1 Workspace Group PLC Preliminary Results For the year ended 31 March 2006

2 Agenda Results 2.Financial Performance 3.Joint Venture 4.Business Plan - Targets

Results Harry Platt Workspace Group PLC

4 Headline results Valuation Surplus£131mUp 16% Total Property Valuation£964mUp 34% Adjusted NAV per share£3.12Up 36% Trading pre-tax profit£15.1mUp 4% EPS per share65pUp 80% Annual Rent Roll£46.6mUp 10% Dividend3.76pUp 10%

5 Ten Year Results Five Year Ten YearCompound Growth Adjusted NAV per share20.9%21.9% Property at Valuation21.3%22.6% Trading PBT9.9%13.8% Trading EPS 10.2%13.0% Dividend per share 10.2%11.2%

6 The Business – Hotelier of Space to SMEs To achieve profit and capital growth from: Providing workspace to SMEs in London 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

7 “ We provide affordable, flexible space for new and small businesses in London and the South East ” c.4,000 customers over 105 estates; 5.8 million sq.ft Over 6,600 enquiries a year; market leading brand in fragmented market A simple product offer Superior service from in-house management Customer focused The Business – Hotelier of Space to SMEs

8 Our Buildings Westbourne - externalWestbourne – Internal

9 Customer Profile Typical Workspace tenant*: Rent under 5% of turnover Average rents at 31 March 2006: £9.58 per sq. ft Average customer in say 1,100 sq.ft. Average rent per week £203 *Source: Kingston University survey of over 200 customers. Spring 2004

10 Our Customers

11 Total Percentage of Customers by DTI Categories

12 Workspace Group portfolio 2005/06

13 Trading: Occupancy & Rents 31 March March 2006 Core occupancy90.2%86.7% Overall occupancy88.3%84.3% 75% of change relates to opportunities to improve values Like-for-like average rents increased by 3.6% to £9.48 per sq.ft.

14 Acquisitions 111 Power Road, Chiswick, London W4 Marshgate Business Centre, Stratford, E15 Evelyn Court, Deptford, SE8 Uplands Business Park, Walthamstow, E17 Kennington Park, Kennington, SW9 Horton Road Industrial Estate, West Drayton, UB7 Sundial Court, Kingston-upon-Thames Park Royal Business Centre, NW10 10 Bowling Green Lane, London EC1 Langdale House, Borough, SE1 Total£127.42m Initial Yield6.4% Reversionary Yield8.5%

15 Disposals Payne Road Studios and 5 Payne Road, Bow, E3 Alpine Park, Beckton, London E6 Magenta Portfolio Total £47.60m Exit Yield 6.4%

16 Acquisitions & Disposals - 5 year Record

17 Financial Performance Mark Taylor Workspace Group PLC

Results: P & L Account Trading 2005 £m Trading Operations £m Other £m Total 2006 £m Revenue Rent Payable and direct costs Administrative Expenses(7.6)(9.2)0.1(9.1) Operating Profit Surplus on disposal of investment properties Gain on changes in fair value Net interest payable - (18.8) - (22.0) (1.4) (23.4) Profit before tax Tax(4.3)(3.4)(39.0)(42.4) Profit after Tax Basic earnings per share6.3p p65.1p Diluted earnings per share6.2p p62.7p

19 Title Heading Insert text here 31/03/2006 £m 31/03/2005 (restated) £m Investment Properties Other Assets Creditors (excluding borrowings)(31.9)(29.0) Funding: Short Term Borrowings(3.6)(0.8) Long Term Borrowings(426.1)(322.4) Cash and Investments Deferred Tax Provision(122.6)(86.1) Net Worth NAV Per Share – adjusted£3.12£2.30 Net Borrowings(428.0)(322.0) Gearing110%112% 2006 Results: Balance Sheet

20 Key Elements on Valuation ERV £66.5m; 90% ERV = £59.8m; Current net rental income £47.1m leaving £12.7m of potential Yield (at ERV) 6.9% Capital value £162 per sq. ft

21 IPD Performance Total Return (p.a.)One Year Three Years Five Years Ten Years Workspace Group IPD March Universe Workspace Group Percentile Rank IPD Comparator % % % Top 12.8%

22 Benchmarks Performance Internal Benchmark comparison shows: Performance Measures Turnover per member of staff (£000) Year-end investment in property per member of staff (£000) 6,2485,0064,0923,2612,984 Administration costs as a percentage of revenue 14.4%13.9% 14.6%15.3% Total return on equity40.7%27.1%26.2%15.0%20.6%

23 Joint Venture With Glebe Harry Platt Workspace Group PLC

24 Latent Value 45% portfolio subject to intensification - change of use on 10 year basis Top 26 estates being worked on (5 year target) Comprise: 2.2m sq.ft. of space Value (March 2006) £312m.

