Interim Results

European Motor Hldgs PLC
9 October 2000

                     EUROPEAN MOTOR HOLDINGS plc ('EMH')

           Interim results for the six months ended 31 August 2000

Highlights:


  * Excellent results notwithstanding a very challenging trading environment

  * Profit before taxation increased by 16% to £4.9 million (1999, £4.2
    million)

  * Earnings per share increased by 17% to 6.2 pence (1999, 5.3 pence)

  * Interim dividend declared at 2.75 pence per share (1999, 2.6 pence per
    share)

  * Net cash of £4.2 million at 31 August 2000 (1999, net borrowings of £7.1
    million)

Richard Palmer, Chief Executive, commented:

'We are delighted to announce an industry leading performance in a period
which has been adversely affected by continued uncertainty over pricing.
Recently announced price reductions by our key manufacturer partners give us
optimism for the period ahead.'

 Enquiries:

Richard Palmer     Chief Executive

Ann Wilson          Finance Director

Normand City of London Limited     (morning)          020 7236 3745

European Motor Holdings plc          (afternoon)          020 8961 2525

Biddick Associates                (press enquiries)     020 7464 4280

THESE NOTES SHOULD BE READ IN CONJUNCTION WITH THE ATTACHED PRESS RELEASE.

                         Chief Executive's statement

 Highlights:


  * Excellent results notwithstanding a very challenging trading environment

  * Profit before taxation increased by 16% to £4.9 million (1999, £4.2
    million)

  * Earnings per share increased by 17% to 6.2 pence (1999, 5.3 pence)

  * Interim dividend declared at 2.75 pence per share (1999, 2.6 pence per
    share)

  * Net cash of £4.2 million at 31 August 2000 (1999, net borrowings of £7.1
    million)

Results and dividend

Profit before tax has increased by 16% to £4.9 million compared to £4.2
million in the same period last year. In view of our improved performance and
prospects, we have decided to increase our interim dividend by 5.8% to 2.75
pence per share.

Trading

We have enjoyed a significantly better first half to our financial year
compared to the same period last year. We have managed to improve our
profitability in a period that could scarcely have been worse for UK car
retailing. The price reductions which have recently been announced by the
majority of the manufacturers we represent had no effect on the period under
review, which makes our improved performance all the more creditable.

As we entered this financial year, the uncertainty surrounding the future of
UK car prices had seriously impaired our ability to maintain margins on the
majority of the new vehicles that we sold. Parallel importers had established
a place in the market and potential customers were buying cars which were not
necessarily built for UK markets. Customers who were loyal to UK dealers
typically either deferred their purchase or expected to negotiate the best
possible deal and, as a consequence, margins were eroded. Now that the
majority of the manufacturers for which we hold franchises have responded by
cutting their prices, higher levels of profitability will, I believe, return.

Our small, focussed head office team has continued to manage our business very
effectively during the period, and our established policy of investing in
management means that we are continuing to develop staff at all levels within
the Group. In an industry which is renowned for its high staff turnover, we
are pleased to report that our entire motor retail management team has
remained unaltered for the last eighteen months and this has undoubtedly had a
positive effect on this current set of figures.

I believe that we enjoy excellent relationships with our motor manufacturer
partners and most have confirmed to us their willingness for us to expand our
portfolio of dealerships with them.

We have managed our working capital very effectively during the period and
this has resulted in our cash positive position at the balance sheet date. Our
very strong balance sheet, together with large unutilised credit lines
available from our bankers and the positive manufacturer position referred to
above, mean that we will be able to act quickly when opportunities to expand
our dealership portfolio become available.

In reviewing our franchise mix, I continue to believe that the sector of the
market within which we operate is still capable of further expansion. I do not
believe that the traditional volume manufacturers' current market shares are
sustainable, and the sales traditionally associated with those manufacturers
are likely to fall as more companies change their car policy either to 'cash
for car' or to give their employees a wider choice. The fact that customers
can now buy a premium or specialist car for the same price as a slightly
larger volume car is also helping our manufacturers capture more retail buyers
who may have believed in the past that they could only afford to buy a volume
car with little brand identity.

In expanding our business in the future, we will continue to invest in the
franchises which have remained profitable during the last two difficult years.

We are continuing to refine and expand our e-commerce activity and expect to
introduce new initiatives in the second half of the financial year, when we
also expect to use the Internet to make a unique Perodua offer.

We are also delighted to confirm that, as the UK importer for Perodua, we will
be launching a new five door mini MPV, the Kenari, at the British
International Motor Show on 17 October. This vehicle will help to further
establish the franchise within the market.

Our Motor Services Division's profitability improved on the previous period
and we expect a satisfactory outcome for the full year. We are continuing to
concentrate much of our effort on the non traditional car wash users such as
the supermarket groups, motor dealers and manufacturers' or dealer groups' pre
delivery inspection centres.

