Agreement of VAT claims

European Motor Hldgs PLC 30 April 2004 EUROPEAN MOTOR HOLDINGS plc ("EMH") AGREEMENT OF VAT CLAIMS EMH is delighted to announce that it has been notified by HM Customs & Excise that the Commissioners have agreed the vast majority of the Group's retrospective VAT claims regarding demonstrator vehicles. The amount of the claims has been agreed at £6.2 million plus interest. The amount of interest has not yet been confirmed but is expected to be in the region of £6.0 million. Whilst the timing of the receipt of these amounts is not yet known, the Board understands that the claims are in the process of being passed for payment and it is anticipated that settlement will take place during the first half of the current financial year. It is believed that both the VAT claim and the associated interest will be subject to corporation tax. However, this is not a confirmed position and therefore the total net receipt to the Group of the VAT claim exercise is not yet known. The Board is currently considering possible alternative uses for these funds including a return of cash to shareholders. A further announcement will be made as appropriate. This information is provided by RNS The company news service from the London Stock Exchange