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FOR IMMEDIATE RELEASE

27 August 2009

MWB BUSINESS EXCHANGE PLC

HALF-YEARLY FINANCIAL RESULTS FOR SIX MONTHS

TO 30 JUNE 2009

HIGHLIGHTS

• Revenue shows only 4% fall to £57.4m over comparable six months to 30 June 2008, despite adverse economic conditions.

• Occupancy still high at 85% at 30 June 2009.

• Forward contracted income accounts for approximately 85% of remaining projected revenue to December 2009.

• Significant expansion in capacity by acquisition during May and June 2009 of 16 former MLS Group PLC centres, predominantly in London.

• Two additional new centres in London and Harrogate opened in the six months to 30 June 2009.

• Revenue Per Available Workstation (REVPAW) down 16% to £8,055 at 30 June 2009 from £9,630 at 30 June 2008.

• Revenue Per Occupied Workstation (REVPOW) down 10% to £9,490 at 30 June 2009 compared to £10,500 at 30 June 2008.

• EBITDA strong at £8.6m though 24% lower than six months to 30 June 2008, reflecting reduced market rate and marginal fall in occupancy.

• 15p per share interim dividend paid in June 2009.

'Trading for the first six months of 2009 has been ahead of our expectations, given the tough economic climate.  We view the future with cautious optimism on the basis we have continued to trade strongly and our cash flow is robust.'  Richard Balfour-Lynn, Chairman.

Contact:
MWB Business Exchange Plc		Baron Phillips Associates
Richard Balfour-Lynn, Chairman	Tel: 020 7706 2121	Baron Phillips	Tel: 020 7920 3161
John Spencer, Chief Executive	Tel: 020 7868 7268
Keval Pankhania, Finance Director	Tel: 020 7868 7255	Brewin Dolphin Limited
		Sandy Fraser	Tel: 0845 213 2072

CHAIRMAN'S STATEMENT

Trading for the first six months of 2009 has been ahead of our expectations, given the tough economic climate. Occupancy remained buoyant at 85%, while the average monthly workstation rate continued to be strong at £590.  Revenue per occupied workstation stood at a healthy £9,490 p.a. and as a result revenue for the six months was £57.4m.

EBITDA for the period was £8.6m, while pre-tax profit and EPS for the first half were £5.7m and 8.4p respectively. These figures are lower than the comparable figures for last year, but still very encouraging in light of market conditions. Forward contracted income already accounts for approximately 85% of remaining projections to December 2009. This figure increases to over 90% when including a conservative estimate for anticipated renewals. Our differentiated strategy and emphasis on service excellence continue to have a positive effect on renewal rates, with over 70% of clients renewing at least once.

Following the collapse of one of our principal competitors, the major highlight of the period was the acquisition during the second quarter of 16 of the most profitable and desirable centres of MLS Group PLC.  The acquisition was a significant milestone for us. Not only did it increase our network of centres to 73, but it also reinforced our position as London's dominant provider of serviced offices.  We now operate 45 centres in Greater London.

As a result of this expansion, Business Exchange's workstations have risen to nearly 20,000, an uplift of over 25%, increasing our portfolio of serviced offices to 1.75m sq ft of space. Of the total 73 centres, 52 are leased, seven are Operating and Management Agreement contracts and the remaining 14 are held under management contracts.

Importantly, the acquisition of the MLS centres has enabled us rapidly to expand our City Executive Centres three-star brand, which targets small start-up businesses looking for a low-cost entry into the convenient flexible office market. We can also present a wider product range to suit the diverse needs of our prospects and clients.

In addition to the MLS deal, we reached agreement for an 11 year Operating and Management Agreement on 32,000 sq ft of space close to Liverpool Street station at 133 Houndsditch EC3. The landlord, Henderson Global Investors, is investing over £2.9m in a refurbishment programme that, on completion, will provide a further 350 workstations and seven meeting rooms. The centre is expected to open in October.

We recognise that the business environment has been difficult for many of our clients and we have focused on ensuring they receive the best possible support from our service teams - enabling them to concentrate solely on their core business activities.

There is little doubt that the more challenging business environment is likely to continue for the rest of 2009. To counter some of the impact of tougher trading conditions we have maintained a strong grip on costs and a number of initiatives have been implemented over the past six months.  As a consequence, our balance sheet remains strong with net assets of £29.2m, cash of £2.9m, no debt and undrawn facilities of £8.0m.

