Trading Statement

Lookers PLC
19 April 2006

                                                                   19 April 2006



                     LOOKERS plc ('Lookers' or the Company')

                      UNAUDITED FIRST QUARTER TRADING UPDATE



Lookers is pleased to announce the following first quarter trading update for
the three months to 31 March 2006.



Financial Highlights (unaudited)



  • Turnover over the period increased by 17 per cent. to £385.0 million (Q1
    2005: £330.4 million)
  • Adjusted* operating profit up 71 per cent. to £13.2 million; 51 per cent
    on existing businesses
  • Operating margins* for the period at 3.4 per cent (Q1 2005: 2.3 per cent)
  • Adjusted* profit before tax up 90% to £11.0 million (Q1 2005: £5.8
    million)



*before amortisation of intangible assets, impairment of goodwill and
exceptional items



Commenting, Ken Surgenor, Chief Executive of Lookers plc said: 'It is ironic
that our strategy is being questioned when we continue to outperform the market
and have performed exceptionally well in the most important trading period of
the year. Our recent acquisitions are performing ahead of expectation and we
look forward to benefiting from a full year contribution from these businesses.



Lookers has the broadest revenue streams in the industry and is arguably better
equipped than any of its peers to thrive in the current retail environment. This
performance unambiguously demonstrates the effectiveness of our strategy in
delivering strong growth across all our diversified business streams and
subsequent value to shareholders.'



Overview



Trading in the first quarter, which includes the key registration month of
March, was excellent and significantly ahead of the Board's expectations.  New
car retail sales were up 19 per cent. on the same period last year, with like
for like sales up 12 per cent.  Used car retail sales increased by 34 per cent.,
with like for like used car retail sales up 8 per cent against strong prior year
comparatives.



Performance



The outstanding performance achieved in the first quarter is particularly
impressive given that new car registrations were down 4.6 per cent. for the
period and clearly demonstrates that our strategy, strong manufacturer
relationships and well-balanced business continues to enable Lookers to deliver
strong growth ahead of the market.



Lookers' decentralised management structure, which fosters a healthy
entrepreneurial approach at dealership level has once again been instrumental in
allowing us to outperform the market and drive excellent growth across all our
business streams.



During the course of last year we saw major disruption from refurbishments, new
builds and relocations of 20 sites (representing 22 per cent. of our franchised
outlets). This work was completed by the year-end and we have begun to see the
benefits of these actions flow through.  Our six refurbished Toyota businesses
are attracting considerably higher customer footfall and customers have
responded very positively to the new retail concept Vauxhall outlet that we
completed at the end of last year on Boucher Road, Belfast. In addition, our
relocation of Chrysler Jeep from two rented sites in Lisburn and Belfast to the
main freehold site in Boucher Road  is also proving a success.  Finally, we have
continued to make better use of existing facilities by refranchising MG Rover
outlets and introducing complementary brands into certain PAG sites.



On the volume side, Vauxhall continues to perform strongly across our 17 UK
outlets.  In terms of prestige brands, PAG has once again achieved first class
results, exemplified by the better than anticipated performance of the recently
acquired HR Owen businesses. Encouragingly we have also seen a much improved
performance from our five Volkswagen outlets.



Turning to our used car businesses, we now have used car supermarkets in the
South East, South West and Midlands. In the period we have sold in excess of
2800 units and are firmly on track to retail over 12,000 cars a year. We have
been particularly pleased with the performance of our Essex used car supermarket
which commenced trading this year.



Our parts distribution business FPS Distribution has continued to build on its
strong growth achieved last year and the integration of APEC Limited is going to
plan and has achieved better than expected results.



                                     -ends-

Enquiries:

Ken Surgenor
David Dyson
Lookers plc                                         0161 291 0043



Andrew Hayes
Nick Lyon
James Hill                                                   
Hudson Sandler                                      020 7796 4133



The First Quarter trading update includes the following unaudited financial
information for the Group for the three months ended 31 March 2006



Unaudited Financial Information
                                                                                      Three months         Three months
                                                                                             ended                ended
                                                                                     31 March 2006        31 March 2005
                                                                                                £M                   £M


Turnover                                                                                     385.0                330.4



Operating profit before amortisation, impairment and exceptional items                        13.2                  7.7
(adjusted operating profit)



Profit before tax, amortisation, impairment and exceptional items (adjusted                   11.0                  5.8
profit before tax)





Basis of Preparation

The unaudited financial information included in the First Quarter trading update
has been prepared on a basis consistent with the accounting policies that are
expected to be used in Lookers' 2006 Annual Report



The unaudited financial information is based on the unaudited management
accounts for the three months ended 31 March 2006.



Adjusted operating profit and adjusted profit before tax are calculated before
deducting the amortisation of intangible assets, impairment of goodwill and
exceptional items (which include bid defence costs).



NM Rothschild & Sons Limited ('Rothschild') which is authorised and regulated in
the United Kingdom by the Financial Services Authority, is acting for Lookers
and no-one else in connection with the matters referred to herein and will not
be responsible to anyone other than Lookers for providing the protections
afforded to clients of Rothschild or for giving advice in relation to such
matters.



