Acquisition

Lookers PLC
13 January 2003

                                                               13th January 2003

For immediate release

                    LOOKERS plc ('Lookers' or 'the Company')
           EXPANSION OF  RENAULT AND ADDITION OF VOLVO TO THE GROUP
                    COMPLETION OF PREFERENCE SHARE REDEMPTION


Lookers, one of the UK's leading car retail groups, announces the acquisition of
the Renault franchise for south Manchester and central Cheshire with the
purchase of the share capital of Jackson & Edwards Ltd.  The Jackson & Edwards
businesses comprise two existing Renault dealerships in Altrincham, south
Manchester and Northwich, Cheshire and also a successful Renault car rental
business.  At completion, Jackson & Edwards Ltd had net assets of approximately
£1.5 million.

The new acquisition takes the total number of Renault dealerships in Lookers to
13, making the group one of the largest Renault dealers in the UK. The two new
dealerships are expected to add around £15m to annual turnover and are expected
to sell around 1,200 new cars a year.

Fred Maguire, Lookers chairman, said: 'These new dealerships are a natural fit
with our existing operations in Chester, Macclesfield and Stockport and complete
a wide market area for Lookers in south Manchester and Cheshire with one of our
most important manufacturer partners.'

The purchase of Jackson & Edwards is Lookers' second important acquisition in
two months, following the acquisition  of the Volvo franchise for central and
south Essex in December 2002, comprising two dealerships. This acquisition gave
Lookers its first Volvo dealerships (Chelmsford and Hadleigh, Essex) and
strengthened relationships with Ford's Premier Automotive Group, for which the
company already represents Jaguar, Land Rover and Aston Martin. The net assets
at completion of the two dealerships was approximately £1.2 million. The new
Volvo franchises are expected to add over £20m to the group's annual turnover.

The Company also announces that following the announcement on November 29th
2002, it has now successfully completed the redemption of its 13,888,940 8%
Cumulative Redeemable Preference Shares of £1 each, The redemption is earnings
enhancing and will add an additional £600,000 at current interest rates to
shareholders' funds each year.

Fred Maguire said: 'Lookers is entering 2003 in excellent financial shape and
the outlook is encouraging. We are continuing our policy of developing our
business with chosen manufacturer partners and we hope to significantly expand
the company during the coming months.'

ends


For more information:

Fred Maguire, Chairman:                              0161 291 0043
Ken Surgenor, Chief Executive:                       0161 291 0043
David Dyson, Group Financial Director:               0161 291 0043
Andrew Hayes/ James Hill, Hudson & Sandler:          020 7796 4133


                      This information is provided by RNS
            The company news service from the London Stock Exchange