RNS Number:9127Q

Safestore Holdings Ltd08 February 2007

This document (and the information contained herein) is not for publication ordistribution in or into the United States, Australia, Canada and Japan.

This announcement is an advertisement and not a prospectus and investors shouldnot subscribe for or purchase any shares referred to in this announcement excepton the basis of information in the prospectus to be published by Safestore

Holdings Limited in due course in connection with the admission of the ordinaryshares in the capital of the Company to the Official List of the Financial

Services Authority and to trading on London Stock Exchange plc's main market forlisted securities (the "Prospectus"). Copies of the Prospectus will, followingpublication, be available from Safestore Holdings Limited's registered office. 8 February 2007 SAFESTORE HOLDINGS LIMITED ("Safestore" or the "Group" or the "Company") Initial Public Offering and Intention to Float and to List on the London Stock Exchange

Safestore announces its intention to proceed with an initial public offering ofits shares (the "Offer") and on application to be admitted to the Official Listof the Financial Services Authority and to trading on the London Stock Exchange("Admission").

Safestore* Safestore is the largest self storage provider in the UK and the central Paris region and the second largest in the EU, in terms of number of stores, providing individual, secure self storage space and related services.* The UK is the largest and most established self storage market in Europe, followed by France. Both markets show far lower penetration rates than the US or Australia and, according to the UK Self Storage Association, are expected to grow significantly. This growth is supported by a number of market trends including: increased workforce mobility, social factors such as high divorce rates and an ageing population, housing stock pressure in the UK and lifestyle trends such as the growth in the home improvement market.* Since 2002, Safestore has undergone a transformation under the current management team. Expanding rapidly, primarily through acquisition, Safestore now has 98 sites. The Group operates 79 stores, three of which are business centres, under the "Safestore" brand in the UK and 19 stores under "Une Piece en Plus'' in France. Over the last two years, all of the stores have been rebranded with Safestore's distinctive signage - to improve brand awareness.* Safestore currently has approximately 30,000 domestic and business customers with an historic average length of stay of 40 weeks or 73 weeks for current users. The Group's business model is supported by a substantial asset base, strong cashflow and a solid record of earnings which are continuing to grow.* For the year to 31 October 2006, Safestore recorded a 22% increase in revenues to #64.3 million (2005: #52.9 million) with EBITDA before exceptional items growing 24%to #33.5 million (2005: #27.0 million), all under IFRS. As at 31 October 2006, the Group's property portfolio had an estimated value of #475.2 million.* The majority of Safestore's revenue is generated through the provision of self storage space. However, ancillary revenues are derived from the sale of contents insurance and storage accessories.* In addition to the Group's 98 sites, as at 31 January 2007, Safestore had exchanged or completed contracts on 12 expansion stores, nine of which have planning permission, and in addition has one further property in the final stages of the contract process.* The Group has a maximum lettable area of approximately 4 million square feet and a current lettable area of approximately 3.6 million square feet. The 12 expansion stores will add approximately 0.7 million square feet of which the majority will be available to let by the end of the second quarter of 2008.

The Self Storage Market

Name UK Number European Number of Total Regions Ranking of UK Ranking Continental Number Stores European of Stores Stores------- ------- -------- ------- -------- -------- -------------------- Safestore 1 79 2 19 98 UK, France

Access 2 45 3 - 45 London, North England

Big 3 42 4 - 42 UK Southeast

Yellow

Lok'n Store 4 21 5 - 21 UK Southeast

Shurgard 5 19 1 150 169 UK Southeast, Belgium, Sweden, France, Netherlands, Denmark, Germany

Source: Company information, websites of Access, Big Yellow, Lok'n Store and

Shurgard.

Growth Strategy* The Directors believe there is significant scope to consolidate further Safestore's existing leading market position, through expanding the existing store portfolio in the UK and Continental Europe, continuing to improve operational performance and building greater awareness of self storage and Safestore's brand within the sector.* Over the next five years the Group intends to add between 7-10 stores per annum, which based on current average store maximum lettable area, should equate to an additional 300,000 to 500,000 square feet of maximum lettable area per annum. In addition, the management team has a proven acquisition track record and will continue to consider acquisitions as an additional route to growth.* Safestore will pursue its ongoing focus on optimising the profit from its existing stores by maximizing yields per square foot and increasing occupancy whilst maintaining control of costs.* The Group is actively involved in promoting the self storage industry with the objective of Safestore becoming synonymous with self storage. As part of this aim the Group will continue to develop its distinctive brands, new stores will be located in prominent locations thereby maximising visibility to the local target market. In addition, continuous re-enforcement of Safestore's brand is achieved through marketing via the internet, local directories, national and local press, leaflets and radio advertising - increasing awareness among key audiences.

Summary of the Global Offer* The Offer is expected to be completed in early March 2007.* It is expected that Bridgepoint will retain a significant shareholding in Safestore post-IPO and will commit not to sell any of its remaining holdings for at least 180 days from Admission.* Citigroup and Merrill Lynch have been appointed Joint Global Co-ordinators and Joint Bookrunners of the Offer.* Citigroup has been appointed sole Sponsor of the Offer.

