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Press Release

UnitedAuto Reports Fourth Quarter Results

Total Revenues Increase 23%
Same-Store Retail Revenues Increase 7%
Excluding Prior Year Gain, Income from Continuing Operations Per Share Increases 18% to $0.33

BLOOMFIELD HILLS, Mich.--(BUSINESS WIRE)--Feb. 14, 2007--United Auto Group, Inc. (NYSE: UAG), an international automotive retailer, today reported fourth quarter income from continuing operations of $31.1 million and related earnings per share of $0.33. Fourth quarter 2005 results included $5.2 million of after-tax earnings ($0.06 per share) attributable to the sale of all remaining variable profits relating to the pool of extended service contracts sold at the Company's dealerships from 2001 through 2005. Excluding the extended service contract gain from the prior year results, adjusted income from continuing operations and related earnings per share increased 16.1% and 17.9%, respectively, over the comparable period in 2005. Fourth quarter net income amounted to $29.9 million and related earnings per share was $0.32.

Revenues in the fourth quarter increased 22.8% to $2.9 billion, including a 7.1% increase in same-store retail revenues. The increase in same-store revenue was highlighted by 14.5% growth in used vehicle revenues and a 6.2% increase in service and parts revenues.

Commenting on the Company's results, Chairman Roger Penske said, "Our business achieved solid same-store retail revenue growth during the fourth quarter, despite a difficult comparison to last year. I am pleased with the same-store results, especially in our service and parts operations which included 13.6% same-store growth in our international markets. These results highlight the benefit of our ongoing capital investment program." Penske continued, "Our used vehicle business was exceptionally strong in the quarter, with total used vehicle revenues growing nearly 44%. The increased level of this business, coupled with a challenging marketplace, contributed to an overall decrease in gross margin percentage during the fourth quarter."

For the year ended December 31, 2006, revenues increased 16.4% to $11.2 billion. Full-year income from continuing operations amounted to $130.6 million and related earnings per share was $1.39. Excluding the extended service contract gain noted above from the prior year results, income from continuing operations and related earnings per share increased 14.7% and 14.9%, respectively, over the comparable period in 2005.

The Company currently estimates earnings from continuing operations to be in the range of $1.40 to $1.50 per share for the year ended December 31, 2007. This estimate includes an estimated $0.02 to $0.04 per share of costs associated with developing the distribution network for the smart product launch in the United States. First quarter 2007 earnings from continuing operations are estimated to be in the range of $0.26 to $0.30 per share. These estimates exclude a $12 million, or $0.13 per share, charge to be incurred in connection with the previously announced call of the Company's $300 million 9.625% Senior Subordinated Notes in March 2007. Earnings per share estimates are based on an estimated average of 94.6 million shares outstanding.

UnitedAuto will host a conference call discussing financial results relating to fourth quarter 2006 on Wednesday, February 14, 2007 at 2:00 p.m. EDT. To listen to the conference call, participants must dial (800) 553-5275 (International, please dial (612) 332-1210). The call will be simultaneously broadcast over the Internet through the UnitedAuto website at www.unitedauto.com.

About UnitedAuto

United Auto Group, Inc., headquartered in Bloomfield Hills, Michigan, operates 314 retail automotive franchises, representing 41 different brands, and 26 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 169 franchises in 19 states and Puerto Rico and 145 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 may involve forward-looking statements. 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 that could affect UnitedAuto's future performance which are 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 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.

This release contains certain non-GAAP financial measures as defined under SEC rules, such as adjusted income from continuing operations and related earnings per share, which exclude certain items disclosed in the release. The Company has reconciled these measures to the most directly comparable GAAP measures in the release. The Company believes that these non-GAAP financial measures improve the transparency of the Company's disclosure and the period-to-period comparability of the Company's results from operations.

                       UNITED AUTO GROUP, INC.
                  Consolidated Statements of Income
            (Amounts In Thousands, Except Per Share Data)
                             (Unaudited)