We view the future with cautious optimism on the basis we have continued to trade strongly and our cash flow is robust. We have the management team, infrastructure and product range to compete successfully in the current market and, at the same time, take full advantage of any upturn when it arrives.

Richard Balfour-Lynn

Chairman

27 August 2009

KEY FINANCIAL HIGHLIGHTS

The key performance indicators, together with the trading performance and balance sheets in recent periods, are summarised below:-

Operating statistics		Six months ended 30 June 2009	Six months ended 30 June 2008	Year ended 31 December 2008
Revenue	£'000	57,384	59,713	118,708
Occupancy at period end *	%	85	92	90
Annualised revenue per available workstation
('REVPAW') at period end *	£	8,055	9,630	8,700
Annualised revenue per occupied workstation
('REVPOW') at period end *	£	9,490	10,500	9,650
EBITDA	£'000	8,596	11,273	18,106
Leased centres at period end	Number	52	39	38
Operating and Management Agreement    ('OMAs') centres at period end	Number	7	4	4
Management contract centres    at period end	Number	14	13	13
Financial performance		Six months ended 30 June 2009	Six months ended 30 June 2008	Year ended 31 December 2008
Profit before tax	£'000	5,658	8,800	13,954
Basic earnings per share	Pence	8.4p	10.6p	20.4p
Dividend paid per share	Pence	15.0p	1.93p	1.93p
Balance sheet composition		30 June 2009	30 June 2008	31 December 2008
Property, plant and equipment	£'000	41,282	41,913	41,535
Net cash	£'000	2,950	5,838	16,404
Equity attributable to shareholders	£'000	29,241	28,789	35,623

* These figures reflect MWB Business Exchange's core 4/5 star centres and exclude OMAs, managed centres and the centres recently acquired from MLS Group PLC.

CONSOLIDATED INCOME STATEMENT
for the six months ended 30 June 2009

		Six months ended 30 June 2009	Six months ended 30 June 2008	Year ended 31 December 2008
	Notes	£'000	£'000	£'000
Revenue		57,384	59,713	118,708
Cost of sales		(50,824)	(50,337)	(102,681)
Gross profit		6,560	9,376	16,027
Administrative expenses		(814)	(559)	(2,443)
Results from operating activities		5,746	8,817	13,584
Finance income		218	430	974
Finance expense		(306)	(447)	(604)
Profit before taxation		5,658	8,800	13,954
Taxation		(9)	(1,500)	79
Profit for the period		5,649	7,300	14,033
Attributable to:
Equity shareholders of the Company		5,713	7,300	14,033
Minority interests	6	(64)	-	-
		5,649	7,300	14,033
Earnings per share
Basic and diluted	4	8.4p	10.6p	20.4p

All results relate to continuing operations.  The notes form part of these financial statements.

CONSOLIDATED BALANCE SHEET

at 30 June 2009

		30 June 2009	30 June 2008	31 December 2008
	Notes	£'000	£'000	£'000
Non-current assets
Intangible assets - goodwill	5	10,341	7,587	7,587
Property, plant and equipment	7	41,282	41,913	41,535
		51,623	49,500	49,122
Current assets
Trade and other receivables:-
Due after more than one year		2,049	1,975	1,863
Due within one year		25,572	18,097	18,650
Cash and cash equivalents		2,950	5,838	23,333
		30,571	25,910	43,846
Total assets		82,194	75,410	92,968
Current liabilities
Loans and borrowings		-	-	(6,929)
Trade and other payables		(39,251)	(34,048)	(37,273)
		(39,251)	(34,048)	(44,202)
Non-current liabilities
Trade and other payables		(13,766)	(12,573)	(13,143)
Total liabilities		(53,017)	(46,621)	(57,345)
Net assets		29,177	28,789	35,623
Equity
Share capital	8	66	69	69
Share premium account		35,459	35,459	35,459
Capital redemption reserve	8	3	-	-
Merger reserve		38,831	38,831	38,831
Retained earnings	8	(45,118)	(45,570)	(38,736)
Total equity attributable to shareholders   of the Company		29,241	28,789	35,623
Minority interests	6	(64)	-	-
Total equity		29,177	28,789	35,623

The notes form part of these financial statements.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the six months ended 30 June 2009