Steve Williams, Chief Executive of Safestore, said:"Safestore has undergone a transformation that has resulted in the Groupbecoming the UK's largest and Europe's second largest self storage provider interms of number of stores. Our store portfolio has trebled over the past threeyears, both through successful acquisitions and continued organic growth."We believe that Safestore's distinctive brand, market leading positions andstrong operational expertise provide us with an excellent platform to benefit inthe fast growing market for self storage in the UK and Europe."

Enquiries:

Safestore Holdings Limited

Steve Williams

Tel: + 44 (0)20 7930 0777

Citigroup

Michael Lavelle

Jan Skarbek

Andrew Forrester

David Plowman

Tel: +44 (0) 20 7986 4000

Merrill Lynch

Mark Gwynne

Kirk Lindstrom

Tel: +44 (0)20 7628 1000

Cardew Group

Tim Robertson

Nadja Vetter

Sofia Rehman

Tel: + 44 (0)20 7930 0777

Bridgepoint

James Murray

Tel: +44 (0)20 7432 3555

High resolution images for the media to view and download free of charge areavailable from www.vismedia.co.uk

Board

John von Spreckelsen, Non-Executive Chairman

John von Spreckelsen joined the Board in October 2004 as Chairman and a

Non-Executive Director. Mr Spreckelsen also currently holds the chairmanships at

Thorntons Plc, Forstinger and Handel and Service GmbH and is a non-executivedirector of Mayflower Holdings Limited. Previously, Mr von Spreckelsen was thechief executive officer of Budgens plc and served as the chairman of Somerfieldplc, Gartmore European Investment Trust plc and Cellec AG (Switzerland). Mr

Spreckelsen began his career at Commerzbank Germany and Bank of America

International, before becoming the European finance director of Bowater

Corporation.

Stephen Williams, Chief Executive Officer

Stephen Williams joined the Board in June 2001 as Chief Operating Officer,following a period as an external consultant for the company. Mr Williams wasappointed to the position of Chief Executive Officer in January 2002. He hasover 30 years' experience in the retail industry and management. Mr Williams wasoperations director at Pet City between 1993 and 2000 and operations controllerat Wickes from 1991 to 1993. Prior to this he had an eighteen-year tenure at

Payless DIY, becoming its operations director.

Richard Hodsden, Chief Financial Officer

Richard Hodsden joined the Board in August 2002 as Chief Financial Officer. Hepreviously held the position of finance director at Globalvault plc, Security

Printing & Systems Limited and Lifestyle Upholstery Limited. He was alsofinancial controller of Flextronics International Limited and financialcontroller of Parliamentary and Secure Services, The Stationery Office. Mr.

Hodsden started his career at KPMG, where he qualified as a chartered accountantin 1991. Mr Hodsden is a Fellow of the Institute of Chartered Accountants in

England and Wales.

Vincent Gwilliam, Non-Executive Director

Vince Gwilliam joined the Board as a Non-Executive Director in August 2003. Mr.

Gwilliam is a partner at Bridgepoint Capital Limited, a private equity provider,where he is responsible for Bridgepoint's investments in the retail sector.

Prior to joining Bridgepoint in 1987, Mr. Gwilliam worked at Coopers & Lybrandin the UK Business Services Group. Mr. Gwilliam is a graduate of Durham

University and is a Fellow of the Institute of Chartered Accountants in Englandand Wales.

Richard Grainger, Non-Executive Director

Richard Grainger joined the Board on 1 February 2007 as a Non-Executive

Director. After graduating from Oxford University, Mr Grainger qualified as achartered accountant at Pricewaterhouse. He started at Hill Samuel Bank Limitedin 1987 and subsequently joined Close Brothers Corporate Finance Limited("CBCF") in 1996. In 2001, Mr Grainger was appointed Chief Executive of CBCFhaving previously run the Leisure and Retail team and founded Close Brothers

Corporate Finance's Corporate Restructuring Group. Mr Grainger is a member ofthe Management Board of Close Brothers Group plc. Mr Grainger is a Fellow of the

Institute of Chartered Accountants in England and Wales.

Roger Carey, Non-Executive Director

Roger Carey has recently been appointed a Non-Executive Director. He was adirector of Slough Estates plc from 1983-1996 and was chief executive of Saville

Gordon Estates plc from 1997, leading a management buyout in 2002. The company,renamed Industrious, was subsequently sold to Brixton plc in 2005. Mr Carey wasa non-executive director of TR Property Unit Trust from 1993-2002, and iscurrently a non-executive chairman of Ibis Project Services Ltd and Protego

Industrial Guernsey Ltd and a non-executive director of Bassett Trust Ltd and ofresidual Industrious companies. He is a past President of the British Property

Federation. Mr Carey is a Fellow of the Institute of Chartered Accountants in

England and Wales.

