Acquisition

Inchcape PLC
31 August 2001


INCHCAPE PLC ACQUIRES BATES MOTOR GROUP LTD - BMW/AUDI SPECIALIST CAR RETAILER

Inchcape plc, the international automotive services group, has today announced
it has acquired the Bates Motor Group Ltd, one of the UK's leading specialist
car retailers for £22.3m. This consideration is payable in cash totalling
£8.4m, on completion, and loan notes of £13.9m redeemable after 31 August
2002. The value of the net assets acquired on completion is estimated to be
£6.7m, this includes some £3.4m of debt. 

Net operating profits for this private group in 2000 were £1.9m. These results
do not reflect the full year benefit of BMW, Ilford, purchased during 2000. In
addition the Bates Motor Group Ltd acquired Audi/Volkswagen, Southend, during
2001. We expect this acquisition to be earnings enhancing for the year ending
December 2002.

The Bates Motor Group Ltd is one of the largest BMW and Audi specialist
retailers in the UK and comprises ten motor dealerships. Of these there are
four BMW dealerships and three Audi dealerships located in London and Essex.
These dealerships significantly increase Inchcape's representation with these
manufacturers and, with their agreement, we will continue to explore
opportunities for further expansion. 

In addition there are currently three Volkswagen dealerships. However it is
intended that Inchcape, in conjunction with the manufacturer, will be selling
these businesses to approved candidates. Inchcape already represents
Volkswagen in five territories, two of which were awarded recently. As part of
an agreed market area strategy we will continue to expand with Volkswagen.

Peter Johnson, Group Chief Executive of Inchcape plc, commented: 'The Bates
Motor Group has achieved many motor industry accolades and is widely regarded
as one of the premier dealership groups in the UK. This acquisition in the
specialist car sector strengthens our relationship with two of our key OEM
partners and is a significant step in our declared aim of achieving scale
relationships with them.'

Notes to editors
For further information, please contact:

GROUP COMMUNICATIONS, INCHCAPE PLC  
020 7546 0022

TOM LEATHERBARROW, HOGARTH PARTNERSHIP LIMITED  
020 7357 9477

The acquired dealerships are located in the following areas;

BMW Maldon - Essex
BMW Harold Wood - Romford, Essex
BMW Kennington Lane - London
BMW East London - Ilford, Essex

Audi Harold Wood - Romford, Essex
Audi Docklands - London
Audi Southend - Essex

Volkswagen Hayes, London
Volkswagen Heathrow, London
Volkswagen Southend, Essex