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Press Release

Penske Automotive Reports First Quarter Results
Revenues Rise 4% to $3.2 Billion Income from Continuing Operations of $33.8 Million; 17% Increase Versus Adjusted Q1 '07 Earnings Per Share from Continuing Operations of $0.36; 16% Increase Versus Adjusted Q1 '07
BLOOMFIELD HILLS, Mich., Apr 29, 2008 (BUSINESS WIRE) -- Penske Automotive Group, Inc. (NYSE: PAG), an international automotive retailer, today reported that first quarter income from continuing operations was $33.8 million, which represents a 17.4% increase over adjusted income from continuing operations of $28.8 million in the prior year. Related earnings per share were $0.36 in the first quarter, which compares to $0.31 per share in the prior year. Net income in the first quarter was $33.9 million, or $0.36 per share, compared with adjusted net income of $26.9 million, or $0.28 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. In the first quarter of 2007, reported income from continuing operations and reported net income were $16.5 million, or $0.18 per share, and $14.6 million, or $0.15 per share, respectively.

Revenues in the first quarter increased 4.0% to $3.2 billion. On a same-store basis, retail revenues declined 2.3%, due primarily to a decline in new vehicle unit sales at the Company's U.S. dealerships. "I'm pleased with the performance of our business in the first quarter," said Penske Automotive Group Chairman Roger Penske. "While the new vehicle sales environment was difficult, particularly in the U.S., our business continued to perform well. In particular, I am pleased that we were able to generate same-store retail revenue increases in our used vehicle, finance & insurance, and service and parts operations. Further, our overall gross margin increased to 15.4%, due primarily to the strength of our used vehicle and service and parts performance." Penske continued, "I also remain excited about our distribution of the smart fortwo in the U.S., and am optimistic about its prospects and its potential to further diversify the Company's overall business model."

During the first quarter, the Company did not effect any repurchases under its previously announced share buyback authority. The Company currently projects earnings from continuing operations in the second quarter to be in the range of $0.45 to $0.47 per share, and continues to project earnings from continuing operations for the year in the range of $1.63 to $1.71 per share. 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 first quarter of 2008 on April 29, 2008, at 2:00 p.m. EDT. To listen to the conference call, participants must dial (800) 230-1951 (International, please dial (612) 332-0530). 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 316 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 171 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, 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)

                                                    First Quarter
                                               -----------------------
                                                  2008        2007
                                               ----------- -----------
Revenues:
  New Vehicle                                  $1,635,602  $1,624,778
  Used Vehicle                                    803,456     780,345
  Finance and Insurance, Net                       75,068      67,832
  Service and Parts                               363,385     347,954
  Distribution                                     63,770         - -
  Fleet and Wholesale Vehicle                     263,189     259,106
                                               ----------- -----------
       Total Revenues                           3,204,470   3,080,015
Cost of Sales:
  New Vehicle                                   1,497,644   1,488,202
  Used Vehicle                                    735,849     719,240
  Service and Parts                               159,833     154,798
  Distribution                                     53,618         - -
  Fleet and Wholesale Vehicle                     263,468     256,008
                                               ----------- -----------
       Total Cost of Sales                      2,710,412   2,618,248
                                               ----------- -----------
       Gross Profit                               494,058     461,767
SG&A Expenses                                     399,173     369,711
Depreciation and Amortization                      13,501      12,340
                                               ----------- -----------
       Operating Income                            81,384      79,716
Floor Plan Interest Expense                       (17,312)    (15,816)
Other Interest Expense                            (12,043)    (18,823)
Equity in Earnings of Affiliates                    1,392        (821)
Debt Redemption Charge                                - -     (18,634)
                                               ----------- -----------
       Income from Continuing Operations Before    53,421      25,622
         Income Taxes and Minority Interests
Income Taxes                                      (19,147)     (8,796)
Minority Interests                                   (435)       (294)
                                               ----------- -----------
       Income from Continuing Operations           33,839      16,532
Income (Loss) from Discontinued Operations, Net
 of Tax                                                91      (1,950)
                                               ----------- -----------
       Net Income                                 $33,930     $14,582
                                               =========== ===========
Income from Continuing Operations Per Diluted
 Share                                              $0.36       $0.18
                                               =========== ===========
Diluted EPS                                         $0.36       $0.15
                                               =========== ===========
Diluted Weighted Average Shares Outstanding        94,657      94,412
                                               =========== ===========

