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		Press Release

		UnitedAuto Group, Inc.
		2555 Telegraph Rd.
		Bloomfield Hills MI 48302-0954


Contact:	Roger Penske	Jim Davidson	Tony Pordon
	Chairman	Executive VP – Finance	Vice President –Investor Relations
	248-648-2400	201-325-3303	248-648-2540
		jdavidson@unitedauto.com	tpordon@unitedauto.com

UNITEDAUTO REPORTS RECORD SECOND QUARTER

Revenues Increase 12%

Same-Store Revenues Increase 3%

Net Income Increases 38% to $33.0 Million

Earnings Per Share Increases 22% to $0.71 Per Share

BLOOMFIELD HILLS, MI, July 28, 2004 – UnitedAuto Group, Inc. (NYSE: UAG), a FORTUNE 500 automotive specialty retailer, today announced revenue of $2.5 billion and its 21st consecutive quarter of reporting record results.

The Company’s record results were highlighted by a 3.2% increase in same-store retail revenues, which includes a 4.0% increase in new vehicle retail revenue, driven by the continued strong performance of its premium and luxury franchises, and a 9.5% increase in service and parts revenues. Net income for the quarter increased 38.3% to $33.0 million, or $0.71 per share, from $23.9 million, or $0.58 per share, in the prior year. Second quarter 2004 results include a $6.6 million ($4.0 million after tax), or $0.09 per share, gain resulting from the sale of an investment.

For the six months ended June 30, 2004, revenues increased 17.8% to $4.8 billion. Net income for the year increased 41.5% to $53.2 million, or $1.19 per share, from $37.6 million, or $0.92 per share, in the prior year. Prior year results include the effect of $5.0 million after tax (including $3.1 million in the first quarter and $1.9 million in the second quarter), or $0.12 per share, of nonrecurring charges.

Chairman Roger Penske commented, “I’m pleased with our performance, despite a challenging retail vehicle market in the United States during the quarter. In particular, the 9.5% same-store growth in our service and parts business demonstrates the benefit of our capital investment program and the

resiliency of our business model. We will continue to make the necessary investment, both domestically and internationally, to foster future growth.”

Including the completion of three Honda and two Acura acquisitions from the Stevens Group in the San Francisco Bay Area (expected to close in August), UnitedAuto will have acquired $600 million in net annualized revenue in 2004, meeting the Company’s acquisition target. Considering completed acquisitions, the expected performance of the business and the anticipation of higher interest rates, the Company currently estimates earnings per share in the range of $2.30 — $2.39 per share for the full year, which includes the effect of the $0.09 per share nonrecurring gain from the second quarter and is based on an estimated average of 45.6 million shares outstanding. Earnings per share in the third quarter are expected to be in the range of $0.61 — $0.63 per share, based on an estimated average of 46.6 million shares outstanding.

UnitedAuto will host a conference call discussing financial results relating to second quarter 2004 on Wednesday, July 28, 2004 at 11 a.m. ET. To listen to the conference call, participants must dial (888) 423-3280 (International, please dial (651) 291-0344). The call will also be simultaneously broadcast live over the Internet through the UnitedAuto website at www.unitedauto.com.

About UnitedAuto

UnitedAuto, which has pursued a strategy based on internal growth from its existing dealerships, as well as from strategic acquisitions, operates 139 franchises in the United States and 103 franchises internationally, primarily in the United Kingdom. UnitedAuto dealerships sell new and used vehicles, and market a complete line of aftermarket automotive products and services. Statements in this press release involve forward-looking statements, including forward-looking statements regarding UnitedAuto’s future sales and earnings growth 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, markets, conditions and other uncertainties which could affect UnitedAuto’s future performance, which are contained in UnitedAuto’s Form 10-K for the year ended December 31, 2003 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.

UNITED AUTO GROUP, INC.

