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Press Release

UnitedAuto Reports Record Third Quarter Results
Total Revenues Increase 15% Income From Continuing Operations Increases 8% to $36.4 Million Earnings Per Share From Continuing Operations Rise 8% to $0.39

BLOOMFIELD HILLS, Mich., Oct 24, 2006 (BUSINESS WIRE) -- United Auto Group, Inc. (NYSE: UAG), an international automotive retailer, today reported third quarter income from continuing operations of $36.4 million and related earnings per share of $0.39, representing increases of 7.8% and 8.3%, respectively, over the comparable period in 2005. Third quarter 2006 net income amounted to $33.9 million and related earnings per share was $0.36.

The Company's revenue increased 15.2% to a record $3.1 billion during the third quarter. The revenue increase was driven by acquisitions and strong same-store growth from the Company's used vehicle and service and parts operations. Commenting on the Company's performance, Chairman Roger Penske said, "The third quarter showcases the strength of UAG's business model. Although new vehicle sales were challenging, used vehicle and service and parts sales were strong. Aggregate used vehicle revenues grew 28%, including same-store revenue increases of 6.8% in the U.S. and 12.2% in the United Kingdom. Additionally, our service and parts operations continue to expand, increasing from 10.4% to 10.7% of total revenue, due in part to a 5.7% same-store increase."

For the nine months ended September 30, 2006, revenues increased 13.0% to $8.7 billion. Income from continuing operations for the nine months increased 10.7% to $98.6 million and related earnings per share increased 10.5% to $1.05 per share. Net income for the nine months increased 6.7% to $94.8 million, or $1.01 per share, from $88.9 million, or $0.95 per share, in the prior year.

The Company currently projects earnings from continuing operations in the fourth quarter in the range of $0.30 to $0.35 per share, which would result in 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 94.1 million estimated shares outstanding.

UnitedAuto will host a conference call discussing financial results relating to third quarter 2006 on Tuesday, October 24, 2006 at 2:00 p.m. EDT. To listen to the conference call, participants must dial (888) 781-3339 (International, please dial (703) 546-4240). 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 319 retail automotive franchises, representing 42 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 170 franchises in 20 states and Puerto Rico and 149 franchises located outside the United States, primarily in the United Kingdom. UnitedAuto is a member of the Fortune 500 and Russell 1000 and has over 15,000 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)
                                                    Third Quarter
                                                ----------------------
                                                      2006       2005
                                                ----------------------
Revenues:
  New Vehicle                                   $1,732,275 $1,577,928
  Used Vehicle                                     704,254    550,665
  Finance and Insurance, Net                        68,799     62,939
  Service and Parts                                329,322    277,040
  Fleet and Wholesale Vehicle                      245,954    206,717
                                                ----------------------
       Total Revenues                            3,080,604  2,675,289
Cost of Sales:
  New Vehicle                                    1,584,517  1,443,278
  Used Vehicle                                     645,135    500,925
  Service and Parts                                147,231    127,017
  Fleet and Wholesale Vehicle                      245,301    207,176
                                                ----------------------
       Total Cost of Sales                       2,622,184  2,278,396
                                                ----------------------
       Gross Profit                                458,420    396,893
SG&A Expenses                                      361,297    309,265
Depreciation and Amortization                       11,722      9,772
                                                ----------------------
       Operating Income                             85,401     77,856
Floor Plan Interest Expense                        (16,716)   (11,865)
Other Interest Expense                             (11,111)   (12,222)
                                                ----------------------
       Income from Continuing Operations Before
        Income Taxes and Minority Interests         57,574     53,769
Income Taxes                                       (20,727)   (19,552)
Minority Interests                                    (478)      (486)
                                                ----------------------
       Income from Continuing Operations            36,369     33,731
Loss from Discontinued Operations, Net of Tax       (2,496)      (967)
                                                ----------------------
       Net Income                                  $33,873    $32,764
                                                ======================
Income from Continuing Operations Per Diluted
 Share                                               $0.39      $0.36
                                                ======================
Diluted EPS                                          $0.36      $0.35
                                                ======================
Diluted Weighted Average Shares Outstanding         94,288     94,248
                                                ======================

                       UNITED AUTO GROUP, INC.
                  Consolidated Statements of Income
            (Amounts In Thousands, Except Per Share Data)
                             (Unaudited)
                                                     Nine Months
                                                ----------------------
                                                      2006       2005
                                                ----------------------
Revenues:
  New Vehicle                                   $4,851,791 $4,445,052
  Used Vehicle                                   1,935,739  1,626,516
  Finance and Insurance, Net                       195,636    175,464
  Service and Parts                                951,884    809,278
  Fleet and Wholesale Vehicle                      726,439    606,525
                                                ----------------------
       Total Revenues                            8,661,489  7,662,835
Cost of Sales:
  New Vehicle                                    4,431,374  4,059,563
  Used Vehicle                                   1,766,982  1,478,151
  Service and Parts                                427,464    369,563
  Fleet and Wholesale Vehicle                      721,906    605,617
                                                ----------------------
       Total Cost of Sales                       7,347,726  6,512,894
                                                ----------------------
       Gross Profit                              1,313,763  1,149,941
SG&A Expenses                                    1,039,317    905,171
Depreciation and Amortization                       33,373     28,791
                                                ----------------------
       Operating Income                            241,073    215,979
Floor Plan Interest Expense                        (49,097)   (37,483)
Other Interest Expense                             (34,559)   (35,735)
                                                ----------------------
       Income from Continuing Operations Before
        Income Taxes and Minority Interests        157,417    142,761
Income Taxes                                       (57,254)   (52,390)
Minority Interests                                  (1,536)    (1,250)
                                                ----------------------
       Income from Continuing Operations            98,627     89,121
Loss from Discontinued Operations, Net of Tax       (3,825)      (269)
                                                ----------------------
       Net Income                                  $94,802    $88,852
                                                ======================
Income from Continuing Operations Per Diluted
 Share                                               $1.05      $0.95
                                                ======================
Diluted EPS                                          $1.01      $0.95
                                                ======================
Diluted Weighted Average Shares Outstanding         94,085     94,010
                                                ======================

