Agreement Of VAT Statement

Lookers PLC
24 May 2004

                                                                     24 May 2004

                                  LOOKERS PLC

                           AGREEMENT OF VAT CLAIMS


Lookers plc is pleased to announce that it has successfully negotiated with HM
Customs and Excise its initial claim in respect of VAT overpaid on demonstrator
vehicles in the period 1973 to 1996.

The total amount receivable from Customs & Excise net of expenses will be at
least £15 million.  This will be disclosed in the Interim Announcement as £7
million as an exceptional item within operating profit, and £8 million as
interest received.

There are further amounts yet to be agreed with Customs which will also be
material to the Group's results and when confirmation of these has been
received, a further announcement will be made.

As previously indicated, the cash received will be used to reduce gearing and
fund the Group's continuing acquisition programme.



Enquiries:

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

Andrew Hayes / James Hill, Hudson Sandler
Telephone:      [phone]


A conference call will be held today at 10.00am.  For further information please
contact Rebecca Ghent at Hudson Sandler on 020 7796 4133.


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