Consolidated Statements of Income
(Amounts In Thousands, Except Per Share Data)
(Unaudited)


	Second Quarter
	2004			2003
New Vehicles	$	1,400,597		$	1,280,752
Used Vehicles		531,789			473,993
Finance and Insurance		53,322			52,670
Service and Parts		263,524			224,130
Fleet		34,382			36,527
Wholesale		175,013			123,666

Total Revenues		2,458,627			2,191,738
Cost of Sales		2,106,050			1,879,141

Gross Profit		352,577			312,597
SG&A Expenses		274,922			242,630
Depreciation and Amortization		9,109			7,538

Operating Income		68,546			62,429
Floor Plan Interest Expense		(11,182	)		(11,412	)
Other Interest Expense		(10,052	)		(10,810	)
Other Income		6,611			—

Income from Continuing Operations Before Minority Interests and Income Tax Provision		53,923			40,207
Minority Interests		(518	)		(658	)
Income Tax Provision		(20,923	)		(15,883	)

Income from Continuing Operations		32,482			23,666
Income from Discontinued Operations, Net of Tax		521			198

Net Income	$	33,003		$	23,864

Income from Continuing Operations Per Diluted Share	$	0.70		$	0.57

Diluted EPS	$	0.71		$	0.58

Diluted Weighted Average Shares Outstanding		46,565			41,176

UNITED AUTO GROUP, INC.

Consolidated Statements of Income
(Amounts In Thousands, Except Per Share Data)
(Unaudited)


	Six Months
	2004			2003
New Vehicles	$	2,716,967		$	2,357,317
Used Vehicles		1,056,742			898,546
Finance and Insurance		106,365			99,228
Service and Parts		523,007			430,458
Fleet		66,905			62,421
Wholesale		344,953			238,751

Total Revenues		4,814,939			4,086,721
Cost of Sales		4,118,114			3,498,736

Gross Profit		696,825			587,985
SG&A Expenses		551,837			463,262
Depreciation and Amortization		17,923			14,538

Operating Income		127,065			110,185
Floor Plan Interest Expense		(24,505	)		(20,148	)
Other Interest Expense		(20,817	)		(21,092	)
Other Income		6,611			—

Income from Continuing Operations Before Minority Interests and Income Tax Provision		88,354			68,945
Minority Interests		(828	)		(1,051	)
Income Tax Provision		(34,281	)		(27,236	)

Income from Continuing Operations		53,245			40,658
Loss from Discontinued Operations, Net of Tax		(38	)		(3	)

Income Before Cumulative Effect of Accounting Change		53,207			40,655
Cumulative Effect of Accounting change (a)		—			(3,058	)

Net Income	$	53,207		$	37,597

Income from Continuing Operations Per Diluted Share	$	1.20		$	0.99

Diluted EPS before Cumulative Effect of Accounting change	$	1.19		$	0.99

Cumulative Effect of Accounting change on Diluted EPS		—			($0.07	)

Diluted EPS	$	1.19		$	0.92

Diluted Weighted Average Shares Outstanding		44,548			40,994

UNITED AUTO GROUP, INC.

Consolidated Condensed Balance Sheets
(Amounts In Thousands)
(Unaudited)


	6/30/04		12/31/03
Assets
Cash and Cash Equivalents	$	19,797	$	13,439
Accounts Receivable, Net		345,301		342,446
Inventories		1,263,132		1,166,756
Other Current Assets		52,213		43,090

Total Current Assets		1,680,443		1,565,731
Property and Equipment, Net		430,312		368,504
Intangibles		1,092,489		1,085,034
Other Assets		83,669		89,968
Assets of Discontinued Operations		2,351		27,944

Total Assets	$	3,289,264	$	3,137,181

Liabilities and Stockholders’ Equity
Floor Plan Notes Payable	$	1,186,086	$	1,122,065
Accounts Payable and Accrued Expenses		386,388		347,098
Current Portion Long-Term Debt		981		8,574

Total Current Liabilities		1,573,455		1,477,737
Long-Term Debt		544,350		643,145
Other Long-Term Liabilities		164,806		168,111
Liabilities of Discontinued Operations		1,167		19,776

