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Penske Automotive Reports Second Quarter Results
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Income from Continuing Operations Increases to $40.5 Million

Related Earnings Per Share Increases to $0.43

BLOOMFIELD HILLS, Mich., Jul 30, 2008 (BUSINESS WIRE) -- Penske Automotive Group, Inc. (NYSE: PAG), an international automotive retailer, today reported that second quarter income from continuing operations increased 1.2% to $40.5 million. Related earnings per share increased 2.4% to $0.43 per share. Net income in the second quarter was $39.9 million, or $0.42 per share, compared with net income of $40.4 million, or $0.43 per share, in the prior year. Revenues of $3.4 billion in the second quarter were consistent with the prior year. Same-store retail revenues declined 5.9%, as unit sales of new vehicles fell 7.7% in the quarter.

"The second quarter was very challenging at the retail level," said Penske Automotive Group Chairman Roger Penske. "With the rise in gas prices, we saw a rapid shift in consumer demand to more fuel efficient vehicles. Overall, I am very pleased with our performance as our brand mix and diversified business played an important role in achieving growth in income from continuing operations during the quarter. I am particularly pleased to see that our same-store used vehicle unit sales increased 7.3% in the U.S., and that our worldwide new vehicle margins held at 8.4%, despite the difficult market conditions."

For the six months ended June 30, 2008, revenues increased 1.9% to $6.6 billion. Income from continuing operations for the six months was $74.4 million, which represents an 8.0% increase over adjusted income from continuing operations of $68.9 million in the prior year. Related earnings per share was $0.79 in 2008, which represents an 8.2% increase over adjusted earnings per share from continuing operations in the prior year. Net income for the six months was $73.8 million, which represents a 9.8% increase over adjusted net income of $67.2 million in the prior year. Related earnings per share was $0.78 in 2008, which represents a 9.9% increase over adjusted earnings per share in the prior year. Adjusted 2007 earnings exclude $12.3 million ($0.13 per share) of after-tax costs relating to the redemption of the Company's 9.625% Senior Subordinated Notes in March of 2007. Reported income from continuing operations and net income for the six months ended June 30, 2007 were $56.6 million, or $0.60 per share, and $54.9 million, or $0.58 per share, respectively.

smart USA

In the second quarter, smart USA Distributor, LLC ("smartUSA") delivered 7,731 smart fortwos to its dealer network, raising the full year wholesale delivery total to 12,646 vehicles. During the quarter, the 2008 smart fortwo was awarded the highest ratings from the Insurance Institute for Highway Safety ("IIHS") for front and side crash worthiness. Commenting on smartUSA, Penske said, "The smart distribution business continues to perform well. In particular, I am extremely pleased with the IIHS safety ratings earned by the smart fortwo. Based in part on the outstanding IIHS crash test ratings and the recent rise in gas prices, we received more than 20,000 advance reservations for the fortwo in May and June."

During the second quarter, the Company did not effect any repurchases under its previously announced share buyback authority. The Company currently projects earnings from continuing operations for the year to be in the range of $1.54 to $1.60. Earnings per share information in 2008 is based on an estimated average of 95.0 million shares outstanding.

Penske Automotive will host a conference call discussing financial results relating to the second quarter of 2008 on July 30, 2008, at 2:00 p.m. EDT. To listen to the conference call, participants must dial (800) 288-8960 (International, please dial (612) 234-9959). The call will be simultaneously broadcast over the Internet through the Penske Automotive Group website at www.penskeautomotive.com.

About Penske Automotive

Penske Automotive Group, Inc., headquartered in Bloomfield Hills, Michigan, operates 308 retail automotive franchises, representing more than 40 different brands, and 27 collision repair centers. Penske Automotive, which sells new and previously owned vehicles, finance and insurance products and replacement parts, and offers maintenance and repair services on all brands it represents, has 161 franchises in 19 states and Puerto Rico and 147 franchises located outside the United States, primarily in the United Kingdom. Penske Automotive is also the exclusive distributor of the smart fortwo through its wholly-owned subsidiary smartUSA Distributor LLC. smartUSA operates 69 smart centers across the United States. Penske Automotive is a member of the Fortune 200 and Russell 1000 and has approximately 16,000 employees. smart and fortwo are registered trademarks of Daimler AG.

