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Press Release

UnitedAuto Reports First Quarter Results; Income From Continuing Operations Increases 10% to $26.2 Million Driven by Premium Brand Mix and Service and Parts Operations

BLOOMFIELD HILLS, Mich.--(BUSINESS WIRE)--April 18, 2006--United Auto Group, Inc. (NYSE: UAG):

    Income From Continuing Operations Rises 10% to $0.56 per Share

                      Total Revenues Increase 12%

                Same-Store Retail Revenues Increase 4%

United Auto Group, Inc. (NYSE: UAG), an international automotive retailer, today reported first quarter income from continuing operations of $26.2 million and related earnings per share of $0.56, representing increases of 10.2% and 9.8%, respectively, over the comparable period in 2005. First quarter 2006 net income amounted to $24.1 million and related earnings per share was $0.51.

UAG Chairman Roger Penske said, "While the first quarter was challenging from a retail sales perspective, our performance highlights the strength of our premium brand mix and the increasing benefit of our investment in service and parts capacity. During the quarter, revenues increased 11.6% to $2.7 billion, including a 4.2% increase in same-store retail revenues. The increase in same-store revenue was highlighted by a 15.8% increase in total vehicle revenues at the Company's premium brand dealerships in the United States and an 8.2% increase in service and parts revenues."

Gross margin increased 29 basis points to 15.6%. The improvement in gross margin was due primarily to an increase in service and parts revenues to 11.6% of total revenues, coupled with an 85 basis-point increase in margin on service and parts revenues.

The Company anticipates a challenging and competitive automotive retail market for the balance of 2006, due in part to the impact on consumers of continuing increases in interest rates and rising energy costs. The Company currently projects earnings from continuing operations in the second quarter in the range of $0.75 to $0.78 per share, and continues to project earnings from continuing operations for the year in the range of $2.70 to $2.80 per share. Earnings per share projections are based on an average of 47.0 million estimated shares outstanding.

UnitedAuto will host a conference call discussing financial results relating to first quarter 2006 on Tuesday, April 18, 2006 at 2:00 p.m. ET. To listen to the conference call, participants must dial (888) 423-3275 (International, please dial (612) 332-0720). The call will be simultaneously broadcast live over the Internet through the UnitedAuto website at www.unitedauto.com.

About UnitedAuto

United Auto Group, Inc., headquartered in Bloomfield Hills, Michigan, operates 294 retail automotive franchises, representing 40 different brands, and 27 collision repair centers. UnitedAuto, which sells new and previously owned vehicles, finance and insurance products and replacement parts, and offers maintenance and repair services on all brands it represents, has 171 franchises in 19 states and Puerto Rico and 123 franchises located outside the United States, primarily in the United Kingdom. UnitedAuto is a member of the Fortune 500 and Russell 2000 and has approximately 14,000 employees.

Statements in this press release involve forward-looking statements, including forward-looking statements regarding UnitedAuto's future sales 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, market 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, 2005, 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
                                               -----------------------
                                                     2006        2005
                                               ----------- -----------
Revenues:
  New Vehicle                                  $1,494,644  $1,357,464
  Used Vehicle                                    587,897     526,584
  Finance and Insurance, Net                       59,822      54,148
  Service and Parts                               308,937     265,866
  Fleet and Wholesale Vehicle                     221,644     191,677
                                               ----------- -----------
       Total Revenues                           2,672,944   2,395,739
Cost of Sales:
  New Vehicle                                   1,363,861   1,238,036
  Used Vehicle                                    534,718     478,525
  Service and Parts                               139,100     121,969
  Fleet and Wholesale Vehicle                     219,188     191,123
                                               ----------- -----------
       Total Cost of Sales                      2,256,867   2,029,653
                                               ----------- -----------
       Gross Profit                               416,077     366,086
SG&A Expenses                                     336,631     294,811
Depreciation and Amortization                      10,632       9,579
                                               ----------- -----------
       Operating Income                            68,814      61,696
Floor Plan Interest Expense                       (14,965)    (12,352)
Other Interest Expense                            (12,072)    (11,481)
                                               ----------- -----------
       Income from Continuing Operations
        Before Minority
         Interests and Income Taxes                41,777      37,863
Income Taxes                                      (15,192)    (13,972)
Minority Interests                                   (422)       (143)
                                               ----------- -----------
       Income from Continuing Operations           26,163      23,748
Loss from Discontinued Operations, Net of Tax      (2,072)       (856)
                                               ----------- -----------
       Net Income                                 $24,091     $22,892
                                               =========== ===========
Income from Continuing Operations Per Diluted
 Share                                              $0.56       $0.51
                                               =========== ===========
Diluted EPS                                         $0.51       $0.49
                                               =========== ===========
Diluted Weighted Average Shares Outstanding        47,136      46,875
                                               =========== ===========
                        UNITED AUTO GROUP, INC.
                 Consolidated Condensed Balance Sheets
                        (Amounts In Thousands)
                              (Unaudited)

