ACE Auhua Clean

RNS Number:2827C
Accident Exchange Group PLC
25 August 2004

25 August 2004
                         
                           Accident Exchange Group plc
                                 
                                  AGM Statement


At the Company's AGM later today, the Rt Hon Lord Young of Graffham, Chairman of
Accident Exchange Group plc, will make the following statement:

In the preliminary announcement of our results for the year ended April 2004,
Steve Evans, our Chief Executive, reported that 42% of revenue was generated in
the final quarter. That acceleration in revenue has continued to the extent that
the during the first quarter of this year we have enjoyed a 50% increase in the
number of hire starts compared to the final quarter of last year. Our fleet
levels, as at the end of July 2004, reached the planned level for the end of
this financial year and, as we are maintaining an operational fleet utilisation
in excess of 90%, we are now significantly ahead of current market forecasts.

Our accelerating growth can be attributed to a number of factors. The real time
technology we introduced to track our vehicles is delivering real efficiencies.
Our consultancy led approach to our customer relationships has helped large
dealers guarantee higher levels of customer service and satisfaction whilst
retaining an element of profitability that historically has been out of their
reach. As a result we have seen key new accounts refer business to us and at the
same time we have benefited from growing volumes from existing accounts.

Since the first quarter ended we have reached agreements for the provision of
accident management and business support services with Daimler Chrysler Retail
Ltd for dealerships in the Birmingham and Manchester areas. I am now delighted
to announce that we have reached agreement with Drayton Group, the largest
independent Mercedes-Benz franchise in the UK, covering seven dealerships
adjacent to the Birmingham and Manchester territories. As part of our exclusive
arrangement for accident management services we will purchase a minimum of 100
vehicles through them during the next year. This alone should generate an
additional 75 to 100 claims a month.

In addition, we have extended an agreement that we have had with part of Listers
Group plc ("Listers") for the past twelve months. This agreement has now become
an exclusive agreement to provide accident management and business support
services to their entire dealer network. The network comprises 31 dealerships
including a number of Audi and Lexus outlets as well as the Mercedes-Benz area
for Lincolnshire and Hull. The agreement will take effect in September 2004 and
will last for a minimum period of one year. In order to handle the increased
volume of referrals generated, Accident Exchange has made a minimum purchase
commitment to Listers for 150 vehicles over the next year. This figure compares
with 28 vehicles supplied by Listers during the last twelve months.

We are also in advanced stages of discussions with a number of other large
dealer groups and I hope to report further progress in the coming months.

The annual review of car hire rates approved by the Association of British
Insurers protocol resulted in a 4% increase in rates from the 1st July last. Our
relationship with the insurance industry remains positive and we are represented
on the Executive Committee of the Accident Management Association. Further, we
have recently embarked on a programme of one to one meetings with key decision
makers in the UK motor insurance sector with a view to exploring opportunities
that well help to deliver cost and efficiency savings for all parties in the
supply chain.

We are currently reviewing the strategic operational issues necessary to ensure
that we can continue to satisfy demand and deliver increased shareholder value
in line with these new business opportunities. Our technology remains an
essential part of this development and so we have increased our internal
development resource during the first quarter to ensure that IT remains a major
competitive differentiation.

I would like to take this opportunity to thank Steve Evans and all our staff for
their efforts in maintaining our high level of customer service during a period
of impressive growth. This can only give your board confidence for the future.


For further information please call:

Steve Evans, Chief Executive, Accident Exchange
Tel:  08700 116719

Ann-marie Wilkinson/Geoff Callow, Bell Pottinger Corporate & Financial
Tel: 0207 861 3232

About Accident Exchange:

Accident Exchange was formed in 2001 to provide ABI (Association of British
Insurers) approved car hire on credit to  motorists of prestige cars involved in
non-fault accidents.

Accident Exchange successfully listed on AIM in April raising #1.5 million to
fund the expansion of its existing  business and accelerate the delivery of its
bespoke technology offering to insurers, dealers and bodyshops.




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

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