Acquisition

Workspace Group PLC
26 June 2006

                       WORKSPACE ADDS £20M OF ACQUISITIONS
                           TO CENTRAL LONDON PORTFOLIO

Workspace Group PLC ('Workspace'), the leading provider of flexible business
accommodation to small and medium sized enterprises in London, today announces
two further acquisitions.

The Orient Portfolio

This portfolio comprises three small-unit industrial estates located in Leyton,
London E10. It is situated within three miles of the new Stratford International
Rail Terminus and the site of the 2012 Olympics. The total floor space of the
three properties is 210,330 sq.ft with the largest, Leyton Industrial Village
comprising 148,000 sq ft, together with open yard space with the potential for
development of further new units. The portfolio was purchased for a cash
consideration of £16 million which represents a net initial yield of 5.7%. The
average rents of £4.68 per sq.ft are at a significant discount to Workspace's
other sites in the area. With these rent reversions the yield should increase to
over 7%. The purchase price equates to £1.85 million per acre.

1 Morie Street, Wandsworth SW18

The second acquisition is located at Morie Street, in Wandsworth, SW18. The
property is a modern, small unit office scheme of 22,629 sq ft. It produces an
income of £178,000 pa with 48% of the space remaining vacant. The property was
purchased for a cash consideration of £4.4m, representing an initial yield of
3.5%. This is expected to improve to 7.6% on full occupancy at current ERVs. It
is located close to Workspace's existing holdings in the Wandsworth area and
extends the range of accommodation that Workspace can offer its customers.

Harry Platt, Workspace Chief Executive, commented

' We believe that both acquisitions offer substantial scope to grow rental
income and add value through our style of intensive asset management.

' We are particularly excited about the prospects for the three properties in
Leyton. We have tracked them for many years. They are very close to the Olympic
zone, where we anticipate that there will be an increase in demand due to the
regeneration of the area. We believe that as well as increasing rentals at these
properties there is also significant scope to increase the density of
development on the site.

' We continue to track a range of sites that meet our criteria for acquisition.'

                                      -ends-


Date: 26 June 2006
For further information:

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

web: www.workspacegroup.co.uk
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