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Press Release

Penske Automotive Reports Second Quarter Results
    Same-Store Retail Revenues Increase 8.5%

  Income from Continuing Operations Per Share Increases 11% to $0.42
                               Per Share

BLOOMFIELD HILLS, Mich.--(BUSINESS WIRE)--July 31, 2007--Penske Automotive Group, Inc. (NYSE: PAG), an international automotive retailer, today reported that second quarter income from continuing operations increased 8.1% to $39.3 million and related earnings per share increased 10.5% to $0.42. Second quarter net income increased 10.0% to $40.4 million and related earnings per share increased 10.3% to $0.43. Revenues in the second quarter increased 19.2% to $3.4 billion, including an 8.5% increase in same-store retail revenues. The increase in same-store retail revenues included:

    --  New Vehicles +6.3%

    --  Used Vehicles +14.9%

    --  Finance & Insurance +7.0%

    --  Service & Parts +6.6%

"Our results continue to showcase the strength of our brand mix and the diversity of our business," said Penske Automotive Chairman Roger Penske. "Our same-store retail revenue growth was strong in each line of our business. Same-store retail revenue growth was 2.5% in the U.S. and 22.8% in our international markets. In addition, our pre-owned vehicle business continued to be exceptionally strong, particularly at our international locations where total pre-owned retail vehicle revenues increased 56.6%, including same-store growth of 24.6%. The increased level of contribution from the pre-owned business, coupled with a challenging marketplace, contributed to an overall decrease in our gross margin during the second quarter."

For the six months ended June 30, 2007, revenues increased 20.4% to $6.5 billion. Income from continuing operations and related earnings per share for the six months were $55.2 million and $0.58, respectively. Adjusted to exclude the $12.3 million ($0.13 per share) of after-tax costs resulting from the March 2007 redemption of the Company's 9.625% Senior Subordinated Notes, income from continuing operations for the six months increased 8.6% to $67.5 million and related earnings per share increased 7.6% to $0.71. Net income and related earnings per share for the six months were $54.9 million and $0.58 respectively. Adjusted for the debt redemption charge, net income increased 10.9% to $67.2 and related earnings per share increased 10.9% to $0.71.

The Company currently projects earnings from continuing operations in the third quarter to be in the range of $0.40 to $0.44 per share. The Company continues to project earnings from continuing operations for the year in the range of $1.40 to $1.50 per share, excluding the $12.3 million ($0.13 per share) debt redemption charge. These estimates include costs associated with developing the distribution network for the smart(R) product launch in the U.S. and are based on an estimated average of 94.6 million shares outstanding.

Penske Automotive will host a conference call discussing financial results relating to the second quarter of 2007 on Tuesday, July 31, 2007 at 1:00 p.m. EDT. To listen to the conference call, participants must dial (800) 553-0327 (International, please dial (612) 332-0932). The call will be simultaneously broadcast over the Internet through the Penske Automotive website at www.penskeautomotive.com.

About Penske Automotive

Penske Automotive Group, Inc., headquartered in Bloomfield Hills, Michigan, operates 311 retail automotive franchises, representing 40 different brands, and 26 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 164 franchises in 19 states and Puerto Rico and 147 franchises located outside the United States, primarily in the United Kingdom. Penske Automotive is a member of the Fortune 500 and Russell 1000 and has approximately 16,000 employees.

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, 2006 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
                                                 ---------------------
                                                    2007       2006
                                                 ---------- ----------
Revenues:
  New Vehicle                                    $1,831,369 $1,583,639
  Used Vehicle                                      829,057    631,982
  Finance and Insurance, Net                         75,698     65,680
  Service and Parts                                 357,377    306,924
  Fleet and Wholesale Vehicle                       288,137    249,502
                                                 ---------- ----------
       Total Revenues                             3,381,638  2,837,727
Cost of Sales:
  New Vehicle                                     1,678,521  1,444,861
  Used Vehicle                                      763,636    577,581
  Service and Parts                                 156,407    137,730
  Fleet and Wholesale Vehicle                       287,089    248,064
                                                 ---------- ----------
       Total Cost of Sales                        2,885,653  2,408,236
                                                 ---------- ----------
       Gross Profit                                 495,985    429,491
SG&A Expenses                                       389,276    334,600
Depreciation and Amortization                        13,337     10,805
                                                 ---------- ----------
       Operating Income                              93,372     84,086
Floor Plan Interest Expense                        (19,546)   (16,218)
Other Interest Expense                             (12,917)   (11,436)
Equity in Earnings of Affiliates                      2,529      1,968
                                                 ---------- ----------
       Income from Continuing Operations Before
        Income Taxes and Minority Interests
                                                     63,438     58,400
Income Taxes                                       (23,473)   (21,457)
Minority Interests                                    (702)      (636)
                                                 ---------- ----------
       Income from Continuing Operations             39,263     36,307
Income from Discontinued Operations, Net of Tax       1,092        386
                                                 ---------- ----------
       Net Income                                $   40,355 $   36,693
                                                 ========== ==========
Income from Continuing Operations Per Diluted
 Share                                           $     0.42 $     0.38
                                                 ========== ==========
Diluted EPS                                      $     0.43 $     0.39
                                                 ========== ==========
Diluted Weighted Average Shares Outstanding          94,532     94,636
                                                 ========== ==========
                    PENSKE AUTOMOTIVE GROUP, INC.
                  Consolidated Statements of Income
            (Amounts In Thousands, Except Per Share Data)
                             (Unaudited)

