Change in Dividend Policy

Pendragon PLC
2 July 2003



                                 ANNOUNCEMENT 

                            PENDRAGON PLC ('Pendragon') 

                             Change in Dividend Policy

Pendragon announces a change in its dividend phasing policy. Since registration
plate changes in the UK moved from the annual August change to the twice yearly
change in March and September the phasing of profit generation during the year
has moved towards the first half of the year. Historically, Pendragon's policy
on the phasing of dividend payments has reflected the dependence on the key
profit month of August, with the split between interim and final dividend being
around one third and two thirds. We now intend to change the policy to reflect
the new phasing of profits and this will result in more of the dividend being
paid at the interim stage. It is envisaged that the new proportion will be
around one half at interim stage and one half at final stage.

When considering the amount to be distributed to shareholders under this new
dividend policy each year the Board of Pendragon will continue to be prudent and
take into account its view of future trading.

The Group expects to announce its Interim Results for the 6 months ending 30
June 2003 on 14 August 2003. 


Enquiries:

Trevor Finn, Chief Executive       Pendragon PLC    01623 725000 
David Forsyth, Finance Director    Pendragon PLC    01623 725000





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