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Press Release

UnitedAuto Reports First Quarter Results
    Same-Store Retail Revenues Increase 11%

     SG&A as a Percentage of Gross Profit Improves 53 Basis Points

   Adjusted Income from Continuing Operations Increases 9% to $28.3
               Million, Excluding Debt Redemption Charge

BLOOMFIELD HILLS, Mich.--(BUSINESS WIRE)--May 8, 2007--United Auto Group, Inc. (NYSE:UAG), an international automotive retailer, today reported that first quarter adjusted income from continuing operations increased 9.2% to $28.3 million and related earnings per share increased 7.1% to $0.30. The adjusted results exclude $12.3 million ($0.13 per share) of after-tax costs relating to the redemption of the Company's 9.625% Senior Subordinated Notes. Including the debt redemption charge in the current year, the Company reported income from continuing operations of $16.1 million and related earnings per share of $0.17. First quarter adjusted net income increased 12.2% to $26.9 million and related earnings per share increased 12.0% to $0.28. Including the debt redemption charge in the current year, net income amounted to $14.6 million and related earnings per share was $0.15.

Revenues in the first quarter increased 21.6% to $3.1 billion, including a 10.8% increase in same-store retail revenues. The increase in same-store revenue included growth of 7.2%, 20.9%, 10.6% and 9.7% in new vehicle, used vehicle, finance and insurance, and service and parts revenues, respectively.

"Our same-store retail revenue growth remained strong in each area of our business," said UAG Chairman Roger Penske. "On a same-store basis, our U.S. and international retail revenue grew 4.0% and 27.3%, respectively. Additionally, our used vehicle business continued to be exceptionally strong in the first quarter, with revenues increasing nearly 42% over last year including the significant same-store growth." Mr. Penske added, "While the increased level of our used vehicle business, coupled with a very competitive vehicle sales environment, contributed to an overall 57 basis-point decrease in gross margin in the current year, we are pleased to see that our selling, general and administrative expenses declined 55 basis points to 12.1% of our revenues, and declined 53 basis points to 80.3% of our gross profit."

The Company currently projects earnings from continuing operations in the second quarter to be in the range of $0.39 to $0.43 per share. The Company continues to project earnings from continuing operations for the year in the range of $1.40 to $1.50 per share, excluding the $12.3 million ($0.13 per share) debt redemption charge. These estimates include costs associated with developing the distribution network for the smart product launch in the U.S. and are based on an estimated average of 94.6 million shares outstanding.

UnitedAuto will host a conference call discussing financial results relating to first quarter 2007 on Tuesday, May 8, 2007 at 2:00 p.m. EDT. To listen to the conference call, participants must dial (800) 553-0358 (International, please dial (612) 332-0637). 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 311 retail automotive franchises, representing 41 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 166 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 16,000 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, 2006, 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)

                                                    First Quarter
                                               -----------------------
                                                  2007        2006
                                               ----------- -----------
Revenues:
  New Vehicle                                  $1,645,014  $1,432,768
  Used Vehicle                                    786,910     555,102
  Finance and Insurance, Net                       68,894      58,049
  Service and Parts                               352,570     293,656
  Fleet and Wholesale Vehicle                     249,782     213,211
                                               ----------- -----------
       Total Revenues                           3,103,170   2,552,786
Cost of Sales:
  New Vehicle                                   1,506,668   1,306,680
  Used Vehicle                                    725,763     504,955
  Service and Parts                               156,934     131,916
  Fleet and Wholesale Vehicle                     246,848     210,478
                                               ----------- -----------
       Total Cost of Sales                      2,636,213   2,154,029
                                               ----------- -----------
       Gross Profit                               466,957     398,757
SG&A Expenses                                     374,971     322,321
Depreciation and Amortization                      12,803      10,175
                                               ----------- -----------
       Operating Income                            79,183      66,261
Floor Plan Interest Expense                       (16,112)    (13,950)
Other Interest Expense                            (18,859)    (11,947)
Equity in Earnings of Affiliates                     (821)      1,150
Debt Redemption Charge                            (18,634)        - -
                                               ----------- -----------
       Income from Continuing Operations Before
        Income Taxes and Minority Interests        24,757      41,514
Income Taxes                                       (8,412)    (15,122)
Minority Interests                                   (294)       (422)
                                               ----------- -----------
       Income from Continuing Operations           16,051      25,970
Loss from Discontinued Operations, Net of Tax      (1,469)     (2,015)
                                               ----------- -----------
       Net Income                                 $14,582     $23,955
                                               =========== ===========
Income from Continuing Operations Per Diluted
 Share                                              $0.17       $0.28
                                               =========== ===========
Diluted EPS                                         $0.15       $0.25
                                               =========== ===========
Diluted Weighted Average Shares Outstanding        94,412      94,272
                                               =========== ===========
                       UNITED AUTO GROUP, INC.
                Consolidated Condensed Balance Sheets
                        (Amounts In Thousands)
                             (Unaudited)

