Acquisition - BMW dealerships

Inchcape PLC
04 August 2003

4 August 2003

               Inchcape creates the UK's largest BMW territory

Inchcape plc (Inchcape), the international automotive services group, announces
today the acquisition of six BMW dealerships, which position the Group as the
UK's second largest BMW retailer.

Four of these dealerships, in Banstead, Croydon, Sevenoaks and Tunbridge Wells,
have been acquired from the privately owned company, L&C Holdings Limited (L&C).
The additional two dealerships were acquired from William Jacks PLC (William
Jacks)* in Cobham and Wimbledon and these six will join Inchcape's existing
dealership in Thames Ditton.  These acquisitions now form the largest BMW
contiguous territory in the UK.

Throughout this area Inchcape will also represent the MINI franchise. In total,
this territory extending from Tunbridge Wells in the east to Thames Ditton in
the west, sold over 3,500 new BMW's and over 1,000 new MINI's last year,
representing some 4.0% of both marques' national sales volumes.

As part of the strategy to focus on areas to the west and south of London,
Inchcape has also completed the sale of its BMW/MINI businesses in Harold Wood
and Chigwell to a subsidiary of the Sytner Group.  Our BMW/MINI dealerships in
Reading are unaffected by these transactions.

The L&C acquisition is for a consideration of £12.0m, including £0.8m of cash.
This is subject to a completion accounts process, and is before costs. Goodwill
amounts to approximately £6.5m. L&C's turnover for 2002 was £106.3m.

The L&C and William Jacks acquisitions will cost the Group approximately £18.9m
before costs.  Proceeds from the disposals made, including the BMW/MINI business
in South Bank**, London, are £11.5m before costs, of which £6.5m relates to
goodwill.  Further related asset sales could generate an additional cash inflow
of approximately £6.5m.

Peter Johnson, Group Chief Executive of Inchcape commented:

'I am delighted that we have been able to acquire these six BMW dealerships,
which now form part of the largest contiguous territory in the UK and are
located in a very affluent area of southern England. These acquisitions position
Inchcape as the UK's second largest BMW retailer.

'The changes encompassed in the revised Block Exemption legislation have
resulted in most OEMs revisiting their franchise strategies. Many are now
seeking scale relationships with financially strong retailers.  Our balance
sheet leaves us well placed to take advantage of the consolidation that appears
likely following the introduction of new dealer agreements in October this 
year.'

*Inchcape's acquisition of the Cobham and Wimbledon BMW/MINI dealerships from
William Jacks PLC was announced on 16 July 2003 and competed on 31 July 2003 for
a consideration of £7.7m

**Sold on 30 June 2003

Notes to editors

Inchcape plc announced their interim results, for the half year to 30 June 2003,
on 4 August 2003.

Inchcape, as an international automotive services group, provides quality
representation for its manufacturer partners, a choice of channels to market and
products for its retail customers and a range of business services for its
corporate customers. Operations are focused on the UK, Greece, Belgium,
Australia, Hong Kong and Singapore. Our key manufacturer partners are Toyota/
Lexus, Subaru, Ferrari/Maserati, BMW and the Premier Automotive Group of Ford.
Inchcape's activities include exclusive Import, Distribution and Retail,
Business Services, automotive E-commerce and Financial Services.

For further information, please contact:

Group Communications, Inchcape plc
020 7546 0022

John Olsen/Tom Leatherbarrow, Hogarth Partnership Limited
020 7357 9477

For further information, visit us at www.inchcape.com




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