DETROIT, MI, August 15, 2002 - UnitedAuto Group, Inc. (NYSE:
UAG), a FORTUNE 500 automotive specialty retailer, announced an agreement
to repurchase approximately one million shares of UnitedAuto common stock
from Combined Specialty Insurance Company ("AON") under its
previously announced 3.0 million share repurchase program. The aggregate
cost of this repurchase is approximately $15.8 million.
Simultaneously, UnitedAuto announced that Penske Corporation, UnitedAuto's
largest shareholder, agreed to acquire approximately 100,000 shares of
UnitedAuto common stock from AON. Since its original investment in 1999,
Penske Corporation's ownership interest in UnitedAuto stock has increased
from 11% to approximately 40%. After the completion of these transactions,
AON will no longer be a shareholder of UnitedAuto.
Chairman Roger Penske stated, "We purchased this stock because we
believe our shares are significantly undervalued, and consequently this
investment provides an outstanding return for our shareholders. With this
transaction, and the successful completion of a 6.0 million share offering
in March, we not only increased float but reduced our liquidity obligations
by approximately 6.0 million shares."
Upon completion of the transaction, UnitedAuto will have repurchased
approximately 1.4 million shares through open market purchases or negotiated
transactions at an aggregate cost of approximately $21.6 million.
UnitedAuto, which has pursued a strategy based on internal growth from
its existing dealerships, as well as from strategic acquisitions, operates
125 franchises in the United States and 68 franchises internationally,
primarily in the United Kingdom. UnitedAuto dealerships sell new and used
vehicles, and market a complete line of after-market automotive products
Statements in this press release may include forward-looking statements.
These forward-looking statements should be evaluated together with additional
information about UnitedAuto's business markets, conditions and other
uncertainties which are contained in UnitedAuto's filings with the Securities
and Exchange Commission and which are incorporated into this press release