Car Supply Venture

Centrica PLC
3 December 2001

3 December 2001



CAR SUPPLY VENTURE

Centrica plc, which owns the Automobile Association, today announces that the
AA and Inchcape plc have signed an agreement to offer an AA-branded service
for the supply of new and used cars, to be launched to consumers in the first
quarter of next year.

The initial investment in the venture will be £4 million, with the AA having a
70% share and Inchcape a 30% share of the equity. This will enable the venture
to offer cars to UK buyers, together with a range of financing options and
other motoring-related products and services.

The AA, the UK's largest motoring organisation, is a major force in roadside
assistance, automotive finance and insurance. The move is part of the strategy
by Centrica, the AA's parent, to expand the AA brand into a wider range of
motoring activities.

Inchcape, the world's largest independent automotive services group, will
provide support services to this venture including sourcing, refurbishment and
logisitics.

Roger Wood, Centrica Executive Director and Managing Director of the AA, says:
'This gives us the opportunity to launch a product which will bring the AA's
values and customer service skills into the car market. We can expect it to
influence consumer attitudes to owning and running a car.'



Inchcape chief executive Peter Johnson says: 'Inchcape's strategy has been to
provide innovative business solutions to the automotive industry. This venture
clearly demonstrates Inchcape's strategy at work and is an example of the new
distribution channels which we will develop both individually and with
selected partners.'



Enquiries:

Centrica Investor Relations      01753 494900

AA Press Office               01256 492927