June 21, 2004
Response to press speculation

Regus Group plc ("Regus" or "the Company") notes the recent press speculation regarding a potential acquisition of HQ Global Workplaces, Inc. ("HQ").

The Board of Regus continues to explore options for future growth and, in this context, confirms that it has entered into discussions with HQ regarding a possible acquisition at a cost, including expenses, of up to £190m. The Board believes that a transaction with HQ offers Regus compelling strategic benefits, particularly now that both companies have successfully rationalised their US operations and reorganised their complementary US portfolios. If a transaction is pursued, it will only be entered into on a basis that will add value for Regus shareholders. The Board is considering a range of proposals in respect of financing for the potential acquisition.

The Board notes that no definitive agreement has been reached and there can be no certainty that agreement will be reached.

On 18 May 2004 the Company reported that trading was slightly ahead of expectations for the year to date. The Company's progress remains firmly on track.

A further announcement will be made in due course.

For further information, contact:
Stephen Jolly (Regus): +44 (0)1932 895135
David Yates or Richard Mountain (Financial Dynamics): +44 (0)20 7269 7291

Notes to editors:

Regus is a leading provider of high quality outsourced offices and operates a network of almost 400 business centres across more than 50 countries, including approximately 90 centres in the United States.

HQ is also a leading provider of outsourced offices principally in the United States. It operates a network of over 200 centres across the country.