RNS Number:3736T
RAC PLC
17 December 2003


17 December 2003

For immediate release

RAC plc wins preferred bidder status for #500m MoD project

RAC plc, the motoring and vehicle services company, announces that the Amey Lex
Consortium (ALC), a partnership between Amey plc, the support services
specialist, and Lex Defence Ltd, RAC plc's defence fleet management and
logistics subsidiary, has been selected as preferred bidder for the Ministry of
Defence C Vehicle Capability Private Finance Initiative (PFI) programme. The
programme revenue is projected to be worth in excess of #500 million over the 15
year contract period.

The C Vehicle programme will provide all construction vehicles, plant and
equipment that is typically used by the military for engineering projects and
equipment/material handling to the British Armed Forces. This group of vehicles
include cranes, excavators, bulldozers, and mechanical handling equipment, such
as forklift trucks.


The Consortium will deliver an innovative service, rather than a procurement
based solution, building on the extensive service and support experience of both
partners. ALC will rationalise the MoD's C Vehicle Fleet from over 3,500 to a
size of approximately 2,500 vehicles. ALC will then maintain and manage the
fleet and provide associated services, including spares support and inventory
management, a comprehensive management information system, equipment
documentation and training for operators and instructors. The service is to be
provided mainly to the British Army, including units supporting the Royal Air
Force and the Royal Marines, on a worldwide basis.

Peter Harris, Group Managing Director, responsible for Lex Defence, stated: "We
are extremely pleased to have the opportunity to further build on our growing
partnership with the MoD. Our success with Amey in this consortium reflects the
synergy of our service offerings and our ability to provide significant
operational capability for the benefit of our MoD customers."

Mel Ewell, Chief Executive Officer of Amey, said: "We are delighted that the MoD
has selected us as the Preferred Bidder for this ground breaking fleet contract.
This reflects on the strength and innovation of the services offered in
partnership with Lex Defence, as well as the calibre of our professional team
and their understanding of the MoD's objectives."

Lord Bach, Minister for Defence Procurement commented "The C Vehicle bid is the
largest PFI bid involving front line operational land capability for the British
Armed Forces. In order to ensure best value for money for tax payers, we placed
this contract open to competition. ALC, building on the existing strong
arrangements with Amey and Lex Defence, was able to offer a superior solution
that met our requirements in a cost effective way."

Ends

For further information please contact:

Peter Harris, Group Managing Director, Manufacturer Support Services, RAC plc


Tel: 01628 843739

Niall Addison, Group Finance and Investor Relations Manager, RAC plc

Tel:07764 624701


Notes to Editors:

Lex Defence, part of RAC plc, provides a unique range of skills and services to
support the vehicle fleet and logistic requirements of the British Armed Forces
around the world. Lex Defence is currently responsible for more than #1 billion
worth of MoD contracts, managing some 14,000 vehicles on behalf of the MoD, and
is one of the largest suppliers of vehicles and fleet management services to the
UK defence market.

Combining a wide range of commercial disciplines into a single platform, Lex
Defence brings together a wealth of specialised skills and expertise from the
RAC plc group of companies. Whether the customer needs parts for the Challenger
2 Tank, Commercial Off The Shelf (COTS) fleet systems, or wide ranging vehicle
fleet provision and through-life support, Lex Defence can deliver.

Amey is a provider of integrated business support services to the public and
private sector and is working closely with central and local government to
deliver strategic education, health, transport and defence projects.  Services
range from the management of large-scale transportation infrastructure to the
delivery of professional and back office services.



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