Joint Venture/Disposal

Ricardo PLC
21 February 2001


                                       
                     JOINT VENTURE AGREEMENT WITH SCHENCK
                AND DISPOSAL OF RICARDO TEST AUTOMATION LIMITED
                                       
                                       
The Boards of Schenck AG, (Schenck) and Ricardo plc (Ricardo), are pleased  to
announce the formation of a joint venture - Schenck Ricardo Systems  Limited,
bringing together the expertise  of two world leaders in the field of
automotive test systems.  Schenck through its Pegasus Division is a  worldwide
business in the supply of test and automation systems and Ricardo is a leading
automotive consultancy with extensive  experience  in  the  development  of
automotive testing tools and systems.

Test  systems and software developed within the joint venture will be  branded
'Schenck  Ricardo' and will be marketed primarily through the  Schenck  global
sales and service network.  Ricardo will be assigning its leading edge  Data
Management software package 'TDM' to the joint venture and  Schenck will  be
providing most of the software developers. Ricardo will have a 30%  stake  in
the joint venture which will be based in Worcester.

In  addition  as  part  of the developing collaboration  between  Schenck  and
Ricardo, Schenck will acquire all the share capital of Ricardo Test Automation
Limited  ( RTA ) for £3.25m in  cash, which will strengthen Schenck's position
within  the  UK automotive test equipment market. For the year ended  30  June
2000,  RTA and its subsidiary had net assets of £906,000 and generated pre-tax
profits of £173,000. Ricardo will use the proceeds to reduce its borrowings.

Mr Rodney Westhead, Chief Executive of Ricardo, commented:

'We  are  pleased to be working with Schenck and I expect that the combination
of Ricardo and Schenck will create one of the most powerful automotive testing
systems software companies in the world'.

Ricardo's  results for the six months ended 31 December 2000 will be announced
on Monday 26 February 2001.

Enquiries:

Ricardo plc                                  Tel: [phone]
Rodney Westhead, Chief Executive

Gavin Anderson & Co                          Tel: [phone]
Laura Hickman / Charlotte Stone

Ricardo website:  www.ricardo.com