Penske Automotive (PAG) 8-K Unitedauto Reports Record Second Quarter

Exhibit 99.1

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	tony.pordon@unitedauto.com

UNITEDAUTO REPORTS RECORD SECOND QUARTER

Revenues Increase 18.7%

Income from Continuing Operations Per Share Increases 7.5%

Same Store Retail Revenues Increase 11.0% and Related Gross Profit Increases 10.9%

     BLOOMFIELD HILLS, MI, JULY 30, 2003 — United Auto Group, Inc. (NYSE: UAG), a FORTUNE 500 automotive specialty retailer, announced today that revenues for the second quarter increased 18.7% to a record $2.2 billion. The increase in revenue includes an 11.0% increase in same-store retail revenues, with each of the Company’s product offerings experiencing same store growth. The same store growth consists of increases in new retail vehicle sales, used retail vehicle sales, service and parts sales, and finance and insurance revenues of 9.0%, 16.9%, 9.3% and 18.6%, respectively. Income from continuing operations was $23.3 million and related earnings per share was $0.57, an increase of 7.5%. Net income was $23.9 million and earnings per share increased 3.6% to $0.58.

     For the six months ended June 30, 2003, revenues increased 22.0% to $4.2 billion. Income from continuing operations was $40.1 million and related earnings per share was $0.98, an increase of 6.5%. Net income was $37.6 million and related earnings per share was $0.92. Net income for the six months includes a $3.1 million, or $0.07 per share, charge as a result of the cumulative effect of a change in accounting principle recorded in the first quarter in connection with the adoption of EITF 02-16.

     Chairman Roger Penske commented, “We believe that our robust same store growth is the direct result of our brand mix, our focus on increasing units in operation and our capital investment strategy,

2

which we believe will continue to generate future growth in all aspects of our business. I am particularly pleased with the 9.3% same-store increase in our higher margin service and parts business, which, coupled with a 70 basis point expansion in our overall service and parts margin to 47.9%, is indicative that our investment in service capacity continues to yield results. We reiterate our annual earnings projection of $1.96 — $2.06 per share (excluding the cumulative effect of the change in accounting principle), with a third quarter estimate of $0.58 — $0.62 per share.”

     Sam DiFeo, Jr., President, added “Our strategies and business model are being validated by our strong same store performance. During the second quarter, our U.S. businesses experienced 5.4% same store new retail unit volume growth, which compares to an overall U.S. market decline of 0.6%. In addition, the 16.9% increase in same store used retail revenues was significantly stronger than the overall used vehicle market. As we enter the third quarter and continue through the primary vehicle sales season in many of our markets, we are confident that our improving days supply of inventories will allow us to maximize profitability. As of June 30, 2003, our new and used vehicle inventory supplies were 56 days and 31 days, respectively, on a thirty day trailing basis.”

     This quarter’s outstanding results were achieved despite a $1.9 million, or $0.05 per share, reduction of income as the result of an adjustment to reverse $3.1 million of revenue that was falsely recorded during the 23-month period preceding March 31, 2003. The $3.1 million revenue overstatement was discovered during a routine internal audit of the books and records of the Company’s Arkansas dealerships. The Company, with the concurrence of the Audit Committee of its Board of Directors, has determined that the overstatement was immaterial to the Company’s financial statements.

     UnitedAuto, which has pursued a strategy based on internal growth from its existing dealerships, as well as from strategic acquisitions, operates 137 franchises in the United States and 74 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.

     UnitedAuto will host a conference call discussing financial results relating to second quarter 2003 on Wednesday, July 30, 2003 at9A.M.Eastern time. Advance registration is not required. Participants must call(888) 428-4471 (International, please call (612) 332-0107). Calls need to be made shortly before the call is to commence. The call will also be simultaneously broadcast live over the Internet through the UnitedAuto website at www.unitedauto.com.

     Statements in this press release may 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.

3

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, 2002 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.