The contents of this announcement, which have been prepared by and are the soleresponsibility of the Company, have been approved solely for the purposes ofsection 21(2)(b) of the Financial Services and Markets Act 2000 by Citigroup

Global Markets Limited of Citigroup Centre, Canada Square, London E14. Citigroup

Global Markets Limited, Citigroup Global Markets UK Equity Limited and Merrill

Lynch International are authorised and regulated by the Financial Services

Authority and are acting for the Company in connection with the Offer and willnot regard any other person as their respective clients and will not beresponsible to anyone other than the Company for providing the protectionsafforded to their respective clients or for providing advice in relation to the

Offer, the contents of this announcement or any matters referred to herein.

The information contained herein is not for publication or distribution in the

United States of America, Canada, Australia or Japan. This announcement does notconstitute or form part of an offer to sell or issue, or any solicitation of anoffer to buy or subscribe for any securities referred to herein. The securitiesreferred to herein have not been and will not be registered under the U.S.

Securities Act of 1933, as amended, and may not be offered or sold in the United

States absent registration under that Act or an available exemption from it. The

Company and the selling security holders do not intend to register thesecurities or conduct a public offering in the United States.

Securities in Safestore Holdings Limited have not been and will not beregistered under the applicable Securities Laws of Australia, Canada, or Japanand may not be offered or sold within Australia, Canada, or Japan or to, or forthe account or benefit of, citizens or residents of Australia, Canada, or Japan.

The Offer is being made in the United Kingdom by means of an offer toinstitutional investors. The Offer and the distribution of this announcement andother information in connection with the Offer in certain jurisdictions may berestricted by law and persons into whose possession any document or otherinformation referred to herein comes should inform themselves about and observeany such restriction. Any failure to comply with these restrictions mayconstitute a violation of the securities laws of any such jurisdiction.

This announcement does not constitute or form part of any offer or invitation tosell or issue, or any solicitation of any offer to purchase or subscribe for,any securities and any purchase of or application for securities of the Companypursuant to the Offer should only be made on the basis of the informationcontained in the prospectus to be issued in connection with the Offer (the"Prospectus"). The price and value of securities may go up as well as down.

Persons needing advice should contact a professional adviser.

This announcement includes statements that are, or may be deemed to be,"forward-looking statements". These forward-looking statements can be identifiedby the use of forward-looking terminology, including the terms "believes","estimates", "plans", "projects", "anticipates", "expects", "intends", "may","will", or "should" or, in each case, their negative or other variations orcomparable terminology. These forward-looking statements include matters thatare not historical facts and include statements regarding the Company'sintentions, beliefs or current expectations concerning, among other things, the

Company's results of operations, financial condition, liquidity, prospects,growth, strategies and the self storage industry.

By their nature, forward-looking statements involve risk and uncertainty becausethey relate to future events and circumstances. A number of factors could causeactual results and developments to differ materially from those expressed orimplied by the forward-looking statements including, without limitation, thefactors to be described in the risk factors section of the Prospectus and thefactors to be described in the operating and financial review section of the

Prospectus.

Forward-looking statements may and often do differ materially from actualresults. Any forward-looking statements in this announcement reflect the

Company's view with respect to future events as at the date of this announcementand are subject to risks relating to future events and other risks,uncertainties and assumptions relating to the Company's operations, results ofoperations, growth strategy and liquidity. Save as required by law or by the

Listing Rules, Disclosure and Transparency Rules or Prospectus Rules of the

Financial Services Authority, the Company undertakes no obligation publicly torelease the results of any revisions to any forward-looking statements in thisannouncement that may occur due to any change in its expectations or to reflectevents or circumstances after the date of this announcement.

In connection with the Offer, Citigroup Global Markets U.K. Equity Limited, asstabilising manager, or any of its agents, may (but will be under no obligationto), to the extent permitted by law, over allot or effect other transactionsintended to enable it to satisfy any over allotments or which stabilise,maintain or otherwise affect the market price of shares in Safestore Holdings

Limited (the "Shares") or any options, warrants or rights with respect to, orinterest in, the Shares or other securities of Safestore Holdings Limited, ineach case at levels which might not otherwise prevail in the open market. Thestabilising manager is not required to enter into such transactions and suchtransactions may be effected on the London Stock Exchange and any othersecurities market, over the counter market or otherwise. Such transactions, ifcommenced, may be discontinued at any time and may only be entered into betweencommencement of conditional trading of the Shares on the London Stock Exchangeand 30 days thereafter. In connection with the Offer; the stabilising managermay, for stabilisation purposes, over allot Shares up to a maximum of 15% of thetotal number of Shares comprised in the Offer. For the purposes for allowing itto cover short positions resulting from any such over-allotments and/or fromsales of Shares effected by it during the stabilisation period, the stabilisingmanager will enter into an over-allotment option with certain of the sellingshareholders pursuant to which the stabilisation manager may purchase or procurepurchasers for additional Shares up to a maximum of 15% of the total number of

Shares comprised in the Offer at the Offer price. The over-allotment option willbe exercisable in whole or in part, upon notice by the stabilisation manager, atany time on or before the thirtieth day after the commencement of conditionaltrading of the Shares on the London Stock Exchange.

Information in this announcement or any of the documents relating to the Offercannot be relied upon as a guide to future performance. This information is provided by RNS The company news service from the London Stock Exchange

END

NRABCGDDCBGGGRR

For more information and to contact AFX: www.afxnews.com andwww.afxpress.com