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UnitedAuto Reports Record Second Quarter
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Revenues Increase 18.7%
Income from Continuing Operations Per Share Increases 7.5%
Same Store Retail Revenues Increase 11.0% and Related Gross Profit Increases 10.9%

BLOOMFIELD HILLS, Mich.--(BUSINESS WIRE)--July 30, 2003-- United Auto Group, Inc. (NYSE: UAG - News), a FORTUNE 500 automotive specialty retailer, announced today that revenues for the second quarter increased 18.7% to a record $2.2 billion. The increase in revenue includes an 11.0% increase in same-store retail revenues, with each of the Company's product offerings experiencing same store growth. The same store growth consists of increases in new retail vehicle sales, used retail vehicle sales, service and parts sales, and finance and insurance revenues of 9.0%, 16.9%, 9.3% and 18.6%, respectively. Income from continuing operations was $23.3 million and related earnings per share was $0.57, an increase of 7.5%. Net income was $23.9 million and earnings per share increased 3.6% to $0.58.

For the six months ended June 30, 2003, revenues increased 22.0% to $4.2 billion. Income from continuing operations was $40.1 million and related earnings per share was $0.98, an increase of 6.5%. Net income was $37.6 million and related earnings per share was $0.92. Net income for the six months includes a $3.1 million, or $0.07 per share, charge as a result of the cumulative effect of a change in accounting principle recorded in the first quarter in connection with the adoption of EITF 02-16.

Chairman Roger Penske commented, "We believe that our robust same store growth is the direct result of our brand mix, our focus on increasing units in operation and our capital investment strategy, which we believe will continue to generate future growth in all aspects of our business. I am particularly pleased with the 9.3% same-store increase in our higher margin service and parts business, which, coupled with a 70 basis point expansion in our overall service and parts margin to 47.9%, is indicative that our investment in service capacity continues to yield results. We reiterate our annual earnings projection of $1.96 - $2.06 per share (excluding the cumulative effect of the change in accounting principle), with a third quarter estimate of $0.58 - $0.62 per share."

Sam DiFeo, Jr., President, added "Our strategies and business model are being validated by our strong same store performance. During the second quarter, our U.S. businesses experienced 5.4% same store new retail unit volume growth, which compares to an overall U.S. market decline of 0.6%. In addition, the 16.9% increase in same store used retail revenues was significantly stronger than the overall used vehicle market. As we enter the third quarter and continue through the primary vehicle sales season in many of our markets, we are confident that our improving days supply of inventories will allow us to maximize profitability. As of June 30, 2003, our new and used vehicle inventory supplies were 56 days and 31 days, respectively, on a thirty day trailing basis."

This quarter's outstanding results were achieved despite a $1.9 million, or $0.05 per share, reduction of income as the result of an adjustment to reverse $3.1 million of revenue that was falsely recorded during the 23-month period preceding March 31, 2003. The $3.1 million revenue overstatement was discovered during a routine internal audit of the books and records of the Company's Arkansas dealerships. The Company, with the concurrence of the Audit Committee of its Board of Directors, has determined that the overstatement was immaterial to the Company's financial statements.

UnitedAuto, which has pursued a strategy based on internal growth from its existing dealerships, as well as from strategic acquisitions, operates 137 franchises in the United States and 74 franchises internationally, primarily in the United Kingdom. UnitedAuto dealerships sell new and used vehicles, and market a complete line of aftermarket automotive products and services.

UnitedAuto will host a conference call discussing financial results relating to second quarter 2003 on Wednesday, July 30, 2003 at 9A.M. Eastern time. Advance registration is not required. Participants must call (888) 428-4471 (International, please call (612) 332-0107). Calls need to be made shortly before the call is to commence. The call will also be simultaneously broadcast live over the Internet through the UnitedAuto website at www.unitedauto.com.

Statements in this press release may involve forward-looking statements, including forward-looking statements regarding UnitedAuto's future sales and earnings growth potential. Actual results may vary materially because of risks and uncertainties, including external factors such as interest rate fluctuations, changes in consumer spending and other factors over which management has no control. These forward-looking statements should be evaluated together with additional information about UnitedAuto's business, markets, conditions and other uncertainties which could affect UnitedAuto's future performance, which are contained in UnitedAuto's Form 10-K for the year ended December 31, 2002 and its other filings with the Securities and Exchange Commission and which are incorporated into this press release by reference. This press release speaks only as of its date and UnitedAuto disclaims any duty to update the information herein.

