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Press Release

UnitedAuto Reports Record Third Quarter; Revenues Increase 18.3%; NetIncome and Earnings Per Share Increase 15%; Most Profitable Quarter in CompanyHistory

BLOOMFIELD HILLS, MICHIGAN, Nov 4, 2003 (CCNMatthews via COMTEX) -- Same-Store Retail Revenues Increase 9.9% and Related Gross Profit Increases 9.8%

United Auto Group, Inc. (NYSE: UAG), a FORTUNE 500 automotive specialty retailer, announced today that revenues for the third quarter increased 18.3% to a record $2.4 billion, driven by a 9.9% increase in same-store retail revenues. Importantly, the Company announced that same-store growth increased dramatically in each of its product lines, with new retail vehicle sales, used retail vehicle sales, service and parts sales, and finance and insurance revenues up 8.8%, 12.3%, 10.6% and 16.2%, respectively. Record income from continuing operations was $25.2 million, up 14.2%, and related earnings per share grew 15.1% to $0.61.

For the nine months ended September 30, 2003, revenues increased 20.9% to $6.5 billion. Income from continuing operations was $65.6 million and related earnings per share was $1.59, an increase of 10.4%. Net income was $62.9 million and earnings per share was $1.52. Net income for the nine months includes a $3.1 million, or $0.07 per share, charge as a result of the cumulative effect of a change in accounting principle recorded in the first quarter in connection with the adoption of EITF 02-16 "Accounting by a Customer (including a Reseller) for Certain Consideration Received from a Vendor."

Chairman Roger Penske commented, "Once again, UnitedAuto delivered a quarter of record results. We believe our strong same-store revenue growth is the direct result of our brand mix and our capital investment strategy. I am particularly pleased with the 10.6% same-store revenue increase in our 48% margin service and parts business, and the 60-basis point growth in our overall service and parts margin during the quarter. Our investment in service capacity continues to yield results. For the fourth quarter, we estimate earnings in the range of $0.45 - $0.49 per share, bringing our full-year earnings projection to $2.04 - 2.08 per share (excluding the cumulative effect of the change in accounting principle)."

During 2003, UnitedAuto has completed acquisitions totaling approximately $650 million in annualized revenue, representing approximately $300 million in the United States and another $350 million in the United Kingdom. These acquisitions are within the Company's targeted acquisition range for 2003.

UnitedAuto, which has pursued a strategy based on internal growth from its existing dealerships, as well as from strategic acquisitions, operates 134 franchises in the United States and 79 franchises internationally, primarily in the United Kingdom. UnitedAuto dealerships sell new and used vehicles, and market a complete line of aftermarket automotive products and services.

UnitedAuto will host a conference call discussing financial results relating to third quarter 2003 on Tuesday, November 4, 2003 at 2 P.M. Eastern time. Participants must call (888) 428-4478 (International, please call (651) 291-5254). Calls need to be made shortly before the call is to commence. The call will also be simultaneously broadcast live over the Internet through the UnitedAuto website at www.unitedauto.com.

Statements in this press release involve forward-looking statements, including forward-looking statements regarding UnitedAuto's future sales and earnings growth 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 UnitedAuto's business, markets, conditions and other uncertainties which could affect UnitedAuto's future performance, which are contained in UnitedAuto's Form 10-K for the year ended December 31, 2002 and its other filings with the Securities and Exchange Commission and which are incorporated into this press release by reference. This press release speaks only as of its date and UnitedAuto disclaims any duty to update the information herein.

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


                                                     Third Quarter
                                               -----------------------
                                                     2003        2002
                                                ----------  ----------
New Vehicles                                   $1,400,635  $1,191,511
Used Vehicles                                     494,250     396,244
Finance and Insurance                              58,075      48,003
Service and Parts                                 242,829     202,598
Fleet                                              27,290      31,604
Wholesale                                         140,016     127,754
                                                ----------  ----------
     Total Revenues                             2,363,095   1,997,714
Cost of Sales                                   2,027,100   1,719,264
                                                ----------  ----------
     Gross Profit                                 335,995     278,450
SG&A Expenses                                     262,746     216,506
Depreciation and Amortization                       8,202       5,256
                                                ----------  ----------
     Operating Income                              65,047      56,688
Floor Plan Interest Expense                       (11,172)     (8,873)
Other Interest Expense                            (11,117)     (9,927)
                                                ----------  ----------
     Income from Continuing Operations 
      Before Minority Interests and 
      Income Tax Provision                         42,758      37,888
Minority Interests                                   (655)       (458)
Income Tax Provision                              (16,889)    (15,344)
                                                ----------  ----------
     Income from Continuing Operations             25,214      22,086
Income (Loss) from Discontinued Operations, Net
 of Tax                                                41         (97)
                                                ----------  ----------
     Net Income                                $   25,255  $   21,989