                                                   Fourth Quarter
                                               -----------------------
                                                  2006        2005
                                               ----------- -----------
Revenues:
  New Vehicle                                  $1,587,023  $1,358,681
  Used Vehicle                                    680,384     472,776
  Finance and Insurance, Net                       59,372      59,816
  Service and Parts                               327,644     265,625
  Fleet and Wholesale Vehicle                     226,594     189,432
                                               ----------- -----------
    Total Revenues                              2,881,017   2,346,330
Cost of Sales:
  New Vehicle                                   1,446,815   1,236,207
  Used Vehicle                                    625,889     432,099
  Service and Parts                               147,654     119,047
  Fleet and Wholesale Vehicle                     227,862     190,316
                                               ----------- -----------
    Total Cost of Sales                         2,448,220   1,977,669
                                               ----------- -----------
    Gross Profit                                  432,797     368,661
SG&A Expenses                                     350,939     284,097
Depreciation and Amortization                      12,476       9,697
                                               ----------- -----------
    Operating Income                               69,382      74,867
Floor Plan Interest Expense                       (15,739)    (12,460)
Other Interest Expense                            (14,702)    (13,260)
Equity in Earnings of Affiliates                    2,695       1,093
                                               ----------- -----------
  Income from Continuing Operations Before
   Income Taxes and Minority Interests             41,636      50,240
Income Taxes                                       (9,930)    (17,651)
Minority Interests                                   (636)       (564)
                                               ----------- -----------
  Income from Continuing Operations                31,070      32,025
Loss from Discontinued Operations, Net of Tax      (1,171)     (1,904)
                                               ----------- -----------
  Net Income                                      $29,899     $30,121
                                               =========== ===========
Income from Continuing Operations Per Diluted
 Share                                              $0.33       $0.34
                                               =========== ===========
Diluted EPS                                         $0.32       $0.32
                                               =========== ===========
Diluted Weighted Average Shares Outstanding        94,389      94,374
                                               =========== ===========
                       UNITED AUTO GROUP, INC.
                  Consolidated Statements of Income
            (Amounts In Thousands, Except Per Share Data)
                             (Unaudited)

                                                    Twelve Months
                                               -----------------------
                                                  2006        2005
                                               ----------- -----------
Revenues:
  New Vehicle                                  $6,275,916  $5,601,187
  Used Vehicle                                  2,546,009   2,025,532
  Finance and Insurance, Net                      249,581     229,575
  Service and Parts                             1,246,288   1,043,859
  Fleet and Wholesale Vehicle                     924,519     761,240
                                               ----------- -----------
  Total Revenues                               11,242,313   9,661,393
Cost of Sales:
  New Vehicle                                   5,727,135   5,106,889
  Used Vehicle                                  2,330,694   1,845,587
  Service and Parts                               559,305     474,563
  Fleet and Wholesale Vehicle                     920,710     760,903
                                               ----------- -----------
Cost of Sales                                   9,537,844   8,187,942
                                               ----------- -----------
  Gross Profit                                  1,704,469   1,473,451
SG&A Expenses                                   1,356,452   1,154,220
Depreciation and Amortization                      44,863      37,551
                                               ----------- -----------
  Operating Income                                303,154     281,680
Floor Plan Interest Expense                       (61,565)    (47,124)
Other Interest Expense                            (49,173)    (49,004)
Equity in Earnings of Affiliates                    8,201       4,271
                                               ----------- -----------
  Income from Continuing Operations Before
   Income Taxes and Minority Interests            200,617     189,823
Income Taxes                                      (67,845)    (68,870)
Minority Interests                                 (2,172)     (1,814)
                                               ----------- -----------
  Income from Continuing Operations               130,600     119,139
Loss from Discontinued Operations, Net of Tax      (5,899)       (166)
                                               ----------- -----------
  Net Income                                     $124,701    $118,973
                                               =========== ===========
Income from Continuing Operations Per Diluted
 Share                                              $1.39       $1.27
                                               =========== ===========
Diluted EPS                                         $1.32       $1.27
                                               =========== ===========
Diluted Weighted Average Shares Outstanding        94,178      93,932
                                               =========== ===========
                       UNITED AUTO GROUP, INC.
                Consolidated Condensed Balance Sheets
                        (Amounts In Thousands)
                             (Unaudited)

                                                12/31/06    12/31/05
                                               ----------- -----------
Assets
Cash and Cash Equivalents                         $13,147      $8,957
Accounts Receivable, Net                          469,516     398,127
Inventories                                     1,519,506   1,144,584
Other Current Assets                               71,490      50,209
Assets Held for Sale                              213,030     310,467
                                               ----------- -----------
  Total Current Assets                          2,286,689   1,912,344
Property and Equipment, Net                       582,646     416,099
Intangibles                                     1,490,767   1,182,273
Other Assets                                      142,783      83,457
                                               ----------- -----------
  Total Assets                                 $4,502,885  $3,594,173
                                               =========== ===========

Liabilities and Stockholders' Equity
Floor Plan Notes Payable                         $874,326    $785,237
Floor Plan Notes Payable - Non-Trade              297,985     318,034
Accounts Payable and Accrued Expenses             515,111     368,874
Current Portion Long-Term Debt                      3,057       3,551
Liabilities Held for Sale                          52,150     189,239
                                               ----------- -----------
  Total Current Liabilities                     1,742,629   1,664,935
Long-Term Debt                                  1,178,994     576,690
Other Long-Term Liabilities                       285,609     206,816
                                               ----------- -----------
  Total Liabilities                             3,207,232   2,448,441
Stockholders' Equity                            1,295,653   1,145,732
                                               ----------- -----------
  Total Liabilities and Stockholders' Equity   $4,502,885  $3,594,173
                                               =========== ===========
                       UNITED AUTO GROUP, INC.
                            Selected Data

