Acquisition

Workspace Group PLC
26 July 2005




                       WORKSPACE ADDS 500,000 SQ. FT

Workspace Group PLC, ('Workspace'), the leading provider of flexible business
accommodation to small and medium sized enterprises (SME's) in London and the
South East, continues to expand its property portfolio. It has announced that it
has recently completed four separate acquisitions for an aggregate cash
consideration of £39.7 million.

Workspace has also completed the disposal of a site in Payne Road, E3 for
redevelopment.

Acquisitions

Workspace has made four separate acquisitions since 31 March 2005 adding a
further 495,776 sq ft of space to its portfolio. The acquisitions comprise:

Uplands Business Park, Walthamstow, London E17 - 287,485 sq ft of predominately
industrial accommodation in 45 units off Blackhorse Lane, London E17. The annual
income is £1.711m, which represents a net initial yield of 6.74% on the purchase
price of £24.0m.

Marshgate Business Centre, London E15 is a multi-let industrial estate of 93,420
sq ft in 22 units, which is fully let and producing an annual rent of £354,433
p.a., showing a net initial yield of 5.87% on the acquisition price of £5.59m.
There is substantial reversionary potential, which is expected to lift the yield
to over 7% in 2006.

111 Power Road, Chiswick, London W4 is a 1950s factory complex of 98,110 sq ft
in a good location close to the A4 and A406 Chiswick roundabout. The building is
mostly vacant, and Workspace plans to convert the building into a business
centre providing affordable space to local small businesses. The purchase price
was £7.5m.

Evelyn Court, Deptford, London SE8 is a modern, small unit office scheme
totalling 16,761 sq ft in 18 self-contained office units. The property produces
an annual rent of £207,810 which represents an initial yield of 7.56% on the
purchase price of £2.64m.

Disposals

Payne Road Studios and 5 Payne Road, London E3 have been sold for £2.1m to a
developer. The site has consent for mixed residential and commercial
accommodation, including a 23 storey tower. Payne Road Studios was acquired in
1999 as part of the Tonex portfolio, whilst 5 Payne Road was acquired
subsequently in 2001. The sale price achieved was in line with book value and
showed an Internal Rate of Return (IRR) of 21% over the holding period.

                                                                    
Harry Platt, Workspace Chief Executive, commented,

' We have acquired four properties at fair prices in what is proving to be a
very competitive investment market. All the acquisitions offer exciting
opportunities, with Power Road in Chiswick complementing our other ownerships in
the area, and Evelyn Court, Deptford, located in an area with improving
prospects. The Uplands acquisition is particularly timely, coming so soon after
the success of the London Olympic bid. We hope to assist the LDA in relocating
businesses to be displaced from the Lower Lee Valley. The Marshgate Lane
property also gives us a role to play in this area.

' The sale of the Payne Road properties for redevelopment demonstrates once
again the potential for high-value uses within our portfolio, and we expect the
potential for this to increase over time.'

                                -ends-

Date: 26 July 2005

For further information:

Workspace Group PLC                                 City Profile
Harry Platt, Chief Executive                        Simon Courtenay
Mark Taylor, Finance Director                       Oliver Winters
020-7247-7614                                       020-7448-3244

web: www.workspacegroup.co.uk
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