Six months ended  30 June 2009	Share capital	Share premium	CRR (note 8)	Merger reserve	Retained earnings	Total	Minority interests	Total equity
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
At 1 January 2009	69	35,459	-	38,831	(38,736)	35,623	-	35,623
Profit for the period	-	-	-	-	5,713	5,713	(64)	5,649
Dividends paid to
equity shareholders	-	-	-	-	(9,846)	(9,846)	-	(9,846)
Shares purchased   and cancelled	(3)	-	3	-	(2,378)	(2,378)	-	(2,378)
Write back of share   option cost    through equity	-	-	-	-	129	129	-	129
At 30 June 2009	66	35,459	3	38,831	(45,118)	29,241	(64)	29,177

Six months ended 30 June 2008	Share capital	Share premium	CRR (note 8)	Merger reserve	Retained earnings	Total equity
	£'000	£'000	£'000	£'000	£'000	£'000
At 1 January 2008	69	35,459	-	38,831	(51,414)	22,945
Profit for the period	-	-	-	-	7,300	7,300
Dividends paid to equity shareholders	-	-	-	-	(1,334)	(1,334)
Shares purchased and cancelled	-	-	-	-	(293)	(293)
Write back of share option cost    through equity	-	-	-	-	171	171
At 30 June 2008	69	35,459	-	38,831	(45,570)	28,789

Year ended 31 December 2008	Share capital	Share premium	CRR (note 8)	Merger reserve	Retained earnings	Total equity
	£'000	£'000	£'000	£'000	£'000	£'000
At 1 January 2008	69	35,459	-	38,831	(51,414)	22,945
Profit for the year	-	-	-	-	14,033	14,033
Dividends paid to equity shareholders	-	-	-	-	(1,334)	(1,334)
Shares purchased and cancelled	-	-	-	-	(293)	(293)
Write back of share option cost    through equity	-	-	-	-	272	272
At 31 December 2008	69	35,459	-	38,831	(38,736)	35,623

The notes form part of these financial statements.

CONSOLIDATED CASH FLOW STATEMENT

for the six months ended 30 June 2009

	Six months ended 30 June 2009	Six months ended 30 June 2008	Year ended 31 December 2008
	£'000	£'000	£'000
Profit for the period	5,649	7,300	14,033
Adjustments
Taxation	9	1,500	(79)
Finance income	(218)	(430)	(974)
Finance expenses	306	447	604
Items capitalised in prior year expensed in 2008	-	-	240
Depreciation of property, plant and equipment	2,850	2,399	4,447
Loss on disposal of property, plant and equipment	-	57	75
Equity settled share-based obligations	129	171	272
Cash settled share-based obligations	-	-	2,100
Cash flows from operations before changes in working capital	8,725	11,444	20,718
Change in trade and other receivables	(7,108)	(2,183)	(2,726)
Change in trade and other payables	2,684	5,839	9,152
Cash generated from operations	4,301	15,100	27,144
Taxation paid	(109)	-	-
Interest paid	(238)	(414)	(529)
Net cash received from operating activities	3,954	14,686	26,615
Cash flows from investing activities
Interest received	209	430	920
Purchase of property, plant and equipment	(2,597)	(2,172)	(4,067)
Acquisition of business	(2,754)	-	-
Net cash used in investing activities	(5,142)	(1,742)	(3,147)
Cash flows from financing activities
Purchase of own shares, inclusive of costs	(2,378)	(293)	(293)
Proceeds from drawdown of borrowings	-	-	7,000
Borrowings repaid	(6,971)	(9,991)	(10,020)
Dividends paid	(9,846)	(1,334)	(1,334)
Net cash used in financing activities	(19,195)	(11,618)	(4,647)
Net (decrease)/increase in cash and cash equivalents	(20,383)	1,326	18,821
Opening cash and cash equivalents	23,333	4,512	4,512
Closing cash and cash equivalents	2,950	5,838	23,333

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1.    ACCOUNTING POLICIES

Basis of preparation

The Half-Yearly Financial Report of MWB Business Exchange Plc ('the Company') for the six months ended 30 June 2009 has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted for use in the European Union. The financial information contained in this Half-Yearly Financial Report has not been audited by the auditors.

The Half-Yearly Financial Report of the Company for the six months ended 30 June 2009 incorporates the results of the Company and its subsidiaries (together 'the Group') for the period then ended.  The results have been prepared on the basis of the accounting policies adopted in the Group's financial statements for the year ended 31 December 2008, with the addition of new standards that have come into effect during the period under review.

