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Press Release

UnitedAuto Reports Record First Quarter; Revenues Increase 24%;Same-Store Retail Revenues Increase 11%

Net Income Increases 47% to $20.2 Million Earnings Per Share Increases 41% to $0.48 Per Share

BLOOMFIELD HILLS, Mich., Apr 27, 2004 (BUSINESS WIRE) -- United Auto Group, Inc. (NYSE: UAG), a FORTUNE 500 automotive specialty retailer, today announced record results for the first quarter 2004, the 20th consecutive quarter of reporting record results.

The record results were fueled by an 11.0% increase in same-store retail revenues resulting from strong performance in each of the Company's product lines. Same-store highlights include:

    --  New vehicle retail revenue +12.1%

    --  Used vehicle retail revenue +7.0%

    --  Service & parts revenue +14.5%

    --  Finance & insurance revenue +6.5%

Total revenue increased to a record $2.4 billion during the quarter. Income from continuing operations was $20.8 million and related earnings per share were $0.49, representing increases of 22.2% and 16.7%, respectively. Net income for the quarter increased to $20.2 million, or $0.48 per share, from $13.7 million, or $0.34 per share, in the prior year. Prior year results included the effect of a $5.1 million ($3.1 million after-tax), or $0.07 per share, charge relating to the cumulative effect of a change in accounting principle.

Chairman Roger Penske commented, "UnitedAuto delivered another strong quarter of operating results and solidified its capital structure through a $119 million sale of common stock to Mitsui & Co. in March 2004. Due in large part to that transaction, our debt to total capital was 37% at March 31, down from 44% at the end of December." Commenting further Penske said, "Our industry-leading same-store growth is the direct result of our strong brand mix and our continued investment in facility expansion. I'm particularly pleased that our service and parts gross margin increased 200 basis points over the prior year quarter. We currently estimate earnings per share in the range of $2.21-$2.31 per share for the full year, which is based on an average 45.6 million shares outstanding. For the second quarter, we expect earnings per share in the range of $0.61-$0.65 per share, based on an average 46.6 million shares outstanding."

UnitedAuto will host a conference call discussing financial results relating to first quarter 2004 on Tuesday, April 27, 2004 at 9 a.m. ET. To listen to the conference call, participants must dial (888) 428-4474 (International, please dial (651) 291-0618). The call will also be simultaneously broadcast live over the Internet through the UnitedAuto website at www.unitedauto.com.

About UnitedAuto

UnitedAuto, which has pursued a strategy based on internal growth from its existing dealerships, as well as from strategic acquisitions, operates 136 franchises in the United States and 83 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. 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, 2003 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
             (Amounts In Thousands, Except Per Share Data)
                              (Unaudited)

                                                    First Quarter
                                             -------------------------
                                                2004          2003
                                             -------------------------
New Vehicles                                 $1,316,370    $1,076,565
Used Vehicles                                   524,953       424,553
Finance and Insurance                            53,043        46,558
Service and Parts                               259,483       206,328
Fleet                                            32,523        25,894
Wholesale                                       169,940       115,085
                                             -------------------------
  Total Revenues                              2,356,312     1,894,983
Cost of Sales                                 2,012,064     1,619,595
                                             -------------------------
  Gross Profit                                  344,248       275,388
SG&A Expenses                                   276,915       220,632
Depreciation and Amortization                     8,814         7,000
                                             -------------------------
  Operating Income                               58,519        47,756
Floor Plan Interest Expense                     (13,323)       (8,736)
Other Interest Expense                          (10,765)      (10,282)
                                             -------------------------
  Income from Continuing Operations Before
  Minority
    Interests and Income Tax Provision           34,431        28,738
Minority Interests                                 (310)         (393)
Income Tax Provision                            (13,358)      (11,353)
                                             -------------------------
  Income from Continuing Operations              20,763        16,992
Income (loss) from Discontinued Operations,
 Net of Tax                                        (559)         (201)
                                             -------------------------
  Income Before Cumulative Effect of
    Accounting Change                            20,204        16,791
Cumulative Effect of Accounting Change (a)           --        (3,058)
                                             -------------------------
  Net Income                                 $   20,204    $   13,733
                                             =========================
Income from Continuing Operations
 Per Diluted Share                           $     0.49    $     0.42
                                             =========================
Diluted EPS before Cumulative Effect
 of Accounting Change                        $     0.48    $     0.41
                                             =========================
Cumulative Effect of Accounting Change
 on Diluted EPS                              $       --    $    (0.07)
                                             =========================
Diluted EPS                                  $     0.48    $     0.34
                                             =========================
Diluted Weighted Average Shares Outstanding      42,521        40,920
                                             =========================

