Announcement re Reg Vardy

Pendragon PLC
17 January 2006

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For immediate release                                            17 January 2006

                          Pendragon plc ('Pendragon')

                  Announcement re Reg Vardy plc ('Reg Vardy')

Pendragon notes the announcement made today by Lookers plc regarding its
proposed acquisition of Reg Vardy. Pendragon is currently considering its
options in response to this development.

Pendragon continues to believe that a combination with Reg Vardy is consistent
with its stated strategy of increasing its scale with a select number of
manufacturing partners, which has been demonstrated in its track record of
successful acquisitions since 1997.

A further announcement will be made in due course.


Enquiries

  Pendragon plc                                                    01623 725 114
  Trevor Finn, Chief Executive
  David Forsyth, Finance Director

  Citigroup Global Markets Limited                                 020 7986 4000
  (Financial adviser and corporate broker to Pendragon)
  Philip Robert-Tissot
  Sam Small

  Chris Zeal (Corporate Broker)
  Finsbury Group                                                   020 7251 3801
  (Public relations adviser to Pendragon)
  Rupert Younger
  Gordon Simpson

Citigroup Global Markets Limited ('Citigroup'), which is authorised and
regulated in the United Kingdom by the Financial Services Authority, is acting
for Pendragon and no one else in connection with the matters referred to herein
and will not be responsible to any other person for providing the protections
afforded to clients of Citigroup or for providing advice in connection with the
matters referred to herein.


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