Re Alliance

Pendragon PLC
29 January 2001


                     Pendragon signs deal with MSN Carview
        UK's largest Car Dealer Group partners with UK's No.1 Web Site


Pendragon plc, the UK's largest car dealership group, today announced a
partnership to provide key services for MSN Carview, the independent car-
buying and ownership website which launches as www.carview.co.uk in March.

Carview.co.uk will be integrated into MSN.co.uk the UK's most visited web
site.  MSN.co.uk currently serves over 10 million unique visitors per month,
and is recognised as the most popular UK website by the top three independent
auditors.

By integrating high levels of customer support and telephone services, with an
easy-to-use online buying service, MSN Carview will offer consumers all makes
of cars, provided by UK Dealers, with full manufacturer warranties and latest
UK specifications.

Pendragon and Microsoft will develop and maintain MSN Carview's Customer
Operations Centre, offering a range of customer management and communication
services including online user assistance, and query handling.

In the business-to-business market, MSN Carview will focus on enabling
manufacturers and dealers to combine the most efficient and appropriate blend
of software, call centre and vehicle supply logistics.  Organisations that
establish such alliances with MSN Carview will also benefit from sales leads
generated from Carview.co.uk.

MSN Carview will also work with Pendragon Group's Support Services division to
provide training in Microsoft's software to affiliated MSN Carview dealers and
run quality programmes to ensure that the highest possible service standards
are delivered and maintained.

Trevor Finn, chief executive of Pendragon, commented: 'The success of an
online car retail site is dependent largely on providing back-up to support
the service offered on screen. In the case of MSN Carview UK, Pendragon will
provide this back up ensuring that customers benefit from a fully integrated
service when wishing to buy a car through the site. We will not only be
responsible for the site's distribution network, but we will ensure that the
highest standard of customer service is available to anyone who needs help in
the buying process, supported by a dedicated team of car experts. This is a
tremendously exciting partnership that allows us to get huge scale across the
Internet, at a time when the UK motor trade must become a leaner and more
efficient business.'

Carview will be a sister site to the leading US automotive site, Carpoint.com
(www.carpoint.com), which is visited by more car buyers than any other site on
the web. This will enable Carview to benefit from a software platform proven
in the competitive US marketplace.   This highly developed technology has been
designed to cope with large volumes of users. As a site integrated within the
MSN.co.uk portal, Carview will provide access to the largest audience of
online car buyers in the UK.

Commenting on the new partnership, John Brewer, managing director of MSN
Carview UK, said: 'We are really looking forward to working with Pendragon.
Both organisations share a strong desire to increase efficiency in the UK car
market, and both are dedicated to using the Internet to achieve this. We have
unrivalled Internet architecture for the car market, but that is only part of
the picture. People value the convenience of using the Internet to research
their car purchase when they want to, and will be reassured by the support
that we offer, and the connections with authorised dealers. In addition to
convenience and the availability of a huge amount of independently produced
information, UK car buyers still want a good relationship with their dealer,
and a seamless blend of online, service and logistics. Through this
partnership we have the capability to deliver this, using our combined skills.

We'll make the buying process more efficient for dealers and more rewarding
for consumers. The combination of a great user interface design, the Carview
databases, the huge reach of MSN, combined with the retail management of
Pendragon, will provide a very attractive and reliable car buying service
through MSN Carview.'

                                
Notes to Editors

About Pendragon Plc

Pendragon became a public limited company when the vehicle division of
Williams Plc was demerged in 1989, operating 19 car dealerships, representing
specialist and luxury franchises, as well as small contract hire business.
Since then Pendragon has expanded considerably through the establishment of
Greenfield dealerships and through selective acquisitions of existing
businesses. Pendragon has created partnerships with leading manufacturers
including Ford, Vauxhall, Volvo, BMW, Ferrari, Jaguar and Mercedes. Pendragon
employs over 7,000 employees and operates in over 160 locations throughout the
United Kingdom.

About Carview

MSN Carview UK will offer British consumers car buying services, ownership
services, research information and automotive editorial content through its
forthcoming car portal http://www.carview.co.uk. Launching in Spring 2001, MSN
Carview UK will be the first European business launched by Carpoint Inc.
Carview.co.uk will be integrated into the UK's number one portal site,
MSN.co.uk.

About Carpoint Inc.

Launched     in     October     1995,     Carpoint     Inc's    Carpoint.com
(http://www.Carpoint.com)  is  the  leading  online  automotive   marketplace,
receiving more than 6 million consumer visits each month. From product reviews
and  surround  video features to new and used car pricing, the  Carpoint  site
helps  consumers  find  the car they love, at a price they  can  afford.  With
details on more than 10,000 car models and 100,000 used vehicles, visitors can
research  and  compare cars of virtually every make and model, identify  local
dealers, and receive instructions for post-purchase service and maintenance.

Carpoint generates more than $8 billion (U.S.) in auto sales each year for its
network  of  more  than  5,000  affiliated  dealers  nationwide.  Carpoint  is
exclusively   endorsed  by  the  American  International  Automobile   Dealers
Association.

About Microsoft

Founded  in 1975, Microsoft Corp. (Nasdaq 'MSFT') is the worldwide  leader  in
software,  services  and  Internet  technologies  for  personal  and  business
computing.  The company offers a wide range of products and services  designed
to  empower  people through great software - any time, any place  and  on  any
device.

About MSN

MSN is now the world's largest worldwide web destination with 208m unique
users, and is also the largest web destination in the UK with 10m unique users
per month. A worldwide brand campaign for MSN is currently running, promoting
a variety of new services to enrich user experience and offer more
convenience.


Microsoft, MSN and Carpoint are either registered trademarks or trademarks  of
Microsoft Corp. in the United States and/or other countries.

The  names  of  actual  companies and products mentioned  herein  may  be  the
trademarks of their respective owners.

For more information, please contact:
Sylvie Rose/Warren Johnson, The RED Consultancy, 0207 465 7700
Charlotte Festing, Finsbury, 0207 251 3801