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Press Release

UnitedAuto Reports Record Second Quarter Results; Total Revenues Increase 12%; Income From Continuing Operations Increases 15% to $36.6 Million

BLOOMFIELD HILLS, Mich.--(BUSINESS WIRE)--July 25, 2006--
Earnings Per Share From Continuing Operations Rise 15% to $0.39
Service and Parts Revenues Increase 17%

United Auto Group, Inc. (NYSE: UAG), an international automotive retailer, today reported second quarter income from continuing operations of $36.6 million and related earnings per share of $0.39, representing increases of 15.2% and 14.7%, respectively, over the comparable period in 2005. Second quarter 2006 net income amounted to $36.8 million and related earnings per share was $0.39.

The Company's revenue increased 11.8% to a record $2.9 billion during the second quarter. The revenue increase was driven by 2.9% same-store retail revenue growth, including same-store used vehicle revenue growth of 9.3% from the Company's foreign nameplates. On an aggregate basis, same-store used vehicle revenues increased 8.5%.

UAG Chairman Roger Penske said, "UnitedAuto's performance during the second quarter continues to highlight the strength of our brand portfolio and the continuing success of our investment strategy. Our overall service and parts revenue increased 17.3%, including 7.6% growth on a same-store basis, which contributed to a 20 basis-point increase in total gross margin to 15.2%."

The improvement in the Company's gross margin was due primarily to a 50 basis-point increase in service and parts from 10.4% to 10.9% of total revenues, coupled with a 36 basis-point increase in margin on service and parts revenues.

For the six months ended June 30, 2006, revenues increased 11.7 % to $5.6 billion. Income from continuing operations for the six months increased 12.7% to $62.6 million and related earnings per share increased 11.9% to $0.66 per share. Net income for the six months increased 8.6% to $60.9, or $0.64 per share, from $56.1 million, or $0.60 per share, in the prior year. Second quarter 2005 results include $1.2 million ($0.01 per share) of after tax charges relating to severance costs associated with cost saving initiatives in certain markets.

The Company currently projects earnings from continuing operations in the third quarter in the range of $0.37 to $0.40 per share, and continues to project earnings from continuing operations for the year in the range of $1.35 to $1.40 per share. Earnings per share projections are based on an average of 94.6 million estimated shares outstanding.

UnitedAuto will host a conference call discussing financial results relating to second quarter 2006 on Tuesday, July 25, 2006 at 2:00 p.m. ET. To listen to the conference call, participants must dial (866) 283-8246 (International, please dial (703) 639-1271). 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 296 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 173 franchises in 20 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 1000 and has approximately 15,100 employees.

Statements in this press release involve forward-looking statements, including forward-looking statements regarding UnitedAuto's future sales and earnings potential. Actual results may vary materially because of risks and uncertainties, including external factors such as interest rate fluctuations, changes in consumer spending, energy costs 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)

                                                   Second Quarter
                                               -----------------------
                                                     2006        2005
                                               ----------- -----------
Revenues:
  New Vehicle                                  $1,640,472  $1,528,878
  Used Vehicle                                    657,747     556,134
  Finance and Insurance, Net                       67,451      58,716
  Service and Parts                               319,827     272,641
  Fleet and Wholesale Vehicle                     246,250     205,254
                                               ----------- -----------
       Total Revenues                           2,931,747   2,621,623
Cost of Sales:
  New Vehicle                                   1,497,328   1,395,825
  Used Vehicle                                    600,662     505,438
  Service and Parts                               143,820     123,596
  Fleet and Wholesale Vehicle                     245,800     204,838
                                               ----------- -----------
       Total Cost of Sales                      2,487,610   2,229,697
                                               ----------- -----------
       Gross Profit                               444,137     391,926
SG&A Expenses                                     345,385     305,546
Depreciation and Amortization                      11,204       9,685
                                               ----------- -----------
       Operating Income                            87,548      76,695
Floor Plan Interest Expense                       (17,232)    (13,142)
Other Interest Expense                            (11,495)    (12,251)
                                               ----------- -----------
       Income from Continuing Operations
        Before Minority
         Interests and Income Taxes                58,821      51,302
Income Taxes                                      (21,597)    (18,925)
Minority Interests                                   (636)       (621)
                                               ----------- -----------
       Income from Continuing Operations           36,588      31,756
Income from Discontinued Operations, Net of
 Tax                                                  255       1,440
                                               ----------- -----------
       Net Income                                 $36,843     $33,196
                                               =========== ===========
Income from Continuing Operations Per Diluted
 Share                                              $0.39       $0.34
                                               =========== ===========
Diluted EPS                                         $0.39       $0.35
                                               =========== ===========
Diluted Weighted Average Shares Outstanding        94,636      94,082
                                               =========== ===========
                        UNITED AUTO GROUP, INC.
                   Consolidated Statements of Income
             (Amounts In Thousands, Except Per Share Data)
                              (Unaudited)

