Exhibit 99.1


                 Hometown Auto Retailers Announces Completion of
                      the Settlement of Litigation Matters

WATERTOWN,  Conn. - March 8, 2005 - Hometown Auto Retailers, Inc. (OTC BB: HCAR)
has  announced  that the  settlement  in  principal  of the  litigation  matters
described  in  Footnote  9 in the  Notes  to  Unaudited  Consolidated  Financial
Statements,  as contained in Hometown's  most recent Form 10-Q as filed with the
Securities and Exchange Commission on November 12, 2004, has now been formalized
by  the  completion,  execution  and  delivery  of a  settlement  agreement  and
applicable releases of claims from all parties to the litigation. The settlement
agreement  settles all claims made by Salvatore  Vergopia  and Edward  Vergopia,
former directors and executive officers of the Corporation,  and Janet Vergopia,
the wife of Salvatore  Vergopia (the  "Vergopias").  The settlement also finally
resolved the related insurance coverage  litigation with Universal  Underwriters
Group and The Chubb  Group of  Insurance  Companies.  The gross  payment  to the
Vergopias by all parties is $4 million of which $600,000 is payable by Hometown.
The settlement will be completed when all the material terms have been satisfied
including Hometown's payment of its share of the gross settlement proceeds.  The
settlement  with the Vergopias  and the insurers  included an exchange of mutual
releases  of claims  among the  parties  and a  withdrawal  of all  claims  with
prejudice and without costs or attorneys fees to any party.  The settlement also
provides for the transfer to the Vergopias of certain  Westwood  Lincoln Mercury
Sales,  Inc.  assets,  including  its  Lincoln  Mercury  franchise,  subject  to
manufacturer  approval which is pending, the termination of Hometown's Westwood,
New Jersey  lease,  and the receipt by Hometown of all of the 940,000  shares of
Class B Common Stock owned by the Vergopias.  The Settlement  Agreement does not
constitute an admission of liability or wrongdoing by any party.

                                 About Hometown

Hometown  Auto  Retailers  (www.htauto.com)  sells  new and used  cars and light
trucks,  provides  maintenance and repair services,  sells replacement parts and
provides  related  financing,  insurance  and  service  contracts  through  nine
franchised   dealerships   located  in  New  Jersey,   New  York,   Connecticut,
Massachusetts  and Vermont.  The company's  dealerships  offer nine American and
Asian automotive  brands,  including  Chevrolet,  Chrysler,  Dodge,  Ford, Jeep,
Lincoln,  Mazda,  Mercury,  and  Toyota.  Hometown is also active in two "niche"
segments of the automotive  market: the sale of Lincoln Town Cars and limousines
to livery car and livery fleet  operators and the maintenance and repair of cars
and  trucks  at a Ford and  Lincoln  Mercury  factory  authorized  free-standing
service center.

This release contains "forward-looking statements" based on current expectations
but  involving  known and unknown  risks and  uncertainties.  Actual  results or
achievements  may be materially  different from those expressed or implied.  The
company's plans and objectives are based on assumptions involving judgments with
respect to future economic,  competitive and market  conditions,  its ability to
consummate, and the timing of acquisitions and future business decisions, all of
which are difficult or impossible  to predict  accurately  and many of which are
beyond the control of the company. Therefore, there can be no assurance that any
forward-looking statement will prove to be accurate.