RNS Number:5433J
RAC PLC
02 April 2003


2 April 2003

For immediate release



British Airways teams up with RAC plc

RAC plc, the motoring and vehicle solutions company, announces that Lex
Transfleet Limited (its 50% joint venture with Lombard North Central PLC) has
signed a 10 year fleet management contract with British Airways for its Ground
Fleet Services, with lifetime revenue of approximately #230 million.

The contract, which commenced on 1 April 2003, is for Lex Transfleet to manage
British Airways' 6,300 strong fleet of vehicles and specialist equipment,
including aircraft tugs, baggage trailers and crew buses and passenger coaches.
An important differentiator in winning the contract was RAC's total vehicle
solutions capability, including parts supply, which will be provided by Lex
Transfleet's sister company, Lex Auto Logistics.

Fleet management, based on systems and expertise, is a strong growth area for
Lex Transfleet. This contract increases the company's fleet under management to
over 40,000 vehicles and strengthens its presence in the airside sector.

Services to British Airways will be provided from seven sites across Heathrow,
Gatwick, Manchester and Birmingham airports, by 350 experienced employees who
are transferring to Lex Transfleet from the previous incumbent.

Andy Hobart, Managing Director, Lex Industrial Solutions, said: "This contract
is another milestone in the delivery of RAC's business to business strategy and
demonstrates our leading position in the outsourcing market for customers with
large complex service-intensive fleets. It builds on our success with other
major customers such as the Ministry of Defence Whitefleet contract. We believe
we can add value to British Airways and we look forward to building a mutually
beneficial partnership with them."

Kevin Stovey, Procurement Manager, Global Logistics, British Airways, added:
"This contract is in line with our Future Size and Shape strategy to reduce our
cost base and simplify our business. Through a rigorous tender process RAC
emerged as the company that could best meet our needs taking into account
commercial and operational factors."

Ends



For further information please contact:

Niall Addison, Group Finance & Investor Relations                01628 843 820

Andy Hobart, Managing Director, Lex Industrial Solutions         01628 843 885

Anita Scott / Michael Webster, Brunswick                         020 7404 5959




Notes to editors

  * Lex Transfleet is an award-winning provider of commercial vehicle fleet
    support services offering expert and impartial advice on fleet management,
    rental, contract hire, driver management solutions and workshop services.
    Lex Transfleet is a joint venture between RAC plc and Lombard North Central
    PLC.
  * Lex Auto Logistics provides purchasing, inventory management, warehousing
    and distribution of parts to support businesses' logistics requirements.



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

CNTUUUCACUPWGGP