4

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

			Second Quarter
			2003			2002
New Vehicles			$	1,309,351		$	1,114,200
Used Vehicles				487,460			388,206
Finance and Insurance				54,056			44,498
Service and Parts				229,801			192,588
Fleet				39,168			28,595
Wholesale				127,719			125,818
	Total Revenues			2,247,555			1,893,905
Cost of Sales				1,927,976			1,624,991
	Gross Profit			319,579			268,914
SG&A Expenses				249,620			205,677
Depreciation and Amortization				7,754			5,839
	Operating Income			62,205			57,398
Floor Plan Interest Expense				(11,657	)		(8,538	)
Other Interest Expense				(10,908	)		(9,976	)
	Income from Continuing Operations Before Minority
		Interests and Income Tax Provision		39,640			38,884
Minority Interests				(658	)		(509	)
Income Tax Provision				(15,660	)		(15,750	)
	Income from Continuing Operations			23,322			22,625
Income from Discontinued Operations, Net of Tax				542			1,264
	Net Income		$	23,864		$	23,889
Income from Continuing Operations Per Diluted Share			$	0.57		$	0.53
Diluted EPS			$	0.58		$	0.56
Diluted Weighted Average Shares Outstanding				41,176			42,841

5

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

				Six Months
				2003			2002
New Vehicles				$	2,411,981		$	2,044,863
Used Vehicles					925,590			678,800
Finance and Insurance					101,988			80,818
Service and Parts					441,959			352,572
Fleet					67,179			59,919
Wholesale					247,709			221,817
	Total Revenues				4,196,406			3,438,789
Cost of Sales					3,594,198			2,947,323
	Gross Profit				602,208			491,466
SG&A Expenses					477,297			381,920
Depreciation and Amortization					15,037			10,172
	Operating Income				109,874			99,374
Floor Plan Interest Expense					(20,659	)		(16,747	)
Other Interest Expense					(21,258	)		(17,844	)
	Income from Continuing Operations Before Minority
			Interests and Income Tax Provision		67,957			64,783
Minority Interests					(1,051	)		(925	)
Income Tax Provision					(26,845	)		(26,008	)
	Income from Continuing Operations				40,061			37,850
Income from Discontinued Operations, Net of Tax					594			1,750
		Income Before Cumulative Effect of Accounting Change			40,655			39,600
Cumulative Effect of Accounting Change (a)					(3,058	)		—
	Net Income			$	37,597		$	39,600
Income from Continuing Operations Per Diluted Share				$	0.98		$	0.92
Diluted EPS before Cumulative Effect of Accounting Change				$	0.99		$	0.96
Cumulative Effect of Accounting Change on Diluted EPS					($0.07	)	$	—
Diluted EPS				$	0.92		$	0.96
Diluted Weighted Average Shares Outstanding					40,994			41,076

(a) Represents a cumulative accounting change resulting from the adoption of EITF 02-16, “Accounting by a Customer (including a Reseller) for Certain Consideration Received from a Vendor.”

6

UNITED AUTO GROUP, INC.
Consolidated Condensed Balance Sheets
(Amounts In Thousands)

		6/30/03		12/31/02
Assets		(unaudited)
Cash and Cash Equivalents		$	15,473	$	8,909
Accounts Receivable, Net			358,194		313,503
Inventories			1,095,073		954,834
Other Current Assets			42,195		27,797
	Total Current Assets		1,510,935		1,305,043
Property and Equipment, Net			381,937		310,647
Intangibles			1,048,406		977,556
Assets of Discontinued Operations			10,813		30,396
Other Assets			70,475		66,672
	Total Assets	$	3,022,566	$	2,690,314
Liabilities and Stockholders’ Equity
Floor Plan Notes Payable		$	1,027,446		892,866
Accounts Payable and Accrued Expenses			335,877		273,756
Current Portion Long-Term Debt			4,853		14,979
	Total Current Liabilities		1,368,176		1,181,601
Long-Term Debt (a)			753,134		651,176
Other Long-Term Liabilities			152,907		135,141
Liabilities of Discontinued Operations			7,595		17,954
	Total Liabilities		2,281,812		1,985,872
Stockholders’ Equity			740,754		704,442
	Total Liabilities and Stockholders’ Equity	$	3,022,566	$	2,690,314

(a) Undrawn capacity under the Company’s credit facilities amounted to approximately $311 million as of June 30, 2003.