25 Releasing Latent Value Pace is quickening - External driver = London - Internal driver = Time assets held Our approach - Balance existing / future uses - Minimise on balance sheet development risk - Participate in value - Right Skills – Right Partners

26 Properties in Joint Venture: Timings Development Timings Grand Union  Bow Enterprise Park  Wandsworth Business Village  Zennor Road Trading Estate  Hamilton Road  Parkhall Road B  Riverside Business Centre  Tower Bridge H  Tower Bridge E  Highway Business Park  Tower Bridge remaining Parkhall Road A Rainbow Industrial Estate

27 Why Glebe? Entrepreneurial approach – David Phillips Known to Workspace Experience of relevant property schemes - Site assembly / Change of Use / Development Substantial financial resources Size of transaction Specific Director for JV

28 Glebe Joint Venture 11 properties acquired by JV - 50% owned by Workspace/ Glebe Workspace responsible for management - Glebe for promotion Value of properties into JV £8.6 million above March valuation Equity stake of Workspace £20 million Company retains 55% uplift from original Workspace properties

29 Transaction Impacts £m Sales Proceeds146.0 Book Value(137.4) Costs provision(3.0) Profit5.6 Net Worth at 31/03/ Revised net worth395.9 Sales proceeds146.0 Equity Stake(20.0) Costs provision(3.0) Borrowing 31/03/ Adjusted Borrowing305.0 Gearing77%

30 Business Plan - Targets Harry Platt Workspace Group PLC

31 The Business Plan: As stated September 2003 Aim: Continuing to grow shareholder value in 5 years to September £1billion portfolio - 5% per annum rental increases - No movement in yields / occupancy - Conservative gearing - Annual investment £50m - £60m

32 New Plan: Continue to grow Shareholder Value How? Our growing market place of SMEs Targeting areas Rental growth Refurbishments Mixed use intensification of sites Continuing acquisitions – where we see value

33 Focusing on Growth: London Dynamics London is a global city London is a growing city Centre of finance – commerce – culture – knowledge – creativity – power and influence London’s population likely to grow by 800,000 to 8.1m by 2016 The working population will rise by 516,000 Net internal migration continues to run at about 100,000 a year

34 Focusing on Growth: London SMEs London is the SME incubator 1.07m employ people 30% of these are in London and SE 85% of those businesses with employees in London have less than 10 employees In 2005, London accounted for 22% (87k) of all new business starts in the England and Wales London has the highest concentration of the fastest-growing and most productive business sectors in the UK London is our Marketplace

35 Focusing on Growth: Rents Rental Growth in Core Portfolio (The 55%!) Average Rent per sq.ft Current£9.58 £1 increase£ % per annum: 5 years£12.27 Affordable? £20 a week extra £57 a week extra

36

37 Focusing on growth: Refurbishments SchemeDescriptionCurrent Net Rent £ May Market Rents £000 Southbank, SE1Full refurbishment of external envelope, internal M&E etc, partial refurbishment and sub division 1,0492,310 Clerkenwell, EC1 Major extension and refurbishment of centre. 141,655 Enterprise, SE1Extension, refurbishment and sub-division of space to create enlarged business centre 6521,915 Power Road, W4Full internal re-modelling and refurbishment to form new business centre 1661,150 Total1,8817,030

38 Summary 1.Releasing Latent Value - Glebe Joint Venture -Other Added Value/Refurbishment programmes 2.Focus on London - International City -SME Incubator 3.Robust and Growing Business Model -‘THE’ SME Brand -Scale of property knowledge -Trusted Partner

39 APPENDIX

40 Total Shareholder Return

41 5 Year Share Price