AA PRESS RELEASE:

<u>Consultation begins on roles at AA call centres</u>

Changes in the way that people buy and renew insurance - particularly the
sharp growth in online transactions, resulting in fewer purchases made by
telephone through conventional call centres - has led the AA to consider the way
it looks after its customers through all of its Road and Insurance call centres,
as part of a UK-wide review.

The review has taken into account operational costs and processes across the
Road and Insurance contact centres throughout the UK. It has also considered how
best to achieve greater operational efficiency by making the best use of the
company's property portfolio.

As a result, the AA expects to see a net reduction in its UK call centre staff
of about 317 employees. Currently, just under 3,000 of its total 8,000 staff
work in the call centres. 

The net loss is likely to be made up of about 406 roles in the Cardiff contact
centre with future insurance call centre activity being focused at the AA-owned
Newcastle office, where 183 new jobs are expected to be created.

However, the Cardiff-based AA Driving School and BSM activities will be
retained along with some other core functions, preserving about 150 jobs. These
functions will move to new premises in the city before the current lease on the
Penarth Road office expires in about two years' time.

The AA has therefore begun a period of formal consultation with business
representatives and the recognised trade union, the Independent Democratic Union
(IDU), which acts on behalf of AA staff, to fully explore and discuss all
options and proposals.

The AA is committed to making every effort to reduce the number of roles
affected and will seek to do so by firstly considering:
Â·Alternative options raised during consultation
Â·Requests for voluntary redundancy 
Â·Redeployment and / or relocation
Â·Offering outplacement support and retraining
 
The current review is part of an efficiency programme which the company
typically conducts every three to five years, aimed at improving customer
experience and ensuring a consistent approach across the whole of the AA, as
well as the best use for its properties. 

It is unrelated to speculation in the press about the future ownership of the
AA.

Ends

[Total 02:09]