NEWS RELEASE 950 Echo Lane, Suite 100 Houston, TX 77024

AT GROUP 1:	Chairman, President and CEO	B.B. Hollingsworth, Jr.	(713) 647-5700
	SVP, CFO and Treasurer	Robert T. Ray	(713) 647-5700
	Manager, Investor Relations	Kim Paper Canning	(713) 647-5700
AT Fleishman-Hillard:	Investors/Media	Russell A. Johnson	(713) 513-9515

FOR IMMEDIATE RELEASE
THURSDAY, FEB. 24, 2005

GROUP 1 AUTOMOTIVE REPORTS 2004 FOURTH-QUARTER AND FULL-YEAR RESULTS

Company Records Annual Revenues of $5.4 Billion

HOUSTON, Feb. 24, 2005 — Group 1 Automotive, Inc. (NYSE: GPI), a Fortune 500 specialty retailer, today reported fourth-quarter net income of $11.2 million, or $0.47 per diluted share, on revenues of $1.4 billion for the three months ended Dec. 31, 2004. Excluding certain items described in the attached schedules, the company’s adjusted fourth-quarter net income was $0.56 per diluted share versus $0.54 per diluted share in 2003 on a comparable basis.

Fourth-Quarter Highlights:

•   Revenues increased 30.8 percent to $1.4 billion

•   Same store revenues grew 2.4 percent

•   Gross profit increased 25.5 percent to $219.9 million

Summary Results of Operations (Unaudited)
(In millions, except per share amounts)

	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
	2004		2003		2004		2003
Revenues	$	1,440.7	$	1,101.4	$	5,435.0	$	4,518.6
Gross Profit	$	219.9	$	175.3	$	831.8	$	723.4
Income from Operations	$	29.1	$	33.3	$	99.2	$	149.2
Net Income	$	11.2	$	19.6	$	27.8	$	76.1
Diluted Earnings per Share	$	0.47	$	0.84	$	1.18	$	3.26

Results for the Fourth Quarter

During the fourth quarter, revenues increased 30.8 percent to $1.4 billion from $1.1 billion during the same period last year, largely due to acquisitions. New vehicle revenues grew 32.0 percent and used vehicle retail revenues increased 27.1 percent, while parts and service revenues grew 33.2 percent and finance and insurance revenues increased 12.3 percent. On a same store basis, total revenues were up 2.4 percent from the fourth quarter of 2003.

Gross profit for the quarter was $219.9 million, a 25.5 percent increase from $175.3 million in the prior-year period. New and used vehicles had increases in both unit sales and gross profit per retail unit sold. These

Group 1 Automotive, Inc.
Page 2 of 5

increases resulted in gross profits that were 32.3 percent and 17.5 percent higher than in the prior year, respectively. Parts and service gross profit increased by 30.7 percent, although gross margin declined from 56.1 percent to 55.0 percent due to an increase in revenues from the company’s lower-margin wholesale parts business in relation to its service and collision businesses. Gross profit in finance and insurance increased by 12.3 percent; however, gross profit per retail unit declined by 8.4 percent, from $1,006 to $921, reflecting both a decline in penetration rates for new and used vehicles and the impact of acquisitions with lower average gross profit per retail unit than the company’s existing stores. Total gross margin declined by 60 basis points, to 15.3 percent from 15.9 percent during the year-ago period. On a same store basis, total gross profit for the quarter was down 0.5 percent, from $175.3 million in 2003 to $174.4 in 2004.

In connection with its annual assessment of goodwill and indefinite-lived intangible assets, the company determined that the fair value of one of its Los Angeles area franchises no longer supported the carrying value associated with it. As a result, the company recorded a non-cash, pretax charge of $3.3 million, which equates to $2.0 million after tax or $0.08 per diluted share. The company determined the impairment charge in accordance with Statement of Financial Accounting Standards (SFAS) No. 142, “Goodwill and Other Intangible Assets.” In addition, a third-party review of the company’s previously announced $41.4 million pretax charge related to its Atlanta platform was completed during the fourth quarter. No adjustment to the company’s initial charge was required as a result of the review.

