Service Office Group plc 

(the 'Company')

Purchase of Consort Property Holdings Limited

The board of Serviced Office Group plc ('SOG') today announces an update in relation to its acquisition of the shares not currently owned by SOG in Consort Property Holdings Limited from UBS AG London Branch (the 'Acquisition').

As set out in the announcement by the Company on 30 June 2009, the Acquisition is conditional upon, inter alia, Royal Bank of Scotland (which provides funding to both SOG and Consort) consenting to the acquisition and renewing the combined group's facilities. Further, the Acquisition was to be financed by the issue of £1,000,000 of convertible loan notes (the 'Loan Notes'). The issue of the Loan Notes was also conditional on Royal Bank of Scotland's consent to the acquisition and renewing the combined group's facilities. 

While the Directors have held active discussions with the Royal Bank of Scotland in relation to the combined group's facilities no agreement has yet been reached on these facilities. Due to this delay the conditions of the Loan Notes cannot be met and therefore the Company is unable to issue the Loan Notes.

The Directors remain in discussions with the Royal Bank of Scotland and UBS AG London Branch regarding proceeding with the Acquisition. The Directors are also in discussions with a number of third parties regarding the provision of the required financing for the Acquisition following the failure to issue the Loan Notes. While the Directors are hopeful that the Acquisition will complete, as it fully believes it is in the best interests of the Company and shareholders, it can give no guidance on the terms or timeframe at this stage.  

The Directors will continue to keep shareholders informed as appropriate.

24 July 2009

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