RNS Number:9897M
Cattles PLC
01 July 2003

Embargoed until 7.00am on 1 July 2003


1 July 2003

                            Cattles plc ("Cattles")


Cattles plc, one of the UK's leading non-prime consumer finance specialists
today announces the establishment of a new direct distribution motor finance
business


"We are delighted to announce the launch today of a direct distribution motor
finance business, which will be marketed under the successful Welcome brand as
Welcome Car Finance. This development is in line with our stated strategy of
acquiring and developing new direct distribution channels for our national
network of branches based in local communities across the UK.


For many years our strong underwriting and collections expertise has delivered
impressive growth in the specialist motor finance sector and this exciting new
business initiative, which will be lead by Kevin Bann as Managing Director, will
broaden our customer base and further strengthen the Cattles business.


We intend to release our interim results for the six months ended 30 June 2003
on 21 August. These results will be consistent with the trading statement made
at the AGM on 1 May and in line with expectations."

                                                     Sean Mahon, Chief Executive




Consistent with Cattles stated strategy of building direct distribution


  * Cattles, one of the UK's largest non-prime consumer finance specialists,
    announces today that it has launched a direct distribution motor finance
    business through the acquisition of the entire issued share capital of
    Hathgap Limited ("Hathgap"), a motor finance business recently established
    by Kevin Bann, who has 22 years' experience in the motor industry.


  * Cattles believes that the establishment of this direct distribution
    business provides opportunities to further develop its distribution channels
    and broaden the group's customer base, which is served through a network of
    over 500 branches across the UK.


Consideration payable is largely dependent on future performance


  * Consideration for the purchase of Hathgap comprises an initial cash
    consideration of #35,000 and further deferred consideration payable of up to
    a maximum of #5 million, dependent on the level of future profitability of
    the business during the four years ending 30 June 2007.


  * Under Financial Reporting Standard No 7, Cattles is required to estimate
    the fair value of the amounts of deferred consideration expected to be
    payable in the future and to include such estimate in the cost of
    acquisition. Accordingly, Cattles will account for the net present value of
    the deferred consideration payable, amounting to #3.8 million, in the cost
    of acquisition of Hathgap and related goodwill in its accounts for the six
    months ended 30 June 2003.


Builds on Cattles existing expertise in the specialist motor finance market,
under its Welcome brand




  * Cattles has operated in the specialist motor finance market for over a
    decade and has significant expertise in this sector. The new direct
    distribution motor finance business will be marketed under Cattles
    successful Welcome brand as Welcome Car Finance and will initially operate
    from four sites in Edinburgh, Glasgow, Manchester and Birmingham.


Enquiries:



Cattles plc                                          01924 444466
Sean Mahon, Chief Executive
James Corr, Finance Director
Mark Collins, Director of Treasury & Risk Management



HSBC                                                  020 7991 8888
Nick Donald
Alex Shorland-Ball



Financial Dynamics                                    020 7831 3113
Geoffrey Pelham-Lane



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