London SW8
•    Hamilton Road Industrial Estate, Crystal Palace, London SE27
•    Ellerslie Square Industrial Park, Clapham, London SW2
•    Mahatma Gandhi Estate Phase II, Milkwood Road, London SE24
•    Michael Manley Industrial Estate, Stewarts Road, London SW8
•    Hardess Street Industrial Estate, London SE24

Harry Platt, Chief Executive of Workspace, commented;

' This portfolio fits with our existing portfolio extremely well. The estates
are all well located and we are confident that they will respond well to our
active management style. This is a classic example of our ability to work
closely with the local London Boroughs. We are keen to create clusters of
Workspace properties where we can offer a wide range of space to small
businesses.'

Workspace has also acquired Progress Business Park, Croydon an industrial estate
comprising 31,000 sq. ft in 18 units, located off the A23 Purley Way. It was
acquired for a cash consideration of £3.38 million and produces a current rental
income of £260,000 per annum, which represents a yield of 7.7%.

                                     -ends-

Date: 6 October 2003

For further information:

Workspace Group PLC                            City Profile Group
Harry Platt, Chief Executive                   Simon Courtenay
Mark Taylor, Finance Director                  020-7448-3244
020-7247-7614

e-mail: [e-mail]
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web: www.workspacegroup.co.uk
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