RNS Number:4181K
RAC PLC
28 April 2003

28 April 2003

For immediate release



RAC plc sells mechanical handling businesses for #98.7 million

RAC plc, the motoring and vehicle solutions business, has agreed to sell two of
its UK mechanical handling businesses, Lex Harvey and Lex Birchwood, to Finning
(UK) Ltd. for #98.7 million in cash, of which a maximum of #3.5 million will be
contingent on the transfer of business assets. The transaction is earnings
enhancing and is expected to complete on 31 May 2003.

Lex Harvey and Lex Birchwood, which supply forklift trucks and mobile
maintenance services to business customers across the UK, made #4.4 million of
pre tax losses in 2002. The value of the assets included in the transaction was
#97.3 million as at 31 December 2002.

The proceeds will be used to pay down debt, including #72 million of
non-recourse debt relating to these businesses. The net loss on disposal will
include a profit of #1.4 million on the value of the assets sold, #3.3 million
of transaction costs and #9.8 million of goodwill previously written off to
reserves. There will also be #2 million of costs associated with the
restructuring of RAC's remaining mechanical handling businesses.

Andy Harrison, RAC plc Chief Executive, said:

"This is another important step in focusing RAC and realising value from under
performing assets. We will continue to concentrate on our growth opportunities
in consumer and business services, based on our strong brands and our unique
motoring and vehicle capabilities."

Andy Hobart, Group Managing Director, Lex Industrial Solutions, added:

"Global consolidation of lift truck manufacturers has led to significantly
increased competition, which has placed pressure on independent operators such
as Lex Harvey and Lex Birchwood. There is a good fit between the businesses
being sold and Finning, which will create value and secure a better future for
the people affected."

Finning (UK) Ltd., a subsidiary of Finning International, also has a substantial
forklift truck business and is the UK national dealer for Caterpillar equipment.
It is intended that Finning will support RAC's multi-activity bids in the
business to business sector to the mutual benefit of both organisations.

RAC plc will issue its normal trading update at the AGM on 30 April.

-Ends-



For further information, please contact:

Andy Harrison, Chief Executive, RAC plc                         020 7705 1257

Niall Addison, Group Finance & Investor Relations, RAC plc      01628 843 820

Anita Scott / Stuart Bruseth, Brunswick                         020 7404 5959

Simon Southgate, Primus Communications (for Finning)            020 7924 7988





Notes to Editors

RAC plc business services

RAC plc provides a unique range of outsourced motoring and vehicle solutions to
businesses under the two strong brands of RAC and Lex. Services provided under
the RAC brand include roadside services, claims management, vehicle inspections
and risk management. Services provided under the Lex brand include fleet
management, contract hire, maintenance and parts support.

These activities are focused on growth opportunities in the defence, insurance,
utilities, airside and vehicle manufacturer sectors.

Further information is available via the company's website at www.racplc.co.uk .



Lex Harvey and Lex Birchwood

Lex Harvey and Lex Birchwood employ approximately 1,000 people over 18 sites and
maintain 24,000 forklift trucks and related equipment for customers.



Finning

Finning (UK) Ltd. is a division of Finning International Inc., which sells,
rents, finances and provides customer support services for Caterpillar equipment
and engines, and complementary equipment, in Western Canada, the UK and South
America ( Argentina, Bolivia, Chile and Uruguay). The corporation's Head Office
is located in Vancouver, B.C., Canada. Finning International Inc.
(www.finning.com) is a widely held, publicly traded corporation, listed on the
Toronto Stock Exchange (symbol FTT).


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