7

UNITED AUTO GROUP, INC.
Selected Data

				Second Quarter						Six Months
				2003			2002			2003			2002
Units
	New Retail Units				44,993			40,116			83,357			74,107
	Used Retail Units				23,803			19,447			45,097			36,064
			Total Retail Units		68,796			59,563			128,454			110,171
Same Store Retail Revenue
	New Vehicles			$	1,192,077		$	1,093,769		$	1,930,713		$	1,815,794
	Used Vehicles				443,889			379,610			580,323			529,612
	Finance and Insurance				44,876			37,840			74,536			64,890
	Service and Parts				205,918			188,387			327,322			306,615
		Total Same Store Retail Revenue		$	1,886,760		$	1,699,606		$	2,912,894		$	2,716,911
Same Store Retail Revenue Growth
	New Vehicles				9.0	%		3.3	%		6.3	%		5.4	%
	Used Vehicles				16.9	%		(1.1	%)		9.6	%		0.1	%
	Finance and Insurance				18.6	%		6.9	%		14.9	%		9.9	%
	Service and Parts				9.3	%		5.8	%		6.8	%		6.2	%
Revenue Mix
	New Vehicles				58.3	%		58.8	%		57.5	%		59.5	%
	Used Vehicles				21.7	%		20.5	%		22.1	%		19.7	%
	Finance and Insurance				2.4	%		2.4	%		2.4	%		2.4	%
	Service and Parts				10.2	%		10.2	%		10.5	%		10.3	%
	Fleet				1.7	%		1.5	%		1.6	%		1.7	%
	Wholesale				5.7	%		6.6	%		5.9	%		6.4	%
Retail Gross Margin — by Product
	New Vehicles				8.4	%		8.6	%		8.4	%		8.6	%
	Used Vehicles				9.3	%		9.8	%		9.3	%		10.3	%
	Finance and Insurance				100.0	%		100.0	%		100.0	%		100.0	%
	Service and Parts				47.9	%		47.2	%		47.9	%		46.7	%
Gross Profit per Transaction
	New Vehicles			$	2,445		$	2,380		$	2,431		$	2,367
	Used Vehicles				1,894			1,959			1,904			1,940
	Finance and Insurance				786			747			794			734

8

UNITED AUTO GROUP, INC.
Selected Data (Continued)

		Second Quarter						Six Months
		2003			2002			2003			2002
Brand Mix:
	Toyota/Lexus		22	%		24	%		22	%		25	%
	BMW		13	%		11	%		13	%		9	%
	Honda/Acura		11	%		11	%		11	%		11	%
	General Motors		11	%		12	%		11	%		13	%
	Mercedes		9	%		9	%		9	%		8	%
	Chrysler		8	%		10	%		8	%		10	%
	Nissan/Infiniti		5	%		6	%		5	%		6	%
	Ford		4	%		5	%		4	%		5	%
	Other		17	%		12	%		17	%		13	%
Debt to Total Capital Ratio			51	%		47	%		51	%		47	%
Adjusted EBITDA (a)		$	58,302		$	54,699		$	104,252		$	92,799

(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, which are 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
	2003		2002		2003		2002
Income from continuing operations before minority interests and income tax provision	$	39.6	$	38.9	$	68.0	$	64.8
Other interest expense		10.9		10.0		21.3		17.8
Depreciation and amortization		7.8		5.8		15.0		10.2
Adjusted EBITDA	$	58.3	$	54.7	$	104.3	$	92.8