Re Joint Venture

Pendragon PLC
02 November 2005

                             ANNOUNCEMENT 
                       PENDRAGON PLC ('Pendragon')

Properly Joint Venture

We are pleased to announce that we have successfully completed a joint venture 
agreement with a wholly owned subsidiary of The Royal Bank of Scotland PLC 
('RBS'), which has subscribed in cash for a 49% equity shareholding in our new 
subsidiary company PPHO Limited ('PPHO').

PPHO, which owns properties which are leased to Pendragon, has entered into a 
ten year loan facility agreement with RBS to fund the business on a long term 
committed basis. The new loan facility will be used to repay the existing intra 
group loan account with Pendragon. The gross assets of PPHO at completion are 
£105.3 million.

As a result of this joint venture agreement Pendragon receives net cash proceeds 
of £98.0 million and will recognise a profit before tax of £6.2 million.


Enquiries
Trevor Finn, Chief Executive         -      01623 725 114     
David Forsyth, Finance Director      -      01623 725 114     



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