Final Results

European Motor Hldgs PLC
25 April 2001

                     EUROPEAN MOTOR HOLDINGS plc ('EMH')

           Preliminary results for the year ended 28 February 2001

Key points:


  * Industry leading performance in extremely difficult trading environment

  * Profit before tax up 10.2% to £8.5 million

  * Earnings per share up 9.4% to 10.5p

  * Dividends up 6.6% to 6.5 pence per share for year

  * Net cash as at 28 February 2001

  * EMH new car sales in March 2001 considerably higher than in March 2000

Commenting on these results, chief executive Richard Palmer said:

'The 10.2% increase in profit before tax in the last year represents an
outstanding achievement in a very challenging environment. We have
considerably outperformed our competitors in the sector and, in view of the
improved trading environment, believe we can look forward to another year of
sustained improvement in efficiency and profitability.'

Enquiries:
Richard Palmer    Chief Executive
                  European Motor Holdings plc
Ann Wilson        Finance Director
                  European Motor Holdings plc
Morning:          Biddick Associates                              020 7448 1000
Afternoon:        European Motor Holdings plc                     020 8961 2525



Chief Executive's statement

In an incredibly difficult trading environment, our profit before tax has
increased by 10.2% from £7.7 million to £8.5 million and earnings per share
have risen 9.4% to 10.5 pence. In view of these results and our confidence
that our progress will continue this year, we are recommending an increase in
our total dividend of 6.6% to 6.5 pence per share for the full year. The final
dividend of 3.75 pence per share will be paid on 3 September 2001 to
shareholders on the register at 3 August.

These excellent results are further proof of the ability and commitment of all
the employees of the Group.

Trading

In our last two trading statements, I have advised you of the difficulties
that the retail motor industry has faced over the last two years. In the
period under review many of the same problems have continued.

The Government's Inquiry into new car pricing had a significant impact,
encouraging customers to defer their purchases until many manufacturers
reduced prices, and this uncertainty had an adverse impact on our first half
performance. However, starting in late August and ending at the beginning of
December, all of our core manufacturer partners reduced their prices. Whilst
these price decreases did not stimulate immediate demand, we managed to
improve our overall margins and efficiency, which has resulted in increased
profit before tax for the Group.

During the last two months of the year, there was clear evidence that
customers were returning to our showrooms and beginning to discuss purchasing
new cars. Our new car sales for March 2001 were considerably higher than for
the same month last year. It is too early to be able to be certain that this
increase in demand is sustainable for the whole of the new financial year but
our current performance gives rise to optimism for the year ahead.

We have always been committed to trying to give our customers the best
possible experience whether they are buying vehicles, service, parts or merely
making an enquiry. This commitment to customer care has helped us to overcome
the difficulties in the market. There is no doubt that contented customers are
prepared to pay a reasonable premium for good service.

During the period, good stock management and control have been of paramount
importance. The Group owns two car auctions and the intelligence derived from
these, together with our used car management, has ensured that we have not had
to make any significant write downs on our used car stocks. The Group's policy
of not exposing the business to residual value risk, whether through ownership
of contract hire operations or Motability buyback contracts, has meant that we
have no need for provisions or write offs in respect of vehicle residual
values in this year or any future year.

Our management has played a key role in the successful outcome for this year.
As I reported to you in our interim statement, our senior management team
remains unchanged. It is not a coincidence that this stable and focussed
management team has been able to face and manage effectively all the
challenges that this year has presented.

In December last year, DaimlerChrysler took the extraordinary decision to
terminate all its dealers in the United Kingdom by giving them one year's
notice. We were informed in January that DaimlerChrysler wished to operate all
Mercedes-Benz dealerships in the London area itself. It is questionable
whether the twelve months' notice of termination is legal and this is a matter
of ongoing discussion with the manufacturer, who has recently also issued two
year notices of termination. We are extremely fortunate that, within our
Mercedes-Benz businesses, we control some key strategic locations including an
extremely valuable freehold property in Park Royal and the Board is currently
considering a number of options in relation to these sites.

