RNS Number:4450T
TeleCity PLC
18 December 2003


                                  TELECITY PLC


                           MUNICH LEASE ARRANGEMENTS


                                18 December 2003


In April 2000, the Company's subsidiary, TeleCity GmbH, entered into a 16-year
lease for the Company's Munich site. Under the lease, a monthly rent of
approximately Euro175,000 (#121,000) was payable. The lease was due to terminate on
31 July 2016.


On 7 April 2003, in the announcement of the preliminary results for the year
ended 31 December 2002, the Company reported that the negotiations to terminate
the lease of the Company's Munich site had been successfully concluded. Further,
included in another announcement made on 10 June 2003, of the Company's first
quarter results to 31 March 2003, was a statement that the Company had exited
from all its surplus properties, which included Munich.


The aforementioned negotiations had envisaged the termination of the Munich
lease on 31 December 2003. However, it has recently become apparent to the Board
that the lease had not in fact been effectively terminated under and in
accordance with German law and that further action was therefore necessary to
negate or reduce the Company's financial obligations under the lease.


The Company has renegotiated the lease with the landlord with the result that,
under the terms of an agreement signed today, the monthly rent payable by the
Company under the lease has been reduced to approximately Euro108,000 (#75,000) per
month with effect from 1 January 2004. This reduction in rent payable has been
achieved by the surrender of 40% of the leased property back to the landlord for
re-letting to other tenants.


In addition, the landlord has undertaken to refurbish, at its own expense, the
surrendered part of the property as office space. As from 1 January 2004, the
Company continues to be liable for the rental payments related to the remaining
60% of the Munich property, until 31 July 2016. The Company is now working on a
constructive basis with the landlord to find new tenants for the remaining 60%
of the building, which if successful, is expected to result in further
surrenders back to the landlord and further reductions in the rent payable by
the Company.


For further information:


Ricky Hudson            020 7519 4877


Josh Joshi                  020 7519 4886


Citigate Dewe Rogerson - 020 7638 9571
Sue Pemberton/Freida Moore







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            The company news service from the London Stock Exchange

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