Acquisition

Lookers PLC
05 October 2004

                                                                  5 October 2004

     
                                  LOOKERS plc

          ACQUISITION OF CHESTER SAAB AND VOLKSWAGEN IN NORTHALLERTON


Lookers plc, a leading motor retail group with over 100 outlets across the UK
and Northern Ireland, today announces the completion of its acquisition of
Chester Saab for a cash consideration of approximately £870,000, and of
Volkswagen in Northallerton, North Yorkshire, for a cash consideration of
£630,000. The two acquisitions will add around £20 million to Lookers' annual
turnover.

Chester Saab gives Lookers a second Saab outlet in the north-west and will
complement existing operations in Liverpool. The Group is already well
established in Chester and the surrounding region, with Vauxhall and Renault
franchises.

The acquisition of Volkswagen in Northallerton will complement existing Lookers
Volkswagen operations at Middlesborough, Teeside and represents a significant
expansion of Lookers' relationship with the brand.  The Group recently opened a
new £3.5 million Volkswagen brand centre for the Blackburn and Burnley market
area.

Commenting, Ken Surgenor, Chief Executive said:

'We are delighted to acquire these two high quality businesses, which strengthen
our existing presence in these two regions. Once again, we have been able to
build on our relationship with chosen manufacturer partners in line with our
expansion plans for the business.

Saab has some exciting new product in the pipeline and the recent introduction
of a new diesel engine for the Saab 9-3 represents a great market opportunity.
Volkswagen has always been a strong performer with an excellent model range, and
the new Golf is proving to be a real success with our customers.

We fully expect both businesses to contribute positively to earnings in the next
financial year. Over time, through leveraging our proven market area approach,
these businesses will benefit from further operational efficiencies.'



Enquiries:

Lookers plc
Ken Surgenor - Chief Executive                    Telephone  [phone]
David Dyson - Finance Director

gcg hudson sandler
James Hill                                        Telephone  [phone]


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