                                                  3/31/06    12/31/05
                                               ----------- -----------
Assets
Cash and Cash Equivalents                         $16,132      $9,424
Accounts Receivable, Net                          397,803     412,861
Inventories                                     1,370,251   1,224,443
Other Current Assets                               72,039      51,142
Assets of Discontinued Operations                 162,555     180,692
                                               ----------- -----------
     Total Current Assets                       2,018,780   1,878,562
Property and Equipment, Net                       442,618     424,429
Intangibles                                     1,320,987   1,207,554
Other Assets                                      100,652      83,628
                                               ----------- -----------
     Total Assets                              $3,883,037  $3,594,173
                                               =========== ===========

Liabilities and Stockholders' Equity
Floor Plan Notes Payable                         $883,622    $845,251
Floor Plan Notes Payable - Non-Trade              352,464     331,953
Accounts Payable and Accrued Expenses             497,002     386,739
Current Portion Long-Term Debt                      3,740       3,551
Liabilities of Discontinued Operations             87,391      97,256
                                               ----------- -----------
     Total Current Liabilities                  1,824,219   1,664,750
Long-Term Debt                                    684,734     576,690
Other Long-Term Liabilities                       210,719     207,001
                                               ----------- -----------
     Total Liabilities                          2,719,672   2,448,441
Stockholders' Equity                            1,163,365   1,145,732
                                               ----------- -----------
     Total Liabilities and Stockholders'
      Equity                                   $3,883,037  $3,594,173
                                               =========== ===========
                        UNITED AUTO GROUP, INC.
                             Selected Data

                                                    First Quarter
                                               -----------------------
                                                     2006        2005
                                               ----------- -----------
Units
     New Retail Units                              44,378      41,169
     Used Retail Units                             21,421      20,257
                                               ----------- -----------
          Total Retail Units                       65,799      61,426
                                               =========== ===========

Same-Store Retail Revenue
     New Vehicle                               $1,380,704  $1,343,266
     Used Vehicle                                 547,416     518,572
     Finance and Insurance, Net                    56,242      53,569
     Service and Parts                            284,810     263,265
                                               ----------- -----------
       Total Same-Store Retail Revenue         $2,269,172  $2,178,672
                                               =========== ===========

Same-Store Retail Revenue Growth
     New Vehicle                                      2.8%        0.5%
     Used Vehicle                                     5.6%        0.7%
     Finance and Insurance, Net                       5.0%        6.0%
     Service and Parts                                8.2%        7.1%

Revenue Mix
     New Vehicle                                     55.9%       56.6%
     Used Vehicle                                    22.0%       22.0%
     Finance and Insurance, Net                       2.2%        2.3%
     Service and Parts                               11.6%       11.1%
     Fleet and Wholesale Vehicle                      8.3%        8.0%

Gross Margin                                         15.6%       15.3%

Retail Gross Margin - by Product
     New Vehicle                                      8.7%        8.8%
     Used Vehicle                                     9.0%        9.1%
     Service and Parts                               55.0%       54.1%

Gross Profit per Transaction
     New Vehicle                                   $2,947      $2,901
     Used Vehicle                                   2,482       2,373
     Finance and Insurance                            909         882

Brand Mix:
     Toyota/Lexus                                      21%         22%
     BMW                                               15%         15%
     Honda/Acura                                       15%         14%
     DCX                                               12%         12%
     Ford                                              11%         10%
     Audi                                               7%          7%
     General Motors                                     5%          6%
     Porsche                                            4%          4%
     Nissan/Infiniti                                    3%          4%
     Other                                              7%          6%

Total Brand Mix:
     Domestic (Detroit 3)                               8%         10%
     Foreign (incl. Premium)                           92%         90%
     Premium                                           60%         58%

Debt to Total Capital Ratio                            37%         34%

Rent Expense                                      $33,115     $27,313

CONTACT: United Auto Group, Inc.
Jim Davidson, 201-325-3303
jdavidson@unitedauto.com
or
Tony Pordon, 248-648-2540
tpordon@unitedauto.com

SOURCE: United Auto Group, Inc.