Workspace Group PLC Interim Results For the six months to 30 September 2004

Headline results Trading PBT £6.92mUp 4.7% Trading EPS 29.6pUp 2.8% Headline PBT£6.54mDown 1.5% Headline EPS27.6pDown 4.5% Valuation surplus in half year£27.0m£1.60 per share Net Asset Value (per share)£19.87Up 23% on 12 months Annual Rent Roll £40.3mUp 5.9% on 6 months Total Property Valuation£655mUp 16% on 12 months Gearing94% Interim Dividend11.3pUp 10%

The Business – A Simple Model To achieve profit and capital growth from: Providing workspace to SMEs Investing in properties with potential - Income growth - Capital growth - Alternative use Increasing scale of portfolio, spreading overheads and developing the brand The right financial platform

Our Business – A Reminder “ We provide affordable, flexible space for new and small businesses in London and the South East ” 3,900 customers over 100 estates; 5.0 million sq.ft 6,000 + enquiries a year; market leading brand in fragmented market A simple product offer Superior service from in-house management Customer focused

Customer Profile Typical Workspace tenant: Rent under 5% of turnover Source: Kingston University survey of over 200 customers. Spring 2004

Occupancy and Rents Continuing occupancy improvements – 88.5% overall Rents stable with low base Cautious approach to rent reviews Lettings underway at Barley Mow, Quality Court, Europa, Leathermarket

Acquisitions & Disposals Acquisitions Quadrangle, SW6 Southbank House, SE1 Southgate Office Village, N14 Total£28.3m Net Yield6.9% Disposals Hooley Lane, Redhill Union Street Sites, SE1 Three Mills, E3 £34.5m 2.6%

New Acquisitions The Quadrangle, SW6Southbank House, SE1Southgate Office Village, N14

Adding Value: Schemes in 2004/05 Enterprise Clerkenwell Thurston Road Wharf Road Aberdeen Studios Greenheath Business Centre Further reorganisation of space and extra floors Phase Two completes September 2005 Full RefurbishmentUnderway: To complete late 2005 Mixed use (housing/retail warehousing) Discussions with Council proceeding. Further planning application in Spring Mixed use (housing/workspace) Planning appeal lodged; Council to consider new application by March 2005 Mixed use (housing/workspace) Council to consider Planning Application in December 2004 Mixed use (housing/workspace) Council to consider Planning Application in February 2005

2004 H1 Results: P & L Account Trading 2003 £m Increase % Trading Operations £m Other £m Total 2004 £m Turnover %26.9 Rent Payable and direct costs(6.7)6.7%(7.1) Administrative Expenses(3.4)15.3%(3.9)_____(3.9) Operating Profit %15.9 Surplus on disposal of investment properties ---(0.4) Net interest payable(7.3)22.0%(9.0)_____(9.0) Profit before tax6.64.8%6.9(0.4)6.5 Tax(2.0)6.8%(2.1) - Profit after Tax4.63.9%4.8(0.4)4.4 Basic earnings per share28.8p29.6p(2.0)p27.6p Diluted earnings per share28.2p28.9p(1.9)p27.0p

2004 H1 Results: Balance Sheet 30/09/2004 £m 31/03/2004 (restated) £m Investment Properties Other Assets Creditors (excluding borrowings)(33.6)(29.6) Funding: Short Term Borrowings-(1.3) Long Term Borrowings(306.2)(305.7) Cash and Investments Deferred Tax Provision(5.8)(5.5) Net Worth NAV Per Share£19.87£18.43 Net Borrowings£302.2m£305.8m Gearing94%103% Immediate Investment Capacity = £68.3m (Gearing 115%)

Key Elements on Valuation Income up 3.9%, ERV up 2.1% (like-for-like) ERV £54.8m; 90% ERV = £49.3m current rent roll £40.3m Net initial yield 6.27%, reversionary yield 8.36%, equivalent yield 7.37% Valuation surplus: 50% rent, 50% yield Capital value £126 per sq. ft

Looking Forward: The Same Business Model As stated September % per annum rental increases - No movement in yields/occupancy - Conservative gearing - Annual investment £50m - £60m Aim: - Doubling value in 5 years to £1bn portfolio On track

Looking Forward: Occupancy and Rents SME confidence improving SME numbers growing London economy robust See:Investor Relations/Company Presentations section of

Looking Forward Disposals Acquisitions Added Value Schemes

Summary Good enquiry levels; occupancy high and robust Rental focus in 2005/06 Added value programme gaining momentum Business plan on target Growth opportunities Workspace – Leader in a Growing Marketplace