                                                     Six Months
                                               -----------------------
                                                     2006        2005
                                               ----------- -----------
Revenues:
  New Vehicle                                  $3,126,314  $2,881,209
  Used Vehicle                                  1,237,747   1,075,082
  Finance and Insurance, Net                      126,952     112,563
  Service and Parts                               627,048     536,674
  Fleet and Wholesale Vehicle                     465,871     394,895
                                               ----------- -----------
       Total Revenues                           5,583,932   5,000,423
Cost of Sales:
  New Vehicle                                   2,853,123   2,629,237
  Used Vehicle                                  1,127,973     976,809
  Service and Parts                               282,226     244,759
  Fleet and Wholesale Vehicle                     462,951     393,929
                                               ----------- -----------
       Total Cost of Sales                      4,726,273   4,244,734
                                               ----------- -----------
       Gross Profit                               857,659     755,689
SG&A Expenses                                     679,895     598,191
Depreciation and Amortization                      21,782      19,206
                                               ----------- -----------
       Operating Income                           155,982     138,292
Floor Plan Interest Expense                       (32,123)    (25,427)
Other Interest Expense                            (23,521)    (23,671)
                                               ----------- -----------
       Income from Continuing Operations
        Before Minority
         Interests and Income Taxes               100,338      89,194
Income Taxes                                      (36,710)    (32,905)
Minority Interests                                 (1,058)       (764)
                                               ----------- -----------
       Income from Continuing Operations           62,570      55,525
Income (Loss) from Discontinued Operations,
 Net of Tax                                        (1,636)        563
                                               ----------- -----------
       Net Income                                 $60,934     $56,088
                                               =========== ===========
Income from Continuing Operations Per Diluted
 Share                                              $0.66       $0.59
                                               =========== ===========
Diluted EPS                                         $0.64       $0.60
                                               =========== ===========
Diluted Weighted Average Shares Outstanding        94,499      94,050
                                               =========== ===========
                        UNITED AUTO GROUP, INC.
                 Consolidated Condensed Balance Sheets
                        (Amounts In Thousands)
                              (Unaudited)

                                                  6/30/06    12/31/05
                                               ----------- -----------
Assets
Cash and Cash Equivalents                         $25,623      $9,424
Accounts Receivable, Net                          405,392     411,970
Inventories, Net                                1,418,891   1,213,568
Other Current Assets                               76,761      50,868
Assets Held for Sale                              170,984     193,937
                                               ----------- -----------
     Total Current Assets                       2,097,651   1,879,767
Property and Equipment, Net                       505,592     423,224
Intangibles                                     1,358,641   1,207,554
Other Assets                                      101,982      83,628
                                               ----------- -----------
     Total Assets                              $4,063,866  $3,594,173
                                               =========== ===========

