LVL sale update

Aviva PLC
17 May 2006




News release


17 May 2006


              AVIVA SELLS 50% STAKE IN LEX VEHICLE LEASING TO HBOS



Aviva plc ('Aviva') and HBOS plc ('HBOS') announce the sale of Aviva's 50% stake
in Lex Vehicle Leasing (Holdings) Limited ('LVL') to HBOS, its 50:50 joint
venture partner in LVL, for £226.8 million in cash.



Aviva acquired its 50% stake in LVL as part of its acquisition of RAC last year.
Under the terms of the LVL joint venture agreement (the 'JV agreement'), the
change of control of RAC provided HBOS with the right to acquire Aviva's 50%
interest in LVL.  As announced by Aviva on 11 October 2005, HBOS chose to
exercise this right.



Aviva and HBOS jointly appointed PricewaterhouseCoopers LLP to act as an
independent expert to determine the fair market value of Aviva's 50% stake in
LVL in accordance with the JV agreement.



The sale of LVL is expected to complete by 31 May 2006. HBOS will then take full
ownership of this market-leading vehicle leasing business, which currently
manages 175,000 vehicles.



                                    - ends -

Enquiries:



Aviva Media

Hayley Stimpson, director of external affairs                [phone]
Vanessa Booth, group media relations manager                 [phone]
Rob Bailhache, Financial Dynamics                            [phone]



Aviva Analysts

Charles Barrows, investor relations director                 [phone]
Jessie Burrows, head of investor relations                   [phone]



HBOS Media
Mark Elliott, head of media relations                        [phone]
Shane O'Riordain, general manager, group communications      [phone]



HBOS Analysts

John Hope, director of investor relations                    [phone]


Notes to editors:

•         LVL was a 50:50 joint venture between RAC and HBOS.  LVL provides
vehicle leasing, supply, management, maintenance and incident support for
companies who outsource the day-to-day operations of their fleets.

•         HBOS is the banking and financial services group formed from the
merger of Halifax and Bank of Scotland in 2001. Today, two out of every five UK
households are HBOS customers. With assets of over £540 billion, it is the UK's
largest mortgage and savings provider as well as being a major player in the
provision of new current accounts and credit cards in the UK. It is also a
growing force in corporate and business banking.  With around 2.3 million
private shareholders, HBOS has the largest shareholder register in the UK.
Profit before tax for the year ended 31st December 2005 was £4.8 billion

•         Aviva is the world's sixth largest insurance group based on gross
worldwide premiums and market capitalisation (at 31 December 2004), and is one
of the leading providers of life and pensions to Europe, with substantial
positions in other markets around the world.

•        Aviva's principal business activities are long-term savings, fund
management and general insurance, with worldwide total sales of £35 billion and
assets under management of £317 billion at 31 December 2005.





                      This information is provided by RNS
            The company news service from the London Stock Exchange           FFAEEIDLIR