The company reported income from operations of $29.1 million, compared with $33.3 million in the fourth quarter of 2003. Excluding the impairment charge, operating margin was 2.2 percent, compared with 3.0 percent during the year-ago period. This decline was primarily due to the decline in gross margin noted above, as well as higher selling, general and administrative (SG&A) expenses. An accrual for costs associated with an ongoing class action lawsuit in Texas, as well as an increase in professional fees associated with the implementation of Section 404 of the Sarbanes-Oxley Act, contributed to this increase in SG&A expenses. On a same store basis, and excluding the Los Angeles impairment charge, operating margin for the quarter was 2.2 percent, compared with 3.0 percent in the prior year.

“Our fourth-quarter results reflected a continuation of the market challenges we experienced throughout 2004,” said B.B. Hollingsworth Jr., Group 1’s chairman, president and chief executive officer. “Despite this tough environment, our Dallas and Florida platforms delivered outstanding fourth-quarter results and, from a brand standpoint, our Honda, Nissan and luxury franchises also performed well.”

Full-Year Results

For the full year 2004, revenues grew 20.3 percent to $5.4 billion, largely due to acquisitions. New vehicle revenues grew 22.3 percent and used vehicle retail revenues grew 11.8 percent, while parts and service and finance and insurance revenues grew 21.3 percent and 5.9 percent, respectively. On a same store basis, total revenues were up 2.5 percent from 2003.

Gross profit increased by 15.0 percent to $831.8 million from $723.4 million in the prior year, although gross margin fell by 70 basis points to 15.3 percent from 16.0 percent in 2003. On a same store basis, gross profit for the year decreased by 1.1 percent, from $718.8 million in 2003 to $710.7 million in 2004.

Income from operations declined from $149.2 million in 2003 to $99.2 million in 2004. This includes the non-cash, pretax charges totaling $44.7 million to impair goodwill, certain other long-lived assets and indefinite-lived intangible assets noted above. Excluding these impairment charges, operating margin was 2.6 percent, compared with 3.3 percent during the year-ago period. This 70 basis point decline was largely attributable to the decline in gross margin noted above. SG&A expenses as a percentage of gross profit increased by 320 basis points during the year, as savings from certain variable cost control initiatives were offset by increased costs

Group 1 Automotive, Inc.
Page 3 of 5

related to a severe hailstorm in June, hurricanes in September, the class action lawsuit in Texas mentioned above and professional fees associated with the implementation of Section 404 of the Sarbanes-Oxley Act. On a same store basis, and again excluding the impairment charges, operating margin for the year was 2.7 percent, compared with 3.3 percent in the prior year.

Including the impairment charges, net income for the year was $27.8 million, or $1.18 per diluted share, compared with $3.26 per diluted share on net income of $76.1 million during 2003. Excluding certain items described in the attached schedules, the company’s adjusted full-year net income was $2.68 per diluted share, a reduction of 6.9 percent on a comparable basis from $2.88 per diluted share in 2003.

Acquisition Update

During 2004, Group 1 added 23 franchises with expected annual revenues of approximately $1.2 billion. The brand mix of these franchises consists of 24 percent domestic and 76 percent import, including 39 percent luxury. The aggregate consideration paid for these acquisitions was approximately $221.7 million in cash, net of cash received, the assumption of approximately $109.7 million in inventory financing and 394,313 shares of Group 1 common stock. The cash portion of these transactions was funded with a combination of cash on hand and borrowings under the company’s revolving credit facility.

In January 2005, the company completed the acquisition of new Dodge and Chrysler franchises in Tulsa, Okla. Both of these franchises became part of the Bob Howard Auto Group and are expected to generate aggregate annual revenues of $46 million. The Chrysler franchise has become part of the Crown Auto World dealership, and the Dodge dealership has been renamed Bob Howard Downtown Dodge.

Management’s Outlook

Group 1 anticipates 2005 full-year earnings per diluted share of $2.95 to $3.05, excluding any future acquisitions. This estimate is based on average diluted shares outstanding of 24.2 million.

“Oversupply of domestic new vehicles remains a major concern in the industry,” said Hollingsworth. “Until inventories more closely match consumer demand, we believe that most of our markets will remain highly competitive, pressures on gross margins will continue and sales will be driven by automakers’ incentive programs. In the meantime, we will focus on improving our operating margins and integrating our newly acquired franchises.”

