completion of initial stage

Northgate PLC
08 August 2005


Embargoed for release until 7am on 8 August 2005


                                 Northgate PLC

             Completion of the acquisition of the initial 49 per cent of
                  the issued share capital of Record Rent a Car S.A.

Northgate PLC ('Northgate' or the 'Company'), the UK's leading specialist in
light commercial vehicle hire, announces  that it has completed the acquisition
of the initial 49 per cent of the issued share capital of Record Rent a Car S.A.
('Record Rent').

On 5 July 2005 Northgate announced the acquisition would be completed in two
stages, for a maximum total consideration  of €140m (£95m) subject to Record
Rent's profit after tax in the current financial year. Following the receipt of 
approval from the Spanish competition authorities and the completion of the
demerger of Record Go, a subsidiary  involved solely in the provision of cars to
the holiday market, Northgate has today completed the acquisition of 49 per 
cent of the issued share capital of Record Rent for a cash consideration of
€54.8m (£37.2m).

Northgate will acquire the remaining 51 per cent of the issued share capital of
Record Rent for a cash consideration  not exceeding €85.2m (£57.8m), comprising
a fixed payment of €61.2m (£41.5m) and an additional amount equal to the  profit
after tax of Record Rent for the year ending 31 December 2005 up to a maximum of
€24m (£16.3m). This stage of  the acquisition will complete following the
approval of Record Rent's accounts for the year ending 31 December 2005, 
expected to take place in May 2006.

Northgate and the vendors have entered into a shareholders' agreement providing
for the operation of Record Rent in the  period up to completion of the second
stage of the acquisition. As part of the agreement Northgate has appointed three
of its representatives to serve as Directors of Record Rent.

                                    - Ends -

For further information, please contact:

Northgate plc                                          01325 467558
Steve Smith, Chief Executive
Gerard Murray, Finance Director

Hogarth Partnership Limited                            020 7357 9477
Barnaby Fry
Edward Westropp




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