Trade Credit Arrangements

09 January 2006

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PENDRAGON PLC ('Pendragon' or the 'Company')

Pendragon has received a number of enquiries regarding trade credit
arrangements which would be in place with one of our principal manufacturer
suppliers, Ford, following a successful acquisition of Reg Vardy plc.

In order to clarify the position, we are pleased to confirm that FCE Bank plc
(trading as Ford Financial) has agreed to increase the trade credit facilities
available to us by approximately £170 million. This is the amount which is
expected to be sufficient to fund all of the new vehicle stocks and some
demonstrator and used cars in the Ford manufacturer brands (Ford, Land Rover
and Jaguar) currently franchised to Reg Vardy Plc.

Enquiries:

Pendragon PLC Trevor Finn, Chief Executive Tel: [phone]

David Forsyth, Finance Director

Finsbury Gordon Simpson Tel: [phone]

-ENDS-