Hollingsworth also noted that the company will continue to seek accretive acquisitions that fit its stringent criteria, although at a slower pace than in 2004. “While we are pleased with the results of our 2004 acquisition program, we recognize the need to complete the integration of these newly acquired franchises. As a result, we are establishing a 2005 acquisition target of $300 million in aggregate anticipated annual revenues,” he said. The above-mentioned earnings per share guidance excludes any financial impact from these acquisitions.

Fourth-Quarter and Full-Year Conference Call

Group 1 will hold a conference call to discuss its fourth-quarter and full-year results at 10 a.m. EST on Thursday, Feb. 24, 2005. The call will be simulcast live on the Internet at www.group1auto.com through the Investor Relations section. A replay will be available for 30 days.

About Group 1 Automotive, Inc.

Group 1 owns 96 automotive dealerships comprised of 142 franchises, 33 brands and 32 collision service centers located in California, Colorado, Florida, Georgia, Louisiana, Massachusetts, New Jersey, New Mexico, New York, Oklahoma and Texas. Through its dealerships and Internet sites, the company sells new and used

Group 1 Automotive, Inc.
Page 4 of 5

cars and light trucks; arranges related financing, vehicle service and insurance contracts; provides maintenance and repair services; and sells replacement parts.

Group 1 Automotive can be reached on the Internet at www.group1auto.com.

This press release and the attached schedules contain financial measures that exclude certain charges and, therefore, have not been calculated in accordance with U.S. generally accepted accounting principles, or GAAP. These non-GAAP financial measures include net income and diluted earnings per share for the three- and twelve-month periods ended December 31, 2004 and 2003, adjusted in each case to exclude special items disclosed in the attached schedules. As required by SEC rules, the company has provided in the attachments to this press release reconciliations of these measures to the most directly comparable GAAP measures. The company believes that each of these non-GAAP financial measures improves the transparency of the company’s disclosure and the period-to-period comparability of the company’s results from its operations. Management uses these non-GAAP financial measures internally to evaluate the company’s performance. These non-GAAP measures should not be considered an alternative to GAAP, and these non-GAAP measures may not be comparable to information provided by other companies.

This press release contains “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. These statements include statements regarding our plans, goals, beliefs or current expectations, including those plans, goals, beliefs and expectations of our officers and directors with respect to, among other things:

•   our future operating performance

•   our ability to improve our margins

•   earnings per share for the year ending 2005

•   operating cash flows and availability of capital

•   the completion of future acquisitions

•   the future revenues of acquired dealerships

•   changes in sales volumes in the new and used retail vehicle and parts and service markets

•   business trends in the retail automotive industry, including the level of manufacturer incentives, new and used vehicle retail sales volume, customer demand and changes in industrywide inventory levels

Any such forward-looking statements are not assurances of future performance and involve risks and uncertainties. Actual results may differ materially from results anticipated in the forward-looking statements for a number of reasons, including:

•   the future economic environment, including consumer confidence, interest rates, the level of manufacturer incentives and the availability of consumer credit, may affect the demand for new and used vehicles, replacement parts, maintenance and repair services and finance and insurance products

•   adverse international developments such as war, terrorism, political conflicts or other hostilities may adversely affect the demand for our products and services

•   the future regulatory environment, adverse legislation, or unexpected litigation may impose additional costs on us or otherwise adversely affect us

•   our principal automobile manufacturers, especially Toyota/Lexus, Ford, DaimlerChrysler, General Motors, Honda/Acura and Nissan/Infiniti, may not continue to produce or make available to us vehicles that are in high demand by our customers

•   requirements imposed on us by our manufacturers may affect our ability to complete acquisitions or cause us to increase the level of capital expenditures related to our dealership facilities

•   our dealership operations may not perform at expected levels or achieve expected improvements

•   we may not achieve expected future cost savings and our future costs could be higher than we expected

Group 1 Automotive, Inc.
Page 5 of 5

•   available capital resources and various debt agreements may limit our ability to complete acquisitions, complete construction of new or expanded facilities or repurchase shares

•   our cost of financing could increase significantly

•   new accounting standards could materially impact our reported earnings per share

•   we may not complete additional acquisitions or the pace of acquisitions may change

•   we may not be able to adjust our cost structure to any reduction in the demand for our products and services

•   we may lose key personnel

•   competition in our industry may impact our operations or our ability to complete acquisitions

•   we may not achieve expected sales volumes from the franchises we acquire or that are granted to us

•   insurance costs could increase significantly, and all of our losses may not be covered by insurance

•   we may not obtain inventory of new and used vehicles and parts, including imported inventory, at the cost or in the volume we expect

These factors, as well as additional factors that could affect our operating results and performance, are described in our Form 10-K under the headings “Business-Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” We urge you to carefully consider this information.

