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Press Release

Penske Automotive Reports Fourth Quarter Results
Revenues Rise 8%; Same-Store Retail Revenues Increase 4% Company Announces $150 Million Share Repurchase Authority smart Wholesale Distribution and Retail Networks In Place; Retail Deliveries Began In January '08
BLOOMFIELD HILLS, Mich., Feb 19, 2008 (BUSINESS WIRE) -- Penske Automotive Group, Inc. (NYSE: PAG), an international automotive retailer, reported adjusted fourth quarter income from continuing operations of $31.8 million, or $0.34 per share, compared to income from continuing operations of $32.5 million, or $0.34 per share, in the fourth quarter last year. Adjusted fourth quarter net income was $33.9 million, or $0.36 per share, compared to net income of $30.3 million, or $0.32 per share in the fourth quarter last year. Adjusted earnings exclude the impact of $4.5 million of after-tax impairment losses recorded during the fourth quarter of 2007. Fourth quarter income from continuing operations was $27.4 million, or $0.29 per share, and fourth quarter net income was $29.4 million, or $0.31 per share. Revenues in the quarter increased 7.7% to $3.1 billion, including same-store retail revenue growth of 4.0%.

"Our fourth quarter results reflect the strength of the Penske Automotive business model," said Penske Automotive Group Chairman Roger Penske. "While the new vehicle sales environment in the U.S. was challenging, the other areas of our business performed very well. In particular, we are pleased to see the continued growth of pre-owned vehicle sales and the sustained strength of our service and parts operations, which have served to partially offset the soft new vehicle sales market." Penske continued, "We continue to see the benefits of our geographic diversification. Overall, same-store retail revenue increased 4.0%, including 10.5% growth in our international markets. As we look at 2008, we look forward to the opportunity presented by the launch of our smart distribution business, and we are confident in the ability of our business model to continue to perform in these challenging economic times."

For the year ended December 31, 2007, revenues increased 16.5% to $13.0 billion. Income from continuing operations and related earnings per share for the year were $127.8 million and $1.35 per share, respectively. Excluding $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 and the impairment losses in the fourth quarter noted above, adjusted income from continuing operations for the year increased 9.3% to $144.6 million and related earnings per share increased 9.3% to $1.53 per share. Net income and related earnings per share for the twelve months were $127.7 million and $1.35 per share, respectively. Adjusted net income increased 15.9% to $144.5 million, and related earnings per share increased 15.9% to $1.53 per share.

The Company currently estimates earnings from continuing operations to be in the range of $1.63 to $1.71 per share for the year ended December 31, 2008. First quarter 2008 earnings from continuing operations are estimated to be in the range of $0.32 to $0.34 per share. Earnings per share information in 2008 is based on an estimated average of 95.0 million shares outstanding.

The Company also announced that its Board of Directors has authorized the Company to repurchase up to $150.0 million of its outstanding common stock, depending on market conditions, share price and other factors. Shares may be acquired from time to time either through open market purchases, negotiated transactions or other means. The Company currently contemplates purchasing any shares under this program using cash flow from operations and credit availability in the U.S.

"We view the opportunity to purchase our shares at recent market prices as an outstanding investment, highlighting our belief in the long-term fundamentals and value of our business," said Bob O'Shaughnessy, Penske Automotive's Chief Financial Officer. "Based on our current financial position, we believe we can increase shareholder value by pursuing this share repurchase program while we continue our efforts to enhance the business through sustained organic growth and selective acquisition activity."

smart USA Distributor LLC, the Company's wholly-owned distribution entity for the smart fortwo in the U.S., has certified 68 dealers in 31 states, including 8 Company-owned franchises, as ready for business. smart USA has shipped vehicles to its dealers, and retail deliveries began in January 2008. "I would like to commend the smart USA team for establishing a first-class distribution operation and organizing the retail network in only 18 months," said Penske Automotive Chairman Roger Penske. "We are encouraged by the positive reaction of the U.S. consumer towards this unique and exciting product, and are confident that the smart fortwo will be a retail success."

Penske Automotive will host a conference call discussing financial results relating to the fourth quarter of 2007 on February 19, 2008 at 2:00 p.m. EDT. To listen to the conference call, participants must dial (866) 254-5942 (International, please dial (612) 332-0636). 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 315 retail automotive franchises, representing 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 170 franchises in 19 states and Puerto Rico and 145 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. smart and fortwo are registered trademarks of Daimler AG.

