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Press Release

Penske Automotive Reports Third Quarter Results

Revenues Rise 15%; Same-Store Retail Revenues Increase 8.5%

SG&A as a Percentage of Gross Profit Improves 69 Basis Points

Income from Continuing Operations Per Share Increases 18% to $0.45 Per Share

BLOOMFIELD HILLS, Mich.--(BUSINESS WIRE)--Oct. 25, 2007--Penske Automotive Group, Inc. (NYSE: PAG), an international automotive retailer, today reported that third quarter income from continuing operations increased 17.4% to $42.4 million and related earnings per share increased 18.4% to $0.45. Third quarter net income increased 28.7% to $43.4 million and related earnings per share increased 27.8% to $0.46. Revenues in the third quarter increased 14.6% to $3.4 billion, with each area of the Company's business experiencing double digit growth. Same-store retail revenues increased 8.5%, including a 14.0% increase from the Company's premium brand portfolio. The components of the same-store increase were as follows:

-- New Vehicles                        +7.4%

-- Used Vehicles                      +11.8%

-- Finance & Insurance                +10.6%

-- Service & Parts                     +6.8%

"Our business performed exceptionally well during the third quarter" said Penske Automotive Group Chairman Roger Penske. "PAG's performance in the third quarter further supports the geographic diversification, brand mix and investment strategies which differentiate our overall business model. While I am happy with our 15% growth in total revenues and the robust same-store growth of 8.5% posted by our dealerships, I am particularly pleased to see that our selling, general and administrative expenses as a percentage of gross profit declined 69 basis points compared to the third quarter last year."

For the nine months ended September 30, 2007, revenues increased 18.3% to $9.9 billion. Income from continuing operations and related earnings per share for the nine months were $97.4 million and $1.03, 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 nine months increased 11.6% to $109.7 million and related earnings per share increased 10.5% to $1.16. Net income and related earnings per share for the nine months were $98.3 million and $1.04, respectively. Adjusted for the debt redemption charge, net income increased 17.2% to $110.6, and related earnings per share increased 17.0% to $1.17.

The Company currently projects earnings from continuing operations in the fourth quarter to be in the range of $0.31 to $0.35 per share. Excluding the $12.3 million ($0.13 per share) debt redemption charge, earnings from continuing operations for the year are now expected to be in the range of $1.47 to $1.51 per share. 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 third quarter of 2007 on Thursday, October 25, 2007 at 2:30 p.m. EDT. To listen to the conference call, participants must dial (800) 288-8976 (International, please dial (612) 332-0718). 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 307 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 143 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)

                                                     Third Quarter
                                                 ---------------------
                                                    2007       2006
                                                 ---------- ----------
Revenues:
  New Vehicle                                    $1,896,455 $1,670,797
  Used Vehicle                                      792,793    680,227
  Finance and Insurance, Net                         78,989     66,760
  Service and Parts                                 359,628    318,471
  Fleet and Wholesale Vehicle                       278,122    235,879
                                                 ---------- ----------
       Total Revenues                             3,405,987  2,972,134
Cost of Sales:
  New Vehicle                                     1,735,800  1,527,563
  Used Vehicle                                      729,260    623,854
  Service and Parts                                 159,836    142,127
  Fleet and Wholesale Vehicle                       277,595    235,027
                                                 ---------- ----------
       Total Cost of Sales                        2,902,491  2,528,571
                                                 ---------- ----------
       Gross Profit                                 503,496    443,563
SG&A Expenses                                       394,565    350,648
Depreciation and Amortization                        13,057     11,388
                                                 ---------- ----------
       Operating Income                              95,874     81,527
Floor Plan Interest Expense                        (19,536)   (15,647)
Other Interest Expense                             (12,454)   (11,088)
Equity in Earnings of Affiliates                      1,475      2,389
                                                 ---------- ----------
       Income from Continuing Operations Before
        Income Taxes and Minority Interests          65,359     57,181
Income Taxes                                       (22,418)   (20,590)
Minority Interests                                    (531)      (478)
                                                 ---------- ----------
       Income from Continuing Operations             42,410     36,113
Income (Loss) from Discontinued Operations, Net
 of Tax                                                 990    (2,383)
                                                 ---------- ----------
       Net Income                                   $43,400    $33,730
                                                 ========== ==========
Income from Continuing Operations Per Diluted
 Share                                                $0.45      $0.38
                                                 ========== ==========
Diluted EPS                                           $0.46      $0.36
                                                 ========== ==========
Diluted Weighted Average Shares Outstanding          94,614     94,288
                                                 ========== ==========
                    PENSKE AUTOMOTIVE GROUP, INC.
                  Consolidated Statements of Income
            (Amounts In Thousands, Except Per Share Data)
                             (Unaudited)