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

                                                  3/31/08    12/31/07
                                                 ---------- ----------
Assets
Cash and Cash Equivalents                           $20,394    $11,690
Accounts Receivable, Net                            503,463    448,985
Inventories                                       1,818,846  1,682,736
Other Current Assets                                 89,092     65,948
Assets Held for Sale                                110,307     96,638
                                                 ---------- ----------
     Total Current Assets                         2,542,102  2,305,997
Property and Equipment, Net                         650,360    617,874
Intangibles                                       1,661,243  1,659,788
Other Assets                                         87,466     84,894
                                                 ---------- ----------
     Total Assets                                $4,941,171 $4,668,553
                                                 ========== ==========

Liabilities and Stockholders' Equity
Floor Plan Notes Payable                         $1,198,824 $1,070,882
Floor Plan Notes Payable - Non-Trade                502,620    476,854
Accounts Payable                                    291,725    266,726
Accrued Expenses                                    257,312    212,310
Current Portion Long-Term Debt                       14,437     14,522
Liabilities Held for Sale                            68,898     54,745
                                                 ---------- ----------
     Total Current Liabilities                    2,333,816  2,096,039
Long-Term Debt                                      829,982    830,106
Other Long-Term Liabilities                         328,893    320,949
                                                 ---------- ----------
     Total Liabilities                            3,492,691  3,247,094
Stockholders' Equity                              1,448,480  1,421,459
                                                 ---------- ----------
     Total Liabilities and Stockholders' Equity  $4,941,171 $4,668,553
                                                 ========== ==========

                    PENSKE AUTOMOTIVE GROUP, INC.
                            Selected Data

                                                    Three Months
                                              ------------------------
                                                  2008        2007
                                              ------------ -----------
Total Retail Units
     New Retail                                   45,550       45,105
     Used Retail                                  26,911       25,550
                                              ------------ -----------
          Total Retail                            72,461       70,655
                                              ============ ===========

smart Wholesale Units                              4,913           --
                                              ============ ===========

Same-Store Retail Units
     New Same-Store Retail                        41,668       44,659
     Used Same-Store Retail                       25,832       24,580
                                              ------------ -----------
          Total Same-Store Retail                 67,500       69,239
                                              ============ ===========

Same-Store Retail Revenue
     New Vehicles                             $1,518,819   $1,607,937
     Used Vehicles                               768,434      751,735
     Finance and Insurance, Net                   71,151       67,452
     Service and Parts                           345,233      341,416
                                              ------------ -----------
       Total Same-Store Retail                $2,703,637   $2,768,540
                                              ============ ===========

Same-Store Retail Revenue Growth
     New Vehicles                                   (5.5%)        7.6%
     Used Vehicles                                   2.2%        20.9%
     Finance and Insurance, Net                      5.5%        10.7%
     Service and Parts                               1.1%        10.4%

Revenue Mix
     New Vehicles                                   51.1%        52.8%
     Used Vehicles                                  25.1%        25.3%
     Finance and Insurance, Net                      2.3%         2.2%
     Service and Parts                              11.3%        11.3%
     Distribution                                    2.0%          --%
     Fleet and Wholesale                             8.2%         8.4%

Average Retail Selling Price
     New Vehicles                                $35,908      $36,022
     Used Vehicles                                29,854       30,542

Gross Margin                                        15.4%        15.0%

Retail Gross Margin - by Product
     New Vehicles                                    8.4%         8.4%
     Used Vehicles                                   8.4%         7.8%
     Service and Parts                              56.0%        55.5%

Gross Profit per Retail Transaction
     New Vehicles                                 $3,029       $3,028
     Used Vehicles                                 2,512        2,392
     Finance and Insurance                         1,036          960

                    PENSKE AUTOMOTIVE GROUP, INC.
                      Selected Data (Continued)

                                                       Three Months
                                                     -----------------
                                                       2008     2007
                                                     -------- --------
Brand Mix:
     BMW                                                  21%      22%
     Toyota / Lexus                                       20%      19%
     Honda / Acura                                        14%      14%
     Mercedes Benz                                        10%      11%
     Audi                                                  8%       8%
     Land Rover                                            5%       6%
     Ferrari / Maserati                                    4%       2%
     Porsche                                               3%       4%
     General Motors                                        3%       3%
     Other                                                12%      11%
                                                     -------- --------
                                                         100%     100%

     Premium                                              65%      66%
     Foreign                                              29%      28%
     Domestic Big 3                                        6%       6%
                                                     -------- --------
                                                         100%     100%

Revenue Mix:
     U.S.                                                 60%      60%
     International                                        40%      40%
                                                     -------- --------
                                                         100%     100%

Debt to Total Capital Ratio                               37%      40%

Rent Expense                                         $40,174  $36,235

SOURCE: Penske Automotive Group, Inc.

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