United Auto Group, Inc. (Form: 8-K)

Roger Penske

Jim Davidson

Tony Pordon

Chairman
248-648-2400

Executive VP – Finance
201-325-3303

Senior Vice President
248-648-2540

jdavidson@unitedauto.com

tpordon@unitedauto.com

UNITEDAUTO REVENUES INCREASE 20%
____________________________________________________________

Results Include $0.03 per Share of Severance Charges
___________________________________________________________

BLOOMFIELD HILLS, MI, July 19, 2005 – United Auto Group, Inc. (NYSE: UAG), a FORTUNE 500 automotive specialty retailer, today announced its 25^th consecutive quarter of record revenues and a 25 basis-point improvement in gross margin to 14.8%. Total revenue increased 20% to $2.7 billion, including a 7.2% increase in same-store retail revenue. Same-store highlights include:

Net income for the quarter was $33.2 million, or $0.71 per share and included $1.2 million ($0.03 per share) of after-tax severance charges as UnitedAuto rationalized its cost structure in certain markets. Second quarter 2004 net income was $33.0 million, or $0.71 per share, and included a $4.0 million ($0.09 per share) after-tax gain resulting from the sale of an investment. Excluding the impact of the severance charges and the gain from investment, adjusted net income increased 18.8% to $34.4 million from $29.0 million in the prior period.

Roger Penske, UnitedAuto Chairman, commented, “We are pleased with the revenue growth and margin expansion we realized across each of our product lines during the second quarter. We continue to achieve impressive growth in our higher margin service and parts departments due, in part, to our capital investment program. Total service and parts revenue increased 22.3% to $281 million in the quarter, helping to drive our gross margin increase.” Penske continued, “Our strong sales performance and focus on managing inventory resulted in a 55-days supply of new vehicle inventory in the U.S. compared to a 67-days supply for the U.S. auto industry.”

Commenting further Penske said, “The Company is currently projecting earnings per share in the third quarter in the range of $0.66 to $0.71 based on an estimated average of 47.2 million shares outstanding. For the full year, we are raising our earnings per share guidance to a range of $2.37 to $2.44 per share.”

UnitedAuto will host a conference call discussing financial results relating to second quarter 2005 on Tuesday, July 19, 2005 at 1:30 p.m. ET. To listen to the conference call, participants must dial (800) 553-0349 [International, please dial (612) 332-0228]. The call will be simultaneously broadcast live over the Internet through the UnitedAuto website at www.unitedauto.com.

About UnitedAuto
UnitedAuto, which has pursued a strategy based on internal growth from its existing dealerships, as well as from strategic acquisitions, operates 143 franchises in the United States and 96 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. 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 is contained in UnitedAuto’s Form 10-K for the year ended December 31, 2004, and its other filings with the Securities and Exchange Commission, and which is 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 non-GAAP financial measures as defined under SEC rules, such as adjusted net income, 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)


	Second Quarter
	2005			2004
New Vehicles	$	1,589,160		$	1,316,925
Used Vehicles		582,894			503,912
Finance and Insurance		61,038			49,738
Service and Parts		280,749			229,594
Fleet		26,288			22,791
Wholesale		203,684			163,366

Total Revenues		2,743,813			2,286,326
Cost of Sales		2,338,088			1,953,948

Gross Profit		405,725			332,378
SG&A Expenses		318,059			256,968
Depreciation and Amortization		10,404			8,542

Operating Income		77,262			66,868
Floor Plan Interest Expense		(14,201	)		(10,511	)
Other Interest Expense		(12,308	)		(10,052	)
Other Income		—			6,611

Income from Continuing Operations Before Minority Interests and Income Tax Provision		50,753			52,916
Minority Interests		(621	)		(502	)
Income Tax Provision		(18,725	)		(20,549	)

Income from Continuing Operations		31,407			31,865
Income from Discontinued Operations, Net of Tax		1,789			1,138

Net Income	$	33,196		$	33,003

Income from Continuing Operations Per Diluted Share	$	0.67		$	0.68

Diluted EPS	$	0.71		$	0.71

Diluted Weighted Average Shares Outstanding		47,041			46,565

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


	Six Months
	2005			2004
New Vehicles	$	2,991,973		$	2,561,238
Used Vehicles		1,132,798			1,001,766
Finance and Insurance		117,339			99,480
Service and Parts		553,254			456,347
Fleet		54,658			46,307
Wholesale		385,908			321,050

Total Revenues		5,235,930			4,486,188
Cost of Sales		4,451,637			3,828,363

Gross Profit		784,293			657,825
SG&A Expenses		623,704			516,619
Depreciation and Amortization		20,677			16,782

Operating Income		139,912			124,424
Floor Plan Interest Expense		(27,481	)		(23,236	)
Other Interest Expense		(23,789	)		(20,817	)
Other Income		—			6,611

Income from Continuing Operations Before Minority Interests and Income Tax Provision		88,642			86,982
Minority Interests		(764	)		(822	)
Income Tax Provision		(32,707	)		(33,770	)

Income from Continuing Operations		55,171			52,390
Income from Discontinued Operations, Net of Tax		917			817

Net Income	$	56,088		$	53,207

Income from Continuing Operations Per Diluted Share	$	1.17		$	1.18

Diluted EPS	$	1.19		$	1.19

Diluted Weighted Average Shares Outstanding		47,025			44,548

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


	6/30/05		12/31/04
Assets
Cash and Cash Equivalents	$	11,064	$	15,187
Accounts Receivable, Net		408,433		356,625
Inventories		1,271,904		1,252,358
Other Current Assets		60,169		44,315

