Further re Disposal

European Motor Hldgs PLC
2 July 2002

EUROPEAN MOTOR HOLDINGS plc ("EMH")



DISPOSAL OF MERCEDES-BENZ PASSENGER CAR BUSINESSES



The Board of EMH announces completion of the previously announced disposal of
the Group's Mercedes-Benz passenger car businesses to DaimlerChrysler UK Retail
Limited ("DCUKR"), a wholly owned subsidiary of DaimlerChrysler UK Limited.



EMH has operated Mercedes-Benz passenger car dealerships in London through its
subsidiary Normand Limited ("Normand").  With effect from 1 July 2002, DCUKR has
acquired the business and certain assets of those dealerships from Normand.  In
addition, DCUKR has paid Normand a Territory Release Payment ("TRP") in
compensation for the termination of its Mercedes-Benz passenger car franchises.
The employees of the businesses have been transferred to DCUKR.



DCUKR has agreed to lease the Group's freehold property at Park Royal for a
period of between one and two years and is also taking short term subleases of
the majority of the other properties used by the businesses.  The rental for the
Park Royal site and its fixed assets has been agreed at £720,000 per annum.



During the financial year ended 28 February 2002, the business disposed of
contributed £1.6 million to the Group's profit before taxation.  The net assets
disposed of had a book value of £0.3 million.



The total consideration, including the TRP of £4.05 million, amounts to £4.4
million and has been satisfied in cash.  Together with the advance payment of
rents and settlement of trading amounts due to Normand by the DaimlerChrysler
group, the total cash inflow from the disposal amounted to £5.7 million.



EMH has already embarked upon the expansion of its London Volkswagen operations,
which, together with other acquisition opportunities and EMH's stated intention
to continue to repurchase its own shares at appropriate times will ensure that
surplus funds, including the proceeds from this disposal, are invested for the
benefit of the company and its shareholders.



As stated at its Annual General Meeting on 21 June, EMH's trading continues to
be ahead of last year.  The Board remains confident about the prospects for the
current financial year.



Commenting on the disposal, Richard Palmer, Chief Executive of EMH, said:

"We are pleased with the final outcome of our negotiations.  The Group is now in
an exceptionally strong financial position and the Board is confident that the
investment now released from the Mercedes-Benz dealerships can be applied to
enhancing the Group's future performance."



Enquiries:


Richard Palmer                      Chief Executive
Ann Wilson                          Finance Director

European Motor Holdings plc         020 8961 2525





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