Total Liabilities		2,283,778		2,308,769
Stockholders’ Equity		1,005,486		828,412

Total Liabilities and Stockholders’ Equity	$	3,289,264	$	3,137,181

UNITED AUTO GROUP, INC.
Selected Data


	Second Quarter						Six Months
	2004			2003			2004			2003
Units
New Retail Units		45,140			43,932			87,261			81,305
Used Retail Units		22,631			23,039			45,289			43,508

Total Retail Units		67,771			66,971			132,550			124,813

Same-Store Retail Revenue
New Vehicles	$	1,280,103		$	1,230,960		$	2,476,308		$	2,298,338
Used Vehicles		448,486			455,012			896,524			873,636
Finance and Insurance		49,553			51,118			98,624			97,195
Service and Parts		236,094			215,536			469,665			419,456

Total Same-Store Retail Revenue	$	2,014,236		$	1,952,626		$	3,941,121		$	3,688,625

Same-Store Retail Revenue Growth
New Vehicles		4.0	%		10.0	%		7.7	%		7.4	%
Used Vehicles		(1.4	%)		18.3	%		2.6	%		10.7	%
Finance and Insurance		(3.1	%)		20.3	%		1.5	%		16.3	%
Service and Parts		9.5	%		11.0	%		12.0	%		8.7	%
Revenue Mix
New Vehicles		57.0	%		58.4	%		56.4	%		57.7	%
Used Vehicles		21.6	%		21.6	%		21.9	%		22.0	%
Finance and Insurance		2.2	%		2.4	%		2.2	%		2.4	%
Service and Parts		10.7	%		10.2	%		10.9	%		10.5	%
Fleet		1.4	%		1.7	%		1.4	%		1.5	%
Wholesale		7.1	%		5.6	%		7.2	%		5.8	%
Retail Gross Margin — by Product
New Vehicles		8.5	%		8.4	%		8.5	%		8.4	%
Used Vehicles		9.0	%		9.3	%		9.0	%		9.3	%
Finance and Insurance		100.0	%		100.0	%		100.0	%		100.0	%
Service and Parts		49.9	%		48.0	%		50.0	%		48.0	%
Gross Profit per Transaction
New Vehicles	$	2,636		$	2,459		$	2,654		$	2,444
Used Vehicles		2,117			1,908			2,107			1,916
Finance and Insurance		787			786			803			795

UNITED AUTO GROUP, INC.
Selected Data (Continued)


	Second Quarter						Six Months
	2004			2003			2004			2003
Brand Mix:
Toyota/Lexus		22	%		22	%		22	%		22	%
BMW		16	%		13	%		15	%		13	%
Mercedes		10	%		10	%		10	%		10	%
Honda/Acura		10	%		12	%		10	%		12	%
General Motors		9	%		11	%		9	%		11	%
Ford Premier Group		8	%		7	%		8	%		8	%
Chrysler		6	%		7	%		5	%		7	%
Nissan/Infiniti		4	%		5	%		4	%		5	%
Ford		4	%		5	%		4	%		5	%
Other		11	%		8	%		13	%		7	%

Debt to Total Capital Ratio		35	%		51	%		35	%		51	%

Adjusted EBITDA (a)	$	73,084		$	58,555		$	127,094		$	104,575
Rent Expense	$	23,618		$	20,277		$	47,282		$	39,647

(a)

Adjusted EBITDA is defined as income from continuing operations before minority interests, income tax provision, other interest expense, depreciation and amortization. While Adjusted EBITDA should not be construed as a substitute for income from continuing operations or as a better measure of liquidity than cash flows from operating activities, each of which is determined in accordance with U.S. GAAP, it is included in this press release to provide additional information regarding the amount of cash our business is generating. This measure may not be comparable to similarly titled measures reported by other companies. Following is a reconciliation of income from continuing operations before minority interests and income tax provision and Adjusted EBITDA:


	Second Quarter				Six Months
	2004		2003		2004		2003
Income from continuing operations before minority interests and income tax provision	$	53.9	$	40.2	$	88.4	$	68.9
Other interest expense		10.1		10.8		20.8		21.1
Depreciation and amortization		9.1		7.6		17.9		14.6

Adjusted EBITDA	$	73.1	$	58.6	$	127.1	$	104.6