                       UNITED AUTO GROUP, INC.
                Consolidated Condensed Balance Sheets
                        (Amounts In Thousands)
                             (Unaudited)
                                                   9/30/06   12/31/05
                                                ----------------------
Assets
Cash and Cash Equivalents                          $19,065     $8,957
Accounts Receivable, Net                           464,287    413,431
Inventories, Net                                 1,455,910  1,219,735
Other Current Assets                                91,197     50,865
Assets Held for Sale                               137,442    189,373
                                                ----------------------
     Total Current Assets                        2,167,901  1,882,361
Property and Equipment, Net                        562,011    423,513
Intangibles                                      1,492,606  1,204,675
Other Assets                                       116,410     83,624
                                                ----------------------
     Total Assets                               $4,338,928 $3,594,173
                                                ======================

Liabilities and Stockholders' Equity
Floor Plan Notes Payable                          $896,113   $841,911
Floor Plan Notes Payable - Non-Trade               360,548    331,009
Accounts Payable and Accrued Expenses              654,007    381,583
Current Portion Long-Term Debt                       3,743      3,551
Liabilities Held for Sale                           68,624    106,710
                                                ----------------------
     Total Current Liabilities                   1,983,035  1,664,764
Long-Term Debt                                     862,535    576,690
Other Long-Term Liabilities                        234,646    206,987
                                                ----------------------
     Total Liabilities                           3,080,216  2,448,441
Stockholders' Equity                             1,258,712  1,145,732
                                                ----------------------
     Total Liabilities and Stockholders' Equity $4,338,928 $3,594,173
                                                ======================

                       UNITED AUTO GROUP, INC.
                            Selected Data

                              Third Quarter          Nine Months
                          --------------------------------------------
                                2006       2005       2006       2005
                          --------------------------------------------
Total Retail Units
     New Retail               52,234     49,076    145,697    136,415
     Used Retail              25,255     21,522     70,007     62,638
                          --------------------------------------------
          Total Retail        77,489     70,598    215,704    199,053
                          ============================================

Same-Store Retail Units
     New Same-Store Retail    47,054     48,777    131,165    133,414
     Used Same-Store
      Retail                  21,832     21,332     61,856     60,916
                          --------------------------------------------
          Total Same-Store
           Retail             68,886     70,109    193,021    194,330

Same-Store Retail Revenue
     New Vehicles         $1,545,196 $1,571,184 $4,375,476 $4,374,997
     Used Vehicles           594,755    546,241  1,704,113  1,594,043
     Finance and
      Insurance, Net          62,619     62,477    179,411    172,133
     Service and Parts       291,904    276,044    854,817    798,702
                          --------------------------------------------
       Total Same-Store
        Retail            $2,494,474 $2,455,946 $7,113,817 $6,939,875
                          ============================================

Same-Store Retail Revenue
 Growth
     New Vehicles              (1.7%)       8.2%         -        5.4%
     Used Vehicles               8.9%       6.3%       6.9%       3.5%
     Finance and
      Insurance, Net             0.2%      17.0%       4.2%      13.1%
     Service and Parts           5.7%       8.7%       7.0%       8.1%

Revenue Mix
     New Vehicles               56.2%      59.0%      56.0%      58.0%
     Used Vehicles              22.9%      20.6%      22.4%      21.2%
     Finance and
      Insurance, Net             2.2%       2.4%       2.3%       2.3%
     Service and Parts          10.7%      10.4%      11.0%      10.6%
     Fleet and Wholesale         8.0%       7.6%       8.3%       7.9%

Average Retail Selling
 Price
     New Vehicles            $33,164    $32,153    $33,301    $32,585
     Used Vehicles           $27,886    $25,586    $27,651    $25,967
Gross Margin                    14.9%      14.8%      15.2%      15.0%

Retail Gross Margin - by
 Product
     New Vehicle                 8.5%       8.5%       8.7%       8.7%
     Used Vehicle                8.4%       9.0%       8.7%       9.1%
     Service and Parts          55.3%      54.2%      55.1%      54.3%

Gross Profit per Retail
 Transaction
     New Vehicles             $2,829     $2,744     $2,885     $2,826
     Used Vehicles             2,341      2,311      2,411      2,369
     Finance and Insurance       888        892        907        882

                               Third Quarter         Nine Months
                           -------------------------------------------
                                2006       2005       2006       2005
                           -------------------------------------------
Brand Mix:
     Toyota/Lexus                 21%        22%        21%        22%
     BMW                          18%        15%        16%        15%
     Honda/Acura                  15%        15%        16%        15%
     DCX                          11%        12%        11%        12%
     Ford                         11%        10%        11%        10%
     Audi                          7%         7%         7%         7%
     General Motors                5%         6%         5%         6%
     Porsche                       3%         4%         4%         4%
     Nissan/Infiniti               3%         4%         3%         4%
     Other                         6%         5%         6%         5%

Debt to Total Capital Ratio       41%        34%        41%        34%

Rent Expense                 $35,609    $28,184   $102,844    $83,839

SOURCE: United Auto Group, Inc.

United Auto Group, Inc.
Bob O'Shaughnessy
Senior VP - Finance
248-648-2800
boshaughnessy@unitedauto.com
or
Tony Pordon
Senior VP - Investor Relations
248-648-2540
tpordon@unitedauto.com