Offer Update

Inchcape PLC 12 January 2007 FOR IMMEDIATE RELEASE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN OR INTO ANY RESTRICTED JURISDICTION 12 January 2007 RECOMMENDED CASH OFFER FOR EUROPEAN MOTOR HOLDINGS PLC ('EMH') BY INCHCAPE PLC ('INCHCAPE') OFFER UPDATE AND EXTENSION On 15 December 2006, Inchcape announced a recommended cash offer to acquire the whole of the issued and to be issued share capital of EMH (the 'Offer'). The Offer Document setting out the full terms of the Offer was posted to EMH Shareholders on 21 December 2006. Level of acceptances and ownership Inchcape announces that as at 3.00 p.m. on 11 January 2007, being the first closing date of the Offer, Inchcape had received valid acceptances of the Offer in respect of a total of 28,131,594 EMH Shares, representing approximately 51.36 per cent. of the existing issued share capital of EMH. Of these acceptances, Inchcape has received valid elections for the Loan Note Alternative in respect of 775,362 EMH Shares, representing approximately 1.42 per cent. of the existing issued share capital of EMH. Inchcape is also the beneficial owner of 10,157,207 EMH Shares, representing approximately 18.55 per cent. of the existing issued ordinary share capital of EMH. Accordingly, Inchcape is the beneficial owner or has received valid acceptances in respect of 38,288,801 EMH Shares, representing approximately 69.91 per cent. of the existing issued share capital of EMH. Save as disclosed in this announcement or in the Offer Document, neither Inchcape nor any person acting in concert with Inchcape is interested in or has any rights to subscribe for any EMH Shares, nor does any such person have any short position or any arrangement in relation to EMH Shares. For these purposes, 'arrangement' includes any agreement to sell or any delivery obligation or right to require another person to purchase or take delivery of EMH Shares and any borrowing or lending of EMH Shares that have not been on-lent or sold. Prior to the posting of the Offer Document on 21 December 2006, Inchcape had received undertakings to accept (or procure the acceptance of) the Offer in respect of a total of 15,002,819 EMH Shares representing approximately 27.4 per cent. of the existing issued share capital of EMH. Valid acceptances have been received in respect of 15,002,819 EMH Shares that were the subject of the undertakings and are included in the total number of valid acceptances referred to above. Extension of the Offer Inchcape announces that the Offer (including the Loan Note Alternative) has been extended and will remain open for acceptance until 3.00 p.m. on 25 January 2007. The Offer remains subject to the terms and conditions set out in the Offer Document (including the receipt of valid acceptances in respect of not less than 90 per cent. (or such lower percentage as Inchcape may decide) in nominal value of the EMH Shares to which the Offer relates). To accept the Offer To accept the Offer in respect of EMH Shares held in certificated form, Forms of Acceptance not yet returned must be duly completed, signed and returned by post or by hand (during normal business hours only) to Capita Registrars, Corporate Actions, The Registry, 34 Beckenham Road, Beckenham, Kent, BR3 4TU as soon as possible and, in any event, so as to be received by no later than 3.00 p.m. on 25 January 2007. Additional Forms of Acceptance are available from Capita Registrars on 0870 162 3121 or, if calling from outside the United Kingdom, on +44 208 639 2157. To accept the Offer in respect of EMH Shares held in uncertificated form (that is, in CREST), EMH Shareholders should make their acceptance electronically through CREST so that the TTE instruction settles no later than 3.00 p.m. on 25 January 2007. Timing Inchcape currently expects that the date on which the Offer will be capable of being declared unconditional in all respects is 6 February 2007. On this basis, and having regard to Rule 31.7 of the Takeover Code, the earliest date on which Inchcape expects to declare the Offer unconditional as to acceptances is 16 January 2007. The Offer will remain open for acceptances for not less than 14 days from the date on which it is declared unconditional as to acceptances. Terms defined in the Offer Document have the same meaning in this announcement. References to times are to London time. Enquiries: Dresdner Kleinwort (Financial adviser and corporate broker to Inchcape) Tel: 020 7623 8000 Rosalind Hedley-Miller Charles Batten Christopher Baird Financial Dynamics (PR adviser to Inchcape) Tel: 020 7831 3113 Jonathon Brill Billy Clegg Dresdner Kleinwort Limited, which is authorised and