2.    SEGMENT REPORTING

Segmental information is presented in respect of the Group's businesses. The primary format is based on the Group's internal reporting structure.

The Group comprises the following main business segments:

• Group operations excluding Operating and Management Agreements ('OMAs')

• OMAs

Segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Inter-segment pricing is determined on an arm's length basis.  The Group does not report internally segmental balance sheet information. Accordingly this is not given below, in accordance with April 2009 Improvements to IFRSs - IFRS 8 which, as permitted, has been adopted ahead of its latest effective date.

Six months ended 30 June 2009	Excluding OMAs	OMAs	Consolidated
	£'000	£'000	£'000
Serviced office revenue	48,909	3,530	52,439
Meeting room revenue	4,606	339	4,945
Revenue per Income Statement	53,515	3,869	57,384
Segment result	5,287	459	5,746
Net finance expense	(81)	(7)	(88)
Taxation	(9)	-	(9)
Profit for the period	5,197	452	5,649

Six months ended 30 June 2008	Excluding OMAs	OMAs	Consolidated
	£'000	£'000	£'000
Serviced office revenue	50,337	3,230	53,567
Meeting room revenue	5,800	346	6,146
Revenue per Income Statement	56,137	3,576	59,713
Segment operating result	7,616	1,201	8,817
Net finance expense	(16)	(1)	(17)
Taxation	(1,500)	-	(1,500)
Profit for the period	6,100	1,200	7,300

Year ended 31 December 2008	Excluding OMAs	OMAs	Consolidated
	£'000	£'000	£'000
Serviced office revenue	100,487	6,920	107,407
Meeting room revenue	10,575	726	11,301
Revenue per Income Statement	111,062	7,646	118,708
Segment operating result	12,345	1,239	13,584
Net finance income/(expense)	377	(7)	370
Taxation	79	-	79
Profit for the year	12,801	1,232	14,033

3.    EARNINGS BEFORE INTEREST, TAXATION, DEPRECIATION AND AMORTISATION ('EBITDA')

The Board's primary measure of return used to monitor results is the level of earnings before interest, taxation, depreciation and amortisation ('EBITDA'), which is calculated as follows:-

	Six months ended 30 June 2009	Six months ended 30 June 2008	Year ended 31 December 2008
	£'000	£'000	£'000
Results from operating activities	5,746	8,817	13,584
Add depreciation and loss on disposal of property,   plant and equipment	2,850	2,456	4,522
Total EBITDA for the period	8,596	11,273	18,106

4.    EARNINGS PER SHARE

The earnings per share figures are calculated by dividing the profit attributable to equity shareholders of the Company for the period by the weighted average number of ordinary shares in issue during the period, as follows:-

	Six months ended 30 June 2009	Six months ended 30 June 2008	Year ended 31 December 2008
	£'000	£'000	£'000
Profit attributable to equity shareholders of the Company	5,713	7,300	14,033
	Number '000	Number '000	Number '000
Weighted average number of ordinary shares (basic)	68,390	69,036	68,917
Effect of shares issuable under share option schemes	-	146	-
Weighted average number of shares (diluted)	68,390	69,182	68,917
Earnings per share	8.4p	10.6p	20.4p
Diluted earnings per share	8.4p	10.6p	20.4p

5.    INTANGIBLE ASSETS - GOODWILL

	30 June  2009	30 June  2008	31 December 2008
	£'000	£'000	£'000
Cost
At beginning of period	7,587	7,587	7,587
Additions (see note 6)	2,754	-	-
At end of period	10,341	7,587	7,587

An impairment review was undertaken by the Directors at 30 June 2009 which confirmed there had been no impairment of the goodwill during the six months ended on that date. The review compared the carrying value of goodwill with the anticipated recoverable amount of the cash-generating units to which the goodwill was allocated. The recoverable amount of the cash-generating units is based on value in use, which is calculated from cash flow projections for the next two years using data from Board approved budgets.