Caution Concerning Forward Looking Statements

Statements in this press release may involve forward-looking statements, including forward-looking statements regarding Penske Automotive Group, Inc.'s future sales and earnings 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 Penske Automotive's business, markets, conditions and other uncertainties which could affect Penske Automotive's future performance. These risks and uncertainties are addressed in Penske Automotive's Form 10-K for the year ended December 31, 2007, and its other filings with the Securities and Exchange Commission ("SEC"). This press release speaks only as of its date, and Penske Automotive disclaims any duty to update the information herein.

This release contains certain non-GAAP financial measures as defined under SEC rules, such as adjusted income from continuing operations and related earnings per share, which exclude certain items disclosed in the release. The Company has reconciled these measures to the most directly comparable GAAP measures in the release. The Company believes that these non-GAAP financial measures improve the transparency of the Company's disclosure and the period-to-period comparability of the Company's results from operations.

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

                                                   Second Quarter
                                               -----------------------
                                                  2008        2007
                                               ----------- -----------
Revenues:
  New Vehicle                                  $1,734,440  $1,814,171
  Used Vehicle                                    819,184     825,171
  Finance and Insurance, Net                       75,995      75,144
  Service and Parts                               364,139     353,548
  Distribution                                     98,421          --
  Fleet and Wholesale Vehicle                     270,485     297,151
                                               ----------- -----------
       Total Revenues                           3,362,664   3,365,185
Cost of Sales:
  New Vehicle                                   1,588,673   1,662,440
  Used Vehicle                                    755,458     759,553
  Service and Parts                               159,834     154,670
  Distribution                                     82,605          --
  Fleet and Wholesale Vehicle                     274,557     296,032
                                               ----------- -----------
       Total Cost of Sales                      2,861,127   2,872,695
                                               ----------- -----------
       Gross Profit                               501,537     492,490
SG&A Expenses                                     398,516     385,200
Depreciation and Amortization                      13,594      12,864
                                               ----------- -----------
       Operating Income                            89,427      94,426
Floor Plan Interest Expense                       (16,589)    (19,247)
Other Interest Expense                            (12,616)    (12,890)
Equity in Earnings of Affiliates                    3,011       2,529
                                               ----------- -----------
       Income from Continuing Operations
        Before Income Taxes and Minority
        Interests                                  63,233      64,818
Income Taxes                                      (22,258)    (24,059)
Minority Interests                                   (428)       (702)
                                               ----------- -----------
       Income from Continuing Operations           40,547      40,057
Income (Loss) from Discontinued Operations,
 Net of Tax                                          (683)        298
                                               ----------- -----------
       Net Income                              $   39,864  $   40,355
                                               =========== ===========
Income from Continuing Operations Per Diluted
 Share                                         $     0.43  $     0.42
                                               =========== ===========
Diluted EPS                                    $     0.42  $     0.43
                                               =========== ===========
Diluted Weighted Average Shares Outstanding        94,895      94,532
                                               =========== ===========