Income from Continuing Operations Per Diluted
 Share                                         $     0.61  $     0.53

Diluted EPS                                    $     0.61  $     0.53

Diluted Weighted Average Shares Outstanding        41,637      41,733




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

                                                      Nine Months
                                                ----------------------
                                                     2003       2002
                                                 ---------- ----------
New Vehicles                                    $3,786,798 $3,207,432
Used Vehicles                                    1,405,545  1,062,042
Finance and Insurance                              158,971    127,875
Service and Parts                                  680,236    551,526
Fleet                                               93,219     90,704
Wholesale                                          384,497    343,781
                                                 ---------- ----------
     Total Revenues                              6,509,266  5,383,360
Cost of Sales                                    5,577,325  4,619,773
                                                 ---------- ----------
     Gross Profit                                  931,941    763,587
SG&A Expenses                                      733,876    593,535
Depreciation and Amortization                       22,963     15,210
                                                 ---------- ----------
     Operating Income                              175,102    154,842
Floor Plan Interest Expense                        (31,611)   (25,451)
Other Interest Expense                             (32,215)   (27,682)
                                                 ---------- ----------
     Income from Continuing Operations 
      Before Minority Interests and 
      Income Tax Provision                         111,276    101,709
Minority Interests                                  (1,706)    (1,383)
Income Tax Provision                               (43,956)   (40,963)
                                                 ---------- ----------
     Income from Continuing Operations              65,614     59,363
Income from Discontinued Operations, Net of Tax        296      2,226
                                                 ---------- ----------
      Income Before Cumulative Effect of
       Accounting Change                            65,910     61,589
Cumulative Effect of Accounting Change (a)          (3,058)        --
                                                 ---------- ----------
     Net Income                                 $   62,852 $   61,589

Income from Continuing Operations Per Diluted
 Share                                          $     1.59 $     1.44

Diluted EPS before Cumulative Effect of
 Accounting Change                              $     1.60 $     1.50

Cumulative Effect of Accounting Change on
 Diluted EPS                                        ($0.07)$       --

Diluted EPS                                     $     1.52 $     1.50

Diluted Weighted Average Shares Outstanding         41,258     41,168

(a) Represents a cumulative accounting change resulting from the adoption of EITF 02-16, "Accounting by a Customer (including a Reseller) for Certain Consideration Received from a Vendor."

UNITED AUTO GROUP, INC.
                 Consolidated Condensed Balance Sheets
                        (Amounts In Thousands)


                                                  9/30/03    12/31/02
                                                ----------  ----------
Assets                                         (unaudited)
Cash and Cash Equivalents                      $   10,803  $   10,641
Accounts Receivable, Net                          346,142     310,378
Inventories                                     1,001,107     942,732
Other Current Assets                               41,047      27,230
                                                ----------  ----------
     Total Current Assets                       1,399,099   1,290,981
Property and Equipment, Net                       429,406     306,234
Intangibles                                     1,060,907     973,342
Assets of Discontinued Operations                      --      53,085
Other Assets                                       76,512      66,672
                                                ----------  ----------
     Total Assets                              $2,965,924  $2,690,314


Liabilities and Stockholders' Equity
Floor Plan Notes Payable                          879,589     882,100
Accounts Payable and Accrued Expenses             376,842     271,036
Current Portion Long-Term Debt                      4,452      14,979
                                                ----------  ----------
     Total Current Liabilities                  1,260,883   1,168,115
Long-Term Debt (a)                                782,845     651,176
Other Long-Term Liabilities                       139,499     135,036
Liabilities of Discontinued Operations                 --      31,545
                                                ----------  ----------
     Total Liabilities                          2,183,227   1,985,872
Stockholders' Equity                              782,697     704,442
                                                ----------  ----------
     Total Liabilities and Stockholders' 
      Equity                                   $2,965,924  $2,690,314

(a) Undrawn capacity under the Company's credit facilities amounted to approximately $300 million as of September 30, 2003.

