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Press Release

UnitedAuto Net Income Increases 13%; Revenues Increase 14%; Gross Profit Increases 17%; Earnings Per Share Rises to $0.49 Per Share

BLOOMFIELD HILLS, Mich.--(BUSINESS WIRE)--April 19, 2005--United Auto Group, Inc. (NYSE: UAG), a FORTUNE 500 automotive specialty retailer, today announced a 13.3% rise in first quarter net income and its 24th consecutive quarter of record results. Total revenue for the quarter increased 13.8% to $2.6 billion. The growth in revenue includes a 0.6% increase in same-store retail revenue highlighted by a 6.9% increase in service and parts and a 4.7% increase in finance and insurance. Same-store new and used vehicle retail revenues were essentially flat for the quarter. Net income increased to $22.9 million, or $0.49 per share, from $20.2 million, or $0.48 per share, in the prior year. Earnings per share reflects a 10.2% increase in weighted average shares outstanding.

Commenting on the Company's results, Chairman Roger Penske said, "We are delighted with the performance of our business in the first quarter despite an overall difficult operating environment and challenging weather conditions in certain markets. UnitedAuto's investments in new facilities and expanded service capacity at many locations contributed to a mix shift towards the higher margin service and parts business in the quarter. Specifically, our overall service and parts business comprised 10.9% of our revenue, an increase of 61 basis points over the first quarter of 2004." Penske also said, "We have completed two acquisitions so far this year representing approximately $90 million in annual revenues. We expect to add approximately $300 - $500 million in net annual revenue through acquisitions this year."

Commenting further Penske said, "In the second quarter, we expect the overall retail market to remain competitive. The Company is currently projecting earnings per share in the second quarter in the range of $0.65 to $0.70 based on an estimated average of 47.0 million shares outstanding. Based on our performance in the first quarter, we are raising our 2005 earnings estimate to $2.34 - $2.41 per share."

UnitedAuto will host a conference call discussing financial results relating to first quarter 2005 on Tuesday, April 19, 2005 at 1:30 p.m. ET. To listen to the conference call, participants must dial (800) 611-1148 (International, please dial (612) 332-0345). 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 149 franchises in the United States and 100 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 is contained in UnitedAuto's Form 10-K for the year ended December 31, 2004 and its other filings with the Securities and Exchange Commission, and which is 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
                                               -----------------------
                                                     2005        2004
                                               ----------- -----------
New Vehicles                                   $1,433,248  $1,267,287
Used Vehicles                                     566,894     508,696
Finance and Insurance                              57,799      50,901
Service and Parts                                 278,519     230,820
Fleet                                              31,915      26,406
Wholesale                                         188,495     161,931
                                               ----------- -----------
     Total Revenues                             2,556,870   2,246,041
Cost of Sales                                   2,168,894   1,914,060
                                               ----------- -----------
     Gross Profit                                 387,976     331,981
SG&A Expenses                                     315,048     265,691
Depreciation and Amortization                      10,560       8,523
                                               ----------- -----------
     Operating Income                              62,368      57,767
Floor Plan Interest Expense                       (13,853)    (12,965)
Other Interest Expense                            (11,481)    (10,765)
                                               ----------- -----------
     Income from Continuing Operations Before
      Minority
       Interests and Income Tax Provision          37,034      34,037
Minority Interests                                   (143)       (320)
Income Tax Provision                              (13,668)    (13,211)
                                               ----------- -----------
     Income from Continuing Operations             23,223      20,506
Loss from Discontinued Operations, Net of Tax        (331)       (302)
                                               ----------- -----------
     Net Income                                   $22,892     $20,204
                                               =========== ===========
Income from Continuing Operations Per Diluted
 Share                                              $0.50       $0.48
                                               =========== ===========
Diluted EPS                                         $0.49       $0.48
                                               =========== ===========
Diluted Weighted Average Shares Outstanding        46,875      42,521
                                               =========== ===========
                        UNITED AUTO GROUP, INC.
                 Consolidated Condensed Balance Sheets
                        (Amounts In Thousands)
                              (Unaudited)

