Chairman's Statement

Pendragon PLC
23 April 2001


                                                                 23 April 2001

                                 PENDRAGON PLC

                           THE CHAIRMAN'S STATEMENT

The year has begun positively. We have added to our core business through the
acquisition, on 1 March 2001, of a further dealership in the Frankfurt area of
Germany which holds both Jaguar and Land Rover franchises. Last week we
completed the acquisition of our second business in California, USA, which
comprises Jaguar and Land Rover dealers in Hollywood and Santa Monica.

When we announced our preliminary results on 19th February 2001 we indicated
that it was the Board's intention to utilise net profits from disposal of
freehold properties to repurchase the company's ordinary shares under the
terms of permission given by shareholders. We bought one million shares under
this initiative in late March this year at a cost of £2.26 million. These
shares have been cancelled.

So far this year we have sold freehold properties which have generated
proceeds of £3.4 million. We currently have under offer vacant properties with
a market value of in the region of £20million.

We remain confident that actions taken last year to enrich our franchise
portfolio by the acquisition of luxury car franchises from Lex Service PLC and
the disposal of non core and under performing dealerships have positioned us
well for an uplift in the group's performance. Trading results in the first
three months of the current year have reaffirmed this view.


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

Rupert Younger                          Finsbury                  020 7251 3801
Gordon Simpson