Acquisition

European Motor Hldgs PLC
06 August 2004


EUROPEAN MOTOR HOLDINGS plc


ACQUISITION AND DISPOSAL



European Motor Holdings plc ("EMH") announced on 28 April 2004 that the group
had been confirmed as Audi's preferred candidate for a market area in the West
of England.  EMH also announced at the same time that it expected to dispose of
two of its existing Audi businesses.


EMH has today disposed of the business and certain assets of its Audi business
in Sunderland, Mill Audi, to Colebrook & Burgess Limited.  The total
consideration for this transaction was £2.1 million and this has resulted in a
net profit on disposal of £0.5 million.  In the year ended 28 February 2004 this
business made a contribution to group profits of £360,000.


We are delighted to announce the first stage of the development of the West of
England market area, in which the EMH has today acquired the whole of the issued
share capital of Goodyer Motor Company Limited ("Goodyer"), which trades as
Swindon Audi, for a cash consideration of £1.7 million, representing goodwill.
The audited accounts of Goodyer covering its first 14 months of trading for the
period ended 28 December 2003 showed a profit before taxation of £222,000.

The acquisition of Goodyer is the first step in our expansion of our Audi
operations in West of England, building on our existing successful Audi business
in Tetbury, an adjoining territory to Swindon.







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