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)

                                                   Fourth Quarter
                                               -----------------------
                                                  2007        2006
                                               ----------- -----------
Revenues:
  New Vehicle                                  $1,668,779  $1,571,646
  Used Vehicle                                    741,078     676,349
  Finance and Insurance, Net                       67,872      58,782
  Service and Parts                               351,731     323,711
  Fleet and Wholesale Vehicle                     251,678     230,285
                                               ----------- -----------
       Total Revenues                           3,081,138   2,860,773
Cost of Sales:
  New Vehicle                                   1,527,526   1,432,341
  Used Vehicle                                    681,419     621,913
  Service and Parts                               154,269     145,700
  Fleet and Wholesale Vehicle                     253,966     231,660
                                               ----------- -----------
       Total Cost of Sales                      2,617,180   2,431,614
                                               ----------- -----------
       Gross Profit                               463,958     429,159
SG&A Expenses                                     380,619     345,714
Depreciation and Amortization                      13,014      12,050
                                               ----------- -----------
       Operating Income                            70,325      71,395
Floor Plan Interest Expense                       (20,141)    (15,446)
Other Interest Expense                            (12,014)    (14,703)
Equity in Earnings of Affiliates                      901       2,695
                                               ----------- -----------
       Income from Continuing Operations
        Before Income Taxes and Minority
        Interests
                                                   39,071      43,941
Income Taxes                                      (11,244)    (10,840)
Minority Interests                                   (445)       (636)
                                               ----------- -----------
       Income from Continuing Operations           27,382      32,465
Income (Loss) from Discontinued Operations,
 Net of Tax                                         2,026      (2,142)
                                               ----------- -----------
       Net Income                              $   29,408  $   30,323
                                               =========== ===========
Income from Continuing Operations Per Diluted
 Share                                         $     0.29  $     0.34
                                               =========== ===========
Diluted EPS                                    $     0.31  $     0.32
                                               =========== ===========
Diluted Weighted Average Shares Outstanding        94,677      94,389
                                               =========== ===========

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

                                                   Twelve Months
                                             -------------------------
                                                 2007         2006
                                             ------------ ------------
Revenues:
  New Vehicle                                $ 7,008,071  $ 6,185,880
  Used Vehicle                                 3,149,145    2,531,001
  Finance and Insurance, Net                     290,144      246,448
  Service and Parts                            1,413,986    1,228,876
  Fleet and Wholesale Vehicle                  1,096,393      934,514
                                             ------------ ------------
       Total Revenues                         12,957,739   11,126,719
Cost of Sales:
  New Vehicle                                  6,417,064    5,644,220
  Used Vehicle                                 2,898,051    2,316,748
  Service and Parts                              623,585      550,520
  Fleet and Wholesale Vehicle                  1,093,830      930,967
                                             ------------ ------------
       Total Cost of Sales                    11,032,530    9,442,455
                                             ------------ ------------
       Gross Profit                            1,925,209    1,684,264
SG&A Expenses                                  1,531,628    1,337,019
Depreciation and Amortization                     50,957       43,164
                                             ------------ ------------
       Operating Income                          342,624      304,081
Floor Plan Interest Expense                      (74,749)     (59,806)
Other Interest Expense                           (56,245)     (49,174)
Equity in Earnings of Affiliates                   4,084        8,201
Debt Redemption Charge                           (18,634)          --
                                             ------------ ------------
       Income from Continuing Operations
        Before Income Taxes and Minority
        Interests
                                                 197,080      203,302
Income Taxes                                     (67,310)     (68,906)
Minority Interests                                (1,972)      (2,172)
                                             ------------ ------------
       Income from Continuing Operations         127,798      132,224
Income (Loss) from Discontinued Operations,
 Net of Tax                                          (59)      (7,523)
                                             ------------ ------------
       Net Income                            $   127,739  $   124,701
                                             ============ ============
Income from Continuing Operations Per
 Diluted Share                               $      1.35  $      1.40
                                             ============ ============
Diluted EPS                                  $      1.35  $      1.32
                                             ============ ============
Diluted Weighted Average Shares Outstanding       94,558       94,178
                                             ============ ============

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

                                                  12/31/07   12/31/06
                                                 ---------- ----------
Assets
Cash and Cash Equivalents                        $   10,895 $   13,147
Accounts Receivable, Net                            449,278    465,579
Inventories                                       1,688,286  1,506,237
Other Current Assets                                 66,312     71,398
Assets Held for Sale                                 86,838    193,026
                                                 ---------- ----------
     Total Current Assets                         2,301,609  2,249,387
Property and Equipment, Net                         618,491    592,718
Intangibles                                       1,663,559  1,518,045
Other Assets                                         84,894    109,652
                                                 ---------- ----------
     Total Assets                                $4,668,553 $4,469,802
                                                 ========== ==========

