Disposal

Workspace Group PLC
2 October 2000

                        DEALS KEEP FLOWING AT WORKSPACE
                               WITH £10 MILLION
                          ACQUISITIONS AND DISPOSALS

Workspace  Group PLC ('Workspace'), the leading provider of flexible workspace
to  small  and medium sized enterprises (SME's) in London and the South  East,
today announces the sale of its Ensign Court property for £4.65m.

Ensign  Court  comprises a former industrial building  fronting  The  Highway,
London E1.  Workspace recently converted the property to provide 20,000 sq. ft
of  office  and retail space on ground and three upper floors.  Workspace  has
fully let the property on long leases to Oddbins and News International.   The
investment  currently  produces an annual rent of £411,000  and  its  sale  to
Structadene  Group, a private property company, shows an exit yield  of  8.8%.
The disposal price is £150,000 over book value.

The sale proceeds realised here have been reinvested into two properties, both
located  in  the  prosperous London and Thames Valley region and  with  strong
potential for income growth.

The  first, Clyde House in Maidenhead, Berkshire is a 30,000 sq. ft industrial
and  office  property let to a number of e-commerce and hi-tech  manufacturing
companies,  producing an annual rent of £298,000. Clyde House was acquired  by
Workspace for £3m representing an initial yield of 9.5%.

The  second,  Barratt  Way Industrial Estate, Harrow is  a  modern  industrial
estate  of  49,000 sq. ft in 10 units producing an annual return of  £273,000.
Barratt Way was acquired for £3.21m with an initial yield of 8%, improving  to
a potential 10.5% upon reversion.

Harry Platt, Chief Executive commented,

'These deals are classic examples of Workspace's strategy of selling  assets
where  active  management  opportunities have been  fully  realised  and  sale
proceeds  invested into new acquisitions.  We have created considerable  value
at Ensign Court.  The property has been transformed into a high-grade property
investment  let on long leases to tenants with strong covenants.  The  capital
value  of  the property has been increased significantly and we are re-cycling
the proceeds into opportunities with excellent prospects for the future.

'We will apply our intensive management formula to enhance the earning stream
at both Clyde House and Barratt Way.  We are confident that these acquisitions
will  perform  well.   Both property locations are popular  and  will  attract
dynamic, hi-tech businesses.

'London  and  the South East need good quality well managed work  space  for
SME's.  Our  tenants  benefit from a customer  focused approach,  added  value
products and  services  such  as discounted insurance and our well known brand
name'.


For further information contact:

Harry Platt, Chief Executive                      Simon Courtenay
Workspace Group PLC                               City Profile Group
020-7247-7614                                     020-7726-8588
e-mail: [e-mail]                  e-mail:[e-mail]
Web: www.workspacegroup.co.uk