Preference Shares

Lookers PLC
29 November 2002

                                                              29th November 2002

                                 LOOKERS PLC

                 REDEMPTION AND DE-LISTING OF PREFERENCE SHARES


In line with the continuing development of the business and in accordance with
the terms of the Articles of Association, Lookers plc ('Lookers' or 'the
Company'), has today given notice of redemption to the holders of the whole of
the Company's 13,888,940 8% Cumulative Redeemable Preference Shares of £1 each
('the Preference Shares').

A medium term borrowing facility of £14 million has been arranged with the
Company's bankers to fund the redemption. This facility has been hedged at
current favourable rates for the duration of the loan. The redemption is
earnings enhancing and the Directors estimate that after tax savings (based on
current interest rates) will be in excess of £600,000 per annum. Had the
Preference Shares been redeemed prior to 1st January 2001 the Company's earnings
per share in the financial year to 31st December 2001 would have increased from
the 18.9 pence reported to 20.8 pence, representing an increase of 10%.

The Company has previously indicated in its Financial Statements for the year
ended 31st December 2001 its intention to redeem the Preference Shares over a
period from April 2002 to March 2004.  However, in view of the record turnover
and increased profits for the six months to June 2002, the encouraging outlook
for the full year and the prospect of continuing stability in interest rates,
the Board of Directors has decided to redeem the whole of the issued preference
share capital on one date.

The Redemption Date will be 2nd January 2003 when all issued Preference Shares
will be redeemed at par together with the payment of accrued Preference
Dividend.

Pursuant to the proposed redemption the Company has requested that the UK
Listing Authority de-list the Preference Shares with effect from the Redemption
Date.

The redemption will mean that the Company's registers of members and transfers
for Preference Shareholders will need to be closed and, in accordance with
Article 28 of the Company's Articles of Association and Section 358 of the
Companies Act 1985 the Company intends to close its registers of members and
transfers for Preference Shares from 5.00pm on Friday 13th December 2002.  The
registers will be reopened at 8.00am on Thursday 3rd January 2003, although it
is anticipated that all or a significant majority of the Preference Shares will
have been redeemed when such reopening occurs.

Any transfer of a Preference Share made or purported to be made after the
reopening of the registers will instead result in the redemption of that
Preference Share, with a cheque for the £1 redemption price and the accrued
Preference Dividend being paid to the person stated in the Company's register of
members, as at 5.00pm on Friday 13th December 2002, as being the holder of that
Preference Share.

The prior transfer of £15,050,000 from the share premium account to the Profit &
Loss Account, which was approved by the High Court on 10th July 2002, means that
there will be no net reduction in the distributable reserves available for
future dividends for Ordinary Shareholders.

Two copies of the letter to the Preference Shareholders giving notice of
redemption will be lodged with the UK Listing Authority.


Enquiries:

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


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



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