Disposal

Pendragon PLC
3 October 2003

                          PENDRAGON PLC ('pendragon') 
                     Disposal of two Mercedes-Benz dealerships

Pendragon, the UK's largest car dealership group, today announces that it has
completed the disposal of its Mercedes-Benz dealerships in Northampton and
Bedford to United Auto Group UK Limited, a subsidiary of the Sytner Group,

The total proceeds of £6.4 million from the disposal consists of £3.4 million
goodwill and £3.0 million of net assets. In the twelve months to 31 December
2002 the profit before tax generated by the two businesses was £3.0 million. The
proceeds will be used to reduce the group's borrowings.

As explained in our 2003 Interim Report this transaction forms part of the
manufacturer's planned reorganisation of their UK network. As part of this
reorganisation Pendragon was awarded the West Yorkshire Market Area, which
consists of four dealerships, two of which were acquired last year to add to our
two existing sites in the territory. 

Enquiries:

Trevor Finn, Chief Executive               01623 725 114
David Forsyth, Finance Director            01623 725 114



                      This information is provided by RNS

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