                                                      Nine Months
                                                 ---------------------
                                                    2007       2006
                                                 ---------- ----------
Revenues:
  New Vehicle                                    $5,361,649 $4,676,041
  Used Vehicle                                    2,405,760  1,864,087
  Finance and Insurance, Net                        222,887    189,886
  Service and Parts                               1,068,587    918,066
  Fleet and Wholesale Vehicle                       815,064    696,520
                                                 ---------- ----------
       Total Revenues                             9,873,947  8,344,600
Cost of Sales:
  New Vehicle                                     4,910,574  4,268,519
  Used Vehicle                                    2,216,210  1,703,645
  Service and Parts                                 472,829    411,398
  Fleet and Wholesale Vehicle                       810,575    691,462
                                                 ---------- ----------
Cost of Sales                                     8,410,188  7,075,024
                                                 ---------- ----------
       Gross Profit                               1,463,759  1,269,576
SG&A Expenses                                     1,156,802  1,005,569
Depreciation and Amortization                        39,155     32,315
                                                 ---------- ----------
       Operating Income                             267,802    231,692
Floor Plan Interest Expense                        (55,055)   (45,680)
Other Interest Expense                             (44,230)   (34,471)
Equity in Earnings of Affiliates                      3,183      5,507
Debt Redemption Charge                             (18,634)         --
                                                 ---------- ----------
       Income from Continuing Operations Before
        Income Taxes and Minority Interests         153,066    157,048
Income Taxes                                       (54,110)   (57,150)
Minority Interests                                  (1,527)    (1,536)
                                                 ---------- ----------
       Income from Continuing Operations             97,429     98,362
Income (Loss) from Discontinued Operations, Net
 of Tax                                                 908    (3,984)
                                                 ---------- ----------
       Net Income                                   $98,337    $94,378
                                                 ========== ==========
Income from Continuing Operations Per Diluted
 Share                                                $1.03      $1.05
                                                 ========== ==========
Diluted EPS                                           $1.04      $1.00
                                                 ========== ==========
Diluted Weighted Average Shares Outstanding          94,512     94,085
                                                 ========== ==========
                    PENSKE AUTOMOTIVE GROUP, INC.
                Consolidated Condensed Balance Sheets
                        (Amounts In Thousands)
                             (Unaudited)

                                                  9/30/07    12/31/06
                                                 ---------- ----------
Assets
Cash and Cash Equivalents                           $24,830    $13,147
Accounts Receivable, Net                            495,062    468,810
Inventories                                       1,557,335  1,518,759
Other Current Assets                                 97,205     71,492
Assets Held for Sale                                155,318    200,372
                                                 ---------- ----------
     Total Current Assets                         2,329,750  2,272,580
Property and Equipment, Net                         566,057    581,969
Intangibles                                       1,620,783  1,505,555
Other Assets                                        102,011    109,698
                                                 ---------- ----------
     Total Assets                                $4,618,601 $4,469,802
                                                 ========== ==========

Liabilities and Stockholders' Equity
Floor Plan Notes Payable                         $1,058,995   $874,326
Floor Plan Notes Payable - Non-Trade                440,483    298,222
Accounts Payable                                    264,545    300,764
Accrued Expenses                                    290,003    214,200
Current Portion Long-Term Debt                       14,969     13,385
Liabilities Held for Sale                            72,961     52,213
                                                 ---------- ----------
     Total Current Liabilities                    2,141,956  1,753,110
Long-Term Debt                                      792,674  1,168,666
Other Long-Term Liabilities                         280,211    252,373
                                                 ---------- ----------
     Total Liabilities                            3,214,841  3,174,149
Stockholders' Equity                              1,403,760  1,295,653
                                                 ---------- ----------
     Total Liabilities and Stockholders' Equity  $4,618,601 $4,469,802
                                                 ========== ==========
                    PENSKE AUTOMOTIVE GROUP, INC.
                            Selected Data

