Chief Executive's Statement

European Motor Hldgs PLC 23 June 2000 EUROPEAN MOTOR HOLDINGS plc ('EMH') At the Annual General Meeting of EMH held earlier today, Richard Palmer, Chief Executive, made the following statement: 'At the time we announced the preliminary results in April, we referred to the uncertainty surrounding our Motor Retail businesses as a result of the Government's Inquiry into New Cars. On 12 June, a draft Order was published by the Department of Trade and Industry setting out the Government's requirements in respect of certain aspects of the trading relationship between manufacturers and dealers. Interested parties have until 14 July to respond to the draft Order and, as yet, we have received no indication of how manufacturers intend to react. The uncertainties surrounding new car pricing have therefore continued and, whilst certain manufacturers have responded to this situation by providing sales incentives to help us continue to sell new vehicles, we believe that many customers are continuing to defer their new car purchases in the expectation of a reduction in list prices. We continue to believe that if prices are reduced, demand for new cars will show major growth. Whilst our performance in this financial period is slightly ahead of our budget, it is below last year, principally as a result of the damaging impact of the uncertainty surrounding our Motor Retail businesses. We remain in a difficult trading environment, but we are continuing to perform well in the circumstances.' All the resolutions proposed by EMH at today's Annual General Meeting have been passed by shareholders. Press enquiries: Richard Palmer, Chief Executive, European Motor Holdings plc 020 8961 2525 Ann Wilson, Finance Director, European Motor Holdings plc 020 8961 2525 Zoe Biddick/Shane Dolan, Biddick Associates 020 7464 4280