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Accident Exchange (~268)

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Friday 31 August, 2007

Accident Exchange

Positive update to legal case

Accident Exchange Group PLC
31 August 2007


FOR IMMEDIATE RELEASE                                        31 August 2007

                           Accident Exchange Group Plc
                     ('Accident Exchange' or 'the Company')

                      SUCCESSFUL UPDATE TO LEGAL CHALLENGE

In the ordinary course of business, the Company provides vehicle hire on credit
to the non-fault victims of road traffic accidents and recovers the resultant
hire charges from the negligent party or their insurer. This may involve a
solicitor being nominated to represent the client and the client issuing
proceedings for recovery of those charges.

The Company has previously disclosed details of a legal defence to a minority of
claims outstanding where proceedings have been issued on behalf of such clients.
This defence concerns an argument surrounding the enforceability of two variants
of its historic terms and conditions of hire. Two cases were recently heard to
conclusion before two separate courts and in both cases, at the conclusion of
the trial, judgement was reserved.

Judgment in one of those cases was handed down today in favour of the Company's
client confirming the enforceability of the second variant of terms and
conditions referred to previously as the 'A' Agreement and allowing the
recoverability of the hire charges from the defendant or their insurer.

The A Agreements comprise the majority of the debtors potentially affected by
the legal challenges and this decision from a Designated Civil Judge sitting in
the County Court is, therefore, likely to be significant in influencing the
positive outcome of a large number of cases currently listed before a number of
District Judges in the County Court where the enforceability defence has been
pleaded.

Whilst it remains open for the defendant to seek leave to appeal the decision,
they did not seek leave to appeal when the judgement was handed down. We are
confident that if a petition to appeal were successful that in any such appeal,
today's judgment in favour of the Company will be upheld.

No judgement has yet been handed down in respect of the case concerning the
enforceability of the other disputed terms and conditions (previously referred
to as the 'X' Agreements) but based on advice from our legal team, the Company
remains confident of a successful outcome to that case.

Ends


CONTACTS:

Accident Exchange Group Plc
Martin Andrews, Group Finance Director                          08700-053 649

Numis Securities Ltd                                            020-7260-1000
Lee Aston

Bankside
Steve Liebmann or Simon Bloomfield                              020-7367-8888

About Accident Exchange

Based in Coleshill, West Midlands, Accident Exchange delivers accident 
management and other solutions to automotive and insurance related sectors.  
Fully listed, the stock code is LSE: ACE.




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