Bonus Issue

Pendragon PLC
13 June 2003


                       PENDRAGON PLC ('Pendragon')

            BONUS ISSUE OF THREE NEW ORDINARY SHARES FOR EVERY TWO 
                   EXISTING ORDINARY SHARES ('Bonus Issue')

Pendragon today announces a proposed bonus issue of three new ordinary shares
for every two existing ordinary shares held. The Bonus Issue will increase the
number of ordinary shares in issue held by shareholders on a pro rata basis and
will lead to an adjustment to the price at which ordinary shares are traded in
the market. Pendragon believes that the increase in the number of ordinary
shares in issue will enhance the liquidity and marketability of its shares.

The Bonus Issue will be effected by capitalising approximately £19.7 million
currently standing to the credit of Pendragon's share premium account.

The Bonus Issue is subject to approval by shareholders at the extraordinary
general meeting to be held on Tuesday 15 July 2003. Following such approval it
is expected that dealings in the new ordinary shares will commence on Wednesday
16 July 2003.

A Circular will be posted to all shareholders on Monday 16 June 2003, containing
details of the Bonus Issue, shareholder's resolutions and notice of the
extraordinary general meeting. 

Enquiries:

Trevor Finn, Chief Executive                Pendragon PLC  01623 725 000
David Forsyth, Finance Director
 

 



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