Acquisition

Lookers PLC
05 February 2003

5th February 2003

For immediate release



                                  LOOKERS PLC

                   ACQUISITION OF JN HOLDINGS LTD (TAGGARTS)

Lookers plc (Lookers), one of the UK's leading automotive retail groups, has
acquired the entire issued share capital and business of JN Holdings Limited,
trading as Taggarts (Taggarts), for a total consideration of £5.6 million.

The purchase marks Lookers entry into Scotland and is in line with the company's
strategy of regional expansion through targeted acquisition of high quality
dealerships with strong local markets. It extends Lookers Jaguar and Land Rover
operations, confirming the group's position as the largest retailer of these
prestige brands in Ford's Premier Automotive Group (PAG) northern region.

When combined with the acquisitions announced already this year, looking forward
the group will benefit from approximately £90 million of additional turnover.

Taggarts, founded in 1896, is a substantial automotive retailer in Scotland with
two Jaguar franchises covering the Glasgow market area as well as Jaguar and
Land Rover operations in Motherwell, Lanarkshire. Taggarts also operates MG
Rover, Mazda and LDV franchises and has a separate parts and bodyshop operation
on a multi-franchise site in Motherwell.

The total consideration payable is £5.6 million to be satisfied by the payment
on completion of £5.0 million in cash (subject to the retention in escrow
referred to below) and the issue of 427,000 Lookers shares with a value of £0.6
million. Of the £5.0 million cash consideration, £250,000 will be held in escrow
pending the final determination of the price by formal agreement in due course
of completion accounts as at 31st December 2002.

At 31st December 2001, the date of the last audited accounts, Taggarts had net
assets of £2.6 million and generated an operating profit of £1.5 million on
turnover of £52.2 million. In the current financial year, Taggarts is ahead of
both manufacturer and management expectations and forward orders for the new
Jaguar XJ, to be launched in April 2003, are extremely encouraging.

To ensure a smooth transition of the business Lookers has retained the services
of the two executive directors of Taggarts, Joe Nimmo and George Ross, who will
work alongside fellow Scot, Andy Bruce, Lookers operations director, to ensure a
smooth integration into the Lookers group.

Commenting, Ken Surgenor, Lookers chief executive, said: 'This is a significant
expansion of Lookers and a very valuable addition to our business. By moving
into Scotland this acquisition will have the effect of increasing both the
company's geographical spread and market catchment with high quality brands and
focused management.

The group has enjoyed an excellent start to 2003 and is now seeing the benefits
of our substantial acquisition programme over the last 12 months. We have a
strong management team in place which has successfully integrated the new
businesses into Lookers, controlling costs across market areas and developing
profit opportunities. I am confident that prospects for the year are good.'


ends


Contact:

Lookers plc             Fred Maguire, Chairman                     0161 291 0043
                        Ken Surgenor, Chief Executive              02890 381721
                        David Dyson, Group Financial Director      0161 291 0043


Hudson Sandler          Andrew Hayes/James Hill                    020 7796 4133


                      This information is provided by RNS
            The company news service from the London Stock Exchange