Inchcape Announce AA Venture

Inchcape PLC
3 December 2001

INCHCAPE AND THE AA ANNOUNCE CAR SUPPLY VENTURE

Inchcape plc today announces that it has signed an agreement with Centrica
plc, which owns the Automobile Association, to offer an AA-branded service for
the supply of new and used cars to be launched to consumers in the first
quarter of next year.

The initial investment in the venture will be £4.0m, with Inchcape having a
30.0% share and the AA a 70.0% share of the equity. The venture will offer
cars to UK buyers, together with a range of financing options and other
motoring-related products and services.

Inchcape, the world's largest independent automotive services group, will
provide support services to this venture including sourcing, refurbishment and
logistics.

The AA, the UK's largest motoring organisation, is a major force in roadside
assistance, automotive finance and insurance. The move is part of the strategy
by Centrica, the AA's parent, to expand the AA brand into a wider range of
motoring activities.

Inchcape Chief Executive Peter Johnson says: 'Inchcape's strategy has been to
provide innovative business solutions to the automotive industry. This venture
clearly demonstrates Inchcape's strategy at work and is an example of the new
distribution channels which we will develop both individually and with
selected partners.'

Roger Wood, Centrica Executive Director and Managing Director of the AA, says:
'This gives us the opportunity to launch a product which will bring the AA's
values and customer service skills into the car market. We can expect it to
influence consumer attitudes to owning and running a car.'


Notes to editors

For further information, please contact:

Inchcape plc 
Group Communications                John Olsen, Hogarth Partnership Limited  
020 7546 0022                       020 7357 9477


3 December 2001