Disposal

Pendragon PLC
01 March 2006


           Pendragon PLC ('Pendragon') & Reg Vardy plc ('Reg Vardy')


Pendragon announces the sale on 1 March 2006 by its subsidiary, Reg Vardy plc
('Reg Vardy'), of five Volkswagen dealerships in Leicester, Redditch, Stafford,
Stourbridge and Wolverhampton. The business and assets of the dealerships have
been acquired from Reg Vardy by Volkswagen Group United Kingdom Limited which
has advised Reg Vardy of its intention immediately to transfer the acquired
businesses to three separate dealer operators.

The gross assets of the businesses being disposed of are £16,770,625. In 2005,
the businesses' contribution to the Reg Vardy group was a loss of £0.27
million.

Enquiries:

Trevor Finn:                                 01623 725114

David Forsyth                                01623 725114



TREVOR G FINN 

1 March 2006


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