EX-99.1

UNITEDAUTO REPORTS FIRST QUARTER RESULTS
____________________________________________________________

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

BLOOMFIELD HILLS, MI, 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.

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


	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


	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:	Bob O’Shaughnessy		Tony Pordon
	Chief Financial Officer		Senior Vice President
		248-648-2800		248-648-2540
	boshaughnessy@unitedaut		tpordon@unitedauto.com
	o.com			—