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24th September 2002

MG ROVER AND VIRGIN CARS ANNOUNCE LAUNCH OF JOINT INITIATIVE

In an industry first, MG Rover Group has announced an initiative to sell its cars on the Virgin Carsí website (www.virgin.com/cars). This is an incremental sales channel to the normal dealer route, but for those customers who may prefer to purchase their new vehicle on-line they now have a UK manufacturer backed alternative. For Virgin Cars, this provides their first direct car supply partnership, enabling them to buy UK stock directly from the factory.

Virgin Cars will offer a variety of MG and Rover cars from the sporty MG range to the executive Rover 75 on its website, including details of delivery dates and prices that will start from £11,500. This is in line with other savings that Virgin Cars offers, and represents a significant reduction on the UK list price.

When the order has been taken the car will be delivered to a MG Rover dealer who will be responsible for preparation, delivery to the customer and a comprehensive after sales service.

Like MG Rover, Virgin Cars has been operating for just over two years, and it has already sold well in excess of ten thousand cars, which include some MG Rover models. The well respected Virgin Carsí business continues to develop as more and more consumers become accustomed to buying online as well as using the internet for research purposes such as obtaining product information, and price quotations.

Commenting on the sale of MG Roverís products in conjunction with Virgin Cars, Kevin Howe, chief executive for the Group said: "This is about giving our customers more choice. By teaming up with Virgin Cars they now have the option of purchasing either on-line or through one of our many dealerships. Whatever the decision, owners of MG and Rover cars can be assured of a factory backed after sales programme."

Virgin Cars welcomed the new association and Sir Richard Branson, chairman of the Virgin Group of companies said: "Weíre delighted to announce the tie up with such an inspirational forward-thinking company like MG Rover: a tie up which brings three highly respected British brands together. From the customerís perspective this increases choice, reduces lead times and delivers highly competitive prices."

Ian Lancaster, chief executive, Virgin Cars adds: "Direct car supply arrangements are an important focus in our future business strategy."

For the great MG Rover deals please visit the website at www.virgin.com/cars, or call 0845 270 2277.

Issued by MG Rover Group Communications


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