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UnitedAuto Reports Record Results For First Quarter 2000; Net Income Increased 52.5% to $5.6 Million, or $0.19 Per Share, Versus $3.7 Million, or $0.16 Per Share, for the Comparable Period in 1999; Same Store Dealership Retail Revenues Increased 13.3% in
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Net Income Increased 52.5% to $5.6 Million, or $0.19 Per Share, Versus $3.7 Million, or $0.16 Per Share, for the Comparable Period in 1999

Same Store Dealership Retail Revenues Increased 13.3% in the Quarter Over the Comparable Period in 1999

Detroit, MI, May 8, 2000 - UnitedAuto Group, Inc. (NYSE: UAG), a leading publicly traded automotive retailer, today announced a record first quarter 2000 net income of $5.6 million, which represents a 52.5% increase over the comparable prior year period. Earnings per diluted share were $0.19, an 18.8% increase over the $0.16 per share reported in the first quarter 1999. Earnings per share reflects a 29.0% increase in weighted average shares outstanding from 23,307,000 to 30,074,000 in the first quarter of 2000. The net increase resulted primarily from the issuance of $83.0 million in convertible preferred stock.

First quarter revenues increased 22.8% to $1,110.8 million versus $904.7 million in the comparable prior year period. Same store revenues were $925.6 million in the first quarter 2000, an increase of 11.3% over the previous year. Same store retail revenues, excluding wholesale and fleet sales, increased 13.3% to $834.3 million.

Roger Penske, Chairman, said "This was an outstanding quarter for UnitedAuto. The strength of our business is evidenced by an overall 21.9% increase in gross profit over the comparable period in 1999, which includes an 11.0% increase in same store gross profits."

Sam DiFeo Jr., added "We are very pleased with the performance of our dealerships, especially the continued improvement of same store dealership operating results in all lines of our business versus the corresponding period in 1999. These improvements were driven primarily by increased sales volumes."

Total retail new and used unit sales increased 25.8% and 12.9%, respectively, versus the first quarter of 1999. The Company retailed 25,466 new and 14,195 used vehicles during the first quarter. Vehicle sales represented approximately 86.2% of first quarter revenue; finance and insurance revenues represented approximately 3.9%; and service and parts represented the remaining 9.9%.

UnitedAuto, which pursues a strategy based on internal growth from its existing dealerships as well as from strategic acquisitions, operates 111 franchises in 17 states, Puerto Rico and Brazil. UnitedAuto dealerships sell new and used vehicles and market a complete line of aftermarket automotive products and services.

This press release contains forward-looking information, and actual results may materially vary from those expressed or implied herein. Factors, including economic conditions, manufacturer approvals and acquisition risks, that could affect these results are described in the documents filed by the Company with the Securities and Exchange Commission.

                           UNITEDAUTO GROUP, INC.

              Consolidated Statements of Operations (Unaudited)

                (Amounts in Thousands, Except Per Share Data)

                                     First Quarter

                                     2000      1999

 New Vehicle Sales                 $663,800  $524,691

 Used Vehicle Sales                 293,071   250,669

 Finance and Insurance               43,735    36,664

 Service and Parts                 110,161     92,708

 Total Revenues                   1,110,767   904,732

 Cost of Sales                      958,654   779,974

 Gross Profit                       152,113   124,758

 Selling, General and               124,844   103,552
 Administrative Expenses

 Operating Income                    27,269    21,206

 Floor Plan Interest                (9,918)   (6,503)

 Other Interest Expense             (6,863)   (8,442)

 Other Income (a)                       --        794

 Income Before Minority              10,488     7,055
 Interests and Income Taxes

 Minority Interest                    (231)     (148)

 Income Tax Provision               (4,617)   (3,209)

 Net Income                          $5,640    $3,698

 Diluted Earnings Per Share           $0.19     $0.16

 Diluted Weighted Average Shares     30,074    23,307

 EBITDA (b)                        $32,646    $26,555

  a. Represents fees received under management agreements at certain
     dealerships for which the closing of the acquisition of such
     dealerships awaited final manufacturer approval.
  b. EBITDA is defined as income from continuing operations before minority
     interests, income tax provision, floor plan interest, other interest
     expense, depreciation and amortization. Depreciation and amortization
     amounted to $5.4 million and $4.6 million in 2000 and 1999,