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Press Release

UnitedAuto Reports Record Second Quarter; Revenues Increase 12%; Same-Store Revenues Increase 3%
    BLOOMFIELD HILLS, Mich.--(BUSINESS WIRE)--July 28, 2004--

               Net Income Increases 38% to $33.0 Million

          Earnings Per Share Increases 22% to $0.71 Per Share

UnitedAuto Group, Inc. (NYSE: UAG), a FORTUNE 500 automotive specialty retailer, today announced revenue of $2.5 billion and its 21st consecutive quarter of reporting record results.

The Company's record results were highlighted by a 3.2% increase in same-store retail revenues, which includes a 4.0% increase in new vehicle retail revenue, driven by the continued strong performance of its premium and luxury franchises, and a 9.5% increase in service and parts revenues. Net income for the quarter increased 38.3% to $33.0 million, or $0.71 per share, from $23.9 million, or $0.58 per share, in the prior year. Second quarter 2004 results include a $6.6 million ($4.0 million after tax), or $0.09 per share, gain resulting from the sale of an investment.

For the six months ended June 30, 2004, revenues increased 17.8% to $4.8 billion. Net income for the year increased 41.5% to $53.2 million, or $1.19 per share, from $37.6 million, or $0.92 per share, in the prior year. Prior year results include the effect of $5.0 million after tax (including $3.1 million in the first quarter and $1.9 million in the second quarter), or $0.12 per share, of nonrecurring charges.

Chairman Roger Penske commented, "I'm pleased with our performance, despite a challenging retail vehicle market in the United States during the quarter. In particular, the 9.5% same-store growth in our service and parts business demonstrates the benefit of our capital investment program and the resiliency of our business model. We will continue to make the necessary investment, both domestically and internationally, to foster future growth."

Including the completion of three Honda and two Acura acquisitions from the Stevens Group in the San Francisco Bay Area (expected to close in August), UnitedAuto will have acquired $600 million in net annualized revenue in 2004, meeting the Company's acquisition target. Considering completed acquisitions, the expected performance of the business and the anticipation of higher interest rates, the Company currently estimates earnings per share in the range of $2.30 - $2.39 per share for the full year, which includes the effect of the $0.09 per share nonrecurring gain from the second quarter and is based on an estimated average of 45.6 million shares outstanding. Earnings per share in the third quarter are expected to be in the range of $0.61 - $0.63 per share, based on an estimated average of 46.6 million shares outstanding.

UnitedAuto will host a conference call discussing financial results relating to second quarter 2004 on Wednesday, July 28, 2004 at 11 a.m. ET. To listen to the conference call, participants must dial (888) 423-3280 (International, please dial (651) 291-0344). 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 139 franchises in the United States and 103 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)

                                                   Second Quarter
                                               -----------------------
                                                     2004        2003
                                               ----------- -----------
New Vehicles                                   $1,400,597  $1,280,752
Used Vehicles                                     531,789     473,993
Finance and Insurance                              53,322      52,670
Service and Parts                                 263,524     224,130
Fleet                                              34,382      36,527
Wholesale                                         175,013     123,666
                                               ----------- -----------
     Total Revenues                             2,458,627   2,191,738
Cost of Sales                                   2,106,050   1,879,141
                                               ----------- -----------
     Gross Profit                                 352,577     312,597
SG&A Expenses                                     274,922     242,630
Depreciation and Amortization                       9,109       7,538
                                               ----------- -----------
     Operating Income                              68,546      62,429
Floor Plan Interest Expense                       (11,182)    (11,412)
Other Interest Expense                            (10,052)    (10,810)
Other Income                                        6,611          --
                                               ----------- -----------
     Income from Continuing Operations Before
      Minority Interests and Income Tax
      Provision                                    53,923      40,207
Minority Interests                                   (518)       (658)
Income Tax Provision                              (20,923)    (15,883)
                                               ----------- -----------
     Income from Continuing Operations             32,482      23,666
Income from Discontinued Operations, Net of
 Tax                                                  521         198
                                               ----------- -----------
     Net Income                                   $33,003     $23,864
                                               =========== ===========
Income from Continuing Operations Per Diluted
 Share                                              $0.70       $0.57
                                               =========== ===========
Diluted EPS                                         $0.71       $0.58
                                               =========== ===========
Diluted Weighted Average Shares Outstanding        46,565      41,176
                                               =========== ===========
                        UNITED AUTO GROUP, INC.
                   Consolidated Statements of Income
             (Amounts In Thousands, Except Per Share Data)
                              (Unaudited)