We undertake no duty to update our forward-looking statements, including our earnings outlook.

All forward-looking statements attributable to us are qualified in their entirety by this cautionary statement.

FINANCIAL TABLES TO FOLLOW

Group 1 Automotive, Inc.
Consolidated Statements of Operations
(Unaudited)
(Dollars in thousands, except per share amounts)

	For the Three Months Ended December 31,									For the Twelve Months Ended December 31,
	2004			2003			% Change			2004			2003			% Change
REVENUES:
New vehicle retail sales	$	896,959		$	679,475			32.0	%	$	3,348,875		$	2,739,315			22.3	%
Used vehicle — retail sales		251,256			197,687			27.1			988,797			884,819			11.8
Used vehicle — wholesale sales		94,399			69,636			35.6			359,247			265,187			35.5
Parts and service		155,625			116,805			33.2			565,213			465,989			21.3
Finance and insurance		42,459			37,796			12.3			172,901			163,250			5.9
Total revenues		1,440,698			1,101,399			30.8	%		5,435,033			4,518,560			20.3	%
COST OF SALES:
New vehicle retail sales		831,903			630,293			32.0	%		3,112,140			2,539,319			22.6	%
Used vehicle — retail sales		221,333			174,998			26.5			868,351			778,266			11.6
Used vehicle — wholesale sales		97,487			69,496			40.3			367,513			271,328			35.4
Parts and service		70,031			51,312			36.5			255,263			206,236			23.8
Total cost of sales		1,220,754			926,099			31.8	%		4,603,267			3,795,149			21.3	%
GROSS PROFIT		219,944			175,300			25.5	%		831,766			723,411			15.0	%
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		182,943			138,768			31.8	%		672,068			561,698			19.6	%
DEPRECIATION AND AMORTIZATION EXPENSE		4,596			3,239			41.9	%		15,836			12,510			26.6	%
ASSET IMPAIRMENTS		3,338			—			—			44,711			—			—
Income from operations		29,067			33,293			(12.7	)%		99,151			149,203			(33.5	)%
OTHER INCOME (EXPENSE):
Floorplan interest expense		(7,688	)		(4,368	)		76.0	%		(25,349	)		(21,571	)		17.5	%
Other interest expense, net		(5,672	)		(5,990	)		(5.3	)		(19,299	)		(15,191	)		27.0
Loss on redemption of senior subordinated notes		—			—			—			(6,381	)		—			—
Other income (expense), net		77			738			(89.6	)		(170	)		631			(126.9	)
INCOME BEFORE INCOME TAXES		15,784			23,673			(33.3	)%		47,952			113,072			(57.6	)%
PROVISION FOR INCOME TAXES		4,589			4,037			13.7	%		20,171			36,946			(45.4	)%
NET INCOME	$	11,195		$	19,636			(43.0	)%	$	27,781		$	76,126			(63.5	)%
Diluted earnings per share	$	0.47		$	0.84			(44.0	)%	$	1.18		$	3.26			(63.8	)%
Weighted average diluted shares outstanding		23,693,037			23,485,959			0.9	%		23,493,899			23,346,221			0.6	%

Group 1 Automotive, Inc.
Consolidated Balance Sheets
(Unaudited)
(Dollars in thousands)