Each of Rothschild and PricewaterhouseCoopers LLP has given and not withdrawn
its written consent to the publication of its letter dated 19 April 2006 as set
out in the Annex to this Announcement.



This announcement contains statements that are or may be forward-looking with
respect to the financial condition, results of operations and businesses of
Lookers.  These forward-looking statements include risk and uncertainty because
they relate to events and depend on circumstances that will occur in the future.
There are a number of factors which could cause or may cause actual results or
developments to differ materially from those expressed or implied by such
forward-looking statements.





Letter from NM Rothschild & Sons Limited in relation to the Unaudited Financial
                                  Information





                                                   N M Rothschild & Sons Limited
                                                                  82 King Street
                                                                      Manchester
                                                                          M2 4WQ



Strictly Private & Confidential
Lookers plc
776 Chester Road
Stretford
Manchester
M32 0QH



19 April 2006



Dear Sirs



We have discussed the unaudited financial information regarding the adjusted
profit before tax of Lookers plc and its subsidiary undertakings for the three
months ended 31 March 2006 (the 'Unaudited Financial Information') and the bases
on which it has been prepared with you as Directors of Lookers plc. We have also
discussed the accounting policies and basis of calculation for the Unaudited
Financial Information with PricewaterhouseCoopers LLP, Lookers plc's auditors,
and we have considered their letter of today's date addressed to both yourselves
and ourselves on this matter.



On the basis of the foregoing, we consider that the Unaudited Financial
Information for which you as Directors of Lookers plc are solely responsible,
has been compiled with due care and consideration.



This letter is provided to you solely in connection with Rule 28.3(b) of the
City Code on Takeovers and Mergers and for no other purpose.



Yours truly,



N M Rothschild & Sons Limited








                                                      PricewaterhouseCoopers LLP
                                                           101 Barbirolli Square
                                                             Lower Mosley Street
                                                               Manchester M2 3PW





The Directors
Lookers plc
776 Chester Road
Stretford
Manchester
M32 OQH



N M Rothschild & Sons Limited
82 King Street
Manchester
M2 4WQ



19 April 2006



Dear Sirs



Lookers plc

We report on the unaudited financial information included within the first
quarter trading update of Lookers plc (the 'Company') and its subsidiaries for
the three month period ended 31 March 2006 and 2005, comprising the Turnover,
Operating profit before amortisation of intangible assets, impairment of
goodwill and exceptional items, Profit before tax, amortisation of intangible
assets, impairment of goodwill and exceptional items, and Profit before
amortisation of intangible assets, impairment of goodwill and exceptional items
(together the 'Unaudited Financial Information'). The Unaudited Financial
Information and the basis on which it is prepared are included in the first
quarter trading update (the 'Document') issued by the Company on 19 April 2006.



This report is required by Rule 28.3(b) of the City Code and is given for the
purpose of complying with that rule and for no other purpose.



The work we have carried out on the Unaudited Financial Information is solely
for the purpose of reporting to the Directors and to the Financial Adviser.
Accordingly, we assume no responsibility in respect of this report to Pendragon
plc (the 'Offeror') or any other person connected to, or acting in concert with
the Offeror or to any other person who is seeking or may in future seek to
acquire control of the Company (an 'Alternative Offeror') or to any other person
connected to, or acting in concert with, an Alternative Offeror.



Responsibilities

It is the responsibility of the directors of the Company (the 'Directors') to
prepare the Unaudited Financial Information in accordance with the requirements
of the City Code. In preparing the Unaudited Financial Information the Directors
are responsible for correcting errors that they have identified which may have
arisen in unaudited financial results and unaudited management accounts used as
the basis of preparation for the Unaudited Financial Information.



It is our responsibility to form an opinion as required by Rule 28.3(b) of the
City Code as to the proper compilation of the Unaudited Financial Information
and to report that opinion to you.



Basis of Preparation of the Unaudited Financial Information

The Unaudited Financial Information is required to be presented on a basis
consistent with the accounting policies the Company anticipates applying in its
consolidated financial statements for the year ending 31 December 2006. The
Unaudited Financial Information has been prepared on the basis stated in the
Document, and is based on the unaudited management accounts for the 3 months
ended 31 March 2006 and 2005.



Basis of Opinion

We conducted our work in accordance with the Standards for Investment Reporting
issued by the Auditing Practices Board in the United Kingdom. Our work included
evaluating the basis on which the historical financial information included in
the Unaudited Financial Information has been prepared and considering whether
the Unaudited Financial Information has been accurately computed using that
information and whether the basis of accounting used is consistent with the
accounting policies of the Company.



We planned and performed our work so as to obtain the information and
explanations we considered necessary in order to provide us with reasonable
assurance that the Unaudited Financial Information has been properly compiled on
the basis stated.



However, the Unaudited Financial Information has not been audited. The actual
results, therefore, may be affected by revisions to accounting estimates due to
changes in circumstances, the impact of unforeseen events and the correction of
errors in the unaudited management accounts.



Opinion

In our opinion, the Unaudited Financial Information has been properly compiled
on the basis stated and the basis of accounting used is consistent with the
accounting policies of the Company.



Yours faithfully



PricewaterhouseCoopers LLP
Chartered Accountants


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