Chairman's Statement

Pendragon PLC
2 May 2000


                       PENDRAGON PLC                                 

                    CHAIRMAN'S AGM STATEMENT
                              
On  31st  March 2000 we successfully completed the
acquisition  of  32  retail dealerships  and  4  bodyshops
from Lex Service Plc.  As  a  result,  we  have
significantly  strengthened our position with some of our
core marquees.   The dealerships are rapidly being
integrated into our Franchise Group structure.

We  are  progressing  well towards one of our short  term
goals  by  reducing gearing.   I  am  pleased to report year
to date disposal  proceeds  of  £14.4 million  made  up  of
disposal of net assets of £12.4 million  and  profit  on
disposals  of  £2  million. We believe the effect of  these
disposals  to  be earnings neutral.

The year to date trading environment has been dominated by
the turmoil over UK new  car  pricing.   We  welcome the
findings of  the  Competition  Commission Inquiry  into new
car pricing and the proposed actions by the DTI.  We believe
these  actions  will  result in a better deal for the
consumer.  Since  the announcement  of the proposed actions, 
new car buyers are once again  awaiting price reductions  from  
the car manufacturers.   We would  urge  the  DTI  to progress its
proposals as these delays do put at serious risk jobs in the
car retailing sector which directly employs over 500,000
people.

Our  trading  performance year to date is in line with
expectations.  We  look forward to the re-establishment of a
'normalised' new car market when the full potential of our
franchised dealerships can be realised.

Enquiries:

Pendragon PLC       Trevor Finn, Chief Executive     01623 725000
                    David Forsyth, Finance Director

Finsbury            Rupert Younger                   020 7251 3801