Penske Automotive (PAG) 8-K Unitedauto Reports Record Third 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 THIRD QUARTER

Revenues Increase 18.3%

Net Income and Earnings Per Share Increase 15%

Most Profitable Quarter in Company History

Same-Store Retail Revenues Increase 9.9% and Related Gross Profit Increases 9.8%

     BLOOMFIELD HILLS, MI,NOVEMBER 4, 2003—United Auto Group, Inc. (NYSE: UAG), a FORTUNE 500 automotive specialty retailer, announced today that revenues for the third quarter increased 18.3% to a record $2.4 billion, driven by a 9.9% increase in same-store retail revenues. Importantly, the Company announced that same-store growth increased dramatically in each of its product lines, with new retail vehicle sales, used retail vehicle sales, service and parts sales, and finance and insurance revenues up 8.8%, 12.3%, 10.6% and 16.2%, respectively. Record income from continuing operations was $25.2 million, up 14.2%, and related earnings per share grew 15.1% to $0.61.

     For the nine months ended September 30, 2003, revenues increased 20.9% to $6.5 billion. Income from continuing operations was $65.6 million and related earnings per share was $1.59, an increase of 10.4%. Net income was $62.9 million and earnings per share was $1.52. Net income for the nine 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 “Accounting by a Customer (including a Reseller) for Certain Consideration Received from a Vendor.”

     Chairman Roger Penske commented, “Once again, UnitedAuto delivered a quarter of record results. We believe our strong same-store revenue growth is the direct result of our brand mix and our capital investment strategy. I am particularly pleased with the 10.6% same-store revenue increase in our

48% margin service and parts business, and the 60-basis point growth in our overall service and parts margin during the quarter. Our investment in service capacity continues to yield results. For the fourth quarter, we estimate earnings in the range of $0.45 — $0.49 per share, bringing our full-year earnings projection to $2.04 — 2.08 per share (excluding the cumulative effect of the change in accounting principle).”

     During 2003, UnitedAuto has completed acquisitions totaling approximately $650 million in annualized revenue, representing approximately $300 million in the United States and another $350 million in the United Kingdom. These acquisitions are within the Company’s targeted acquisition range for 2003.

     UnitedAuto, which has pursued a strategy based on internal growth from its existing dealerships, as well as from strategic acquisitions, operates 134 franchises in the United States and 79 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 third quarter 2003 on Tuesday, November 4, 2003 at2P.M.Eastern time. Participants must call(888) 428-4478 (International, please call (651) 291-5254). 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 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, 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.

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

		Third Quarter
		2003			2002
New Vehicles		$	1,400,635		$	1,191,511
Used Vehicles			494,250			396,244
Finance and Insurance			58,075			48,003
Service and Parts			242,829			202,598
Fleet			27,290			31,604
Wholesale			140,016			127,754
	Total Revenues		2,363,095			1,997,714
Cost of Sales			2,027,100			1,719,264
	Gross Profit		335,995			278,450
SG&A Expenses			262,746			216,506
Depreciation and Amortization			8,202			5,256
	Operating Income		65,047			56,688
Floor Plan Interest Expense			(11,172	)		(8,873	)
Other Interest Expense			(11,117	)		(9,927	)
	Income from Continuing Operations Before Minority Interests and Income Tax Provision		42,758			37,888
Minority Interests			(655	)		(458	)
Income Tax Provision			(16,889	)		(15,344	)
	Income from Continuing Operations		25,214			22,086
Income (Loss) from Discontinued Operations, Net of Tax			41			(97	)
	Net Income	$	25,255		$	21,989
Income from Continuing Operations Per Diluted Share		$	0.61		$	0.53
Diluted EPS		$	0.61		$	0.53
Diluted Weighted Average Shares Outstanding			41,637			41,733

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

			Nine Months
			2003			2002
New Vehicles			$	3,786,798		$	3,207,432
Used Vehicles				1,405,545			1,062,042
Finance and Insurance				158,971			127,875
Service and Parts				680,236			551,526
Fleet				93,219			90,704
Wholesale				384,497			343,781
	Total Revenues			6,509,266			5,383,360
Cost of Sales				5,577,325			4,619,773
	Gross Profit			931,941			763,587
SG&A Expenses				733,876			593,535
Depreciation and Amortization				22,963			15,210
	Operating Income			175,102			154,842
Floor Plan Interest Expense				(31,611	)		(25,451	)
Other Interest Expense				(32,215	)		(27,682	)
	Income from Continuing Operations Before Minority Interests and Income Tax Provision			111,276			101,709
Minority Interests				(1,706	)		(1,383	)
Income Tax Provision				(43,956	)		(40,963	)
	Income from Continuing Operations			65,614			59,363
Income from Discontinued Operations, Net of Tax				296			2,226
		Income Before Cumulative Effect of Accounting Change		65,910			61,589
Cumulative Effect of Accounting Change (a)				(3,058	)		—
	Net Income		$	62,852		$	61,589
Income from Continuing Operations Per Diluted Share			$	1.59		$	1.44
Diluted EPS before Cumulative Effect of Accounting Change			$	1.60		$	1.50
Cumulative Effect of Accounting Change on Diluted EPS			$	(0.07	)	$	—
Diluted EPS			$	1.52		$	1.50
Diluted Weighted Average Shares Outstanding				41,258			41,168

(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.”