After many years of working with Ceccato, our Italian roll over car wash
machinery supplier, we have given notice of termination of our distribution
agreement with them with effect from 1 June 2001. From that date, we will
replace Ceccato with another manufacturer with whom we have already signed an
agreement, but until the Ceccato distribution agreement ends we will continue
to sell Ceccato equipment.

Financial Review

Profit on ordinary activities before tax for the six months ended 31 August
2000 was £4.9 million compared to £4.2 million in the corresponding period
last year. The estimated effective tax rate for the current financial year is
32%, unchanged from last year.

Turnover has reduced by £16 million. This is as a result of several factors
including the impact of 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.

The Group continues to be in a very strong financial position, as evidenced by
the attached balance sheet. The summarised cash flow statement shows that we
have invested £0.7 million in capital expenditure, whilst disposal proceeds
amounted to £0.8 million. The majority of our dealership redevelopments have
now been carried out, and therefore capital expenditure in the second half of
the financial year should not be significant.

Working capital has been reduced by £5.9 million during the period. Payments
in respect of taxation amounted to £0.8 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 £6.5 million operating profit (excluding depreciation)
in the period, is to change the Group's net borrowings of £7.1 million at 29
February to net cash of £4.2 million at 31 August. This has resulted in the
Group being ungeared at 31 August 2000 compared with having a gearing ratio of
16% in February and 12% last August.

The Group's net cash/borrowings position at 31 August is always better than at
the financial year end because payment of the bulk of the previous year's
corporation tax, its final dividend and the current year's interim dividend
all take place in the second half. Nevertheless, the working capital
management in the period is considered to be excellent. Our very tight control
of used vehicle stocks has allowed us to control margins in a period of
falling used car prices, and we have again managed to maintain our used
vehicle stocks at very low levels prior to the influx of part exchanges for
new vehicles registered in September.

Interest cover excluding new vehicle stocking interest increased from 12.0
times to 22.5 times for the six month period as a result of increased profits
and reduced borrowings. Interest cover including new vehicle stocking interest
increased from 6.2 times to 9.1 times.

Outlook

The outlook for the remainder of the year looks extremely promising with the
motor manufacturers for which we hold franchises leading the way in bringing
down prices so that they are more in line with prices in other EU countries.
Whilst our performance in September was affected by the fuel dispute and the
fact that some manufacturers' prices were not reduced until part way through
the month, we believe that the sales lost during the month will be made up in
the remainder of the year. The recent announcements of price reductions by
volume manufacturers should also help sales in the second half as they will
generate publicity which will lead to increased consumer awareness of price
reductions across the industry.

We aim to increase our dealer portfolio in the coming months with selected
acquisitions. We have banking facilities in place to enable us to do this, and
we are confident that this is the right course of action for us to take now
that demand for new cars is returning.

We will continue to manage our gearing effectively and to maximise profit
opportunities for our shareholders. I believe that we will continue to make
good progress in the second half of this financial year.

 Richard Palmer

Chief Executive

9 October 2000



CONSOLIDATED PROFIT & LOSS ACCOUNT
                                                 6 months  6 months        Year
                                                    ended     ended       ended
                                                31 August 31 August 29 February
                                                     2000      1999        2000
                                          Notes     £'000     £'000       £'000

Turnover                                      1   209,099   225,100     421,804


Operating profit                              2     5,142     4,608       8,439

Net interest payable                                (229)     (383)       (763)

Profit on ordinary activities before                4,913     4,225       7,676
taxation

Tax on profit on ordinary activities          3   (1,580)   (1,352)     (2,494)

Profit on ordinary activities after                 3,333     2,873       5,182
taxation

Equity minority interests                            (13)      (13)         (5)

Profit for the financial period                     3,320     2,860       5,177

Dividends                                     4   (1,479)   (1,398)     (3,281)

Retained profit for the financial period            1,841     1,462       1,896

Earnings per share (basic and diluted)        5      6.2p      5.3p        9.6p

Dividend per share                            4     2.75p      2.6p        6.1p

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

CONSOLIDATED BALANCE SHEET
                                                 31 August 31 August         29
                                                                       February
                                                      2000      1999       2000
                                                     £'000     £'000      £'000

Fixed assets
Tangible assets                                     31,384    32,372     32,814
Goodwill                                                77         -          -

                                                    31,461    32,372     32,814


Current assets
Stocks                                              59,857    74,873     62,597
Debtors                                             16,639    20,081     17,814
Cash at bank and in hand                            17,578    13,801      6,390
                                                    94,074   108,755     86,801

Creditors: amounts falling due within one year    (78,146)  (95,619)   (73,711)

