Disposal

Pendragon PLC
01 September 2003


FOR IMMEDIATE RELEASE                                           1 September 2003


               DISPOSAL OF 29.99% SHAREHOLDING IN RYLAND GROUP PLC


Pendragon PLC announced today that Pendragon Management Services Limited, its
wholly owned subsidiary, has sold its entire shareholding in Ryland Group plc to
Rydnal Limited for a consideration of 160 pence per share following the exercise
of an option granted to Rydnal Limited on 26 August 2003.  Total proceeds from
the sale were £14.2 million, which gives rise to a profit after tax of £2.6
million.  In addition to the profit on disposal, dividends of £1.0 million have
already been received this year.


Enquiries:

Pendragon PLC      Trevor Finn, Chief Executive            Tel:    [phone]
                   David Forsyth, Finance Director

Finsbury           Charlotte Hepburne-Scott                Tel:    [phone]
                   Gordon Simpson



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