Inchcape - Sale of IRB

Inchcape PLC
5 March 2001

Inchcape - Sale of IRB

Sale of IRB to HSBC for circa £15.5m
To result in Group net debt reduction of circa £67.8m

Inchcape plc, the international automotive services group, announces that its
Singapore quoted subsidiary, Inchcape Motors Limited (IML), has entered into
an agreement to sell its 70% interest in its Brunei financial services
business, IRB Finance Berhad (IRB), to a subsidiary of the Hongkong and
Shanghai Banking Corporation Limited (HSBC) for S$39.8m after expenses in cash
(£15.5m).

IRB is financed by customer deposits of £54.1m and loans from Group companies
of £21.4m.  Cash totalling £23.2m is held for regulatory and liquidity
purposes.  In aggregate these total S$135.5m (£52.3m).  Group net debt
reduction on disposal is therefore circa S$175.3m (£67.8m).  IML will realise
a profit on the sale of circa S$11.5m (£4.5m).  The consideration due to IML
will be paid on completion, which is expected to take place in March 2001.

This disposal, along with others recently completed, is in line with
Inchcape's declared policy of exiting businesses that do not fit the Group's
core strategy.  Expansion opportunities for IRB lie outside of automotive
services and would not match the returns available to Inchcape elsewhere.  For
the year to 31 December 2000 IRB recorded profits before tax of £3.3m and had
net assets to the value of £15.6m.  Inchcape's effective shareholding in IRB
is 44%.

Inchcape through its subsidiary NBT Brunei, remains the premier motor retailer
in Brunei, representing Toyota/Lexus and commanding a market leading position
of 23.9%.

Peter Johnson, Inchcape's Group Chief Executive, said:

'We are delighted to reach this agreement, which is beneficial to all parties.
 The sale of IRB is a further example of Inchcape strengthening its balance
sheet and refocusing on its core business.  The impact of this sale will place
us into a cash positive position allowing us to take advantage of investment
opportunities as they arise in our strategic markets.'

Notes to editors
Inchcape plc is a leading international automotive services group, providing a
broad choice of motoring solutions for customers and quality representation
for its manufacturer partners. Inchcape's core markets are UK, Hong Kong,
Singapore, Australia, Belgium and Greece. The Group's activities include
import, distribution and retail, UK retail of new and used cars, automotive
e-commerce and financial services, including consumer and dealer finance,
insurance and leasing. 

Issued by and enquiries to:

Helen Cartmell                 0207-546-8328
Group Communications Manager

John Olsen                     0207-357-9477
Hogarth Partnership