Interim Management Statement

Telecity Group plc ('TelecityGroup' or the 'Group'), the leading pan-European operator of network independent data centres, today issues the following Interim Management Statement for the period from 1 July 2008 to the date of this statement.

 Highlights:

• Demand for capacity in TelecityGroup’s portfolio of premium data centres remains high
• The Group is exhibiting very strong growth with the momentum achieved in the first half of 2008 continuing
• A robust order pipeline across all markets provides visibility for future growth
• A new data centre is to be opened in Stockholm in the first half of 2009

Current trading
The expanding digital economy is driving increasing demand for our services with both dedicated technology companies and other enterprises continuing to grow their on-line businesses. The Group has signed significant contracts with new customers. These include a five year £3m deal with a global petrochemical company in the Group’s new state-of-art Powergate data centre in London. TelecityGroup continues to extend its business with existing customers, including the signing of an extended and substantially enlarged £18m, 10 year deal with a global telecoms company. Sales order intake remains strong across all of the Group’s geographies.

TelecityGroup is achieving strong pricing in all of its markets. As a result of this, average revenue per occupied square metre continues to grow. The Group’s new data centres in London and Amsterdam are progressing in line with expectations and overall occupancy remains at record levels. These dynamics are driving TelecityGroup’s ongoing growth in revenues, EBITDA and PBT.

TelecityGroup’s financial position remains strong and all current expansion plans (including Stockholm 2 as described below) will be fully financed from cash flows and existing committed bank facilities.

New Stockholm data centre to be built
In line with TelecityGroup’s strategy of opening new space in markets where existing capacity is approaching full utilisation, the Group is opening a new data centre in Stockholm to ensure that it continues to have growth capacity in this market.

The data centre is to be launched in phases from the first half of 2009. In total, the new data centre will provide approximately 4 megawatts of high density net customer power. TelecityGroup expects to invest around £29 million in the project. This will be the Group’s 23rd data centre in Europe and its second in Stockholm. The facility will offer connectivity to major telecoms and network service providers. In addition, Netnod, the Swedish Internet Exchange, will have a live presence on the site from launch, offering global peering and connectivity options for customers. A leading global systems integrator has also already agreed to be a customer for the new data centre.

Michael Tobin, CEO of TelecityGroup, commented:

“TelecityGroup is delivering strong and sustained growth in all key financial metrics. As a result of our leading position in the European market place we are experiencing increasing demand for our premium, highly connected data centre services and we are scaling to meet this demand with new capacity in our core markets. I have great confidence in the future prospects of the Group.”

For further information please contact:

Investors:
TelecityGroup:
Matthew Springett
+44 (0)20 7005 6337

Media:
TelecityGroup:
James Tyler
+44 (0)20 7001 0076

Brunswick:
Sarah West
James Olley
+44 (0)20 7404 5959

Notes to Editors
Telecity Group plc
TelecityGroup is the leading premium provider of highly connected data centres in Europe, offering a range of flexible, scalable data centre and value added services. TelecityGroup specialises in the design, build, and management of highly connected and secure environments in which customers can house their technical, web and internet infrastructure. Each of its data centres acts a connectivity and content hub facilitating the storage, sharing and distribution of data, content and media. Headquartered in London, TelecityGroup operates 20 network independent data centres across seven European countries. The data centres are located in prime positions for commerce and connectivity, including Amsterdam, Dublin, Frankfurt, London, Manchester, Milan, Paris and Stockholm.

Telecity Group plc, the parent company of TelecityGroup, is listed on the London Stock Exchange (LSE: TCY)
www.TelecityGroup.com

Cautionary note regarding forward-looking statements

This announcement includes statements that are forward-looking in nature. The actual results, performance or achievements of the Group may be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements due to known and unknown risks, uncertainties and other factors. Except as required by the Listing Rules and applicable law, Telecity Group plc undertakes no obligation to update or change any forward-looking statements to reflect events occurring after the date such statements are published.

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