RNS Number:6782T
RAC PLC
24 December 2003

Date:     24 December 2003

For immediate release

RAC plc announces major contract with Ford Financial

RAC plc is pleased to announce that its contract hire business, Lex Vehicle
Leasing, a joint venture with HBOS, has been awarded a 7-year contract with
anticipated revenues of #1bn to provide outsourced contract hire services to
Business Partner, the contract hire arm of Ford Financial.

Under the new contract, Lex will provide contract hire infrastructure services
to the Ford family of brands (Ford, Jaguar, Land Rover, Mazda, Volvo and Aston
Martin). All Sales and Marketing activities will continue to be owned by Ford
Financial and marketed as Business Partner. Customers will continue to be
maintained within this branded environment with Lex providing dedicated resource
to support the delivery of the brand experience. Lex will fund and manage the
existing fleet of approximately 20,000 vehicles.

Jon Walden, a Director of RAC plc and Lex Vehicle Leasing's Managing 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 business substantially and we also believe this
will prove an attractive model for other partner organisations.

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

Andy Harrison, Chief Executive of RAC plc, added:

"I am delighted that this contract with Ford Financial enables us to continue
building our relationship with Ford, which already includes breakdown
assistance, technical services and vehicle inspections. This contract is another
example of our strength in managing large, complex vehicle fleets in high
service environments. It comes immediately after winning preferred bidder status
for the 15-year, #500m Ministry of Defence 'C' vehicle contract and the award of
the 10-year, #230m British Airways Ground Fleet Services contract won earlier
this year"

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

"Ford Financial remains committed to providing quality Business Partner products
to its customers, dealers and manufacturers. We are confident that the new
partnership with Lex will deliver a much improved service and product offering
for our customers and dealers."

Ends







For further information, please contact:

Jon Walden, Managing Director, Lex Vehicle Leasing             0870 112 5731

Niall Addison, Group Finance & Investor Relations, RAC plc     07764 624 701

Anita Scott / Kate Holgate, Brunswick                          0207 404 5959



Notes to editors

RAC plc provides a broad range of motoring services to individual and business
customers through the following inter-related business groupings:

  * RAC Roadside Services provides a range of breakdown assistance and onward
    travel services to individual and company motorists.

  * RAC Consumer Services sells a comprehensive range of motoring solutions to
    individual customers, including financial, legal and travel services,
    automotive glass and driver training.

  * RAC Business Solutions sells breakdown assistance, claims management,
    customer services and vehicle inspections to business customers including
    vehicle manufacturers and insurers.

  * Lex Vehicle Leasing is the UK's leading car and van contract hire company,
    providing solutions for fleets of all sizes together with personal leasing
    and employee car ownership schemes.

  * Lex Mechanical Handling sells, leases and maintains fork lift trucks

  * Manufacturer Support Services provide outsourced marketing and inventory
    management services, commercial vehicle fleet management and contract hire,
    and a range of motoring services to the defence sector.


Ford Financial Europe

Ford Financial Europe is a wholly owned subsidiary of Ford Motor Company. It is
the European arm of Ford Credit, www.fordcredit.com, which provides vehicle
financing in 36 countries to more than 11 million customers and more than 12,500
automotive dealers. More information about Ford Financial Europe can be found on
the World Wide Web at 


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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