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

                                                     Six Months
                                               -----------------------
                                                  2008        2007
                                               ----------- -----------
Revenues:
  New Vehicle                                  $3,370,042  $3,438,949
  Used Vehicle                                  1,622,640   1,605,516
  Finance and Insurance, Net                      150,596     142,976
  Service and Parts                               727,021     701,502
  Distribution                                    162,191          --
  Fleet and Wholesale Vehicle                     533,674     556,257
                                               ----------- -----------
       Total Revenues                           6,566,164   6,445,200
Cost of Sales:
  New Vehicle                                   3,086,317   3,150,642
  Used Vehicle                                  1,491,307   1,478,793
  Service and Parts                               319,344     309,468
  Distribution                                    136,223          --
  Fleet and Wholesale Vehicle                     538,025     552,040
                                               ----------- -----------
       Total Cost of Sales                      5,571,216   5,490,943
                                               ----------- -----------
       Gross Profit                               994,948     954,257
SG&A Expenses                                     797,012     754,911
Depreciation and Amortization                      27,068      25,204
                                               ----------- -----------
       Operating Income                           170,868     174,142
Floor Plan Interest Expense                       (33,901)    (35,063)
Other Interest Expense                            (24,659)    (31,713)
Equity in Earnings of Affiliates                    4,403       1,708
Debt Redemption Charge                                 --     (18,634)
                                               ----------- -----------
       Income from Continuing Operations
        Before Income Taxes and Minority
        Interests                                 116,711      90,440
Income Taxes                                      (41,427)    (32,855)
Minority Interests                                   (863)       (996)
                                               ----------- -----------
       Income from Continuing Operations           74,421      56,589
Loss from Discontinued Operations, Net of Tax        (628)     (1,652)
                                               ----------- -----------
       Net Income                              $   73,793  $   54,937
                                               =========== ===========
Income from Continuing Operations Per Diluted
 Share                                         $     0.79  $     0.60
                                               =========== ===========
Diluted EPS                                    $     0.78  $     0.58
                                               =========== ===========
Diluted Weighted Average Shares Outstanding        94,784      94,483
                                               =========== ===========

                    PENSKE AUTOMOTIVE GROUP, INC.
                Consolidated Condensed Balance Sheets
                        (Amounts In Thousands)
                             (Unaudited)

                                                  6/30/08    12/31/07
                                                 ---------- ----------
Assets
Cash and Cash Equivalents                        $   17,734 $   11,690
Accounts Receivable, Net                            432,811    448,985
Inventories                                       1,790,464  1,682,736
Other Current Assets                                 91,321     65,948
Assets Held for Sale                                  7,911     88,165
                                                 ---------- ----------
     Total Current Assets                         2,340,241  2,297,524
Property and Equipment, Net                         692,817    617,874
Intangibles                                       1,713,503  1,668,261
Other Assets                                        309,531     84,894
                                                 ---------- ----------
     Total Assets                                $5,056,092 $4,668,553
                                                 ========== ==========

Liabilities and Stockholders' Equity
Floor Plan Notes Payable                         $1,098,103 $1,070,882
Floor Plan Notes Payable - Non-Trade                549,150    476,854
Accounts Payable                                    256,062    266,726
Accrued Expenses                                    260,444    212,310
Current Portion Long-Term Debt                       14,255     14,522
Liabilities Held for Sale                            10,762     54,745
                                                 ---------- ----------
     Total Current Liabilities                    2,188,776  2,096,039
Long-Term Debt                                    1,054,555    830,106
Other Long-Term Liabilities                         324,562    320,949
                                                 ---------- ----------
     Total Liabilities                            3,567,893  3,247,094
Stockholders' Equity                              1,488,199  1,421,459
                                                 ---------- ----------
     Total Liabilities and Stockholders' Equity  $5,056,092 $4,668,553
                                                 ========== ==========

                    PENSKE AUTOMOTIVE GROUP, INC.
                            Selected Data

                          Second Quarter             Six Months
                     ------------------------ ------------------------
                         2008        2007         2008        2007
                     ------------ ----------- ------------ -----------
Total Retail Units
   New Retail            50,299       51,175      95,849       96,280
   Used Retail           28,173       26,853      55,084       52,403
                     ------------ ----------- ------------ -----------
        Total Retail     78,472       78,028     150,933      148,683
                     ============ =========== ============ ===========

smart Wholesale
 Units                    7,731           --      12,646           --
                     ============ =========== ============ ===========