                            Fourth Quarter          Twelve Months
                       -----------------------------------------------
                          2006        2005        2006        2005
                       ----------- ----------- ----------- -----------
Total Retail Units
  New Retail               43,463      38,899     183,370     167,956
  Used Retail              22,529      17,109      88,723      75,348
                       ----------- ----------- ----------- -----------
    Total Retail           65,992      56,008     272,093     243,304
                       =========== =========== =========== ===========

Same-Store Retail Units
  New Same-Store Retail    39,120      38,592     163,253     163,233
  Used Same-Store
   Retail                  18,189      16,869      75,601      72,687
                       ----------- ----------- ----------- -----------
    Total Same-Store
     Retail                57,309      55,461     238,854     235,920
                       =========== =========== =========== ===========

Same-Store Retail
 Revenue
  New Vehicles         $1,423,041  $1,349,041  $5,594,172  $5,472,566
  Used Vehicles           534,728     467,101   2,154,969   1,973,780
  Finance and
   Insurance, Net          53,733      59,412     226,399     224,594
  Service and Parts       279,247     262,988   1,091,642   1,021,030
                       ----------- ----------- ----------- -----------
    Total Same-Store
     Retail            $2,290,749  $2,138,542  $9,067,182  $8,691,970
                       =========== =========== =========== ===========

Same-Store Retail
 Revenue Growth
  New Vehicles                5.5%        4.5%        2.2%        5.8%
  Used Vehicles              14.5%        4.6%        9.2%        4.4%
  Finance and
   Insurance, Net           (9.6%)      (2.4%)        0.8%        9.7%
  Service and Parts           6.2%        6.6%        6.9%        7.6%

Revenue Mix
  New Vehicles               55.1%       57.9%       55.8%       58.0%
  Used Vehicles              23.6%       20.2%       22.6%       21.0%
  Finance and
   Insurance, Net             2.1%        2.5%        2.2%        2.4%
  Service and Parts          11.4%       11.3%       11.1%       10.8%
  Fleet and Wholesale         7.8%        8.1%        8.3%        7.8%

Average Retail Selling
 Price
  New Vehicles            $36,514     $34,928     $34,225     $33,349
  Used Vehicles           $30,200     $27,633     $28,696     $26,882

Gross Margin                 15.0%       15.7%       15.2%       15.3%

Retail Gross Margin -
 by Product
  New Vehicle                 8.8%        9.0%        8.7%        8.8%
  Used Vehicle                8.0%        8.6%        8.5%        8.9%
  Service and Parts          54.9%       55.2%       55.1%       54.5%

Gross Profit per Retail
 Transaction
  New Vehicles             $3,226      $3,149      $2,993      $2,943
  Used Vehicles             2,419       2,378       2,427       2,388
  Finance and Insurance       900       1,068         917         944
                       UNITED AUTO GROUP, INC.
                      Selected Data (Continued)

                                   Fourth Quarter     Twelve Months
                                 -------------------------------------
                                  2006     2005      2006      2005
                                 -------- -------- --------- ---------
Brand Mix:
  BMW                                 21%      16%       18%       16%
  Toyota/Lexus                        20%      22%       21%       23%
  Honda/Acura                         14%      15%       16%       15%
  DCX                                 12%      12%       11%       12%
  Ford                                 9%       9%       10%        9%
  Audi                                 7%       7%        7%        7%
  General Motors                       4%       5%        4%        5%
  Porsche                              4%       4%        4%        4%
  Nissan/Infiniti                      3%       3%        3%        3%
  Other                                6%       7%        6%        6%
                                 -------- -------- --------- ---------
                                     100%     100%      100%      100%

Foreign / Premium                     94%      93%       93%       92%
Domestic Big 3                         6%       7%        7%        8%
                                 -------- -------- --------- ---------
                                     100%     100%      100%      100%

Debt to Total Capital Ratio           48%      34%       48%       34%

Rent Expense                     $36,254  $29,492  $135,253  $109,715

CONTACT: United Auto Group, Inc.
Chief Financial Officer
Bob O'Shaughnessy, 248-648-2800
boshaughnessy@unitedauto.com
or
Senior Vice President
Tony Pordon, 248-648-2540
tpordon@unitedauto.com

SOURCE: United Auto Group, Inc.