regulated by the Financial Services Authority, is acting for Inchcape and for no one else in relation to the Offer and will not be responsible to anyone other than Inchcape for providing the protections afforded to customers of Dresdner Kleinwort Limited or for providing advice in relation to the Offer or any matter referred to in this announcement. This announcement is not an offer to sell or an invitation to purchase any securities or the solicitation of any vote or approval in any jurisdiction. The Offer is being made solely by means of the Offer Document and, in the case of certificated EMH Shares, the Form of Acceptance accompanying the Offer Document, which contain the full terms and conditions of the Offer including details of how it may be accepted. EMH shareholders are advised to read carefully the formal documentation in relation to the Offer. Unless otherwise determined by Inchcape, the Offer (including the Loan Note Alternative) is not being made, directly or indirectly, in or into or by the use of the mails of, or by any means or instrumentality (including, without limitation, telephonically or electronically) of interstate or foreign commerce of, or through any facilities of a national securities exchange of, any Restricted Jurisdiction, and the Offer should not be accepted by any such use, means, instrumentality or from or within any Restricted Jurisdiction. Accordingly, copies of this announcement are not being, and must not be, mailed or otherwise forwarded, distributed or sent in, into or from any Restricted Jurisdiction and all persons receiving this announcement (including nominees, trustees and custodians) must not mail or otherwise forward, distribute or send it in, into or from such jurisdictions as doing so may render invalid any purported acceptance of the Offer. Notwithstanding the foregoing, Inchcape will retain the right to permit the Offer to be accepted and any sale of securities pursuant to the Offer to be completed if, in its sole discretion, it is satisfied that the transaction in question can be undertaken in compliance with applicable law and regulation. The Loan Notes to be issued pursuant to the Offer have not been, and will not be, registered under the US Securities Act or under the securities laws of any state or other jurisdiction of the United States, Canada, Australia or Japan. Accordingly, the Loan Notes may not (unless an exemption under the relevant securities law is applicable) be offered, sold, resold, delivered or transferred, directly or indirectly, in or into the United States, Canada, Australia or Japan (or any other jurisdiction if to do so would constitute a violation of the relevant laws of, or require registration thereof in, such jurisdiction) or to, or for the account or benefit of, a person located in the United States, Canada, Australia or Japan. The Offer will be made for the securities of a UK company. US investors should be aware that the Offer will be made in accordance with the Code and will be subject to disclosure and procedural requirements that are different to those under United States law. Financial statements included in the Offer Document will be prepared in accordance with non-US accounting standards that may or may not be comparable to those used to prepare the financial statements of US companies. The receipt of cash pursuant to the Offer by a US holder of EMH Shares may be a taxable transaction for US federal income tax purposes and under applicable US state and local, as well as foreign and other tax laws. Each holder of EMH Shares is urged to consult his or her independent professional adviser immediately regarding the tax consequences of acceptance of the Offer. It may be difficult for US holders of EMH Shares to enforce their rights and any claim arising out of the US federal securities laws since Inchcape and EMH are located in non-US jurisdictions and some or all of their officers and directors may be residents of non-US jurisdictions. US holders of EMH Shares may not be able to sue a non-US company or its officers or directors in a non-US court for violations of the US securities laws. Further, it may be difficult to compel a non-US company and its affiliates to subject themselves to a US court's judgement. The distribution of this announcement in jurisdictions other than the UK may be restricted by law and therefore any persons who are subject to the laws of any jurisdiction other than the UK should inform themselves about, and observe, any applicable requirements. This information is provided by RNS The company news service from the London Stock Exchange

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