                                                  3/31/05    12/31/04
                                               ----------- -----------
Assets
Cash and Cash Equivalents                         $18,148     $12,984
Accounts Receivable, Net                          392,425     366,475
Inventories                                     1,381,527   1,275,293
Other Current Assets                               56,658      44,330
                                               ----------- -----------
     Total Current Assets                       1,848,758   1,699,082
Property and Equipment, Net                       415,056     411,748
Intangibles                                     1,248,399   1,231,311
Other Assets                                       55,418      86,956
Assets of Discontinued Operations                  98,832     103,704
                                               ----------- -----------
     Total Assets                              $3,666,463  $3,532,801
                                               =========== ===========

Liabilities and Stockholders' Equity
Floor Plan Notes Payable                       $1,279,413  $1,218,837
Accounts Payable and Accrued Expenses             447,869     406,497
Current Portion Long-Term Debt                      3,577      11,367
                                               ----------- -----------
     Total Current Liabilities                  1,730,859   1,636,701
Long-Term Debt                                    603,793     574,970
Other Long-Term Liabilities                       180,160     179,104
Liabilities of Discontinued Operations             62,196      66,991
                                               ----------- -----------
     Total Liabilities                          2,577,008   2,457,766
Stockholders' Equity                            1,089,455   1,075,035
                                               ----------- -----------
     Total Liabilities and Stockholders'
      Equity                                   $3,666,463  $3,532,801
                                               =========== ===========
                        UNITED AUTO GROUP, INC.
                             Selected Data

                                                      First Quarter
                                               -----------------------
                                                     2005        2004
                                               ----------- -----------
Units
     New Retail Units                              43,760      39,919
     Used Retail Units                             22,730      21,381
                                               ----------- -----------
          Total Retail Units                       66,490      61,300
                                               =========== ===========

Same-Store Retail Revenue
     New Vehicles                              $1,248,645  $1,252,414
     Used Vehicles                                498,257     501,008
     Finance and Insurance                         52,989      50,613
     Service and Parts                            242,419     226,737
                                               ----------- -----------
       Total Same-Store Retail Revenue         $2,042,310  $2,030,772
                                               =========== ===========

Same-Store Retail Revenue Growth
     New Vehicles                                   (0.3%)       12.1%
     Used Vehicles                                  (0.5%)        7.9%
     Finance and Insurance                            4.7%        7.0%
     Service and Parts                                6.9%       16.5%

Revenue Mix
     New Vehicles                                    56.1%       56.4%
     Used Vehicles                                   22.2%       22.6%
     Finance and Insurance                            2.3%        2.3%
     Service and Parts                               10.9%       10.3%
     Fleet                                            1.1%        1.2%
     Wholesale                                        7.4%        7.2%

Retail Gross Margin - by Product
     New Vehicles                                     8.8%        8.6%
     Used Vehicles                                    9.3%        9.0%
     Finance and Insurance                          100.0%      100.0%
     Service and Parts                               54.1%       54.2%

Gross Profit per Transaction
     New Vehicles                                  $2,867      $2,736
     Used Vehicles                                  2,329       2,129
     Finance and Insurance                            869         830
                        UNITED AUTO GROUP, INC.
                       Selected Data (Continued)


                                          First Quarter
                                     ------------------------
                                            2005        2004
                                     ------------------------
Brand Mix:
     Toyota/Lexus                             21%         23%
     BMW                                      14%         15%
     Honda/Acura                              13%         10%
     Mercedes                                  9%         11%
     Ford Premier Group                        8%         10%
     Audi                                      7%          4%
     General Motors                            7%          8%
     Ford                                      5%          4%
     Nissan/Infiniti                           4%          3%
     Chrysler                                  3%          4%
     Other                                     9%          8%

Debt to Total Capital Ratio                   36%         35%

Adjusted EBITDA (a)                      $59,075     $53,325
Rent Expense                             $29,231     $22,649

(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
                                    2005        2004
                             ------------------------
Income from continuing
 operations
  before minority interests
   and income  tax
  provision                       $ 37.0      $ 34.0
Other interest expense              11.5        10.8
Depreciation and amortization       10.6         8.5
                             ------------------------
Adjusted EBITDA                    $59.1       $53.3
                             ========================

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

    SOURCE: United Auto Group, Inc.