                                                3/31/07     12/31/06
                                               ----------- -----------
Assets
Cash and Cash Equivalents                         $25,202     $13,147
Accounts Receivable, Net                          509,348     469,601
Inventories                                     1,602,193   1,521,424
Other Current Assets                               85,078      71,524
Assets Held for Sale                              181,598     200,083
                                               ----------- -----------
     Total Current Assets                       2,403,419   2,275,779
Property and Equipment, Net                       584,710     582,220
Intangibles                                     1,511,697   1,502,067
Other Assets                                       94,318     109,736
                                               ----------- -----------
     Total Assets                              $4,594,144  $4,469,802
                                               =========== ===========

Liabilities and Stockholders' Equity
Floor Plan Notes Payable                       $1,072,369    $874,326
Floor Plan Notes Payable - Non-Trade              476,224     297,069
Accounts Payable                                  272,727     301,221
Accrued Expenses                                  214,882     214,406
Current Portion Long-Term Debt                     14,513      13,385
Liabilities Held for Sale                         103,115      52,703
                                               ----------- -----------
     Total Current Liabilities                  2,153,830   1,753,110
Long-Term Debt                                    864,510   1,168,666
Other Long-Term Liabilities                       272,805     252,373
                                               ----------- -----------
     Total Liabilities                          3,291,145   3,174,149
Stockholders' Equity                            1,302,999   1,295,653
                                               ----------- -----------
     Total Liabilities and Stockholders'
      Equity                                   $4,594,144  $4,469,802
                                               =========== ===========
                       UNITED AUTO GROUP, INC.
                            Selected Data

                                                    First Quarter
                                               -----------------------
                                                  2007        2006
                                               ----------- -----------
Total Retail Units
     New Retail                                    45,516      42,316
     Used Retail                                   25,642      19,984
                                               ----------- -----------
          Total Retail                             71,158      62,300
                                               =========== ===========

Same-Store Retail Units
     New Same-Store Retail                         42,231      41,471
     Used Same-Store Retail                        21,910      19,375
                                               ----------- -----------
          Total Same-Store Retail                  64,141      60,846
                                               =========== ===========

Same-Store Retail Revenue
     New Vehicles                              $1,500,005  $1,399,011
     Used Vehicles                                647,285     535,441
     Finance and Insurance, Net                    63,011      56,960
     Service and Parts                            314,810     286,895
                                               ----------- -----------
       Total Same-Store Retail                 $2,525,111  $2,278,307
                                               =========== ===========

Same-Store Retail Revenue Growth
     New Vehicles                                     7.2%        3.7%
     Used Vehicles                                   20.9%        5.6%
     Finance and Insurance, Net                      10.6%        5.6%
     Service and Parts                                9.7%        8.7%

Revenue Mix
     New Vehicles                                    53.0%       56.1%
     Used Vehicles                                   25.4%       21.7%
     Finance and Insurance, Net                       2.2%        2.3%
     Service and Parts                               11.4%       11.5%
     Fleet and Wholesale                              8.0%        8.4%

Average Retail Selling Price
     New Vehicles                                 $36,141     $33,859
     Used Vehicles                                $30,688     $27,777

Gross Margin                                         15.1%       15.6%

Retail Gross Margin - by Product
     New Vehicle                                      8.5%        8.8%
     Used Vehicle                                     7.8%        9.0%
     Service and Parts                               55.5%       55.1%

Gross Profit per Retail Transaction
     New Vehicles                                  $3,040      $2,980
     Used Vehicles                                  2,385       2,509
     Finance and Insurance                            968         932
                       UNITED AUTO GROUP, INC.
                      Selected Data (Continued)

                                                       First Quarter
                                                     -----------------
                                                       2007     2006
                                                     -------- --------
Brand Mix:
     BMW                                                  22%      16%
     Toyota/Lexus                                         19%      22%
     Honda/Acura                                          14%      16%
     DCX                                                  12%      11%
     Ford/PAG                                             11%      11%
     Audi                                                  8%       7%
     General Motors                                        4%       4%
     Porsche                                               4%       5%
     Nissan/Infiniti                                       3%       3%
     Other                                                 3%       5%
                                                     -------- --------
                                                         100%     100%

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

Revenue Mix:
      U.S.                                                60%      69%
      International                                       40%      31%
                                                     -------- --------
                                                         100%     100%

Debt to Total Capital Ratio                               40%      37%

Rent Expense                                         $36,905  $31,898

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

SOURCE: United Auto Group, Inc.