	As of December 31,
	2004			2003			% Change
ASSETS:
CURRENT ASSETS:
Cash	$	37,809		$	26,712			41.5	%
Contracts in transit and vehicle receivables, net		172,402			143,260			20.3
Accounts and notes receivable, net		76,687			63,669			20.4
Inventories, net		877,575			671,279			30.7
Deferred income taxes		10,870			11,163			(2.6	)
Prepaid expenses and other current assets		31,056			21,046			47.6
Total current assets		1,206,399			937,129			28.7
PROPERTY AND EQUIPMENT, net		160,297			131,647			21.8
GOODWILL		366,673			328,491			11.6
INTANGIBLE ASSETS		187,135			76,656			144.1
OTHER ASSETS		22,831			28,522			(20.0	)
Total assets	$	1,943,335		$	1,502,445			29.3	%
LIABILITIES AND STOCKHOLDERS’ EQUITY:
CURRENT LIABILITIES:
Floorplan notes payable	$	848,260		$	493,568			71.9	%
Current maturities of long-term debt		1,054			910			15.8
Accounts payable		108,920			87,675			24.2
Accrued expenses		94,510			77,461			22.0
Total current liabilities		1,052,744			659,614			59.6
DEBT, net of current maturities		156,747			230,178			(31.9	)
ACQUISITION LINE OF CREDIT		84,000			—			—
DEFERRED INCOME TAXES		29,312			33,786			(13.2	)
OTHER LIABILITIES		21,306			20,003			6.5
Total liabilities before deferred revenues		1,344,109			943,581			42.4
DEFERRED REVENUES		32,052			40,755			(21.4	)
STOCKHOLDERS’ EQUITY:
Common stock		239			235			1.7
Additional paid-in capital		265,645			255,356			4.0
Retained earnings		318,931			291,150			9.5
Accumulated other comprehensive loss		(173	)		(1,285	)		(86.5	)
Treasury stock		(17,468	)		(27,347	)		(36.1	)
Total stockholders’ equity		567,174			518,109			9.5
Total liabilities and stockholders’ equity	$	1,943,335		$	1,502,445			29.3	%
BALANCE SHEET DATA:
Working capital	$	153,655		$	277,515			(44.6	)%
Current ratio		1.15			1.42			(19.0	)
Long-term debt to capitalization		30	%		31	%
Inventory days supply: (1)
New vehicle		70			75			(6.7	)
Used vehicle		29			31			(6.5	)

⁽¹⁾ Inventory days supply equals units in inventory as of the end of the period, divided by units sales for the month then ended, times 30 days.

Group 1 Automotive, Inc.
Additional Information — Consolidated
(Unaudited)

		For the Twelve Months
		Ended December 31,
		2004			2003
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:
Platform	State(s)
Ira Motor Group	Massachusetts		12.8	%		12.7	%
Sterling McCall Automotive Group	Texas		12.1			12.7
Bob Howard Auto Group	Oklahoma		12.0			14.3
Miller Automotive Group	California		11.3			11.9
Gene Messer Auto Group	Texas		8.0			9.0
Maxwell Automotive Group	Texas		7.9			7.6
Bohn Automotive Group	Louisiana		6.4			6.6
Group 1 Florida	Florida		6.1			7.6
Group 1 Atlanta	Georgia		5.1			6.0
Peterson Automotive Group	California		4.2			—
Rocky Mountain	Colorado/New Mexico		4.0			4.4
Courtesy Auto Group	Texas		3.5			3.9
David Michael Motor Cars	New Jersey		2.9			—
Mike Smith Automotive Group	Texas		2.6			3.3
Hassel Auto Group	New York		1.1			—
			100.0	%		100.0	%
NEW VEHICLE UNIT SALES BRAND MIX:
Toyota/Scion/Lexus			27.7	%		26.2	%
Ford			20.5			25.5
DaimlerChrysler			14.1			12.3
GM			10.9			10.2
Nissan/Infiniti			10.7			10.5
Honda/Acura			9.5			9.8
Other			6.6			5.5
			100.0	%		100.0	%
NEW VEHICLE UNIT OTHER MIX:
Domestic/Import			42.0% / 58.0	%		46.9% / 53.1	%
Luxury/Non-luxury			14.0% / 86.0	%		12.1% / 87.9	%
Car/Truck			42.8% / 57.2	%		41.3% / 58.7	%

Group 1 Automotive, Inc.
Additional Information — Consolidated
(Unaudited)
(Dollars in thousands, except per unit amounts)

