Update - No Let Up in Activity at Slough Estates

Dec 21, 2006

• Major 17,000 sq m pre-let to Ernst & Young in Belgium
• First pre-let in Czech Republic

Slough Estates International (SEI) maintained the positive momentum of its trading performance with a raft of new contracts in the UK and in Continental Europe. These again demonstrate the significant progress it continues to make in building on its position as Europe's leading provider of flexible business space. Ian Coull, Chief Executive commented: "We are ending 2006 in the same way we started it, delivering a series of transactions which demonstrate how we actively manage our assets."

Belgium
SEI has reached an agreement with Ernst & Young for a 17,000 sq m built-to-suit office building at its Pegasus Park office scheme located in Diegem near Brussels airport. Construction is due to start in March 2007 with delivery expected in September 2008. This site is located on the park's prime frontage, between Johnson Controls and DHL's European headquarters. Ernst & Young has signed a 15-year lease at an annual rent of €2.3m - delivering a yield in line with SEI's targets for the region.

Czech Republic
Slough Estates has signed its first pre-let in the Czech Republic, a 4,800 sq m warehouse which will act as a new hub for Kuehne & Nagel, the leading global logistics company. The unit is part of Slough's new warehousing scheme under construction at Tulipán Park, Prague. Tulipán Park, Slough's 16 hectare logistics and light industrial park is located at Hostivice on the western edge of Prague, near Prague's primary airport and ringroad. In addition to the building currently under construction, Slough Estates International can deliver a further 45,000 sq m of warehouse space on the park. The current phase of development comprises some 15,000 sq m of warehouse space plus 2,000 sq m of office and ancillary areas and is due for delivery in February 2007.

Kuehne & Nagel chose the site due to a higher building specification in particular for loading docks and office space plus the expansion possibilities. Kuehne & Nagel has signed a 52-month lease, at a rent of approximately €269,000 per annum, with a development yield in line with SEI's targets for the region.

France
A leading French distribution group has agreed a pre-let of a headquarters office and light industrial building of c5,500 sq m to be delivered in April 2007. The building forms part of SEI's 36,000 sq m 'Carré des Aviateurs' business park development located at le Blanc Mesnil to the north of Paris, close to the A1 motorway and Charles de Gaulle airport, and is the first pre-leasing agreement in the scheme. This new letting will bring the occupancy rate on the park for existing buildings and those under construction to in excess of 92 per cent. The letting is for a term of nine years at a rent of €460,000 per annum. This pre-letting further demonstrates the strength of the market for this type of product and establishes a renewed confidence in the location, as is borne out by the occupational statistics. Poland

Slough Estates has acquired a 12.4 hectare plot in Komorniki, Poznan for an initial consideration of €4.2 million. Including the 9.6 hectares which SEI already owns in Komorniki (50 per cent of which is currently under construction for Huntleigh Healthcare). This acquisition takes Slough's development pipeline in Poland to 75 hectares (including those under construction) plus a further 12 hectares under option in Silesia. The Komorniki site benefits from proximity to the city of Poznan and a nearby motorway junction and offers significant development potential.

UK
HelioSlough, the joint venture between Helios Properties plc and Slough Estates International, has secured a forward funding deal of approximately £100m with CBRE Investors for six speculative distribution properties across the UK totalling c1,570,000 sq ft (146,000 sq m). These properties are all in prime locations benefiting from growing demand for these high quality distribution facilities. Work has already commenced on the units, which will be completed in 2007. The deal includes the 50 acre Sheffield International Railfreight Terminal (SIRFT), where HelioSlough will start immediately on two sheds totalling c622,000 sq ft (58,000 sq m).

Slough Estates has acquired a development site in Newbury for £10.1 million from Highcross. The site provides for the development of up to 4.5 acres where it is proposed to construct 12 new warehouse/industrial units in sizes ranging from 1,800 sq.ft. up to 35,000 sq ft. including a trade counter unit of 7,000 sq ft fronting Hambridge Road. The purchase also includes an existing 107,000 sq ft (9,940 sq m) let to General Signal UK Ltd at a passing rent of £500,000 per annum and a smaller building comprising 8,500 sq ft let to Oil Plus Ltd at £36,000 per annum.

Notes to editors

Slough Estates plc or Slough Estates International (SEI) The leading European provider of flexible business space, SEI owns business parks in Europe and North America, with property assets of £5.6bn, more than four million square metres of business space and more than 1,700 customers. SEI has an annual rent roll of £289m and a weighted average unexpired lease length of 11.9 years. Flexible business space is industrial sites or business parks put to multiple uses such as; manufacturing, light industrial, distribution (both 'small' and 'big-box'), research and development, offices and warehousing. SEI's properties are in suburban locations in close proximity to main business centres with long-term demand for business accommodation. The company continues to develop new business parks with the long-term objective of building shareholder value and enhancing its reputation for quality buildings offering excellent value to customers. (Figures quoted as at 30 June 2006) www.sloughestates.com

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