Acquisition

Lloyds TSB Group PLC
18 April 2002



53/02                                        18 April 2002



LLOYDS TSB AUTOLEASE ACQUIRES FIRST NATIONAL VEHICLE HOLDINGS

Lloyds TSB Group today announces that its subsidiary Lloyds TSB Asset Finance
Division has acquired First National Vehicle Holdings (FNVH) and Abbey National
Vehicle Finance (ANVF), both wholly owned subsidiaries of Abbey National plc,
for a cash consideration of £46 million, representing a premium on acquisition
of £71 million. As at 31 December 2001, FNVH and ANVF had operating lease assets
totalling some £400 million.

The business will be combined with Lloyds TSB autolease thereby creating the
leader in the UK contract hire market. This acquisition brings Lloyds TSB
autolease significant opportunities for growth. FNVH brings a broader customer
base and complementary products not currently offered by LloydsTSB autolease.

Nigel Stead, managing director, Lloyds TSB autolease, said: "The car contract
hire market offers considerable opportunities for organisations that have scale,
expertise and experience and with its track record of successfully integrating
businesses, Lloyds TSB autolease is well placed to maximise the synergies from
the combined operation. The acquisition of FNVH enables us to strengthen our
position in this market. It is a sound business, with excellent staff and we
will be able to build upon our offer to all of our customers with an enhanced
range of products and services. I'm delighted that First National Vehicle
Holdings will be joining our business."

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LLOYDS TSB AUTOLEASE ACQUIRES FIRST NATIONAL VEHICLE HOLDINGS/...2



Notes:

  • Lloyds TSB autolease is one of the UK's largest and most experienced fleet
    management and funding specialists with over 85,000 vehicles currently under
    management.
  • It was formed in 2001 through a merger between ACL autolease and Black
    Horse Vehicle Management and is now a wholly owned subsidiary of Lloyds TSB.
  • The combined company has over 40 years experience working closely with
    different organisations to help build fleet strategies that meet financial
    and HR objectives.
  • It offers a comprehensive range of funding options and services backed by
    a commitment to quality: Lloyds TSB autolease is the first leasing company
    to achieve the ISO 9001:2000 quality standard. The company employs expert
    systems and highly trained staff - 350 at its Birmingham head office and 35
    at Lloyds TSB motorent in Stanmore, Middlesex.
  • Further information can be found at the following web site: http://
    www.lloydstsbautolease.co.uk/
  • FNVH has over 73,000 vehicles currently under management.

For further information:-

Investor Relations

Kent Atkinson     [phone]

Group Finance Director

E-mail: [e-mail]

Michael Oliver     [phone]

Director of Investor Relations

E-mail: [e-mail]

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LLOYDS TSB AUTOLEASE ACQUIRES FIRST NATIONAL VEHICLE HOLDINGS/...3



Media

Terrence Collis     [phone]

Director of Group Corporate Communications

E-mail: [e-mail]

Mary Walsh     [phone]

Head of Media Relations

E-mail: [e-mail]



FORWARD LOOKING STATEMENTS

This announcement contains forward looking statements with respect to certain of
the plans of the Lloyds TSB Group, its current goals and expectations relating
to its financial condition and performance. By their nature, forward looking
statements involve risk and uncertainty because they relate to events and depend
on circumstances that will occur in the future. Lloyds TSB's actual future
results may differ materially from the results expressed or implied in these
forward looking statements as a result of a variety of factors, including UK
domestic and global economic and business conditions, market related risks such
as interest rate risk and exchange rate risk in its banking business and equity
risk in its insurance businesses, unexpected changes to regulation, changes in
customer preferences, competition and other factors. Please refer to the
Registration Statement on Form 20F of Lloyds TSB Group filed with the US
Securities and Exchange Commission for a discussion of such factors.





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