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Service Office Group plc

Expansion of Business Portfolio

Serviced Office Group ('SVO' or 'the Group') is pleased to announce an update in relation to its managed business and that it is has started negotiations in relation to acquiring the remaining 50% of its joint venture, Consort, which it does not already own. 

SVO today announces that has been appointed to manage five managed business centres located in and around London and comprising a total of 1,085 workstations. The terms of the management fees are in line with previous management contracts agreed by the Company and contain incentive payments for increasing occupancy levels within the new units.

Further to the announcement by the Company on 6 April 2009, following the appointment of the Company as manager to six properties owned by Premier Office Holdings, the board became concerned that Premier could not perform there obligations to the satisfaction of the Company. The board has therefore duly given notice to Premier and will not act as manager to the properties.

Taking into account the new business centres managed by the Company and the notice given to Premier, the Company now owns or manages a total of 16 business centres, extending to 241,000s.q.ft and providing a total of 2,854 workstations. The board expects the revenue from the new business centres announced today to be above that expected from the Premier buildings. 

Further to the above announcement, the board also announces that it is in discussions with in relation to acquiring the remaining 50% that the Company does not already own of its joint venture, Consort. The board is in active discussions with a number of third parties in order to fund the acquisition. The acquisition will enable SVO to recognize 100% of all profits associated with the joint venture.

The board will continue to keep all shareholders updated on developments as appropriate. 

18 May 2009

ENQUIRIES:       

                                             

Serviced Office Group plc	Tel: 020 7583 8833
Michael Kingshott, Chairman
Stephen Clague, Finance Director
Evolution Securities	Tel: 020 7071 4300
Bobbie Hilliam
College Hill	Tel: 020 7457 2020
Gareth David

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