(a) Represents the cumulative accou nting 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)
                              (Unaudited)

                                               3/31/04      12/31/03
                                             -------------------------
Assets
Cash and Cash Equivalents                    $   16,119    $   13,439
Accounts Receivable, Net                        358,372       342,446
Inventories                                   1,281,574     1,166,756
Other Current Assets                             44,057        43,090
                                             -------------------------
  Total Current Assets                        1,700,122     1,565,731
Property and Equipment, Net                     408,455       368,504
Intangibles                                   1,093,196     1,085,034
Other Assets                                     88,360        89,968
Assets of Discontinued Operations                17,527        27,944
                                             -------------------------
  Total Assets                               $3,307,660    $3,137,181
                                             =========================
Liabilities and Stockholders' Equity
Floor Plan Notes Payable                     $1,198,947    $1,122,065
Accounts Payable and Accrued Expenses           377,329       347,098
Current Portion Long-Term Debt                    1,175         8,574
                                             -------------------------
  Total Current Liabilities                   1,577,451     1,477,737
Long-Term Debt                                  571,924       643,145
Other Long-Term Liabilities                     173,327       168,111
Liabilities of Discontinued Operations           11,736        19,776
                                             -------------------------
  Total Liabilities                           2,334,438     2,308,769
Stockholders' Equity                            973,222       828,412
                                             -------------------------
  Total Liabilities and
   Stockholders' Equity                      $3,307,660    $3,137,181
                                             =========================

                        UNITED AUTO GROUP, INC.
                             Selected Data

                                                   First Quarter
                                             -------------------------
                                                2004          2003
                                             -------------------------
Units
  New Retail Units                               42,121        37,373
  Used Retail Units                              22,658        20,469
                                             -------------------------
     Total Retail Units                          64,779        57,842
                                             =========================

Same-Store Retail Revenue
  New Vehicles                               $1,196,205    $1,067,378
  Used Vehicles                                 448,038       418,624
  Finance and Insurance                          49,071        46,077
  Service and Parts                             233,571       203,920
                                             -------------------------
     Total Same-Store Retail Revenue         $1,926,885    $1,735,999
                                             =========================

Same-Store Retail Revenue Growth
  New Vehicles                                     12.1%          3.6%
  Used Vehicles                                     7.0%          5.8%
  Finance and Insurance                             6.5%         14.8%
  Service and Parts                                14.5%          8.4%

Revenue Mix
  New Vehicles                                     55.9%         56.8%
  Used Vehicles                                    22.3%         22.4%
  Finance and Insurance                             2.3%          2.4%
  Service and Parts                                11.0%         10.9%
  Fleet                                             1.3%          1.4%
  Wholesale                                         7.2%          6.1%

Retail Gross Margin - by Product
  New Vehicles                                      8.6%          8.4%
  Used Vehicles                                     9.0%          9.3%
  Finance and Insurance                           100.0%        100.0%
  Service and Parts                                50.0%         48.0%
Gross Profit per Transaction
  New Vehicles                               $    2,673    $    2,426
  Used Vehicles                                   2,097         1,926
  Finance and Insurance                             819           805

                        UNITED AUTO GROUP, INC.
                       Selected Data (Continued)

                                                   First Quarter
                                             -------------------------
                                                2004          2003
                                             -------------------------
Brand Mix:
     Toyota/Lexus                                22%          22%
     BMW                                         15%          13%
     Mercedes                                    11%           9%
     Honda/Acura                                 10%          12%
     General Motors                               9%          11%
     Ford Premier Group                           9%           8%
     Chrysler                                     6%           8%
     Nissan/Infiniti                              4%           4%
     Ford                                         4%           5%
     Other                                       10%           8%
Debt to Total Capital Ratio                      37%          50%

Adjusted EBITDA (a)                          $   54,010    $   46,020
Rent Expense                                 $   23,664    $   19,370

(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:

                                                  First Quarter
                                             -------------------------
                                                 2004         2003
                                             -------------------------
Income from continuing operations
 before minority interests and income
 tax provision                               $     34.4    $     28.7
Other interest expense                             10.8          10.3
Depreciation and amortization                       8.8           7.0
                                             -------------------------
Adjusted EBITDA                              $     54.0    $     46.0
                                             =========================

SOURCE: United Auto Group, Inc.

CONTACT:          UnitedAuto
                  Roger Penske, 248-648-2400
                  or
                  Jim Davidson, 201-325-3303 
                  jdavidson@unitedauto.com
                  or
                  Tony Pordon, 248-648-2540
                  tpordon@unitedauto.com

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SOURCE: United Auto Group, Inc.