Total Current Assets		1,751,570		1,668,485
Property and Equipment, Net		430,418		406,783
Intangibles		1,224,978		1,221,731
Other Assets		70,312		86,881
Assets of Discontinued Operations		94,969		148,921

Total Assets	$	3,572,247	$	3,532,801

Liabilities and Stockholders’ Equity
Floor Plan Notes Payable	$	1,168,460	$	1,197,540
Accounts Payable and Accrued Expenses		461,360		402,232
Current Portion Long-Term Debt		3,561		11,367

Total Current Liabilities		1,633,381		1,611,139
Long-Term Debt		604,576		574,970
Other Long-Term Liabilities		182,363		179,104
Liabilities of Discontinued Operations		53,459		92,553

Total Liabilities		2,473,779		2,457,766
Stockholders’ Equity		1,098,468		1,075,035

Total Liabilities and Stockholders’ Equity	$	3,572,247	$	3,532,801


	Second Quarter						Six Months
	2005			2004			2005			2004
Units
New Retail Units		48,590			41,745			91,337			80,924
Used Retail Units		22,345			20,814			44,090			41,588

Total Retail Units		70,935			62,559			135,427			122,512

Same-Store Retail Revenue
New Vehicles	$	1,413,769		$	1,309,234		$	2,628,286		$	2,531,310
Used Vehicles		517,103			498,843			1,002,638			987,625
Finance and Insurance		56,798			49,560			108,509			98,950
Service and Parts		246,834			227,116			482,606			448,049

Total Same-Store Retail Revenue	$	2,234,504		$	2,084,753		$	4,222,039			4,065,934

Same-Store Retail Revenue Growth
New Vehicles		8.0	%		3.1	%		3.8	%		7.1	%
Used Vehicles		3.7	%		(1.2	%)		1.5	%		3.1	%
Finance and Insurance		14.6	%		(3.4	%)		9.7	%		1.5	%
Service and Parts		8.7	%		11.7	%		7.7	%		14.2	%
Revenue Mix
New Vehicles		57.9	%		57.6	%		57.2	%		57.1	%
Used Vehicles		21.3	%		22.0	%		21.6	%		22.3	%
Finance and Insurance		2.2	%		2.2	%		2.2	%		2.2	%
Service and Parts		10.2	%		10.0	%		10.6	%		10.2	%
Fleet		1.0	%		1.0	%		1.0	%		1.0	%
Wholesale		7.4	%		7.2	%		7.4	%		7.2	%
Retail Gross Margin — by Product
New Vehicles		8.7	%		8.5	%		8.7	%		8.6	%
Used Vehicles		9.1	%		8.9	%		9.2	%		8.9	%
Finance and Insurance		100.0	%		100.0	%		100.0	%		100.0	%
Service and Parts		54.7	%		54.4	%		54.4	%		54.3	%
Gross Profit per Transaction
New Vehicles	$	2,835		$	2,695			2,851			2,714
Used Vehicles		2,386			2,149			2,367			2,138
Finance and Insurance		860			795			866			812


	Second Quarter						Six Months
	2005			2004			2005			2004

Brand Mix:
Toyota/Lexus		21	%		24	%		21	%		24	%
BMW		14	%		16	%		14	%		16	%
Honda/Acura		14	%		11	%		14	%		11	%
Mercedes		10	%		11	%		10	%		11	%
Ford Premier Group		7	%		8	%		7	%		8	%
Audi		7	%		4	%		7	%		4	%
General Motors		8	%		8	%		7	%		8	%
Ford		3	%		3	%		3	%		3	%
Nissan/Infiniti		4	%		4	%		4	%		4	%
Chrysler		3	%		4	%		4	%		4	%
Other		9	%		7	%		9	%		7	%
Debt to Total Capital Ratio		36	%		35	%		36	%		35	%
Rent Expense	$	29,667		$	21,736		$	57,725		$	43,527

BLOOMFIELD HILLS, MI, July 19, 2005 – United Auto Group, Inc. (NYSE:UAG), a FORTUNE 500 automotive specialty retailer, today announced that its Board of Directors has approved a quarterly dividend of $0.11 per share payable on September 1, 2005 to shareholders of record on August 10, 2005.

UnitedAuto, which has pursued a strategy based on internal growth from its existing dealerships, as well as from strategic acquisitions, operates 143 franchises in the United States and 96 franchises internationally, primarily in the United Kingdom. UnitedAuto dealerships sell new and used vehicles, and market a complete line of after-market automotive products and services.

Statements in this press release may involve forward-looking statements, including forward-looking statements regarding UnitedAuto. 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, 2004, 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.


Delaware	1-12297	22-3086739
_____________________ (State or other jurisdiction	_____________ (Commission	______________ (I.R.S. Employer
of incorporation)	File Number)	Identification No.)

2555 Telegraph Road, Bloomfield Hills, Michigan		48302
_________________________________ (Address of principal executive offices)		___________ (Zip Code)


	United Auto Group, Inc.

July 19, 2005	By:	Robert H. Kurnick, Jr.

		Name: Robert H. Kurnick, Jr.
		Title: Executive Vice President


Exhibit No.		Description

99.1		Earnings Press Release
99.2		Dividend Press Release


Date of Report (Date of Earliest Event Reported):		July 19, 2005


Registrant’s telephone number, including area code:		248-648-2500


Contact:	Jim Davidson Executive Vice President – Finance 201-325-3303 jdavidson@unitedauto.com	Tony Pordon Senior Vice-President 248-648-2540 tony.pordon@unitedauto.com