Liabilities and Stockholders' Equity
Floor Plan Notes Payable                         $1,074,820 $  872,906
Floor Plan Notes Payable - Non-Trade                478,077    296,580
Accounts Payable                                    268,214    298,066
Accrued Expenses                                    212,601    213,957
Current Portion Long-Term Debt                       14,522     13,385
Liabilities Held for Sale                            47,805     56,972
                                                 ---------- ----------
     Total Current Liabilities                    2,096,039  1,751,866
Long-Term Debt                                      830,106  1,168,666
Other Long-Term Liabilities                         320,949    253,617
                                                 ---------- ----------
     Total Liabilities                            3,247,094  3,174,149
Stockholders' Equity                              1,421,459  1,295,653
                                                 ---------- ----------
     Total Liabilities and Stockholders' Equity  $4,668,553 $4,469,802
                                                 ========== ==========

                    PENSKE AUTOMOTIVE GROUP, INC.
                            Selected Data

                          Fourth Quarter           Twelve Months
                     -------------------------------------------------
                        2007        2006          2007        2006
                     ----------- ------------ ------------ -----------
Total Retail Units
  New Retail             45,377      43,232       195,160     181,544
  Used Retail            23,804      22,350       102,214      88,262
                     ----------- ------------ ------------ -----------
       Total Retail      69,181      65,582       297,374     269,806
                     =========== ============ ============ ===========

Same-Store Retail
 Units
  New Same-Store
   Retail                42,583      42,908       174,759     174,188
  Used Same-Store
   Retail                23,008      21,304        87,262      80,810
                     ----------- ------------ ------------ -----------
       Total Same-
        Store Retail     65,591      64,212       262,021     254,998
                     =========== ============ ============ ===========

Same-Store Retail
 Revenue
  New Vehicles       $1,573,362  $1,557,992   $ 6,205,014  $5,882,310
  Used Vehicles         711,687     646,849     2,597,746   2,268,920
  Finance and
   Insurance, Net        65,185      58,786       258,320     236,721
  Service and Parts     336,302     318,765     1,242,260   1,157,014
                     ----------- ------------ ------------ -----------
    Total Same-Store
     Retail          $2,686,536  $2,582,392   $10,303,340  $9,544,965
                     =========== ============ ============ ===========

Same-Store Retail
 Revenue Growth
  New Vehicles              1.0%        6.3%          5.5%        2.3%
  Used Vehicles            10.0%       14.3%         14.5%        8.9%
  Finance and
   Insurance, Net          10.9%       (9.3%)         9.1%        0.4%
  Service and Parts         5.5%        6.8%          7.4%        7.2%

Revenue Mix
  New Vehicles             54.2%       54.9%         54.1%       55.6%
  Used Vehicles            24.1%       23.6%         24.3%       22.8%
  Finance and
   Insurance, Net           2.2%        2.1%          2.3%        2.2%
  Service and Parts        11.4%       11.3%         10.9%       11.0%
  Fleet and Wholesale       8.1%        8.1%          8.4%        8.4%

Average Retail
 Selling Price
  New Vehicles       $   36,776  $   36,354   $    35,909  $   34,074
  Used Vehicles          31,132      30,262        30,809      28,676

Gross Margin               15.1%       15.0%         14.9%       15.1%

Retail Gross Margin -
 by Product
  New Vehicles              8.5%        8.9%          8.4%        8.8%
  Used Vehicles             8.1%        8.0%          8.0%        8.5%
  Service and Parts        56.1%       55.0%         55.9%       55.2%

Gross Profit per
 Retail Transaction
  New Vehicles       $    3,113  $    3,222   $     3,028  $    2,984
  Used Vehicles           2,506       2,436         2,457       2,427
  Finance and
   Insurance                981         896           976         913

                    PENSKE AUTOMOTIVE GROUP, INC.
                      Selected Data (Continued)

                                   Fourth Quarter     Twelve Months
                                 -------------------------------------
                                   2007     2006     2007      2006
                                 -------- -------- --------- ---------
Brand Mix:
     BMW                              22%      21%       22%       18%
     Toyota / Lexus                   20%      20%       20%       21%
     Honda / Acura                    14%      14%       15%       16%
     Mercedes Benz                    11%      11%       11%       10%
     Audi                              8%       7%        8%        7%
     Land Rover                        5%       5%        5%        5%
     Ferrari / Maserati                4%       3%        3%        3%
     Porsche                           3%       4%        4%        4%
     General Motors                    3%       3%        3%        3%
     Other                            10%      12%        9%       13%
                                 -------- -------- --------- ---------
                                     100%     100%      100%      100%

     Premium                          65%      67%       65%       62%
     Foreign                          29%      28%       29%       32%
     Domestic Big 3                    6%       5%        6%        6%
                                 -------- -------- --------- ---------
                                     100%     100%      100%      100%

Revenue Mix:
     U.S.                             64%      65%       62%       68%
     International                    36%      35%       38%       32%
                                 -------- -------- --------- ---------
                                     100%     100%      100%      100%

Debt to Total Capital Ratio           37%      48%       37%       48%

Rent Expense                     $39,764  $34,890  $152,267  $132,569

SOURCE: Penske Automotive Group, Inc.

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