We have discussed DaimlerChrysler's decision with regard to ownership of
retail operations with our key franchise partners. As a result of these
discussions, we do not believe that any of our core manufacturers intend to
follow the same course of action.

We are currently looking at a number of opportunities for the Group. We have
recently purchased our fourth Jaguar business, in Doncaster, and we have been
awarded the Volvo territories for Leeds and Harrogate with effect from 1
January 2002.

As the UK importer for Perodua, the Malaysian car manufacturer, we launched
our new model, the Kenari, at the British International Motor Show in
Birmingham last October. The launch was an unqualified success and we have
sold every Kenari that we have imported. The Nippa has ended its export run
and our current stocks of this model are due to run out in the first half of
this year. However, we will be importing Perodua's latest vehicle, the Kelisa,
which is an exciting, compact, five door hatchback, and we expect to launch
this vehicle in the United Kingdom in January 2002.

Motor Services Division

Wilcomatic has made a great deal of progress in the last twelve months and its
profit before taxation has risen by 46%. A great deal of hard work and
management time have been invested in changing the direction and emphasis of
the company. We changed our supplier of roll over car washes in the period
from Ceccato to Christ, a German producer of high quality car wash equipment.
We have started this new association well and anticipate a growing order book
for these products.

During the course of last year, we continued to pursue stand alone retail car
wash opportunities. This initiative moved much closer to fruition when broad
agreement was reached with a major United Kingdom supermarket group. I
anticipate that we will make progress in retail washing and we expect to open
the first of our car wash centres during the next year.

Block Exemption

Much has been written about Block Exemption in the past few months and the
possibility of its removal in 2002. The Block Exemption system allows the
motor industry in Europe to be exempt from certain of the European Union's
competition laws and, in particular, the existing legislation allows exclusive
dealer franchise territories.

If Block Exemption were to disappear in the United Kingdom, I do not believe
there would be a significant effect on EMH's business. Block Exemption only
operates within the European Union; countries like the USA, Japan and
Australia do not have Block Exemption, yet they have thriving motor dealers
and dealer groups. Good reputation, good customer service, and local
representation and knowledge will continue to count and, if new entrants
appear in the motor retail market, I believe that the established dealership
infrastructure will more than hold its own.

Financial Review

Profit on ordinary activities before tax for the year ended 28 February 2001
was £8.5 million compared to £7.7 million in the previous year. The Group's
effective tax rate in the year ended 28 February 2001 was 33.3%, slightly
higher than last year's rate of 32.5%.

Earnings per share for the year were 10.5p compared to 9.6p last year. The
Board is recommending a final dividend of 3.75p per share, bringing the full
year's dividend to 6.5p. This represents a 6.6% increase on last year's total
dividend of 6.1p per share. Dividend cover this year is 1.6 times, the same as
last year.

Turnover has reduced by £22 million. This is as a result of several factors
including the impact of non core branches closed during last year, lower
transaction prices and a change in the method of dealing with sales to fleet
customers by one of our manufacturer partners.

As a result of the above factors and the improved trading by our businesses,
operating profit has increased to 2.2% of turnover, compared to 2.0% last
year. When the reduction in net interest payable is also taken into account,
profit before tax has increased to 2.1% of turnover, compared to 1.8% last
year. These ratios are among the best in the industry.

Interest cover excluding new vehicle stocking interest increased from 11.1
times to 19.4 times for the year as a result of increased profits and reduced
borrowings. Interest cover including new vehicle stocking interest increased
from 6.1 times to 7.6 times.

The Group continues to be in a very strong financial position, as evidenced by
the balance sheet, which shows net assets of £45.7 million. During the year,
we have invested £1.6 million in capital expenditure, whilst disposal proceeds
amounted to £1.0 million. The majority of our dealership redevelopments have
now been carried out, and therefore capital expenditure in the near future on
our existing portfolio of businesses should be at a lower level than in the
last few years.

The principal elements of our borrowings are loans from finance houses and
leasing obligations in respect of demonstrator vehicles and certain dealership
refurbishments. Most utilised borrowings are repayable either on demand or
within the current calendar year, although some leases in respect of fixed
assets have five or ten year terms. In addition, the Group has substantial
banking facilities which were unutilised at the balance sheet date.

