RNS Number:7380M
RAC PLC
25 June 2003

Interim Pre-close Statement

(Release date 25 June 2003)

RAC plc (RAC), the motoring and vehicle solutions company, will announce its
interim results for the six month period ending 30 June 2003, on 30 July. RAC
will conduct its usual half year meetings with analysts in the coming week.

Trading performance is in line with market expectations and is significantly
ahead of the same period last year. The company has enjoyed a good first half
year, benefiting from our strategy of focussing on our growth opportunities in
Consumer and Business Services, based on our strong brands and our unique
motoring and vehicle capability. We are also seeing real benefits from the major
investments we have made in IT systems over the last three years which are
enhancing revenues and improving efficiency and service delivery to our
customers. We have extended our track record of winning large business services
contracts.

Consumer Services: Consumer Services had a good first six months with individual
roadside membership up by 5% in the period as a result of growth in new
enrolments and a continuing strong renewal rate. Roadside revenues grew by 8%
over last year. We are delivering improved roadside service with the enhanced
capability which has resulted from the implementation of our new deployment
systems and the roll out of our patented rapid deployment trailer to our patrol
force. The number of patrols is being increased by 200 to improve efficiency and
customer satisfaction levels.

BSM and Legal Services have continued the double digit growth experienced over
the last 3 years. Our new, remodelled Financial Services business, which was
launched in January, is making progress, and the product range has recently been
expanded with the launch of an RAC branded credit card. RAC Auto Windscreens'
revenues are slightly lower than the same period last year.

Progress continues to be made in improving our customer centric management
system. The customer data warehouse is now operational with over 10 million
records loaded and system testing is underway. Our legacy systems will be
retired during the autumn to minimise disruption during our busy summer period.

Business Services: The implementation of the 10 year contract with British
Airways to manage and maintain its ground fleet services contract, which
commenced in April, is going well and we see further opportunities for growth.

Lex Vehicle Leasing, which is the largest contributor to Business Services and a
key element in our service offering, had a strong half year. Its fleet is now
approaching 100,000 vehicles.

The disposal of our two largest UK mechanical handling businesses, Lex Harvey
and Lex Birchwood, was completed in May; we are continuing to address the issues
in the remaining operations.

Lex Auto Logistics is also benefiting from the new British Airways ground fleet
contract and there are a number of potential new contracts in the pipeline. The
business has performed well in the first half of the year and the additional
margin on the run out of the Leyland contract is as we expected. Hyundai, our
vehicle importership, has increased its market share and has grown vehicle
registrations by 4%.

Outlook: We expect our good trading performance to continue with the full year
in line with expectations.

Enquiries:

Niall Addison     Group Finance and Investor Relations Manager - 07764 624701

Andy Harrison     Chief Executive - 020 7705 1257




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