Liabilities and Stockholders' Equity
Floor Plan Notes Payable                         $991,692    $837,045
Floor Plan Notes Payable - Non-Trade              319,189     330,240
Accounts Payable and Accrued Expenses             482,461     381,118
Current Portion Long-Term Debt                      3,741       3,551
Liabilities Held for Sale                         107,702     112,796
                                               ----------- -----------
     Total Current Liabilities                  1,904,785   1,664,750
Long-Term Debt                                    716,018     576,690
Other Long-Term Liabilities                       216,792     207,001
                                               ----------- -----------
     Total Liabilities                          2,837,595   2,448,441
Stockholders' Equity                            1,226,271   1,145,732
                                               ----------- -----------
     Total Liabilities and Stockholders'
      Equity                                   $4,063,866  $3,594,173
                                               =========== ===========
                        UNITED AUTO GROUP, INC.
                             Selected Data

                           Second Quarter            Six Months
                       ----------------------- -----------------------
                             2006        2005        2006        2005
                       ----------- ----------- ----------- -----------
Units
     New Retail Units      49,472      46,589      93,602      87,605
     Used Retail Units     23,577      20,872      44,704      40,851
                       ----------- ----------- ----------- -----------
          Total Retail
           Units           73,049      67,461     138,306     128,456
                       =========== =========== =========== ===========

Same-Store Retail
 Revenue
     New Vehicles      $1,518,823  $1,520,879  $2,866,926  $2,840,158
     Used Vehicles        597,032     550,507   1,128,366   1,052,351
     Finance and
      Insurance, Net       62,858      58,161     117,880     110,389
     Service and Parts    292,316     271,544     571,539     529,872
                       ----------- ----------- ----------- -----------
       Total Same-
        Store Retail
        Revenue        $2,471,029  $2,401,091   4,684,711  $4,532,770
                       =========== =========== =========== ===========

Same-Store Retail
 Revenue Growth
     New Vehicles           (0.1%)        8.8%        0.9%        4.7%
     Used Vehicles            8.5%        5.0%        7.2%        2.9%
     Finance and
      Insurance, Net          8.1%       16.5%        6.8%       11.2%
     Service and Parts        7.6%        9.0%        7.9%        8.0%

Revenue Mix
     New Vehicles            56.0%       58.3%       56.0%       57.6%
     Used Vehicles           22.4%       21.2%       22.2%       21.5%
     Finance and
      Insurance, Net          2.3%        2.2%        2.3%        2.3%
     Service and Parts       10.9%       10.4%       11.2%       10.7%
     Fleet and
      Wholesale               8.4%        7.9%        8.3%        7.9%
Gross Margin                 15.2%       15.0%       15.4%       15.1%

Retail Gross Margin -
 by Product
     New Vehicle              8.7%        8.7%        8.7%        8.7%
     Used Vehicle             8.7%        9.1%        8.9%        9.2%
     Service and Parts       55.0%       54.7%       55.0%       54.4%

Gross Profit per
 Transaction
     New Vehicles          $2,893      $2,856      $2,919      $2,876
     Used Vehicles          2,421       2,429       2,456       2,406
     Finance and
      Insurance               923         870         918         876

Brand Mix:
     Toyota/Lexus              21%         22%         21%         22%
     BMW                       16%         15%         16%         15%
     Honda/Acura               16%         15%         16%         15%
     DCX                       11%         12%         11%         12%
     Ford                      10%          9%         11%          9%
     Audi                       7%          7%          7%          7%
     General Motors             5%          7%          5%          6%
     Porsche                    4%          4%          4%          4%
     Nissan/Infiniti            3%          4%          3%          4%
     Other                      7%          5%          6%          6%

Total Brand Mix:
     Domestic (Detroit 3)       8%         10%          8%         10%
     Foreign (incl.
      Premium)                 92%         90%         92%         90%
     Premium                   59%         58%         60%         58%

Debt to Total Capital
 Ratio                         37%         34%         37%         34%

Rent Expense              $34,423     $28,688     $67,399     $55,827

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.