Interim Results

SLOUGH ESTATES PLC
1 September 1999


                                       
                             1999 INTERIM RESULTS


Slough Estates, the UK's largest industrial property company has announced its
results for the six months to 30th June 1999.


*  Core property income net of interest up 24 per cent to £51.7 million


*  Profit before tax up 22 per cent to £60.7 million


*  Profit before tax excluding investment property sales up 14 per cent
   to £56.1 million


*  Adjusted earnings per share up 27 per cent to 10.8p per share


*  Interim dividend increased by 6.7 per cent to 4.4p per share


*  World-wide 489,000 sq.m. (5,300,000 sq.ft.) of new space is expected
   to have been under construction during 1999


*  £112 million of non-core Bilton properties sold at 8.7 per cent surplus
   over book value


Commenting on the results, the Chairman, Sir Nigel Mobbs, said:

'The Group's policy of selective development in prime business centres is
showing through strongly in earnings growth.  This policy should continue to
deliver improving shareholder value.'


STATEMENT BY SIR NIGEL MOBBS, CHAIRMAN


INTERIM STATEMENT


Introduction

The Group made considerable progress during the first half of 1999. Occupancy
is high at 95 per cent world-wide and our development programme is on schedule
with 189,000 sq.m. currently under construction and a further 102,000 sq.m.
likely to start before the year end. During the first half year, development
completions amounted to 198,000 sq.m. This substantial development programme
will continue to enhance both the scale and quality of earnings.

The integration of the Bilton business is now complete. Sales of non-core
property assets completed and agreed will realise some £111.5 million, an 8.7
per cent increase over book values and ahead of the £100 million estimate on
acquisition. The sales included two large disposals, a portfolio of south east
offices for £35.2 million and an industrial portfolio for £50.7 million. The
retained portfolio comprising 24 industrial properties, representing
approximately two thirds by value, offers excellent redevelopment and
refurbishment opportunities, increasing Slough's successful UK development
programme.

Results

The half year profit before taxation was £60.7 million, £11.1 million or 22.4
per cent higher than in 1998. Excluding profits on sale of investment
properties, pre-tax profits were £56.1 million (1998 £49.4 million), an
increase of 13.6 per cent. Income from core property net of interest rose by
23.7 per cent to £51.7 million (1998 £41.8 million). The acquisition of the
Bilton plc properties in November 1998 contributed £5.6 million to this
increase. Much of the balance arose from the large development programme of
recent years making first time contributions to earnings. Rents from new
developments added £8.9 million to rental income in the half year and Bilton
added a further £13.9 million.

During the first 6 months of the year, the company benefited from profits from
property trading and other income of £4.4 million (1998 £7.6 million).
However, such profits are irregular by nature and should not be taken as an
indicator of future performance.

Earnings per share, adjusted to exclude investment property sale profits, of
10.8p per share (1998 8.5p per share) increased by 27 per cent benefiting from
a lower average tax rate of 10 per cent (1998 20 per cent).

Dividends

An interim dividend of 4.4p per share will be paid on 15th October 1999 to
shareholders on the register on 17th September 1999. This represents an
increase of 6.7 per cent over the 1998 interim dividend of 4.125p per share.

Balance sheet

The Group's balance sheet remains strong. Net borrowings rose by £21 million
to £1,114 million in the six months to 30th June 1999. Shareholders' equity at
30th June 1999 was £1,831 million, based on year end 1998 valuations and
subsequent expenditure at cost. The net debt to equity ratio was 61 per cent
and the Group has substantial undrawn committed bank facilities, fully
adequate to undertake its current development plans.

Review Of Activities

United Kingdom

Occupier demand for the Group's properties has continued to be good, although
tenants are selective. We are therefore seeing acceptable levels of rental
growth in the portfolio and generally our targets at rent review are being
met. Occupancy at 94.3 per cent overall consolidates a 9.9 per cent vacancy in
the Bilton properties.

The integration of the Bilton business into Slough has been completed and the
Bilton head office sold, realising synergy benefits in excess of £2 million
per annum. A review of the portfolio resulted in 30 of the 54 properties
representing 33 per cent of the total floor space being identified as
strategically non-core or simply too small for retention and these have been
sold as have the sporting assets and housing land. The challenge now is to
reduce vacancy and proceed with the many excellent redevelopment and
refurbishment opportunities which the retained portfolio offers.

On 31st March the opening of the Buchanan Galleries was greeted with great
enthusiasm in Glasgow and the west of Scotland generally. Trading is reported
to be exceeding the expectations of the retailers with few exceptions. The
Galleries was honoured by a visit from Her Majesty The Queen in July.

As previously reported, the acquisition of the former Royal Aircraft
Establishment factory site at Farnborough amounting to 72 hectares was
completed in March and work has begun on obtaining initial planning consents
for the master plan and infrastructure works.

