Proposed Acquisition of Oxford Automotive ApS

Further to the announcement on 20 February 2006, Wagon plc ("Wagon" or the "Company"), the European automotive components group, today announces that it has entered into an agreement to acquire Oxford Automotive ApS ("Oxford") (the "Acquisition"), a complementary European automotive metal components supplier. Consideration for the Acquisition will be wholly satisfied by the issue of new Wagon shares which values Oxford at £128.4 million (based on the Closing Price of Wagon's Ordinary Shares of 206.5 pence on 17 February 2006, being the last trading day immediately prior to the suspension of trading in Wagon's Existing Ordinary Shares and Preference Shares).

The Directors of Wagon believe that the Acquisition achieves a key strategic goal through a step change in Wagon's market positioning. The Enlarged Group will benefit from the greater scale it will enjoy in the European automotive market, from the broader technological expertise that will enable it to compete more effectively for larger projects and provide complete module offerings, and its increased financial capacity.

Commenting on the Acquisition, Pierre Vareille, Group Chief Executive of Wagon, said:

"The acquisition of Oxford represents a compelling opportunity for Wagon to achieve a step change in its strategic positioning.'

"Whilst we continue to make good operational and strategic progress as a stand-alone business, it is clear that industry trends require automotive suppliers to seek greater scale, a broader product offering, and greater financial resources to fund their growth.'

"A combination of Wagon and Oxford addresses all these needs and creates one of the leading Tier 1 suppliers to European-based automotive OEMs. The result will be a strong platform from which to take advantage of the increasing trend by OEMs towards outsourcing engineered structures.'

"We firmly believe that this transaction is in the interests of all our stakeholders: we will be better able to serve our customers, create a more positive business for our employees, and be in a stronger position to create value for our shareholders."

Close Brothers Corporate Finance Limited, which is regulated in the United Kingdom by the Financial Services Authority, is acting for Wagon and no one else in connection with the transaction and will not be responsible to any person other than Wagon for providing the protections afforded to the clients of Close Brothers or for providing advice in relation to the Acquisition, or any other matter referred to herein.

For further information, please contact:

Justin Clark

Close Brothers Corporate Finance Limited

+44 (0)20 7655 3784