                              Third Quarter           Nine Months
                          ---------------------- ---------------------
                             2007       2006        2007       2006
                          ---------- ----------  ---------- ----------
Total Retail Units
     New Retail               53,222     50,000     149,667    139,355
     Used Retail              25,697     23,904      77,966     66,038
                          ---------- ----------  ---------- ----------
          Total Retail        78,919     73,904     227,633    205,393
                          ========== ==========  ========== ==========

Same-Store Retail Units
     New Same-Store
      Retail                  48,246     48,183     134,642    134,245
     Used Same-Store
      Retail                  23,132     22,357      66,409     61,880
                          ---------- ----------  ---------- ----------
          Total Same-
           Store Retail       71,378     70,540     201,051    196,125
                          ========== ==========  ========== ==========

Same-Store Retail Revenue
     New Vehicles         $1,718,384 $1,599,899  $4,769,016 $4,471,389
     Used Vehicles           704,619    630,513   1,986,012  1,723,361
     Finance and
      Insurance, Net          71,693     64,798     199,632    183,439
     Service and Parts       329,546    308,591     944,296    877,713
                          ---------- ----------  ---------- ----------
       Total Same-Store
        Retail            $2,824,242 $2,603,801  $7,898,956 $7,255,902
                          ========== ==========  ========== ==========

Same-Store Retail Revenue
 Growth
     New Vehicles               7.4%     (0.8%)        6.7%       1.1%
     Used Vehicles             11.8%       9.6%       15.2%       7.6%
     Finance and
      Insurance, Net           10.6%       0.2%        8.8%       4.5%
     Service and Parts          6.8%       6.1%        7.6%       7.3%

Revenue Mix
     New Vehicles              55.7%      56.2%       54.3%      56.0%
     Used Vehicles             23.3%      22.9%       24.4%      22.3%
     Finance and
      Insurance, Net            2.3%       2.3%        2.3%       2.3%
     Service and Parts         10.6%      10.7%       10.8%      11.0%
     Fleet and Wholesale        8.1%       7.9%        8.2%       8.4%

Average Retail Selling
 Price
     New Vehicles            $35,633    $33,416     $35,824    $33,555
     Used Vehicles            30,852     28,457      30,857     28,227

Gross Margin                   14.8%      14.9%       14.8%      15.2%

Retail Gross Margin - by
 Product
     New Vehicle                8.5%       8.6%        8.4%       8.7%
     Used Vehicle               8.0%       8.3%        7.9%       8.6%
     Service and Parts         55.6%      55.4%       55.8%      55.2%

Gross Profit per Retail
 Transaction
     New Vehicles             $3,019     $2,865      $3,014     $2,924
     Used Vehicles             2,472      2,358       2,431      2,429
     Finance and
      Insurance                1,001        903         979        924
                    PENSKE AUTOMOTIVE GROUP, INC.
                      Selected Data (Continued)

                                      Third Quarter     Nine Months
                                     ---------------- ----------------
                                      2007    2006      2007    2006
                                     ------- -------  -------- -------
Brand Mix:
     BMW                                 21%     18%       22%     17%
     Toyota/Lexus                        20%     21%       20%     22%
     Honda/Acura                         15%     16%       15%     16%
     Mercedes Benz                       10%     10%       10%     10%
     Ford                                 9%     10%       10%     10%
     Audi                                 8%      8%        8%      7%
     Porsche                              3%      4%        4%      4%
     General Motors                       3%      4%        3%      4%
     Nissan/Infiniti                      3%      3%        3%      3%
     Other                                8%      6%        5%      7%
                                     ------- -------  -------- -------
                                        100%    100%      100%    100%

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

Revenue Mix:
     U.S.                                62%     67%       62%     69%
     International                       38%     33%       38%     31%
                                     ------- -------  -------- -------
                                        100%    100%      100%    100%

Debt to Total Capital Ratio              37%     41%       37%     41%

Rent Expense                         $38,908 $34,608  $113,549 $99,749

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.