Bond redemption

Unite Group PLC
19 October 2007



Date: 19th October 2007



                              The UNITE Group plc

                   REDEMPTION OF UNITE FINANCE ONE PLC BONDS


The UNITE Group plc, the UK's leading provider of student accommodation,
confirms that it has completed the early redemption of the UNITE Finance One plc
('UFO') bonds, which was referred to in UNITE's Interim Results announcement on
17 September 2007. As a result, all of the outstanding UFO bonds have been
redeemed by UFO and ceased trading on 18 October 2007.

The completion of the redemption enables UNITE to fully adopt its stated asset
management strategies to:


 • dispose of non-core assets that do not fit within its strategic
   business plan, to independent third parties;

 • offer additional stabilised assets to the UNITE Student Accommodation
   Fund;

 • actively manage retained properties, including implementing a
   refurbishment programme at certain properties in order to maximise their 
   value.


The total redemption amount and associated transaction costs remain in line with
the estimates previously set out as part of UNITE's Interim Results
announcement.



ENDS

For further details, please contact:

Tony Harris                                      Telephone: [phone]
                                                 Email: [e-mail]


Tabitha Aldrich-Smith                            Telephone: [phone]
UNITE Group plc                                  Email: [e-mail]


Stephanie Highett/Dido Laurimore/Lauren Mills    Telephone: [phone]
Financial Dynamics                               Email: [e-mail] / [e-mail] /
                                                 [e-mail]



Notes to Editors:

UNITE is the UK's leading student hospitality company.  Listed in the FTSE 250
index of the London Stock Exchange and managing a property portfolio of £1.6
billion located across the UK, the Group focuses on the provision and management
of high quality, well-located student accommodation and hospitality services in
strong higher education markets.

UNITE delivers the real student experience, whilst at the same time helping to
regenerate cities as part of the community and contributing to the improvement
of the country's housing.  It undertakes the planning, development and
management of sites, often working closely with the universities and colleges,
to deliver accommodation for students across all ages and nationalities. UNITE
developments typically show high occupancy levels and robust rental growth as
demand continues to rise for places in UK Higher Education and for safe, high
quality accommodation for students.


Further information on UNITE is available at www.unite-group.co.uk

See UNITE's new student website at www.unite-students.com



                      This information is provided by RNS
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