Statement by OFT

Pendragon PLC
04 August 2006


FOR IMMEDIATE RELEASE                                             4 AUGUST 2006



                          PENDRAGON PLC ('PENDRAGON')

                   ACQUISITION OF REG VARDY PLC ('REG VARDY')

                    Statement by the Office of Fair Trading

The Board of Pendragon welcomes the decision announced today by the OFT not to
refer the acquisition of Reg Vardy to the Competition Commission provided that
satisfactory undertakings are given under section 73 of the Enterprise Act 2002.

Pendragon will now work closely with the OFT to reach agreement on appropriate
undertakings to address the concerns of the OFT relating to the prospect of the
substantial lessening of competition in relation to the servicing of cars less
than three years old in four local areas.

The areas of concern under discussion are made up of the following dealerships:
Vauxhall in Castleford, Leeds and Wakefield, Vauxhall in Airdrie, East Kilbride
and Motherwell, Vauxhall in Hartlepool and Land Rover in Northamptonshire.

A further announcement will be made when appropriate.


ENQUIRIES


Pendragon PLC
Trevor Finn, Chief Executive
David Forsyth, Finance Director
Telephone: [phone]

Finsbury Group
(Public relations adviser to Pendragon)
Rupert Younger
Gordon Simpson
Telephone: [phone]





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