Offer Update

Inchcape PLC
16 January 2007

FOR IMMEDIATE RELEASE


NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN OR INTO 
ANY RESTRICTED JURISDICTION

16 January 2007

          RECOMMENDED CASH OFFER FOR EUROPEAN MOTOR HOLDINGS PLC ('EMH') 
                          BY INCHCAPE PLC ('INCHCAPE') 

                     OFFER UNCONDITIONAL AS TO ACCEPTANCES

On 15 December 2006, Inchcape announced a recommended cash offer to acquire the
whole of the issued and to be issued share capital of EMH (the 'Offer').  The
Offer Document was posted to EMH Shareholders on 21 December 2006.

Offer unconditional as to acceptances

As at 3.00 p.m. on 15 January 2007, Inchcape had received valid acceptances of
the Offer in respect of a total of 28,172,221 EMH Shares, representing
approximately 51.44 per cent. of the existing issued share capital of EMH.
Inchcape owns 10,157,207 EMH Shares, representing approximately 18.55 per cent.
of the existing issued share capital of EMH.  On 12 January 2007, Inchcape
announced that it had agreed to acquire 3,027,324 EMH Shares, representing
approximately 5.53 per cent. of the existing issued share capital of EMH.
Accordingly, Inchcape has acquired or agreed to acquire or has received valid
acceptances in respect of 41,356,752 EMH Shares, representing approximately
75.51 per cent. of the existing issued share capital of EMH.

Inchcape has now declared that the Offer is unconditional as to acceptances.

Save as disclosed in this announcement or in the Offer Document, neither
Inchcape nor any person acting in concert with Inchcape is interested in or has
any rights to subscribe for any EMH Shares, nor does any such person have any
short position or any arrangement in relation to EMH Shares.  For these
purposes, 'arrangement' includes any agreement to sell or any delivery
obligation or right to require another person to purchase or take delivery of
EMH Shares and any borrowing or lending of EMH Shares that have not been on-lent
or sold.

Background to and reasons for the Offer

Inchcape's strategy in the UK is to create scale relationships with brand
partners in the premium sector of the market, in order to benefit from stronger
relationships with those partners and from economies of scale.

EMH has a focus on premium brands and has franchised dealerships with a number
of Inchcape's core brand partners including BMW, MINI, Volkswagen, Audi and PAG.
EMH's dealerships are mainly in the North, North East and North West of England
and complement those regions in which Inchcape operates. The acquisition of EMH
will further Inchcape's objective of building scale in the UK retail market and
reinforce its commitment to the premium brands sector. The acquisition will
result in Inchcape being the number 1or 2 retailer with a significant number of
its brand partners.

The acquisition of EMH will also create the opportunity for Inchcape to
streamline the Enlarged Group's UK dealership portfolio, in order to focus on
fewer, larger scale brand partnerships and to achieve efficiencies and economies
of scale, in line with Inchcape's margin enhancement objectives.

Enquiries:

Inchcape                                                     Tel:  [phone]

Andre Lacroix, Group Chief Executive
Barbara Richmond, Group Finance Director

Dresdner Kleinwort (Financial adviser and corporate broker   Tel:  [phone]
to Inchcape) 

Rosalind Hedley-Miller
Charles Batten
Christopher Baird

Financial Dynamics (PR adviser to Inchcape)                  Tel:  [phone]

Jonathon Brill
Billy Clegg

Dresdner Kleinwort Limited, which is authorised and regulated by the Financial
Services Authority, is acting for Inchcape and for no one else in relation to
the Offer and will not be responsible to anyone other than Inchcape for
providing the protections afforded to customers of Dresdner Kleinwort Limited or
for providing advice in relation to the Offer or any matter referred to in this
announcement.

This announcement is not an offer to sell or an invitation to purchase any
securities or the solicitation of any vote or approval in any jurisdiction. The
Offer is being made solely by means of the Offer Document and, in the case of
certificated EMH Shares, the Form of Acceptance accompanying the Offer Document,
which contain the full terms and conditions of the Offer including details of
how it may be accepted. EMH shareholders are advised to read carefully the
formal documentation in relation to the Offer.

Unless otherwise determined by Inchcape, the Offer (including the Loan Note
Alternative) is not being made, directly or indirectly, in or into or by the use
of the mails of, or by any means or instrumentality (including, without
limitation, telephonically or electronically) of interstate or foreign commerce
of, or through any facilities of a national securities exchange of, any
Restricted Jurisdiction, and the Offer should not be accepted by any such use,
means, instrumentality or from or within any Restricted Jurisdiction.
Accordingly, copies of this announcement are not being, and must not be, mailed
or otherwise forwarded, distributed or sent in, into or from any Restricted
Jurisdiction and all persons receiving this announcement (including nominees,
trustees and custodians) must not mail or otherwise forward, distribute or send
it in, into or from such jurisdictions as doing so may render invalid any
purported acceptance of the Offer.  Notwithstanding the foregoing, Inchcape will
retain the right to permit the Offer to be accepted and any sale of securities
pursuant to the Offer to be completed if, in its sole discretion, it is
satisfied that the transaction in question can be undertaken in compliance with
applicable law and regulation.

The Loan Notes to be issued pursuant to the Offer have not been, and will not
be, registered under the US Securities Act or under the securities laws of any
state or other jurisdiction of the United States, Canada, Australia or Japan.
Accordingly, the Loan Notes may not (unless an exemption under the relevant
securities law is applicable) be offered, sold, resold, delivered or
transferred, directly or indirectly, in or into the United States, Canada,
Australia or Japan (or any other jurisdiction if to do so would constitute a
violation of the relevant laws of, or require registration thereof in, such
jurisdiction) or to, or for the account or benefit of, a person located in the
United States, Canada, Australia or Japan.

The Offer will be made for the securities of a UK company.  US investors should
be aware that the Offer will be made in accordance with the Code and will be
subject to disclosure and procedural requirements that are different to those
under United States law.  Financial statements included in the Offer Document
will be prepared in accordance with non-US accounting standards that may or may
not be comparable to those used to prepare the financial statements of US
companies.

The receipt of cash pursuant to the Offer by a US holder of EMH Shares may be a
taxable transaction for US federal income tax purposes and under applicable US
state and local, as well as foreign and other tax laws. Each holder of EMH
Shares is urged to consult his or her independent professional adviser
immediately regarding the tax consequences of acceptance of the Offer.

It may be difficult for US holders of EMH Shares to enforce their rights and any
claim arising out of the US federal securities laws since Inchcape and EMH are
located in non-US jurisdictions and some or all of their officers and directors
may be residents of non-US jurisdictions. US holders of EMH Shares may not be
able to sue a non-US company or its officers or directors in a non-US court for
violations of the US securities laws. Further, it may be difficult to compel a
non-US company and its affiliates to subject themselves to a US court's
judgement.

The distribution of this announcement in jurisdictions other than the UK may be
restricted by law and therefore any persons who are subject to the laws of any
jurisdiction other than the UK should inform themselves about, and observe, any
applicable requirements.




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