                                                      Six Months
                                                 ---------------------
                                                    2007       2006
                                                 ---------- ----------
Revenues:
  New Vehicle                                    $3,479,067 $3,017,486
  Used Vehicle                                    1,617,464  1,187,322
  Finance and Insurance, Net                        144,666    123,745
  Service and Parts                                 710,310    600,905
  Fleet and Wholesale Vehicle                       538,570    462,725
                                                 ---------- ----------
       Total Revenues                             6,490,077  5,392,183
Cost of Sales:
  New Vehicle                                     3,187,699  2,752,530
  Used Vehicle                                    1,490,807  1,082,744
  Service and Parts                                 313,501    269,806
  Fleet and Wholesale Vehicle                       534,586    458,554
                                                 ---------- ----------
Cost of Sales                                     5,526,593  4,563,634
                                                 ---------- ----------
       Gross Profit                                 963,484    828,549
SG&A Expenses                                       764,862    657,345
Depreciation and Amortization                        26,147     20,982
                                                 ---------- ----------
       Operating Income                             172,475    150,222
Floor Plan Interest Expense                        (35,721)   (30,191)
Other Interest Expense                             (31,776)   (23,383)
Equity in Earnings of Affiliates                      1,708      3,118
Debt Redemption Charge                             (18,634)         --
                                                 ---------- ----------
       Income from Continuing Operations Before
        Income Taxes and Minority Interests
                                                     88,052     99,766
Income Taxes                                       (31,829)   (36,521)
Minority Interests                                    (996)    (1,058)
                                                 ---------- ----------
       Income from Continuing Operations             55,227     62,187
Loss from Discontinued Operations, Net of Tax         (290)    (1,539)
                                                 ---------- ----------
       Net Income                                $   54,937 $   60,648
                                                 ========== ==========
Income from Continuing Operations Per Diluted
 Share                                           $     0.58 $     0.66
                                                 ========== ==========
Diluted EPS                                      $     0.58 $     0.64
                                                 ========== ==========
Diluted Weighted Average Shares Outstanding          94,483     94,499
                                                 ========== ==========
                    PENSKE AUTOMOTIVE GROUP, INC.
                Consolidated Condensed Balance Sheets
                        (Amounts In Thousands)
                             (Unaudited)

                                                  6/30/07    12/31/06
                                                 ---------- ----------
Assets
Cash and Cash Equivalents                        $   18,256 $   13,147
Accounts Receivable, Net                            474,674    470,301
Inventories                                       1,635,690  1,525,800
Other Current Assets                                 99,653     71,526
Assets Held for Sale                                139,907    190,881
                                                 ---------- ----------
     Total Current Assets                         2,368,180  2,271,655
Property and Equipment, Net                         563,548    582,407
Intangibles                                       1,626,259  1,506,004
Other Assets                                         93,094    109,736
                                                 ---------- ----------
     Total Assets                                $4,651,081 $4,469,802
                                                 ========== ==========

Liabilities and Stockholders' Equity
Floor Plan Notes Payable                         $1,108,688 $  874,326
Floor Plan Notes Payable - Non-Trade                452,850    298,703
Accounts Payable                                    290,911    301,592
Accrued Expenses                                    257,126    214,544
Current Portion Long-Term Debt                       14,725     13,385
Liabilities Held for Sale                            69,959     50,560
                                                 ---------- ----------
     Total Current Liabilities                    2,194,259  1,753,110
Long-Term Debt                                      831,771  1,168,666
Other Long-Term Liabilities                         277,135    252,373
                                                 ---------- ----------
     Total Liabilities                            3,303,165  3,174,149
Stockholders' Equity                              1,347,916  1,295,653
                                                 ---------- ----------
     Total Liabilities and Stockholders' Equity  $4,651,081 $4,469,802
                                                 ========== ==========
                    PENSKE AUTOMOTIVE GROUP, INC.
                            Selected Data