Elsewhere in the UK, 78,200 sq.m. of new buildings were completed in the first
half, 53,500 sq.m. are under construction at Slough, Elstree, Acton, Bristol
and Birmingham and a further 56,000 sq.m. are expected to break ground before
the year end. The take up of new space is good with 75 per cent leased or pre-
leased.

Overseas

The North American markets in which we operate continue to be strong and the
developments are leasing well.

In Canada 37,400 sq.m. has been completed and a further 54,100 sq.m. is
currently under construction, primarily in Toronto at the Mississauga,
Goreway, American  Drive and Oakville estates. We expect this to be leased
rapidly.

In Torrey Pines, San Diego, a 4,900 sq.m. R&D building was sold on completion
and a further 7,700 sq.m. unit is under construction. In the San Francisco Bay
Area 49,300 sq.m. of new construction is leased, and a further 3 hectares of
land is being acquired to expand the Pointe Grand estate to meet pre-let
demand.

In Europe 25,400 sq.m. of construction is underway in Brussels, including
20,600 sq.m. at Pegasus Park of which 64 per cent is pre-leased, mainly to
Cisco and Regus. In Paris, planning consent was obtained for the rebuilding of
the Rue Vineuse office property and demolition has commenced. As I announced
at the Annual General Meeting, we have contracted to acquire a 25.3 hectare
site at Marly la Ville just north of Charles de Gaulle Airport which comprises
a 10,400 sq.m. warehouse newly leased to Printemps and brownland capable of
supporting a further 98,000 sq.m. of large warehouse space on which work
should commence in early 2000. A further site for the development of
industrial space has been acquired at Monchengladbach in Germany.

Year 2000

Appropriate steps have been taken to ensure that the Group's future operations
will not be significantly affected by the Year 2000 issue.  However there can
be no absolute assurance that this will be so as the Group may be adversely
affected by third parties' difficulties in solving the Year 2000 problem.

Outlook

The economic climate of low inflation, low interest rates and modest growth
presents an unfamiliar environment for the UK property market. Nevertheless
with businesses seemingly less nervous than they were a year ago there is a
solid base for property as an investment.  Low vacancy, firm to rising rents
and steady demand for a product which is currently restricted in supply in
many areas are all factors which bode well for the future.

The Group's policy of selective development in prime business centres is
showing through strongly in earnings growth. This policy should continue to
deliver improving shareholder value.

Finally, as reported in my statement accompanying the final results for 1998,
I will from 22nd September be reducing my executive responsibilities but
remaining as Chairman.  The Group is now in an exceptionally strong position
and I am confident that the Chief Executive, Derek Wilson, and the team will
continue to deliver excellent results in the future.


Nigel Mobbs
Chairman


For further information contact:

Sir Nigel Mobbs                Derek Wilson
Chairman                       Chief Executive
Tel: [phone]              Tel: [phone]


John Probert
Company Secretary
Tel: [phone]


Issued by:

Andrew Best/Ben Atwell
Shandwick Consultants Limited
Tel: [phone]




INTERIM RESULTS                       Half year to  Half year to  Year to 31
                                           30 June       30 June    December
                                              1999          1998        1998
                                         unaudited     unaudited     audited
For the six months ended 30 June         £ million     £ million   £ million
1999
                                                                            
Turnover:                                                                   
   Property investment                        99.3          75.1       157.5
   Property trading                           23.0          22.4        32.6
   Utilities                                  11.2          14.3        28.3
                                       -----------   -----------  ----------
                                             133.5         111.8       218.4
   Joint Ventures                              4.3           3.0         5.6
                                       -----------   -----------  ----------
Operating income:                                                           
   Property investment                        91.4          67.9       141.4
   Property trading                            1.1           4.6         6.1
   Utilities                                 (1.2)           1.2         1.9
Other income                                   3.5           3.0        11.6
Administration expenses                      (6.2)         (5.3)      (13.5)
                                       -----------   -----------  ----------
Operating profit                              88.6          71.4       147.5
Share of operating profit/(loss) of                                         
joint ventures and associates                                               
                                      ------------   -----------  ----------
   Property                                    3.5           3.4         5.8
   Other                                     (0.2)            --         1.7
                                      ------------   -----------  ----------
                                               3.3           3.4         7.5
Profit/(loss) on sale of investment                                         
properties                                     4.6           0.2       (2.1)
                                      ------------   -----------  ----------
Profit before interest and taxation           96.5          75.0       152.9
Interest (net)                              (35.8)        (25.4)      (51.8)
                                      ------------   -----------  ----------
Profit on ordinary activities before          60.7          49.6       101.1
taxation
Taxation                                     (6.1)         (9.9)      (19.8)
                                      ------------   -----------  ----------
Profit on ordinary activities after           54.6          39.7        81.3
taxation
Minority interests - equity                  (0.4)         (0.2)       (0.5)
Preference dividends                         (5.8)         (5.8)      (11.6)
                                      ------------   -----------  ----------
Profit attributable to ordinary               48.4          33.7        69.2
shareholders
Ordinary dividends                          (18.1)        (16.4)      (42.1)
                                      ------------   -----------  ----------
Retained profit                               30.3          17.3        27.1
                                      ------------   -----------  ----------
                                                                            
