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|UnitedAuto Expands Presence in Arizona and Tennessee Markets; Adds Honda to Phoenix Hub and Ford to Memphis Hub|
|NEW YORK, NEW YORK, SEPTEMBER 10, 1999 - UnitedAuto Group, Inc. (NYSE: UAG), the nation's second largest publicly-traded automobile retailer, announced today the addition of two dealerships to its existing Phoenix and Memphis Hubs. The Honda and Ford acquisitions bring the number of franchises operated by the company to 105.
In the Phoenix area, UnitedAuto has acquired Honda of Tempe in Tempe, Arizona. Honda of Tempe has joined UnitedAuto as part of UnitedAuto Group's Western Region. UnitedAuto Group operations in the Phoenix/Scottsdale/Tempe market include Acura, Audi, BMW, Ford, Land Rover, Lexus, Porsche, Rolls-Royce and Bentley.
According to Steve Knappenberger, Western Region President, the addition of the Honda brand further strengthens the already significant presence UnitedAuto has in this market. "Honda is a very strong brand with great consumer acceptance. We are delighted to have this opportunity to add Honda of Tempe to our portfolio; this is a win for our company, our customers and American Honda."
In the Memphis area, UnitedAuto has acquired Midway Ford in Collierville, Tennessee. Midway Ford has been renamed Landers Ford and has joined UnitedAuto as part of UnitedAuto Group's South Central Region. UnitedAuto Group's operations in the Memphis market include Dodge, Hyundai, Mazda, and Toyota.
According to Steve Landers, South Central Region President, Ford adds significantly to the strong middle market presence UnitedAuto has in the Memphis area. "Ford has a great line of cars and trucks and the addition of this popular brand provides our customers with more choice and greater selection. The opportunity Ford Motor Company gave us to add Ford in Collierville will permit further leverage of our Memphis Hub Operations; this is great news for Ford, UnitedAuto and our customers."
Roger S. Penske, UnitedAuto Chairman stated, "Together, these two additions to our portfolio represent quality development opportunities for two important hubs and will add approximately $90 million in top-line revenues on an annual basis."
UnitedAuto, which has pursued a strategy based on internal growth from its existing dealerships as well as from strategic acquisitions, operates 105 franchises in 16 states and Puerto Rico. 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 reports and documents filed by the Company with the Securities and Exchange Commission.