Net current assets                                  15,928    13,136     13,090

Total assets less current liabilities               47,389    45,508     45,904

Creditors: amounts falling due after more than       (504)     (563)      (671)
one year

Provisions for liabilities and charges               (699)     (674)      (698)

Deferred income                                      (765)   (1,108)      (946)
                                                    45,421    43,163     43,589

Capital and reserves
Called up share capital                             21,513    21,513     21,513
Share premium account                               26,476    26,476     26,476
Profit and loss account                            (2,568)   (4,843)    (4,409)

Equity shareholders' funds                          45,421    43,146     43,580

Equity minority interests                                -        17          9
                                                    45,421    43,163     43,589


Gearing                                                 -%       12%        16%

Net assets per share                                84.4 p    80.3 p     81.0 p



CONSOLIDATED CASH FLOW STATEMENT
                                                6 months  6 months        Year
                                                   ended     ended       ended
                                               31 August 31 August 29 February
                                                    2000      1999        2000
                                                   £'000     £'000       £'000

Net cash flow from operating activities           12,340     7,390      12,379
Returns on investments and servicing of            (229)     (383)       (763)
finance
Tax paid                                           (792)     (350)     (1,907)
Capital expenditure and financial investment         131   (1,925)     (3,220)
Acquisitions and disposals                         (100)         -           -
Equity dividends paid                                  -         -     (3,281)

Net cash flow before financing                    11,350     4,732       3,208
Financing                                          (157)       849       2,957

Increase in cash in the period                    11,193     5,581       6,165



Reconciliation of operating profit to net cash flow from operating activities
                                             6 months    6 months          Year
                                                ended       ended         ended
                                            31 August   31 August   29 February
                                                 2000        1999          2000
                                                £'000       £'000         £'000

Operating profit                                5,142       4,608         8,439
Depreciation and amortisation                   1,309       1,187         2,548
(Profit) on sale of tangible fixed assets         (9)        (13)          (12)
Decrease/(increase) in stocks                   2,740    (10,744)         1,532
Decrease/(increase) in debtors                  1,175     (3,470)       (1,203)
Increase in creditors                           1,983      15,822         1,075

Net cash inflow from operating activities      12,340       7,390        12,379



Analysis of changes in net debt
                           At 1 March     Cash flow     Other non  At 31 August
                                 2000                cash changes          2000
                                £'000         £'000         £'000         £'000
Cash at bank and in             6,390        11,188             -        17,578
hand
Bank overdraft                    (5)             5             -             -
                                6,385        11,193                      17,578

Debt due within one           (8,422)         (190)          (11)       (8,623)
year
Debt due after one year          (39)             -            11          (28)
Finance leases                (5,062)           347             -       (4,715)
                                                157

                        ------------- ------------- ------------- -------------
Total                         (7,138)        11,350             -         4,212



NOTES TO THE INTERIM RESULTS

1     Analysis of turnover
                                   6 months        6 months                Year
                                      ended           ended               ended
                                  31 August       31 August         29 February
                                       2000            1999                2000
                                      £'000           £'000               £'000

Motor Retail Division               201,988         217,627             407,056
Motor Services Division               5,051           5,442              10,630
Other Businesses                      2,060           2,031               4,118

                                    209,099         225,100             421,804



2     Analysis of operating profit
                                   6 months        6 months                Year
                                      ended           ended               ended
                                  31 August       31 August         29 February
                                       2000            1999                2000
                                      £'000           £'000               £'000

Motor Retail Division                 5,782           5,295               9,543
Motor Services Division                 167             110                 479
Other Businesses                        104              83                 157
Central costs                         (911)           (880)             (1,740)

                                      5,142           4,608               8,439




 3. The charge for taxation is based on the estimated effective rate for the
    financial year.

 4. An interim dividend of 2.75p (1999, 2.6p) per share will be paid on 1
    December 2000 to shareholders on the register at 3 November 2000.

 5. The calculation of earnings per share for the six months ended 31 August
    2000 is based on the profit for the financial period of £3,320,000 (1999,
    £2,860,000) and on 53,784,710 (1999, 53,784,710) ordinary shares being the
    average number of shares in issue during the period. The number of
    dilutive potential ordinary shares arising from share options, as
    calculated in accordance with FRS 14: Earnings per Share, is nil (1999,
    nil). Therefore, the calculation of diluted earnings per share is based on
    the profit for the financial period of £3,320,000 (1999, £2,860,000) and
    on 53,784,710 (1999, 53,784,710) ordinary shares.

 6. This interim 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.

 7. This interim statement was approved by the Board of Directors on 9 October
    2000. The foregoing financial information does not represent full accounts
    within the meaning of Section 240 of the Companies Act 1985 and has been
    neither audited nor reviewed by the auditors nor delivered to the
    Registrar of Companies. 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.