RAC plc announces major contract with Ford Financial

Article date: 24 December 2003

RAC plc is pleased to announce that its contract hire business,Lex Vehicle Leasing, a joint venture with HBOS, has been awarded a7-year contract with anticipated revenues of £1bn to provideoutsourced contract hire services to Business Partner, the contracthire arm of Ford Financial.

Under the new contract, Lex will provide contract hireinfrastructure services to the Ford family of brands (Ford, Jaguar,Land Rover, Mazda, Volvo and Aston Martin). All Sales and Marketingactivities will continue to be owned by Ford Financial and marketedas Business Partner. Customers will continue to be maintainedwithin this branded environment with Lex providing dedicatedresource to support the delivery of the brand experience. Lex willfund and manage the existing fleet of approximately 20,000vehicles.

Jon Walden, a Director of RAC plc and Lex Vehicle Leasing'sManaging Director, said:-

"This is the largest ever contract won by Lex Vehicle Leasing,which builds on our industry-leading systems and customer service.Working together with Ford Financial we expect to grow the businesssubstantially and we also believe this will prove an attractivemodel for other partner organisations.

"The contract award comes at the end of a very successful yearfor Lex Vehicle Leasing in which we have become the first contracthire company to achieve a fleet of 100,000 vehicles purely throughorganic growth."

Andy Harrison, Chief Executive of RAC plc, added:

"I am delighted that this contract with Ford Financial enablesus to continue building our relationship with Ford, which alreadyincludes breakdown assistance, technical services and vehicleinspections. This contract is another example of our strength inmanaging large, complex vehicle fleets in high serviceenvironments. It comes immediately after winning preferred bidderstatus for the 15-year, £500m Ministry of Defence 'C' vehiclecontract and the award of the 10-year, £230m British Airways GroundFleet Services contract won earlier this year"

Mark Christelow, Director-European Fleet and Leasing of FordCredit, said:-

"Ford Financial remains committed to providing quality BusinessPartner products to its customers, dealers and manufacturers. Weare confident that the new partnership with Lex will deliver a muchimproved service and product offering for our customers anddealers."

Ends

For further information, please contact:
Jon Walden, Managing Director, Lex Vehicle Leasing 0870 1125731

Niall Addison, Group Finance & Investor Relations, RAC plc07764 624 701

Anita Scott / Kate Holgate, Brunswick 0207 404 5959

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