WORKSPACE GROUP PLC Preliminary Results For the year ended 31 March 2005

Headline results Valuation Surplus£67m10.4% Total Property Valuation£718mUp 14.3% Net Asset Value per share£2.24Up 21.7% Turnover£55.0mUp 7.8% Trading pre-tax profit£14.5mUp 2.6% Trading EPS per share6.3pUp 3.3% Profit before Tax£14.4mDown 4.7% Annual Rent Roll£42.3m Up 11% Gearing88% Dividend3.41p Up 10%

Ten Year Results Five YearTen YearCompound Growth Trading PBT11.7%19.6% Trading EPS9.5%12.1% Dividend per share10.2%13.1% Net Assets (per share)19.9%21.6% Property at Valuation18.7%24.2%

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 ” c.4,000 customers over 103 estates; 5.2 million sq.ft Over 7,700 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

Total Percentage of Customers by DTI Categories

Trading: Occupancy & Rents Continuing occupancy improvements 31 March -core occupancy 90.5% -overall occupancy 88.3% -46% estates at occupancy of 95%+ 7,764 enquiries in year; 1,012 lettings Occupancy improving at Barley Mow and Quality Court Like-for-like average rents up 2.9% (from £8.57 to £8,82) Rolling rent review/lease renewals programme on 5.8% opening rent roll secured 16.7% uplift on previous passing rentals

Acquisitions & Disposals Acquisitions Quadrangle, Fulham, SW6 Southbank House, SE1 Southgate Office Village, N14 Chiswick Studios, W4 Lombard House, Croydon Lewis House, Park Royal, NW10 Homesdale Business Centre, Bromley Total£43.4m Net Yield 7.3% Disposals Hooley Lane, Redhill Union Street Sites, SE1 Three Mills, E3 £34.8m 2.5%

Recent Acquisitions The Quadrangle, SW6Chiswick Studios, W4Southgate Office Village, N14 Southbank House, SE1 Homesdale Business Centre, Bromley Lombard House, Croydon

Progress on Major Refurbishments EnterpriseExtension, refurbishment and sub-division of space to create enlarged business centre (£6m costs) ClerkenwellMajor extension and refurbishment of centre. (£7m build costs) SouthbankFull refurbishment of external envelope, internal M&E etc, partial refurbishment and sub division (£2.1m costs)

Progress on Adding Value: Changes of Use Wharf RoadPlanning consent achieved. Replacement of 43,000 sq. ft business centre with 77 residential units and new 32,500 sq. ft business centre Thurston Road46,400 sq. ft industrial estate to be replaced by 75,000 sq. ft retail warehouse and up to 290 residential units Aberdeen StudiosPlanning application in for replacement of existing centre 65,000 sq. ft and up to 96 residential units GreenheathPlanning consent being sought for replacement of existing business centre and 100 residential units Longer Term Work

2005 Results: P & L Account Trading 2004 £m Trading Operations £m Other £m Total 2005 £m Turnover Rent Payable and direct costs(14.3)(14.1)- Administrative Expenses(7.1)(7.7)- Operating Profit Surplus on disposal of investment properties --(0.1) Net interest payable(15.6)(18.8)- Profit before tax (0.1)14.3 Tax(4.3)(4.2)- Profit after Tax (0.1)10.1 Basic earnings per share6.1p6.3p (0.1)p6.2p Diluted earnings per share6.0p6.2p(0.1)p6.1p

2005 Results: Balance Sheet 31/03/2005 £m 31/03/2004 (restated) £m Investment Properties Other Assets Creditors (excluding borrowings)(31.0)(29.6) Funding: Short Term Borrowings(0.8)(1.3) Long Term Borrowings(321.7)(305.8) Cash and Investments Deferred Tax Provision(7.4)(5.4) Net Worth NAV Per Share£2.24£1.84 Net Borrowings(322.5)(307.1) Gearing88%104% Immediate Investment Capacity = £49.2m (Gearing 102%) (£115.6m to 120%)

Key Elements on Valuation Income up 4.1%, ERV up 3.3% (like-for-like) ERV £57.6m; 90% ERV = £51.8m; Current net rental income £42.3m Net initial yield 5.9%, reversionary yield 8.0%, equivalent yield 7.1% Valuation surplus after £14.3m impact of stamp duty change Valuation surplus: 40% rent, 60% yield Capital value £139 per sq. ft

IPD Performance Total Return (p.a.)One Year Three Years Five Years Ten Years Workspace Group17.5%15.2%16.8%18.5% IPD March Universe16.7%12.6%11.0%11.5% Workspace Group Percentile Rank IPD Comparator % % 1 9.5% Top 11.1%

Benchmarks Performance Internal Benchmark comparison shows: Performance Measures Turnover per member of staff (£000) Year-end investment in property per member of staff (£000) 5,0064,0923,2612,9842,581 Administration costs as a percentage of revenue 13.9% 14.6%15.3%13.8% Total return on equity27.1%26.2%15.0%20.6%40.7%

International Financial Reporting Standards First impacts annual accounts to 31 March 2006 Continued quarterly reporting Q1 August – External Valuation Impact on EPS and NAV computations (deferred tax, valuation surpluses, financial instruments)

REITs Origin of Group – earnings focus with high dividend distribution. On right terms, Group may fit into a REIT environment. Recent consultation document - thoughts

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 September £1bn portfolio On track

Looking Forward: Occupancy and Rents SME confidence The London Economy Short and Longer Term See:Investor Relations/Company Presentations section of

Recent Trends - Starts During 2004, London & South East continue to lead the way in business starts Source: Barclays ‘Starts and Closures’ 2004

Recent Trends – Starts (2) Rise in starts across the Capital during 2004, Though down slightly across the South East Source: Barclays ‘Starts and Closures’ 2004

SME Prospects Expected change during first quarter of 2005 (Q on Q4 2004) Source: SERT, ‘Quarterly Survey of Small Businesses in Britain’, Q1 2005

Other Longer Term Features Olympics – decision 6 July Regeneration Areas Infrastructure Improvements: Crossrail, East London Line. Tracking of acquisition targets – our database Stepping up the added value programme – 45% of estates

Priorities and Performance Priorities Performance Deliver enhanced shareholder value To improve occupancy to 90% To continue with a further £60m acquisitions in a year Continue to identify and implement added value schemes Strengthen brand awareness as Leader in marketplace NAV up 21.7%, EPS up 3.3%, TSR 34% per annum over last 5 years Occupancy 90% Acquisitions - £43m / Disposals - £35m Planning/sale achieved: Hooley/Union St Planning achieved: Wharf Road Good Planning Progress: Aberdeen, Thurston Road Re-launch of Group website, continued link with Kingston University. 7,764 enquiries, 1,012 new lettings

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

APPENDIX

Total Shareholder Return

5 Year Share Price