                                                     Six Months
                                               -----------------------
                                                     2004        2003
                                               ----------- -----------
New Vehicles                                   $2,716,967  $2,357,317
Used Vehicles                                   1,056,742     898,546
Finance and Insurance                             106,365      99,228
Service and Parts                                 523,007     430,458
Fleet                                              66,905      62,421
Wholesale                                         344,953     238,751
                                               ----------- -----------
     Total Revenues                             4,814,939   4,086,721
Cost of Sales                                   4,118,114   3,498,736
                                               ----------- -----------
     Gross Profit                                 696,825     587,985
SG&A Expenses                                     551,837     463,262
Depreciation and Amortization                      17,923      14,538
                                               ----------- -----------
     Operating Income                             127,065     110,185
Floor Plan Interest Expense                       (24,505)    (20,148)
Other Interest Expense                            (20,817)    (21,092)
Other Income                                        6,611          --
                                               ----------- -----------
     Income from Continuing Operations Before
      Minority Interests and Income Tax
      Provision                                    88,354      68,945
Minority Interests                                   (828)     (1,051)
Income Tax Provision                              (34,281)    (27,236)
                                               ----------- -----------
     Income from Continuing Operations             53,245      40,658
Loss from Discontinued Operations, Net of Tax         (38)         (3)
                                               ----------- -----------
     Income Before Cumulative Effect of
      Accounting Change                            53,207      40,655
Cumulative Effect of Accounting change (a)             --      (3,058)
                                               ----------- -----------
     Net Income                                   $53,207     $37,597
                                               =========== ===========
Income from Continuing Operations Per Diluted
 Share                                              $1.20       $0.99
                                               =========== ===========
Diluted EPS before Cumulative Effect of
 Accounting change                                  $1.19       $0.99
                                               =========== ===========
Cumulative Effect of Accounting change on
 Diluted EPS                                           --      ($0.07)
                                               =========== ===========
Diluted EPS                                         $1.19       $0.92
                                               =========== ===========
Diluted Weighted Average Shares Outstanding        44,548      40,994
                                               =========== ===========
                        UNITED AUTO GROUP, INC.
                 Consolidated Condensed Balance Sheets
                        (Amounts In Thousands)
                              (Unaudited)

                                                  6/30/04    12/31/03
                                               ----------- -----------
Assets
Cash and Cash Equivalents                         $19,797     $13,439
Accounts Receivable, Net                          345,301     342,446
Inventories                                     1,263,132   1,166,756
Other Current Assets                               52,213      43,090
                                               ----------- -----------
     Total Current Assets                       1,680,443   1,565,731
Property and Equipment, Net                       430,312     368,504
Intangibles                                     1,092,489   1,085,034
Other Assets                                       83,669      89,968
Assets of Discontinued Operations                   2,351      27,944
                                               ----------- -----------
     Total Assets                              $3,289,264  $3,137,181
                                               =========== ===========

Liabilities and Stockholders' Equity
Floor Plan Notes Payable                       $1,186,086  $1,122,065
Accounts Payable and Accrued Expenses             386,388     347,098
Current Portion Long-Term Debt                        981       8,574
                                               ----------- -----------
     Total Current Liabilities                  1,573,455   1,477,737
Long-Term Debt                                    544,350     643,145
Other Long-Term Liabilities                       164,806     168,111
Liabilities of Discontinued Operations              1,167      19,776
                                               ----------- -----------
     Total Liabilities                          2,283,778   2,308,769
Stockholders' Equity                            1,005,486     828,412
                                               ----------- -----------
     Total Liabilities and Stockholders'
      Equity                                   $3,289,264  $3,137,181
                                               =========== ===========
                        UNITED AUTO GROUP, INC.
                             Selected Data