                              Second Quarter          Six Months
                           --------------------- ---------------------
                              2007       2006       2007       2006
                           ---------- ---------- ---------- ----------
Total Retail Units
     New Retail                51,449     47,508     97,033     89,850
     Used Retail               26,862     22,364     52,559     42,361
                           ---------- ---------- ---------- ----------
          Total Retail         78,311     69,872    149,592    132,211
                           ========== ========== ========== ==========

Same-Store Retail Units
     New Same-Store Retail     46,808     46,884     88,390     87,701
     Used Same-Store
      Retail                   23,471     22,028     44,585     40,665
                           ---------- ---------- ---------- ----------
          Total Same-Store
           Retail              70,279     68,912    132,975    128,366
                           ========== ========== ========== ==========

Same-Store Retail Revenue
     New Vehicles          $1,662,883 $1,563,628 $3,129,150 $2,931,834
     Used Vehicles            717,171    624,360  1,327,178  1,130,131
     Finance and
      Insurance, Net           69,680     65,122    131,031    120,858
     Service and Parts        323,390    303,413    629,556    582,177
                           ---------- ---------- ---------- ----------
       Total Same-Store
        Retail             $2,773,124 $2,556,523 $5,216,915 $4,765,000
                           ========== ========== ========== ==========

Same-Store Retail Revenue
 Growth
     New Vehicles                6.3%       1.5%       6.7%       2.3%
     Used Vehicles              14.9%       8.8%      17.4%       7.3%
     Finance and
      Insurance, Net             7.0%       8.5%       8.4%       7.3%
     Service and Parts           6.6%       8.0%       8.1%       8.1%

Revenue Mix
     New Vehicles               54.2%      55.8%      53.6%      56.0%
     Used Vehicles              24.5%      22.3%      24.9%      22.0%
     Finance and
      Insurance, Net             2.2%       2.3%       2.2%       2.3%
     Service and Parts          10.6%      10.8%      11.0%      11.1%
     Fleet and Wholesale         8.5%       8.8%       8.3%       8.6%

Average Retail Selling
 Price
     New Vehicles          $   35,595 $   33,334 $   35,854 $   33,584
     Used Vehicles         $   30,863 $   28,259 $   30,774 $   28,029

Gross Margin                    14.7%      15.1%      14.9%      15.4%

Retail Gross Margin - by
 Product
     New Vehicle                 8.3%       8.8%       8.4%       8.8%
     Used Vehicle                7.9%       8.6%       7.8%       8.8%
     Service and Parts          56.2%      55.1%      55.9%      55.1%

Gross Profit per Retail
 Transaction
     New Vehicles          $    2,971 $    2,921 $    3,003 $    2,949
     Used Vehicles              2,435      2,433      2,410      2,469
     Finance and Insurance        967        940        967        936
                    PENSKE AUTOMOTIVE GROUP, INC.
                      Selected Data (Continued)

                                       Second Quarter    Six Months
                                       --------------- ---------------
                                        2007    2006    2007    2006
                                       ------- ------- ------- -------
Brand Mix:
     BMW                                 22%     16%     22%     16%
     Toyota/Lexus                        20%     22%     19%     22%
     Honda/Acura                         15%     16%     14%     16%
     DCX                                 11%     11%     12%     11%
     Ford                                9%      10%     10%     11%
     Audi                                7%      7%      8%      7%
     Porsche                             4%      4%      4%      4%
     General Motors                      3%      4%      3%      4%
     Nissan/Infiniti                     3%      3%      3%      3%
     Other                               6%      7%      5%      6%
                                       ------- ------- ------- -------
                                        100%    100%    100%    100%

     Premium                             65%     60%     66%     61%
     Foreign                             30%     33%     29%     32%
     Domestic Big 3                      5%      7%      5%      7%
                                       ------- ------- ------- -------
                                        100%    100%    100%    100%

Revenue Mix:
     U.S.                                63%     71%     62%     70%
     International                       37%     29%     38%     30%
                                       ------- ------- ------- -------
                                        100%    100%    100%    100%

Debt to Total Capital Ratio              39%     37%     39%     37%

Rent Expense                           $37,914 $33,423 $74,851 $65,351

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