Basic earnings per ordinary share            11.9p          8.6p       17.5p
Adjustment for profits and losses on                                        
sale of investment properties net of                                        
tax and minority                            (1.1p)        (0.1p)        0.5p
                                      ------------   -----------  ----------
Adjusted basic earnings per ordinary                                        
share                                        10.8p          8.5p       18.0p
                                      ------------   -----------  ----------
Diluted earnings per ordinary share          11.9p          8.5p       17.5p
                                      ------------   -----------  ----------
Dividends per share                           4.4p        4.125p       10.4p
                                                                            


Notes:

1. The results for the year to 31 December 1998 are an abridged statement of
   the group accounts for that year which have been delivered to the          
   Registrar of Companies, and on which the auditors' report was unqualified.

2. Interest is shown net of capitalised interest of £11.9 million (1998
  £10.8 million - 1998 full year £23.9 million).

3. The comparative figures for the six months to 30th June 1998 have been
   represented to comply with the requirements of FRS9 (Associates and Joint
   Ventures).  The changes have no effect on previously reported profits or
   reserves.

Copies of the interim results will be posted to shareholders on Friday 10th
September 1999.


SUMMARISED GROUP CASH FLOW STATEMENT

For the six months ended      Half year to    Half year to        Year to 31
30 June 1999                  30 June 1999    30 June 1998     December 1998
                                 unaudited       unaudited           Audited
                                                                            
                                 £ million       £ million         £ million
Net cash inflow from                                                        
operating activities                  76.8            58.0             182.8
                                                                            
Dividends from joint                                                        
ventures and associates                0.5             0.7               3.4
                                                                            
Returns on investments and                                                  
servicing of finance
Interest received              1.8             2.6              5.0         
Interest paid               (45.3)          (36.2)           (74.3)         
Dividends paid to                                                           
preference and minority                                            
shareholders                 (5.9)           (5.9)           (11.9)
                           -------          ------          -------
                                    (49.4)          (39.5)            (81.2)
Taxation                               4.2          (10.5)            (27.0)
                                    ------          ------           -------
Net cash inflow before                                                      
investing activities,                                                       
financing and equity                                                        
dividends                             32.1             8.7              78.0
                                                                            
Capital expenditure and                                                     
financial investment
Purchase and development                                                    
of investment properties   (120.6)          (71.2)          (169.2)
Sales of investment                                                         
properties                    81.2             8.0             37.3
Other net asset                                                             
sales/(additions)             18.2           (0.6)           (19.9)
                           -------          ------          -------
                                    (21.2)          (63.8)           (151.8)
Acquisitions and disposals                                                  
Purchase of subsidiary                                                      
undertakings (net of cash                                          
and bank overdrafts                                                
acquired)                    (6.4)           (0.2)          (220.8)
Net movement on joint                                                       
ventures, associates and                                           
others                        11.6          (11.3)           (26.2)
                           -------          ------          -------
                                       5.2          (11.5)           (247.0)
                                                                            
Equity dividends paid               (25.8)          (24.1)            (40.4)
                                    ------          ------           -------
Net cash outflow before                                                     
use of liquid resources                                                     
and financing                        (9.7)          (90.7)           (361.2)
                                                                            
Net cash inflow from                                                        
financing and management                                                    
of liquid resources                   14.7            85.3             357.5
                                    ------          ------           -------
Increase/(decrease) in                                                      
cash                                   5.0           (5.4)             (3.7)
                                    ======          ======           =======
                                                                            
Reconciliation of                                                           
operating profit to net
cash inflow from operating
activities
Operating profit                      88.6            71.4             147.5
Less other income                                                           
reallocated                          (3.3)           (3.0)            (10.3)
Add back non cash items                2.5             2.4               6.4
Net rental income from                                                      
trading properties                     0.5             0.6               1.4
                                    ------          ------           -------
                                      88.3            71.4             145.0
Other movements arising                                                     
from operations:
Decrease/(increase) in                                                      
stocks                                 9.2          (12.2)            (19.3)
(Increase)/decrease in                                                      
debtors                              (2.7)           (4.7)              38.3
(Decrease)/increase in                                                      
creditors                           (18.0)             3.5              18.8
                                    ------          ------           -------
Net cash inflow from                                                        
operating activities                  76.8            58.0             182.8
                                    ------          ------           -------