1. 1 Workspace Group PLC Interim Results for the six months ended 30 September 2006

2. 2 Agenda 1.Results and Strategy 2.Financial Performance 3.Looking Forward

3. 3 Headline results in Half Year Valuation Surplus£59mUp 47% Total Property Valuation:Excluding JV£933mUp 7.7% (excluding (Over 6 months)Including JV£1,086m Up 7.3% acquisitions) Adjusted NAV per share£3.40Up 9% over 6 months Pre-tax profit£69.4mUp 52% Annual Rent Roll Excluding JV Including JV £43.01m £50.77m Up 8.3% Up 9.0% Interim Dividend1.38pUp 10.4%

4. 4 IPD Performance 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 199519961997199819992000200120022003200420052006 Percentage Return Workspace IPD Workspace vs Universe

5. 5 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

6. 6 “ We provide affordable, flexible space for new and small businesses in London and the South East ” c.4,300 customers over 113 estates; 6.0 million sq.ft Over 9,900 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

7. 7 Workspace Portfolio 2006

8. 8 Customer Profile Typical Workspace tenant*: Rent under 5% of turnover Average customer in 1,000 sq. ft paying £200 (approx) rent per week *Source: Kingston University survey of over 200 customers. Spring 2004

9. 9 Total Percentage of Customers by DTI Categories

10. 10 Trading: Occupancy March 2006September 2006Difference “Adjusted like for like” (82 estates)88.1%88.0%0.1% Future developments or disposals (4 estates) 0.1%(1.3%) Other significant movements (5 estates) (0.5%)(1.6%) “Like for like” occupancy Developments (4 estates) 87.7% (4.8%) 85.1% (3.2%) 2.6% Disposals(0.1%) Acquisitions Overall Occupancy - _ 83.0% (0.2%) 81.7%1.3%

11. 11 Trading: Rents Like-for-like average rents increased by 3.6% in half year to £10.58 per sq.ft 3.6% increase for whole of 2005/06

12. 12 Acquisitions Leyton Industrial Village, Fairways Business Centre and Leyton Studios, E10 1 Morie Street, SW18 14 Greville Street, EC1 T Marchant Trading Estate, SE16 Spectrum House, NW5 Seven Sisters, N15 Total£42.3m (320,000 sq. ft) Initial Yield4.8% Reversionary Yield8.15% £132 per sq. ft

13. 13 Disposals 11 Estates to Joint Venture (exit IRR 24.1%) Stevenage Enterprise Park (deferred sale) (exit IRR 21.2%) Wharf Road, N1 – mixed use scheme Park Avenue, Luton (exit IRR 15.2%) Total £171.7m Exit Yield 4.66%

14. 14 Refurbishment Schemes September Occupancy Timescale CompleteClerkenwell50%July 2006 Enterprise71%May 2006 Power Road33%November 2006 Under wayLombard House23%February 2007 Kennington – Canterbury Court 73%October 2007

15. 15 Clerkenwell Workshops

16. 16 Kennington

17. 17 Change of Use / Disposal (next 18 months) Current Occupancy Thurston Road, SE1314%§106 being completed Parmiter, E279%Under negotiation Marshgate, E1596%Under negotiation Greenheath, E274%Sale of part complete Highbury, N586%Planning approval likely

18. 18 Progress of Joint Venture 11 estates:50% owned Occupancy:92% Progress on: Wandsworth – Imminent Planning Application Grand Union – Imminent Planning Application Bow – In Public Consultation Profit on sale £8.6m (before costs)Equity stake £20m

19. 19 Income Statement Trading Operations £m Other £m Total 30/09/2006 £m Total to 30/09/2005 £m Turnover29.6- 29.2 Rent Payable and direct costs(8.5)- (7.7) Administrative Expenses(4.7)0.2(4.5)(4.2) Operating Profit16.40.216.617.3 Valuation Surplus-59.0 40.2 Other Income-1.6 Surplus on disposal of investment properties-4.4 - Net interest payable and fair value adjustments(11.2)0.4(10.8)(11.7) Joint Venture(0.1)(1.3)(1.4) - Profit before tax5.164.369.445.8 Tax(1.5)(19.1)(20.6)(13.7) Profit after Tax3.645.248.832.1 Basic earnings per share2.227.229.419.6p Diluted earnings per share2.126.228.318.8p

20. 20 Title Heading Insert text here Balance Sheet 30/09/2006 IFRS £m 31/03/2006 IFRS £m Investment Properties930.4962.2 Investment in Joint Venture16.2- Other Assets13.810.6 Creditors (excluding borrowings)(34.0)(31.9) Funding Short Term Borrowings Long Term Borrowings Cash and Investments (22.3) (327.2) 1.8 (3.6) (426.1) 1.7 Deferred Tax Provision(141.3)(122.6) Net Worth437.4390.3 NAV Per Share (IFRS)2.582.37 NAV (Adjusted)3.403.12 Net Borrowings(347.7)(428.0) Gearing (IFRS)80%110% Adjusted Gearing (EPRA)63%85% Immediate Investment Capacity = £90m (gearing 100% : IFRS)

21. 21 Title Heading Insert text here Convertible and Debenture Loan Stock Convertible: £2.2m converted @ 50p, 4.4m shares Earnings (0.6p) and NAV (5.0p) dilutive Debenture: £19.5m @ average11.3% Repayment 30 June 2007 Saving £1m p.a.

22. 22 Key Elements on Valuation ERV £60.5m; 90% ERV = £54.5m; Current net rental income £42.4m leaving £12.1m of potential Yield (at ERV) 6.5% Capital value £187 per sq. ft (£173 including JV)

23. 23 Workspace as a REIT Comfortably pass tests (ownership, property, trade mix interest cover etc). Eliminate £140m deferred tax (80 pence per share) £20m entry cost – short payback Earnings (dividend) enhancing Strategic plan maintained May create acquisition opportunities

24. 24 Business Plan: To double shareholder value in 5 years How? Focusing on London Growing market place of SMEs Rental growth from a low base Targeting acquisitions where long term value (through database) Improving estates and pursuing mixed use intensification

25. 25 APPENDIX

26. 26 Ten Year Results to 31 March 2006 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%

27. 27 Total Shareholder Return

28. 28 5 Year Share Price