Re Agreement

Land Securities Group Plc
15 October 2003

15 October 2003

LAND SECURITIES GROUP PLC ('Land Securities')

LAND SECURITIES REACHES AGREEMENT ON FORMER EMPLOYMENT SERVICE ESTATE

Land Securities Group PLC announces that its subsidiary Land Securities Trillium
has reached agreement in principle with the Department for Work and Pensions
(DWP) to expand its existing property outsourcing agreement to include the
former Employment Service Estate.

Both parties are seeking to finalise terms and integrate this estate into the
existing PRIME (Private Sector Resource Initiative for the Management of the
Estate) agreement by the end of this year, at which point Land Securities
Trillium will make a transfer payment of £100 million to the DWP as part of the
agreed freehold valuation.  Following the contract expansion both the former
Department of Social Security and Employment Service estates will be run as one,
under a single expanded contract expiring in 2018.  It is expected that the
additional annual income paid to Land Securities Trillium from the expanded
contract will be more than £140 million.

The former Employment Service Estate comprises 1,078 Jobcentres and
administrative buildings totalling 834,000 sq m which are evenly spread
throughout the UK.

                                    - ends -

For further information:

Land Securities
Ian Ellis/Emma Denne
Tel: [phone]

Financial Dynamics
Stephanie Highett/Dido Laurimore
Tel: [phone]

Editors notes -

Land Securities Trillium, part of the Land Securities Group, is one of the UK's
leading providers of total property outsourcing solutions.  LS Trillium
currently owns or manages over 7,400 properties covering 7.5 million sq m
throughout the UK.  Clients include the Department for Work and Pensions, the
BBC and BT.

The Department for Work and Pensions estate (the original PRIME contract)
comprises 650 properties covering 1,671,000 sq m which are evenly spread
throughout the UK.


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