Acquisition

Pendragon PLC
29 August 2002

29th August 2002


                                 PENDRAGON PLC

                      PURCHASE OF RYLAND GROUP PLC SHARES


The Board of Pendragon PLC ('Pendragon') today announces that its wholly owned
subsidiary, Pendragon Management Services Limited, has agreed to purchase
8,889,340 ordinary shares in Ryland Group plc ('Ryland') from Guinness Peat
Group plc ('GPG') at a price of 130p per share.  The shares being acquired
represent approximately 29.99% of Ryland's issued share capital.  The total
consideration for the shares amounts to £11.5 million and is being satisfied by
the issue of loan notes by Pendragon Management Services Limited which are
redeemable no later that 29th August 2003 and which are guaranteed by Pendragon.

Ryland is a public company incorporated in England whose shares are listed on
the London Stock Exchange.  Its operations are based in the UK and comprise the
sale, distribution and servicing of new and used cars and commercial vehicles
together with the sale of parts and accessories.  For the year ended 31 December
2001, Ryland's consolidated turnover was £642.3 million and profit before
taxation was £1.1 million.  Consolidated net assets at 31 December 2001 were
£30.3 million.

Pendragon believes that Ryland is an attractive business whose prospects are
currently undervalued by the stock market.  Pendragon intends to enter into a
constructive dialogue with Ryland's management team as a supportive shareholder
during this period of uncertainty for Ryland's shareholders.



Enquiries:


Trevor Finn, Chief Executive              Pendragon PLC                     01623 725 000

David Forsyth, Finance Director


Rupert Younger                            Finsbury Group                    020 7251 3801

Gordon Simpson








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