Great Portland Estates PLC 03 October 2006 3 October 2006 Great Portland Estates plc ("GPE") The Board of GPE confirms that it is engaged in preliminary discussions with London Merchant Securities plc ("London Merchant Securities") concerning a potential merger. GPE anticipates that any merger transaction would involve a share for share offer by GPE for London Merchant Securities. There can however be no certainty that any transaction will be forthcoming. A further announcement will be made when appropriate. In accordance with Rule 2.10 of the Takeover Code (the "Code"), GPE announces that its issued share capital consists of 163,432,872 ordinary shares of 12.5p each. It also has £54,530,000 outstanding of 5.25% convertible bonds 2008. The International Securities Identification Number for GPE ordinary shares is GB00B01FLL16 and for GPE 5.25% convertible bonds 2008 is GB0002479938 (for registered bonds) and XS0084560209 (for bearer bonds). Enquiries Great Portland Estates plc Tel: +44 (0)20 7647 3000 Toby Courtauld Timon Drakesmith Lazard (Financial Adviser to GPE) Tel: +44 (0)20 7187 2000 William Rucker Patrick Long Credit Suisse (Corporate Broker to GPE) Tel: +44 (0)20 7888 8888 James Leigh-Pemberton Nick Bowers Finsbury Tel: +44 (0)20 7251 3801 James Murgatroyd Gordon Simpson Dealing Disclosure Requirements Under the provisions of Rule 8.3 of the Code, if any person is, or becomes, "interested" (directly or indirectly) in 1% or more of any class of "relevant securities" of GPE or of London Merchant Securities, all "dealings" in any "relevant securities" of that company (including by means of an option in respect of, or a derivative referenced to, any such "relevant securities") must be publicly disclosed by no later than 3.30 pm (London time) on the London business day following the date of the relevant transaction. This requirement will continue until the date on which the offer becomes, or is declared, unconditional as to acceptances, lapses or is otherwise withdrawn or on which the "offer period" otherwise ends. If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire an "interest" in "relevant securities" of GPE or London Merchant Securities, they will be deemed to be a single person for the purpose of Rule 8.3. Under the provisions of Rule 8.1 of the Code, all "dealings" in "relevant securities" of GPE or of London Merchant Securities by GPE or London Merchant Securities, or by any of their respective "associates", must be disclosed by no later than 12.00 noon (London time) on the London business day following the date of the relevant transaction. A disclosure table, giving details of the companies in whose "relevant securities" "dealings" should be disclosed, and the number of such securities in issue, can be found on the Takeover Panel's website at http://www.thetakeoverpanel.org.uk/new/. "Interests in securities" arise, in summary, when a person has long economic exposure, whether conditional or absolute, to changes in the price of securities. In particular, a person will be treated as having an "interest" by virtue of the ownership or control of securities, or by virtue of any option in respect of, or derivative referenced to, securities. Terms in quotation marks are defined in the Code, which can also be found on the Panel's website. If you are in any doubt as to whether or not you are required to disclose a "dealing" under Rule 8, you should consult the Panel. Lazard & Co., Limited, which is authorised and regulated by the Financial Services Authority in the United Kingdom, is acting for GPE and no one else in relation to the matters referred to in this announcement and will not be responsible to anyone other than GPE for providing the protections afforded to clients of Lazard & Co., Limited nor for providing advice in relation to the matters referred to in this announcement. Credit Suisse Securities (Europe) Limited, which is authorised and regulated by the Financial Services Authority in the United Kingdom, is acting as corporate broker to GPE and no one else in connection with this announcement and will not be responsible to anyone other than GPE for providing the protections afforded to clients of Credit Suisse Securities (Europe) Limited nor for providing advice in relation to this announcement. This information is provided by RNS The company news service from the London Stock Exchange