Disposal/Acquisition

Pendragon PLC
10 July 2000

                                       
                   Sale of freehold properties and bodyshops
                       Acquisition of Jaguar Dealership
                                       
Pendragon  PLC  ('Pendragon'), the UK's largest car  dealership  group,  today
announces  the  sale of certain assets and the strengthening of its  worldwide
Jaguar  franchise  with  the acquisition of Bauer  Motors,  a  leading  Jaguar
dealership in California, USA.

Disposal of Four Freehold Properties

Pendragon  has  completed  the  disposal of  four  freehold  properties  ('the
Properties')   to  Chalkhill  Properties  Limited,  for  an   aggregate   cash
consideration  of £7.6 million. The properties are leased by Pendragon's  Ford
joint  venture  company, Stripestar Limited. The consideration is  payable  on
completion  and  the  proceeds will be used to reduce net  borrowings  of  the
group.

Disposal of Four Bodycentres

Pendragon  also  announces that it has agreed to sell the net assets  of  four
separate  bodyshop  businesses  to Nationwide Crash  Repair  Centres  Limited.
These  bodyshops,  which formed part of the assets bought from  Lex  in  March
2000,  were  identified  as non-core and immediately  put  up  for  sale.  The
aggregate cash consideration is £3.7 million and is payable on 7 July 2000.

The  net  assets  being  disposed  of consist of  three  freehold  properties,
situated  in Portsmouth, Yeovil and Cheltenham, one leasehold site in Norwich,
together with associated working capital and other assets. For the year  ended
31  December 1999, the businesses being disposed of made profits before tax of
£nil  on  turnover of £9.0 million.  The proceeds will be used to  reduce  net
borrowings of the group.

The  sale  of the freehold properties and bodyshop businesses brings  proceeds
from disposals this year to £36.9 million.

Trevor Finn, chief executive of Pendragon, commented:
'We  are  delighted  to  be making these disposals  which  form  part  of  our
programme  to  dispose of non-core assets.  In just 4 months, the  sum  raised
through  these  disposals  has brought us halfway  to  meeting  our  18  month
target.'

Acquisition of the Entire Stock of Bauer Motors
                                       
Pendragon  also announces today the acquisition of the entire stock  of  Bauer
Motors  ('the  Company'). The stock has been purchased  from  the  1988  Bauer
Family  Trust  u/d/a 3 October 1988, for an aggregate cash  consideration  of
$9.4 million subject to determination of the completion accounts.

The  Company operates a Jaguar dealership, located in a leasehold property  in
Santa Ana, California, USA. The unaudited operating profit of the Company  for
the twelve month period to 30 April 2000 was $2.3 million on turnover of $72.6
million.

The   acquisition   further   strengthens  Pendragon's   worldwide   operating
relationship  with Jaguar.  Pendragon is already Jaguar's largest  partner  in
the  UK  and Germany. Bauer Jaguar is the third largest Jaguar dealer  in  the
USA,  and  the acquisition offers the opportunity to create a distinct  Jaguar
market area in this growth market.

Trevor Finn, chief executive of Pendragon, commented:
'This  acquisition represents a great opportunity to strengthen our ties  with
Jaguar  on  a  global  scale.  We will be working with the dealership's  local
management  who have built the business and will continue to manage  it  while
benefiting from Pendragon's international expertise.'

Enquiries:

Trevor Finn, Chief Executive       Pendragon PLC       01623 725 000

Rupert Younger                     Finsbury            020 7251 3801
Charlotte Festing