Acquisition

Inchcape PLC
04 October 2007

           INCHCAPE CONTINUES EXPANSION IN HIGH GROWTH RUSSIAN MARKET

                 $43m acquisition broadens brand representation
                        Major $26m Toyota site expansion
                      New flagship Lexus centre announced
                                         
Inchcape plc ('Inchcape' or the 'Group'), the world's leading car retailer,
today announces significant progress in executing its growth strategy in Russia.
The Group confirms it has acquired a 75.1% shareholding in the retail businesses
of OOO Orgtekhstroy ('OTS'), an Audi retail business in St Petersburg, and OOO
Concord ('Concord'), a Peugeot retail business, for a total cash consideration
of US$43m (£21.6m) from its existing St Petersburg Joint Venture partner, Olimp
Group. In addition, the Group announces the US$26m (£13m) relocation and
expansion of its existing Toyota Rustavelli site and its intention to relocate
the current Lexus retail centre to a new flagship Lexus site in St Petersburg.

The acquisition increases Inchcape's presence in St Petersburg, the second
largest city in Russia, and is in line with the Group's strategy to develop a
scale position in Russia. It is another step in the implementation of the
Group's multi-brand retail footprint with its OEM brand partners, enabling it to
have broad segment coverage of one of the fastest growing markets in the world.

Both the Audi and Peugeot businesses operate from new, large-scale facilities.
The Audi Center Vitebsky opened in March 2007 and is the newest of three Audi
dealerships in St Petersburg. The Peugeot business of OOO Concord is one of four
Peugeot dealerships in St Petersburg and is the largest Peugeot dealership in
Europe. Inchcape is acquiring these businesses from the same consortium of
shareholders it bought the Toyota and Lexus retail businesses from in 2006. The
new businesses will come under Inchcape's existing Russian management
infrastructure in St Petersburg.

As a result of the rapid growth of the St Petersburg Toyota operation, Inchcape
has committed to an additional investment of US$26m (£13m) for the relocation
and expansion of the existing Rustavelli Toyota site on new land acquired
adjacent to the existing retail outlet, which has reached its capacity.

Russia's car market is the largest in Central and Eastern Europe and is
experiencing rapid growth; Audi and Peugeot have achieved year-on-year growth of
69% and 58% respectively in the first seven months of 2007. Inchcape's existing
Toyota and Lexus business in St Petersburg sold 3,800 new cars from its three
retail outlets in the first half of 2007.

Following the acquisition, expansion investment and new build Lexus project,
Inchcape will have five dealerships in St Petersburg which will have coverage of
13.5% of the foreign brand market.

Andre Lacroix, Group Chief Executive of Inchcape, commented:

'We are excited about this further expansion into the fast growing Russian
market as well as the opportunity to work with brand partners Toyota, Lexus,
Audi and Peugeot in St Petersburg. The acquisition and expansion provides us
with a solid footprint to drive further consolidation as we take advantage of
our strong local market understanding and management, our global OEM
relationships and our unique global retail model for growth.

'I am particularly pleased that Inchcape is expanding with our existing partner
Olimp Group. The partnership has proved extremely successful for both parties to
date and we look forward to continuing the relationship.

'Our strong balance sheet has enabled us to invest in first class sites and
facilities that gives us access to a strong and established infrastructure in a
booming market and further strengthens our position as the leading international
car retailer.'

For further information, please contact:

Group Communications, Inchcape plc
[phone]

Investor Relations, Inchcape plc
[phone]

Financial Dynamics (Jonathon Brill/Billy Clegg)
[phone]


Notes to editors

Inchcape plc

Inchcape plc is the leading independent, international automotive
retailer, with scale operations in Australia, Belgium, Greece, Hong Kong,
Singapore and the UK.  The Group also has operations in a number of other
markets, including Eastern Europe, the Baltic's, Russia and South America.  In
addition to growing its core businesses, Inchcape is looking to develop scale
operations in new and emerging regions.  It represents leading automotive brands
and operates either a retail, or a vertically integrated retail model (i.e.
exclusive distribution and retail), depending on the market.  Inchcape's current
key manufacturer partners are Toyota/Lexus, Subaru, BMW, Mazda, Mercedes-Benz,
Volkswagen, Audi and Honda.

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








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