                        UNITED AUTO GROUP, INC.
             Consolidated Statements of Income (Unaudited)
             (Amounts In Thousands, Except Per Share Data)

                                                    Second Quarter
                                               -----------------------
                                                     2003        2002
                                               ----------- -----------
New Vehicles                                   $1,309,351  $1,114,200
Used Vehicles                                     487,460     388,206
Finance and Insurance                              54,056      44,498
Service and Parts                                 229,801     192,588
Fleet                                              39,168      28,595
Wholesale                                         127,719     125,818
                                               ----------- -----------
     Total Revenues                             2,247,555   1,893,905
Cost of Sales                                   1,927,976   1,624,991
                                               ----------- -----------
     Gross Profit                                 319,579     268,914
SG&A Expenses                                     249,620     205,677
Depreciation and Amortization                       7,754       5,839
                                               ----------- -----------
     Operating Income                              62,205      57,398
Floor Plan Interest Expense                       (11,657)     (8,538)
Other Interest Expense                            (10,908)     (9,976)
                                               ----------- -----------
     Income from Continuing Operations Before
      Minority Interests and Income Tax
      Provision                                    39,640      38,884
Minority Interests                                   (658)       (509)
Income Tax Provision                              (15,660)    (15,750)
                                               ----------- -----------
     Income from Continuing Operations             23,322      22,625
Income from Discontinued Operations, Net of Tax       542       1,264
                                               ----------- -----------
     Net Income                                   $23,864     $23,889
                                               =========== ===========
Income from Continuing Operations Per Diluted
 Share                                              $0.57       $0.53
                                               =========== ===========
Diluted EPS                                         $0.58       $0.56
                                               =========== ===========
Diluted Weighted Average Shares Outstanding        41,176      42,841
                                               =========== ===========



                        UNITED AUTO GROUP, INC.
             Consolidated Statements of Income (Unaudited)
             (Amounts In Thousands, Except Per Share Data)

                                                       Six Months
                                               -----------------------
                                                     2003        2002
                                               ----------- -----------
New Vehicles                                   $2,411,981  $2,044,863
Used Vehicles                                     925,590     678,800
Finance and Insurance                             101,988      80,818
Service and Parts                                 441,959     352,572
Fleet                                              67,179      59,919
Wholesale                                         247,709     221,817
                                               ----------- -----------
     Total Revenues                             4,196,406   3,438,789
Cost of Sales                                   3,594,198   2,947,323
                                               ----------- -----------
     Gross Profit                                 602,208     491,466
SG&A Expenses                                     477,297     381,920
Depreciation and Amortization                      15,037      10,172
                                               ----------- -----------
     Operating Income                             109,874      99,374
Floor Plan Interest Expense                       (20,659)    (16,747)
Other Interest Expense                            (21,258)    (17,844)
                                               ----------- -----------
     Income from Continuing Operations Before
      Minority Interests and Income Tax
      Provision                                    67,957      64,783
Minority Interests                                 (1,051)       (925)
Income Tax Provision                              (26,845)    (26,008)
                                               ----------- -----------
     Income from Continuing Operations             40,061      37,850
Income from Discontinued Operations, Net of Tax       594       1,750
                                               ----------- -----------
      Income Before Cumulative Effect of
       Accounting Change                           40,655      39,600
Cumulative Effect of Accounting Change (a)         (3,058)         --
                                               ----------- -----------
     Net Income                                   $37,597     $39,600
                                               =========== ===========
Income from Continuing Operations Per Diluted
 Share                                              $0.98       $0.92
                                               =========== ===========
Diluted EPS before Cumulative Effect of
 Accounting Change                                  $0.99       $0.96
                                               =========== ===========
Cumulative Effect of Accounting Change on
 Diluted EPS                                       ($0.07)        $--
                                               =========== ===========
Diluted EPS                                         $0.92       $0.96
                                               =========== ===========
Diluted Weighted Average Shares Outstanding        40,994      41,076
                                               =========== ===========

(a) Represents a cumulative accounting change resulting from the
    adoption of EITF 02-16, "Accounting by a Customer (including a
    Reseller) for Certain Consideration Received from a Vendor."



                        UNITED AUTO GROUP, INC.
                 Consolidated Condensed Balance Sheets
                        (Amounts In Thousands)

                                                  6/30/03    12/31/02
                                               ----------- -----------
Assets                                                     (unaudited)
Cash and Cash Equivalents                         $15,473      $8,909
Accounts Receivable, Net                          358,194     313,503
Inventories                                     1,095,073     954,834
Other Current Assets                               42,195      27,797
                                               ----------- -----------
     Total Current Assets                       1,510,935   1,305,043
Property and Equipment, Net                       381,937     310,647
Intangibles                                     1,048,406     977,556
Assets of Discontinued Operations                  10,813      30,396
Other Assets                                       70,475      66,672
                                               ----------- -----------
     Total Assets                              $3,022,566  $2,690,314
                                               =========== ===========

Liabilities and Stockholders' Equity
Floor Plan Notes Payable                       $1,027,446     892,866
Accounts Payable and Accrued Expenses             335,877     273,756
Current Portion Long-Term Debt                      4,853      14,979
                                               ----------- -----------
     Total Current Liabilities                  1,368,176   1,181,601
Long-Term Debt (a)                                753,134     651,176
Other Long-Term Liabilities                       152,907     135,141
Liabilities of Discontinued Operations              7,595      17,954
                                               ----------- -----------
     Total Liabilities                          2,281,812   1,985,872
Stockholders' Equity                              740,754     704,442
                                               ----------- -----------
     Total Liabilities and Stockholders'
      Equity                                   $3,022,566  $2,690,314
                                               =========== ===========

(a) Undrawn capacity under the Company's credit facilities amounted to
    approximately $311 million as of June 30, 2003.