UNITED AUTO GROUP, INC.
                             Selected Data


                                Third Quarter         Nine Months
                                -------------         -----------
                               2003       2002       2003       2002
                           ---------- ---------- ---------- ----------
Units
     New Retail Units         47,934     43,026    130,328    116,032
     Used Retail Units        23,474     19,886     67,894     55,306
                           ---------- ---------- ---------- ----------
       Total Retail Units     71,408     62,912    198,222    171,338


Same-Store Retail Revenue
     New Vehicles         $1,259,181 $1,157,219 $2,961,380 $2,780,762
     Used Vehicles           429,382    382,444    871,899    793,683
     Finance and Insurance    47,523     40,898    115,182    100,257
     Service and Parts       217,317    196,461    498,981    463,892
                           ---------- ---------- ---------- ----------
       Total Same-Store
        Retail Revenue    $1,953,403 $1,777,022 $4,447,442 $4,138,594


Same-Store Retail Revenue
 Growth
     New Vehicles                8.8%       9.2%       6.5%       7.0%
     Used Vehicles              12.3%       2.9%       9.9%       1.1%
     Finance and Insurance      16.2%      10.2%      14.9%      10.2%
     Service and Parts          10.6%       6.0%       7.6%       5.8%

Revenue Mix
     New Vehicles               59.3%      59.7%      58.2%      59.5%
     Used Vehicles              20.9%      19.8%      21.6%      19.7%
     Finance and Insurance       2.4%       2.4%       2.4%       2.4%
     Service and Parts          10.3%      10.1%      10.5%      10.3%
     Fleet                       1.2%       1.6%       1.4%       1.7%
     Wholesale                   5.9%       6.4%       5.9%       6.4%

Retail Gross Margin - by
 Product
     New Vehicles                8.1%       8.2%       8.3%       8.4%
     Used Vehicles               9.3%       9.5%       9.3%      10.0%
     Finance and Insurance     100.0%     100.0%     100.0%     100.0%
     Service and Parts          48.0%      47.4%      48.0%      46.9%

Gross Profit per
 Transaction
     New Vehicles         $    2,377 $    2,272 $    2,413 $    2,334
     Used Vehicles             1,955      1,898      1,924      1,922
     Finance and Insurance       813        763        802        746



                        UNITED AUTO GROUP, INC.
                       Selected Data (Continued)


                                       Third Quarter     Nine Months
                                       -------------     -----------
                                       2003    2002     2003     2002
                                     ------- ------- -------- --------
Brand Mix:
     Toyota/Lexus                        23%     23%      22%      24%
     BMW                                 14%     11%      13%      10%
     Honda/Acura                         11%     12%      12%      12%
     General Motors                      10%     12%      11%      13%
     Mercedes                            10%      8%      10%       8%
     Ford Premier Group                   8%      7%       8%       6%
     Chrysler                             7%     10%       7%      10%
     Nissan/Infiniti                      5%      5%       5%       5%
     Ford                                 4%      5%       4%       5%
     Other                                8%      7%       8%       7%

Debt to Total Capital Ratio              50%     49%      50%      49%

Adjusted EBITDA (a)                 $62,077 $53,071 $166,454 $144,601
Rent Expense                         21,673  17,024   62,132   45,262

(a) Adjusted EBITDA is defined as income from continuing operations before minority interests, income tax provision, other interest expense, depreciation and amortization. While Adjusted EBITDA should not be construed as a substitute for income from continuing operations or as a better measure of liquidity than cash flows from operating activities, each of which is determined in accordance with U.S. GAAP, it is included in this press release to provide additional information regarding the amount of cash our business is generating. This measure may not be comparable to similarly titled measures reported by other companies. Following is a reconciliation of income from continuing operations before minority interests and income tax provision and Adjusted EBITDA:

Third Quarter  Nine Months
                                            -------------  -----------
                                             2003  2002   2003   2002
                                             ----- ----- ------ ------
Income from continuing operations
 before minority interests and income tax
 provision                                  $42.8 $37.9 $111.3 $101.7
Other interest expense                       11.1   9.9   32.2   27.7
Depreciation and amortization                 8.2   5.3   23.0   15.2
                                             ----- ----- ------ ------
Adjusted EBITDA                             $62.1 $53.1 $166.5 $144.6

CONTACT:          United Auto Group, Inc.
                  Roger Penske
                  (248) 648-2400
                  or
                  Finance:
                  Jim Davidson
                  (201) 325-3303
                  jdavidson@unitedauto.com
                  or
                  Investor Relations:
                  Tony Pordon
                  (248) 648-2540
                  tony.pordon@unitedauto.com

Copyright (C) 2003, CCNMatthews. All rights reserved.

SOURCE: UnitedAuto Group, Inc.