6.    ACQUISITION OF BUSINESS

During the period 29 April to 1 June 2009 the Group acquired 16 business centres from the Administrator of MLS Group PLC ('MLS'), by means of a 'pre-pack' arrangement, and by direct negotiation from MLS's former landlords after they had exercised their repossession rights.  They are complementary to the Group's existing centres and in line with its stated strategy of focusing on London and the surrounding area.  The centres were placed in a newly incorporated sub-group led by MWB Executive Centres (Holdings) Ltd, of which the Group owns 65%. The transactions were accounted for using the purchase method of accounting as summarised below.  Only fair values at the date of acquisition are stated as full access to MLS's books of account was not available.

	Fair value
	£'000
Net assets acquired
Property, plant and equipment	731
Lease deposit	225
Licensee deposit liabilities	(1,414)
Finance lease and other liabilities	(230)
	(688)
Goodwill	2,754
Total consideration	2,066
Satisfied by:
Cash paid and payable	943
Directly attributable costs	1,123
	2,066

No cash or cash equivalents were acquired.

In the period to 30 June 2009 the centres acquired generated revenue of £1,819,000, an operating loss of £148,000 (EBITDA: loss of £135,000) and a loss before and after tax of £184,000. It is impracticable to state what the results would have been for the full six month period to 30 June 2009 due to the lack of access to MLS's books of account.

The goodwill recognised arises from the synergies forecast to be gained from the assimilation of the new centres into the Group's network and the strengthening of its brands to become the dominant provider of serviced office accommodation in the London region. The fair value of net assets acquired is provisional and will be finalised during the remainder of the year ending 31 December 2009.

7.    PROPERTY, PLANT AND EQUIPMENT

	Operating leasehold improvements	Plant, machinery, fixtures & equipment	Total
	£'000	£'000	£'000
Cost
At 1 January 2009	38,962	32,135	71,097
Additions	846	1,751	2,597
At 30 June 2009	39,808	33,886	73,694
Depreciation
At 1 January 2009	(5,576)	(23,986)	(29,562)
Charge for the period	(1,829)	(1,021)	(2,850)
At 30 June 2009	(7,405)	(25,007)	(32,412)
Net book value at 30 June 2009	32,403	8,879	41,282

£182,000 (2008: £nil) of assets included above are covered by finance leases.  All such assets were taken on as part of the acquisition of business centres from the Administrator of MLS Group PLC described in note 6 above.

	Operating leasehold improvements	Plant, machinery, fixtures & equipment	Total
	£'000	£'000	£'000
Cost
At 1 January 2008	41,836	26,453	68,289
Additions	2,698	1,369	4,067
Reclassification	(5,296)	5,296	-
Disposals	(276)	(983)	(1,259)
At 31 December 2008	38,962	32,135	71,097
Depreciation
At 1 January 2008	(7,847)	(18,245)	(26,092)
Charge for the year	(2,794)	(1,653)	(4,447)
Reclassification	5,064	(5,064)	-
Disposals	1	976	977
At 31 December 2008	(5,576)	(23,986)	(29,562)
Net book value At 31 December 2008	33,386	8,149	41,535

8.    MOVEMENT ON CAPITAL AND RESERVES

During the six months to 30 June 2009 3,160,174 shares (six months to 30 June 2008: 300,000 shares) were bought in the market and cancelled for a total cost of £2,378,000 (2008: £293,000), at an average cost of 75.3p per share (2008: 97.8p per share), inclusive of fees and stamp duty. The nominal value of the shares purchased was £3,160 (2008: £300), for which amount a capital redemption reserve has been established.

9.    FINANCIAL STATEMENTS AND HALF-YEARLY FINANCIAL REPORT

The financial information set out in this Half-Yearly Financial Report in relation to MWB Business Exchange Plc includes information for the six months ended 30 June 2009, with comparative information for the six months ended 30 June 2008 and the year ended 31 December 2008. Statutory financial statements for the year ended 31 December 2008 for the companies forming the MWB Business Exchange Group have been delivered to the Registrar of Companies.  The auditors have reported on those financial statements; their reports were unqualified and did not contain statements under Section 237(2) or (3) of the Companies Act 1985.

This Half-Yearly Financial Report will be sent to shareholders during September 2009 and an electronic copy is also available on the Company's website at www.mwbex.com. The audited financial statements of the Company for the year ended 31 December 2008, further copies of this Half-Yearly Financial Report and the Half-Yearly Financial Report for the six months ended 30 June 2008 are available from the Company Secretary, Filex Services Limited, at the Company's registered office of 179 Great Portland Street, London W1W 5LS.

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