During the year, £1.5 million of our loans from finance houses were repaid in
the light of the Group's net cash position. Further loans totalling £0.9
million have been repaid since the year end. The remaining loans are at
advantageous interest rates and no further repayments are currently intended.

Management of our working capital has been very good during the year, with
particular emphasis on tight control of used vehicle stocks. As a result,
working capital has been reduced by £5.0 million during the period. Payments
in respect of taxation and dividends amounted to £6.0 million, and £0.1
million was spent on acquiring the minority interest in Perodua UK Limited.
The net effect of these cash flows and of the £11.9 million operating profit
(excluding depreciation) in the year, is to change the Group's net borrowings
of £7.1 million at 29 February 2000 to net cash of £2.5 million at 28 February
2001. This has resulted in the Group being ungeared at the balance sheet date
compared with having a gearing ratio of 16% at the previous year end.

The Group's net cash/borrowings position at the year end is not necessarily
representative of the year as a whole because, immediately prior to a month
with a registration plate change, used vehicle stocks and vehicle debtors are
lower than at other times of the year and we are in receipt of deposits on
cars being prepared for sale in March. However, this does not detract from the
Group's excellent cash generation in the year and the improvement over last
year end's position.

Outlook and summary

We have much to look forward to in the coming year. Our March performance in
our Motor Retail Division was above our budget expectations and has given the
Group an excellent start to the new financial year. There are opportunities
for the Group to expand with its core partners which will come to fruition in
the coming year. Wilcomatic continues to make progress and we believe that
there will be real opportunities for retail washing this year.

In spite of the difficulties of the last year, we have moved forward. I remain
very confident that we are capable of moving forward once again in this new
financial year.

My thanks go to our staff, advisers, franchise partners and shareholders for
their contribution to the last year's performance.

Richard Palmer

Chief Executive

25 April 2001



CONSOLIDATED PROFIT AND LOSS ACCOUNT
                                            Notes  Year ended        Year ended
                                                  28 February       29 February
                                                         2001              2000
                                                         £000              £000

Turnover                                        1    399,678           421,804
Cost of sales                                       (340,820)         (363,662)

Gross profit                                          58,858            58,142
Distribution costs                                   (27,814)          (28,710)
Administrative expenses                              (22,125)          (20,993)

Operating profit                                2      8,919             8,439

Interest receivable                                      360               145

Interest payable                                        (820)             (908)

Profit on ordinary activities before                   8,459             7,676
taxation

Tax on profit on ordinary activities                  (2,817)           (2,494)

Profit on ordinary activities after                    5,642             5,182
taxation

Equity minority interests                                (13)               (5)

Profit for the financial year                          5,629             5,177

Dividends                                       3     (3,496)           (3,281)
Retained profit for the financial year                 2,133             1,896

Earnings per share                              4      10.5p              9.6p

Dividend per share                              3       6.5p              6.1p

There are no recognised gains or losses other than the profit for the year as
reported above.



CONSOLIDATED BALANCE SHEET
                                                           28               29
                                                     February         February
                                                         2001             2000
                                                         £000             £000

Fixed assets
Tangible assets                                        30,550           32,814
Goodwill                                                   75                 -

                                                       30,625           32,814

Current assets
Stocks                                                 65,690           62,597
Debtors                                                18,026           17,814
Cash at bank and in hand                               13,535            6,390

                                                       97,251           86,801

Creditors: amounts falling due within one             (80,424)         (73,711)
year

Net current assets                                     16,827           13,090

Total assets less current liabilities                  47,452           45,904

Creditors: amounts falling due after more                (421)            (671)
than one year

Provisions for liabilities and charges                   (720)            (698)

Deferred income                                          (598)            (946)

                                                       45,713           43,589


Capital and reserves
Called up share capital                                21,513           21,513
Share premium account                                  26,476           26,476
Profit and loss account                                (2,276)          (4,409)

