AGM Statement

Lookers PLC
12 May 2005

                                                                     12 May 2005


                                   LOOKERS plc

                                 AGM STATEMENT


At today's Annual General Meeting of Lookers plc, Fred Maguire, Chairman, will
make the following statement:


'The Company made good progress again last year and further consolidated its
position as one of the UK's leading motor retail groups through a series of
strategic acquisitions and significant investment across the business.


We have a number of initiatives in place to further improve revenue from our
other income streams and we continue to actively target opportunities to deliver
further growth.


Acquisition


We are pleased to announce that we have completed the acquisition of the
business and certain assets of Ian Shipton Cars (IS Cars), a leading used car
supermarket in Burton-upon-Trent, in line with our stated strategy of broadening
our revenue streams.


IS Cars is a well established and successful operator in the independent used
car supermarket sector and has been trading for over 30 years. Lookers plc is
paying approximately £12.0m for the trading name and assets of the business.


The assets acquired includes the seven and a half acre site in Burton-upon-Trent
from where IS Cars sells around 7000 vehicles a year. The acquisition will add
around £50m to Lookers plc turnover and should be earnings enhancing from the
outset. The value of the net assets acquired is approximately £9.0m and the
profits attributable to these assets on a pro forma basis were approximately
£1.0m for the year ended 30 June 2004.


This acquisition further increases Lookers' share of the 7.7 million used car
market and is the second such acquisition in 2005, following our acquisition of
Bristol Trade Centre (BTC) in January.


The newly acquired business will continue to trade under its existing name as a
separate division within Lookers plc. Senior operational management will remain
in place.


Although the trading environment for new cars has continued to soften, the Group
continues to make satisfactory progress including market share gains.  Trading
in our franchised dealer network in the first quarter of 2005, whilst behind
that of 2004, (a record first quarter) is in line with our expectations.


Within our broad portfolio of volume and prestige franchises there are many more
new models being introduced by our manufacturer partners. The remainder of this
year, in particular, will benefit from the launch of the Bentley Continental
Flying Spur, the Aston Martin V8 Vantage, the Range Rover Sport and the new
Lexus GS. We have, in fact, sold out our entire allocation of these models for
the foreseeable future.


In addition, the contributions from FPS Distribution Limited (FPS) and BTC,
which are not impacted by the new car market, have been strong.


This year will see the positive effect on operating profits of the
rationalisation decisions taken in 2004, including our decision to exit the MG
Rover franchise.  The costs of this were fully provided for in the last
financial year.


Businesses acquired in the second half of last year, including FPS and
Volkswagen dealerships in Northallerton and Darlington and Saab in Chester have
been fully integrated into the Group. We are particularly delighted with the
performance of FPS which together with BTC and IS Cars will further enhance the
balance of the business going forward'.


For further information:

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

  Andrew Hayes/James Hill                              Telephone:  [phone]
  gcg hudson sandler


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