	For the Three Months Ended December 31,									For the Twelve Months Ended December 31,
	2004			2003			% Change			2004			2003			% Change
REVENUES:
New vehicle retail sales	$	896,959		$	679,475			32.0	%	$	3,348,875		$	2,739,315			22.3	%
Used vehicle — retail sales		251,256			197,687			27.1			988,797			884,819			11.8
Used vehicle — wholesale sales		94,399			69,636			35.6			359,247			265,187			35.5
Total used		345,655			267,323			29.3			1,348,044			1,150,006			17.2
Parts and service		155,625			116,805			33.2			565,213			465,989			21.3
Finance and insurance		42,459			37,796			12.3			172,901			163,250			5.9
Total		1,440,698			1,101,399			30.8	%		5,435,033			4,518,560			20.3	%
GROSS PROFIT (LOSS):
New vehicle retail sales	$	65,056		$	49,182			32.3	%	$	236,735		$	199,996			18.4	%
Used vehicle — retail sales		29,923			22,689			31.9			120,446			106,553			13.0
Used vehicle — wholesale sales		(3,088	)		140			(2,305.7	)		(8,266	)		(6,141	)		34.6
Total used		26,835			22,829			17.5			112,180			100,412			11.7
Parts and service		85,594			65,493			30.7			309,950			259,753			19.3
Finance and insurance		42,459			37,796			12.3			172,901			163,250			5.9
Total		219,944			175,300			25.5	%		831,766			723,411			15.0	%
GROSS MARGIN:
New vehicle retail sales		7.3	%		7.2	%					7.1	%		7.3	%
Used vehicle — retail sales		11.9			11.5						12.2			12.0
Used vehicle — wholesale sales		(3.3	)		0.2						(2.3	)		(2.3	)
Total used		7.8			8.5						8.3			8.7
Parts and service		55.0			56.1						54.8			55.7
Finance and insurance		100.0			100.0						100.0			100.0
Total		15.3	%		15.9	%					15.3	%		16.0	%
UNITS SOLD:
Retail new vehicles sold		30,107			23,854			26.2	%		117,971			99,971			18.0	%
Retail used vehicles sold		16,018			13,721			16.7			66,336			62,721			5.8
Total retail sales		46,125			37,575			22.8			184,307			162,692			13.3
Wholesale used vehicles sold		12,857			10,820			18.8	%		49,372			43,616			13.2	%
GROSS PROFIT (LOSS) PER UNIT SOLD:
New vehicle retail sales	$	2,161		$	2,062			4.8	%	$	2,007		$	2,001			0.3	%
Used vehicle — retail sales		1,868			1,654			12.9			1,816			1,699			6.9
Used vehicle — wholesale sales		(240	)		13			(1,946.2	)		(167	)		(141	)		18.4
Total used (per retail unit sold)		1,675			1,664			0.7			1,691			1,601			5.6
Finance and insurance		921			1,006			(8.4	)		938			1,003			(6.5	)
OTHER:
SG&A expenses	$	182,943		$	138,768			31.8	%	$	672,068		$	561,698			19.6	%
SG&A as % revenues		12.7	%		12.6	%					12.4	%		12.4	%
SG&A as % gross profit		83.2	%		79.2	%					80.8	%		77.6	%
Operating margin		2.0	%		3.0	%					1.8	%		3.3	%
Pretax income margin		1.1	%		2.1	%					0.9	%		2.5	%
Floorplan interest	$	(7,688	)	$	(4,368	)		76.0	%	$	(25,349	)	$	(21,571	)		17.5	%
Floorplan assistance		8,748			6,902			26.7			33,206			27,354			21.4
Net floorplan benefit		1,060			2,534			(58.2	)		7,857			5,783			35.9

Group 1 Automotive, Inc.
Additional Information — Same Store⁽¹⁾
(Unaudited)
(Dollars in thousands, except per unit amounts)