Equity shareholders' funds                             45,713           43,580

Equity minority interests                                    -               9

                                                       45,713           43,589

Gearing                                                    -%              16%



CONSOLIDATED CASH FLOW STATEMENT
                                           Year ended               Year ended
                                          28 February              29 February
                                                 2001                     2000
                                                 £000                     £000

Net cash inflow from operating                 16,873                   12,379
activities
Returns on investments and                       (460)                    (763)
servicing of finance
Tax paid                                       (2,603)                  (1,907)
Capital expenditure and financial                (686)                  (3,220)
investment
Acquisitions and disposals                       (100)                        -
Equity dividends paid                          (3,362)                  (3,281)
Net cash inflow before financing                9,662                    3,208
Financing                                      (2,512)                   2,957

Increase in cash in the year                    7,150                    6,165

Reconciliation of operating profit to net cash flow from operating activities

                                                   Year ended      Year ended 29
                                                  28 February      February 2000
                                                         2001
                                                         £000               £000

Operating profit                                        8,919            8,439
Depreciation and amortisation                           2,966            2,548
Profit on sale of tangible fixed                          (8)             (12)
assets
(Increase)/decrease in stocks                         (3,093)            1,532
(Increase) in debtors                                   (212)          (1,203)
Increase in creditors                                   8,301            1,075

Net cash inflow from operating                         16,873           12,379
activities

Analysis of changes in
net debt
                           At 1          Cash           Other        At 28 Feb
                         March          flow            non-              2001
                          2000                           cash
                                                     changes
                          £000          £000            £000              £000
Cash at bank and in      6,390         7,145                -           13,535
hand
Bank overdraft              (5)            5                -                 -
                         6,385         7,150                            13,535

Debt due within one     (8,422)        1,522             (22)           (6,922)
year
Debt due after one         (39)             -             22               (17)
year
Finance leases          (5,062)          990              (5)           (4,077)
                                       2,512


Total                   (7,138)        9,662              (5)            2,519



NOTES TO THE STATEMENT OF PRELIMINARY RESULTS

 1. Analysis of turnover

                                               Year ended            Year ended
                                                   28 Feb                29 Feb
                                                     2001                  2000
                                                     £000                  £000

Motor Retail Division                             384,950               407,056
Motor Services Division                            10,475                10,630
Other Businesses                                    4,253                 4,118
                                                  399,678               421,804

2. Operating profit comprises:

                                              Year ended            Year ended
                                                  28 Feb                29 Feb
                                                    2001                  2000
                                                    £000                  £000

Motor Retail Division                              9,982                 9,543
Motor Services Division                              655                   479
Other Businesses                                      89                   157
Central Costs                                     (1,807)               (1,740)
                                                   8,919                 8,439

3. The Directors recommend a final dividend of 3.75p (2000, 3.50p) per share,
to be paid on 3 September 2001 to shareholders on the register at 3 August
2001. An interim dividend of 2.75p (2000, 2.6p) per share was paid during the
year, making a total for the year of 6.5p (2000, 6.1p).

4. The calculation of earnings per share for the year ended 28 February 2001 is
based on the profit for the financial period of £5,629,000 (2000, £5,177,000)
and on 53,784,710 (2000, 53,784,710) ordinary shares, being the weighted
average number of shares in issue during the year.

5. This preliminary results statement has been prepared on the basis of the
same accounting policies as those set out in the financial statements for the
year ended 29 February 2000 except for the adoption of FRS 15 (Tangible Fixed
Assets) and FRS 16 (Current Tax).

6. This preliminary results statement was approved by the Board of Directors on
25 April 2001. The above results for the year ended 28 February 2001 have been
abridged from the full Group accounts for that year, which received an
unqualified auditors' report and which will be delivered to the Registrar of
Companies shortly.

7. The above results for the year ended 29 February 2000 have been abridged
from the full Group accounts for that period, which received an unqualified
auditors' report and which have been delivered to the Registrar of Companies.

8. The Annual Report and Financial Statements will be posted to shareholders as
soon as practicable. Further copies will be available from the company's
registered office at Abbey Road, Park Royal, London NW10 7RY.