Same-Store Retail
 Units
   New Same-Store
    Retail               45,153       48,895      86,431       93,158
   Used Same-Store
    Retail               26,673       25,499      52,407       50,022
                     ------------ ----------- ------------ -----------
      Total Same-
       Store Retail      71,826       74,394     138,838      143,180
                     ============ =========== ============ ===========

Same-Store Retail
 Revenue
   New Vehicles      $1,596,431   $1,748,722  $3,098,768   $3,339,872
   Used Vehicles        767,438      789,465   1,533,256    1,539,760
   Finance and
    Insurance, Net       70,776       73,315     141,145      140,594
   Service and Parts    343,943      341,618     687,382      682,174
                     ------------ ----------- ------------ -----------
      Total Same-
       Store Retail  $2,778,588   $2,953,120  $5,460,551   $5,702,400
                     ============ =========== ============ ===========

Same-Store Retail
 Revenue Growth
   New Vehicles            (8.7%)        7.0%       (7.2%)        7.2%
   Used Vehicles           (2.8%)       15.9%       (0.4%)       17.9%
   Finance and
    Insurance, Net         (3.5%)        7.9%        0.4%         8.0%
   Service and Parts        0.7%         7.3%        0.8%         8.9%

Revenue Mix
   New Vehicles            51.6%        53.9%       51.3%        53.4%
   Used Vehicles           24.4%        24.5%       24.7%        24.9%
   Finance and
    Insurance, Net          2.3%         2.2%        2.3%         2.2%
   Service and Parts       10.8%        10.5%       11.1%        10.9%
   Distribution             2.9%          --%        2.5%          --%
   Fleet and
    Wholesale               8.0%         8.9%        8.1%         8.6%

Average Retail
 Selling Price
   New Vehicles      $   34,483   $   35,450  $   35,160   $   35,718
   Used Vehicles         29,077       30,729      29,458       30,638

Gross Margin               14.9%        14.6%       15.2%        14.8%

Retail Gross Margin
 - by Product
   New Vehicles             8.4%         8.4%        8.4%         8.4%
   Used Vehicles            7.8%         8.0%        8.1%         7.9%
   Service and Parts       56.1%        56.3%       56.1%        55.9%

                    PENSKE AUTOMOTIVE GROUP, INC.
                      Selected Data (Continued)

                                    Second Quarter      Six Months
                                   ----------------- -----------------
                                     2008     2007     2008     2007
                                   -------- -------- -------- --------
Gross Profit per Retail
 Transaction
     New Vehicles                  $ 2,898  $ 2,965  $ 2,960  $ 2,994
     Used Vehicles                   2,262    2,444    2,384    2,418
     Finance and Insurance             968      963      998      962

Brand Mix:
     BMW                                21%      22%      21%      22%
     Toyota / Lexus                     20%      20%      20%      20%
     Honda / Acura                      15%      15%      15%      14%
     Mercedes Benz                      10%      10%      10%      11%
     Audi                                9%       7%       8%       7%
     Land Rover                          4%       5%       5%       5%
     Ferrari / Maserati                  4%       3%       4%       2%
     Porsche                             3%       4%       3%       4%
     Other                              14%      14%      14%      15%
                                   -------- -------- -------- --------
                                       100%     100%     100%     100%

     Premium                            63%      62%      64%      65%
     Foreign                            32%      30%      31%      29%
     Domestic Big 3                      5%       8%       5%       6%
                                   -------- -------- -------- --------
                                       100%     100%     100%     100%

Revenue Mix:
     U.S.                               63%      63%      62%      62%
     International                      37%      37%      38%      38%
                                   -------- -------- -------- --------
                                       100%     100%     100%     100%

Debt to Total Capital Ratio             42%      39%      42%      39%

Rent Expense                       $40,148  $37,351  $80,294  $73,586

SOURCE: Penske Automotive Group, Inc.

Penske Automotive Group
Bob O'Shaughnessy, 248-648-2800
Chief Financial Officer
boshaughnessy@penskeautomotive.com
or
Tony Pordon, 248-648-2540
Senior Vice President
tpordon@penskeautomotive.com

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