	For the Three Months Ended December 31,									For the Twelve Months Ended December 31,
	2004			2003			% Change			2004			2003			% Change
REVENUES:
New vehicle retail sales	$	684,482		$	679,475			0.7	%	$	2,783,249		$	2,717,746			2.4	%
Used vehicle — retail sales		210,883			197,686			6.7			870,301			876,864			(0.7	)
Used vehicle — wholesale sales		75,924			69,637			9.0			310,202			263,055			17.9
Total used		286,807			267,323			7.3			1,180,503			1,139,919			3.6
Parts and service		121,045			116,804			3.6			477,559			462,579			3.2
Finance and insurance		35,674			37,833			(5.7	)		153,886			162,328			(5.2	)
Total		1,128,008			1,101,435			2.4	%		4,595,197			4,482,572			2.5	%
GROSS PROFIT (LOSS):
New vehicle retail sales	$	49,446		$	49,185			0.5	%	$	195,745		$	198,745			(1.5	)%
Used vehicle — retail sales		25,576			22,688			12.7			106,601			105,783			0.8
Used vehicle — wholesale sales		(2,781	)		141			(2,072.3	)		(7,740	)		(6,083	)		27.2
Total used		22,795			22,829			(0.1	)		98,861			99,700			(0.8	)
Parts and service		66,515			65,491			1.6			262,212			258,006			1.6
Finance and insurance		35,674			37,833			(5.7	)		153,886			162,328			(5.2	)
Total		174,430			175,338			(0.5	)%		710,704			718,779			(1.1	)%
GROSS MARGIN:
New vehicle retail sales		7.2	%		7.2	%					7.0	%		7.3	%
Used vehicle — retail sales		12.1			11.5						12.2			12.1
Used vehicle — wholesale sales		(3.7	)		0.2						(2.5	)		(2.3	)
Total used		7.9			8.5						8.4			8.7
Parts and service		55.0			56.1						54.9			55.8
Finance and insurance		100.0			100.0						100.0			100.0
Total		15.5	%		15.9	%					15.5	%		16.0	%
UNITS SOLD:
Retail new vehicles sold		23,804			23,854			(0.2	)%		99,862			99,250			0.6	%
Retail used vehicles sold		13,886			13,721			1.2			59,358			62,177			(4.5	)
Total retail sales		37,690			37,575			0.3			159,220			161,427			(1.4	)
Wholesale used vehicles sold		10,718			10,820			(0.9	)%		43,276			43,362			(0.2	)%
GROSS PROFIT (LOSS) PER UNIT SOLD:
New vehicle retail sales	$	2,077		$	2,062			0.7	%	$	1,960		$	2,002			(2.1	)%
Used vehicle — retail sales		1,842			1,654			11.4			1,796			1,701			5.6
Used vehicle — wholesale sales		(259	)		13			(2,092.3	)		(179	)		(140	)		27.9
Total used (per retail unit sold)		1,642			1,664			(1.3	)		1,666			1,603			3.9
Finance and insurance		947			1,007			(6.0	)		966			1,006			(4.0	)
OTHER:
SG&A expenses	$	145,676		$	138,771			5.0	%	$	573,210		$	557,589			2.8	%
SG&A as % revenues		12.9	%		12.6	%					12.5	%		12.4	%
SG&A as % gross profit		83.5	%		79.1	%					80.7	%		77.6	%
Operating margin		1.9	%		3.0	%					1.7	%		3.3	%

⁽¹⁾ Same store amounts include the results for the identical months in each period presented in the comparison, commencing with the first month we owned the dealership and, in the case of dispositions, ending with the last month we owned it. Same store results also include the activities of the corporate office.

Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures
(Unaudited)
(Dollars in thousands, except per share amounts)

	Net Income								Diluted EPS
	Q4 2004		Q4 2003			% Change			Q4 2004		Q4 2003			% Change
Q4 2004 vs. Q4 2003 RECONCILIATION:
As reported	$	11,195	$	19,636			(43.0	)%	$	0.47	$	0.84			(44.0	)%
Adjustments:
Asset impairments		1,979								0.08
Tax contingencies		—		(4,840	)					—		(0.21	)
Used vehicle reserves		—		(2,133	)					—		(0.09	)
As adjusted	$	13,174	$	12,663			4.0	%	$	0.56	$	0.54			1.9	%
	Net Income								Diluted EPS
	2004		2003			% Change			2004		2003			% Change
2004 vs. 2003 RECONCILIATION:
As reported	$	27,781	$	76,126			(63.5	)%	$	1.18	$	3.26			(63.8	)%
Adjustments:
Asset impairments		31,239		—						1.33		—
Loss on redemption of senior subordinated notes		4,011		—						0.17		—
Tax contingencies		—		(5,423	)					—		(0.23	)
Used vehicle reserves		—		(3,426	)					—		(0.15	)
As adjusted	$	63,031	$	67,277			(6.3	)%	$	2.68	$	2.88			(6.9	)%

Note: Columns and rows may not foot due to rounding.