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

		9/30/03		12/31/02
Assets		(unaudited)
Cash and Cash Equivalents		$	10,803	$	10,641
Accounts Receivable, Net			346,142		310,378
Inventories			1,001,107		942,732
Other Current Assets			41,047		27,230
	Total Current Assets		1,399,099		1,290,981
Property and Equipment, Net			429,406		306,234
Intangibles			1,060,907		973,342
Assets of Discontinued Operations			—		53,085
Other Assets			76,512		66,672
	Total Assets	$	2,965,924	$	2,690,314
Liabilities and Stockholders’ Equity
Floor Plan Notes Payable			879,589		882,100
Accounts Payable and Accrued Expenses			376,842		271,036
Current Portion Long-Term Debt			4,452		14,979
	Total Current Liabilities		1,260,883		1,168,115
Long-Term Debt (a)			782,845		651,176
Other Long-Term Liabilities			139,499		135,036
Liabilities of Discontinued Operations			—		31,545
	Total Liabilities		2,183,227		1,985,872
Stockholders’ Equity			782,697		704,442
	Total Liabilities and Stockholders’ Equity	$	2,965,924	$	2,690,314

(a) Undrawn capacity under the Company’s credit facilities amounted to approximately $300 million as of September 30, 2003.

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UNITED AUTO GROUP, INC.
Selected Data

				Third Quarter						Nine Months
				2003			2002			2003			2002
Units
	New Retail Units				47,934			43,026			130,328			116,032
	Used Retail Units				23,474			19,886			67,894			55,306
			Total Retail Units		71,408			62,912			198,222			171,338
Same-Store Retail Revenue
	New Vehicles			$	1,259,181		$	1,157,219		$	2,961,380		$	2,780,762
	Used Vehicles				429,382			382,444			871,899			793,683
	Finance and Insurance				47,523			40,898			115,182			100,257
	Service and Parts				217,317			196,461			498,981			463,892
		Total Same-Store Retail Revenue		$	1,953,403		$	1,777,022		$	4,447,442		$	4,138,594
Same-Store Retail Revenue Growth
	New Vehicles				8.8	%		9.2	%		6.5	%		7.0	%
	Used Vehicles				12.3	%		2.9	%		9.9	%		1.1	%
	Finance and Insurance				16.2	%		10.2	%		14.9	%		10.2	%
	Service and Parts				10.6	%		6.0	%		7.6	%		5.8	%
Revenue Mix
	New Vehicles				59.3	%		59.7	%		58.2	%		59.5	%
	Used Vehicles				20.9	%		19.8	%		21.6	%		19.7	%
	Finance and Insurance				2.4	%		2.4	%		2.4	%		2.4	%
	Service and Parts				10.3	%		10.1	%		10.5	%		10.3	%
	Fleet				1.2	%		1.6	%		1.4	%		1.7	%
	Wholesale				5.9	%		6.4	%		5.9	%		6.4	%
Retail Gross Margin — by Product
	New Vehicles				8.1	%		8.2	%		8.3	%		8.4	%
	Used Vehicles				9.3	%		9.5	%		9.3	%		10.0	%
	Finance and Insurance				100.0	%		100.0	%		100.0	%		100.0	%
	Service and Parts				48.0	%		47.4	%		48.0	%		46.9	%
Gross Profit per Transaction
	New Vehicles			$	2,377		$	2,272		$	2,413		$	2,334
	Used Vehicles				1,955			1,898			1,924			1,922
	Finance and Insurance				813			763			802			746

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UNITED AUTO GROUP, INC.
Selected Data (Continued)

		Third Quarter						Nine Months
		2003			2002			2003			2002
Brand Mix:
	Toyota/Lexus		23	%		23	%		22	%		24	%
	BMW		14	%		11	%		13	%		10	%
	Honda/Acura		11	%		12	%		12	%		12	%
	General Motors		10	%		12	%		11	%		13	%
	Mercedes		10	%		8	%		10	%		8	%
	Ford Premier Group		8	%		7	%		8	%		6	%
	Chrysler		7	%		10	%		7	%		10	%
	Nissan/Infiniti		5	%		5	%		5	%		5	%
	Ford		4	%		5	%		4	%		5	%
	Other		8	%		7	%		8	%		7	%
Debt to Total Capital Ratio			50	%		49	%		50	%		49	%
Adjusted EBITDA (a)		$	62,077		$	53,071		$	166,454		$	144,601
Rent Expense			21,673			17,024			62,132			45,262

(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:

	Third Quarter				Nine Months
	2003		2002		2003		2002
Income from continuing operations before minority interests and income tax provision	$	42.8	$	37.9	$	111.3	$	101.7
Other interest expense		11.1		9.9		32.2		27.7
Depreciation and amortization		8.2		5.3		23.0		15.2
Adjusted EBITDA	$	62.1	$	53.1	$	166.5	$	144.6

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