Trading Update re Car Pricing

Pendragon PLC
18 November 1999

                                                           
                        PENDRAGON PLC
                       TRADING UPDATE
                              
                              
Following recent and well-publicised uncertainty over car
pricing in the car retailing market, the Board of Pendragon
today outlines its current trading performance.

Trading in used cars and aftersales, which account for
approximately 15 and 50 per cent respectively of the Group's
gross profit, remain in line with management expectations.
However, profits from the sales of new cars have been
adversely impacted in the last six weeks by specific
external market factors.

Group operating profit for the nine months to 30 September
1999 was £27.7 million before goodwill amortisation, below
management's expectations due to a slow down in consumer
demand in new car sales in the second half of September. New
car sales in October have shown demand at similarly low
levels to that seen in the second half of September.

Two principal factors contributed to this slow down - the
well publicised potential for harmonisation of new car
prices between the UK and continental Europe, and statements
in mid September from certain key manufacturers concerning
pricing policies in light of the intense public debate on
this matter.  The uncertainty caused by both of these
factors has, in the Board's view, contributed to consumers
deferring new car purchases.

If these recent demand levels for new car sales persist,
Group operating profits for the full year are anticipated to
be approximately at the same level as that achieved by
Pendragon last year.

The integration of the Evans Halshaw business has been
successfully completed and disposals of non-core dealerships
are ahead of target.  Our industry leading new customer
service centre at Loxley House in Nottinghamshire continues
to offer significant economies and efficiencies across the
Group and positions it strongly within the industry.

Enquiries:

Trevor Finn, Chief Executive       Pendragon PLC  01332 523123
David Forsyth, Finance Director

Rupert Younger                     Finsbury       0171 251 3801
Patrick Diamond