                        UNITED AUTO GROUP, INC.
                             Selected Data

                              Second Quarter            Six Months
                       ----------------------- -----------------------
                             2003        2002        2003        2002
                       ----------- ----------- ----------- -----------
Units
     New Retail Units      44,993      40,116      83,357      74,107
     Used Retail Units     23,803      19,447      45,097      36,064
                       ----------- ----------- ----------- -----------
          Total Retail
           Units           68,796      59,563     128,454     110,171
                       =========== =========== =========== ===========

Same Store Retail
 Revenue
     New Vehicles      $1,192,077  $1,093,769  $1,930,713  $1,815,794
     Used Vehicles        443,889     379,610     580,323     529,612
     Finance and
      Insurance            44,876      37,840      74,536      64,890
     Service and Parts    205,918     188,387     327,322     306,615
                       ----------- ----------- ----------- -----------
       Total Same
        Store Retail
        Revenue        $1,886,760  $1,699,606  $2,912,894  $2,716,911
                       =========== =========== =========== ===========

Same Store Retail
 Revenue Growth
     New Vehicles             9.0%        3.3%        6.3%        5.4%
     Used Vehicles           16.9%      (1.1%)        9.6%        0.1%
     Finance and
      Insurance              18.6%        6.9%       14.9%        9.9%
     Service and Parts        9.3%        5.8%        6.8%        6.2%

Revenue Mix
     New Vehicles            58.3%       58.8%       57.5%       59.5%
     Used Vehicles           21.7%       20.5%       22.1%       19.7%
     Finance and
      Insurance               2.4%        2.4%        2.4%        2.4%
     Service and Parts       10.2%       10.2%       10.5%       10.3%
     Fleet                    1.7%        1.5%        1.6%        1.7%
     Wholesale                5.7%        6.6%        5.9%        6.4%

Retail Gross Margin -
 by Product
     New Vehicles             8.4%        8.6%        8.4%        8.6%
     Used Vehicles            9.3%        9.8%        9.3%       10.3%
     Finance and
      Insurance             100.0%      100.0%      100.0%      100.0%
     Service and Parts       47.9%       47.2%       47.9%       46.7%

Gross Profit per
 Transaction
     New Vehicles          $2,445      $2,380      $2,431      $2,367
     Used Vehicles          1,894       1,959       1,904       1,940
     Finance and
      Insurance               786         747         794         734

Brand Mix:
     Toyota/Lexus              22%         24%         22%         25%
     BMW                       13%         11%         13%          9%
     Honda/Acura               11%         11%         11%         11%
     General Motors            11%         12%         11%         13%
     Mercedes                   9%          9%          9%          8%
     Chrysler                   8%         10%          8%         10%
     Nissan/Infiniti            5%          6%          5%          6%
     Ford                       4%          5%          4%          5%
     Other                     17%         12%         17%         13%

Debt to Total Capital Ratio    51%         47%         51%         47%

Adjusted EBITDA (a)       $58,302     $54,699    $104,252     $92,799

(a) Adjusted EBITDA is defined as income from continuing operations
    before minority interests, income tax provision, other interest
    expense, depreciation and amortization. While Adjusted EBITDA
    should not be construed as a substitute for income from continuing
    operations or as a better measure of liquidity than cash flows
    from operating activities, which are determined in accordance with
    U.S. GAAP, it is included in this press release to provide
    additional information regarding the amount of cash our business
    is generating. This measure may not be comparable to similarly
    titled measures reported by other companies. Following is a
    reconciliation of income from continuing operations before
    minority interests and income tax provision and Adjusted EBITDA:


                                    Second Quarter      Six Months
                                   ----------------- -----------------
                                      2003     2002     2003     2002
                                   -------- -------- -------- --------
Income from continuing operations
  before minority interests and
   income  tax
  provision                          $39.6    $38.9    $68.0   $ 64.8
Other interest expense                10.9     10.0     21.3     17.8
Depreciation and amortization          7.8      5.8     15.0     10.2
                                   -------- -------- -------- --------
Adjusted EBITDA                      $58.3    $54.7   $104.3    $92.8
                                   ======== ======== ======== ========


Contact:
     United Auto Group, Inc.
     Roger Penske, 248-648-2400
         or
     Jim Davidson, 201-325-3303 (Finance)
     jdavidson@unitedauto.com
         or
     Tony Pordon, 248-648-2540 (Investor Relations)
     tony.pordon@unitedauto.com