                            Second Quarter          Six Months
                      ----------------------- -----------------------
                            2004        2003        2004        2003
                      ----------- ----------- ----------- -----------
Units
     New Retail Units     45,140      43,932      87,261      81,305
     Used Retail
      Units               22,631      23,039      45,289      43,508
                      ----------- ----------- ----------- -----------
          Total
           Retail
           Units          67,771      66,971     132,550     124,813
                      =========== =========== =========== ===========

Same-Store Retail
 Revenue
     New Vehicles     $1,280,103  $1,230,960  $2,476,308  $2,298,338
     Used Vehicles       448,486     455,012     896,524     873,636
     Finance and
      Insurance           49,553      51,118      98,624      97,195
     Service and
      Parts              236,094     215,536     469,665     419,456
                      ----------- ----------- ----------- -----------
       Total Same-
        Store Retail
        Revenue       $2,014,236  $1,952,626  $3,941,121  $3,688,625
                      =========== =========== =========== ===========

Same-Store Retail
 Revenue Growth
     New Vehicles            4.0%       10.0%        7.7%        7.4%
     Used Vehicles         (1.4%)       18.3%        2.6%       10.7%
     Finance and
      Insurance            (3.1%)       20.3%        1.5%       16.3%
     Service and
      Parts                  9.5%       11.0%       12.0%        8.7%

Revenue Mix
     New Vehicles           57.0%       58.4%       56.4%       57.7%
     Used Vehicles          21.6%       21.6%       21.9%       22.0%
     Finance and
      Insurance              2.2%        2.4%        2.2%        2.4%
     Service and
      Parts                 10.7%       10.2%       10.9%       10.5%
     Fleet                   1.4%        1.7%        1.4%        1.5%
     Wholesale               7.1%        5.6%        7.2%        5.8%

Retail Gross Margin -
 by Product
     New Vehicles            8.5%        8.4%        8.5%        8.4%
     Used Vehicles           9.0%        9.3%        9.0%        9.3%
     Finance and
      Insurance            100.0%      100.0%      100.0%      100.0%
     Service and
      Parts                 49.9%       48.0%       50.0%       48.0%

Gross Profit per
 Transaction
     New Vehicles         $2,636      $2,459      $2,654      $2,444
     Used Vehicles         2,117       1,908       2,107       1,916
     Finance and
      Insurance              787         786         803         795
                        UNITED AUTO GROUP, INC.
                       Selected Data (Continued)

                                  Second Quarter       Six Months
                                 ----------------- -------------------
                                    2004     2003      2004      2003
                                 -------- -------- --------- ---------
Brand Mix:
     Toyota/Lexus                     22%      22%       22%       22%
     BMW                              16%      13%       15%       13%
     Mercedes                         10%      10%       10%       10%
     Honda/Acura                      10%      12%       10%       12%
     General Motors                    9%      11%        9%       11%
     Ford Premier Group                8%       7%        8%        8%
     Chrysler                          6%       7%        5%        7%
     Nissan/Infiniti                   4%       5%        4%        5%
     Ford                              4%       5%        4%        5%
     Other                            11%       8%       13%        7%

Debt to Total Capital Ratio           35%      51%       35%       51%

Adjusted EBITDA (a)              $73,084  $58,555  $127,094  $104,575
Rent Expense                     $23,618  $20,277   $47,282   $39,647

(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:

                                    Second Quarter      Six Months
                                                     -----------------
                                      2004     2003     2004     2003
                                   -------- -------- -------- --------
Income from continuing operations
  before minority interests and
   income  tax
  provision                          $53.9   $ 40.2   $ 88.4   $ 68.9
Other interest expense                10.1     10.8     20.8     21.1
Depreciation and amortization          9.1      7.6     17.9     14.6
                                   -------- -------- -------- --------
Adjusted EBITDA                      $73.1    $58.6   $127.1   $104.6
                                   ======== ======== ======== ========

    CONTACT: UnitedAuto 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
             tpordon@unitedauto.com

    SOURCE: UnitedAuto Group, Inc.