Trading Statement

European Motor Hldgs PLC
26 August 2004


EUROPEAN MOTOR HOLDINGS plc ("EMH")

TRADING UPDATE

Trading in the first half of our financial year has been significantly ahead of
our expectations and the comparative  performance for last year.

We have also made exceptional profits of approximately £0.9 million in the
period as a result of disposals of certain  properties and businesses.  To date,
we have received £6.0 million in respect of our retrospective VAT claims
previously announced, together with £5.9 million of interest on that figure.  We
believe that we will receive further interest of £0.3 million in respect of
these claims.  Total exceptional profits and interest for the first half are
expected to be £6.9 million and £6.2 million respectively, a total of £13.1
million.

We have been granted a new franchise agreement for our Tetbury Audi business and
that, together with our newly acquired  Swindon Audi business, represents the
first stage in the development of our Audi market area in the West of England.

We look forward to the second half of the financial year with confidence.

EMH's interim results for the six months ending 31 August 2004 are due to be
announced in mid October.






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