ACE.L Regulatory News (ACE)

14 Sep 2006 07:00

Accident Exchange Group PLC14 September 2006 FOR IMMEDIATE RELEASE 14 September 2006 Accident Exchange Group Plc NEW CONTRACTS Accident Exchange Group Plc ("Accident Exchange" or the "Group"), the leading prestige vehicle replacement company, has signed two new major contracts with car dealership groups. In both cases, an existing supplier has been replaced. A new two-year agreement with Lookers plc ("Lookers"), one of the UK's leading motor retail groups, has been signed in respect of their 103 dealerships and 16 body repairers and service centres. Under this agreement, Accident Exchange will roll out its bespoke, customer-focused 'Accident Aftercare' product to Lookers' 'car-parc' of over 300,000 customers. In addition, a comprehensive suite of services, designed to retain customers within the Lookers network and unlock new revenue opportunities, will be driven out of the 16 bodyshops operating within Lookers. This will include corporate branded marketing materialfor both the showroom and within the car, on-site employee training and the installation of technology to improve Lookers' inter-departmental communication.This agreement will contribute to building on the outperformance Lookers is delivering across its business. Accident Exchange has also signed a new two-year agreement with another significant motor dealer group encompassing over 40 dealership locations and 150,000 customers. This agreement is for the provision of credit hire and accident management services across the dealer's entire customer base. Together with the ongoing roll out of the Audi Accident Aftercare programme, these two new deal wins help underpin the Group's current market forecasts and will contribute to the Group's second half revenue growth expectations. Steve Evans, Chief Executive of Accident Exchange Group Plc said: "These new agreements are important for our business. They are very satisfying since both dealership groups were already providing credit hire to their customers. In winning the competitive tender processes, we have demonstrated the compelling nature of our service and the clear value proposition to our target market. We expect to derive considerable longer term value from these agreements and we look forward to working with our new partners." Ken Surgenor, Chief Executive of Lookers plc said: "This partnership with Accident Exchange will enable us to develop new revenuestreams with a like minded organisation focussed on high levels of customer service. Our recent interim results demonstrate that we are outperforming across our business streams and I am confident that this new partnership will contribute to our continued development." Ends Contacts: Accident Exchange Group PlcSteve Evans, Chief Executive 08700-116 719Martin Andrews, Group Finance Director 08700-053 649 BanksideSteve Liebmann or Simon Bloomfield 020-7367-8883 About Accident Exchange Based in Coleshill, West Midlands, Accident Exchange delivers accident management and other solutions to automotive and insurance related sectors. Quoted on AIM, the stock code is LSE: ACE. This information is provided by RNS The company news service from the London Stock Exchange