exv99w1

Exhibit 99.1

FOR IMMEDIATE RELEASE

GROUP 1 AUTOMOTIVE REPORTS SOLID FIRST-QUARTER EARNINGS ON STRONG REVENUE GROWTH

Acquires Audi Dealership in Columbia, S.C.

HOUSTON, April 27, 2010 — Group 1 Automotive, Inc. (NYSE: GPI), a Fortune 500 automotive retailer, today reported first-quarter adjusted net income of $10.4 million, or $0.44 per diluted share, for the period ended March 31, 2010, as compared to adjusted net income of $4.7 million, or $0.20 per diluted share, for the first quarter of 2009.

For comparison purposes, as shown in the attached reconciliation table, the adjusted first-quarter 2010 results exclude net after-tax losses of $2.5 million, or $0.10 per diluted share, associated with the early redemption of the company’s 8.25 percent senior subordinated notes in 2010. The adjusted first-quarter 2009 results exclude net after-tax gains of $3.7 million, or $0.17 per diluted share, comprised of gains on debt redemptions partially offset by a loss incurred on a dealership disposition. Including these items, net income for the first quarter of 2010 was $8.0 million, or $0.34 per diluted share.

First-Quarter Operating Highlights

•		Group 1’s total consolidated revenues grew 16.8 percent, with new vehicle and used vehicle retail sales increasing 18.1 percent and 24.3 percent, respectively.

•		Same-store revenues reflected even stronger increases, with total revenue growth of 17.4 percent compared to the prior year.

•		Group 1’s same-store gross margin was 17.2 percent, largely driven by a significant sequential improvement in used retail vehicle margins to 9.5 percent, as well as improvements in both new vehicle and parts and service margins.

•		On a same-store per-retail-unit basis, new vehicle gross profit improved 13.6 percent to $1,891, and finance and insurance gross profit grew to $1,063.

•		Same-store wholesale used vehicle gross profit increased 58.9 percent to $251 per unit sold, as wholesale used vehicle auction prices continue to be strong.

•		Group 1’s consolidated selling, general and administrative (SG&A) expenses as a percent of gross profit improved 250 basis points, to 81.4 percent, compared to the prior-year period.

“Fueled by an improved industry selling environment late in the first quarter, we were successful in delivering a strong start to 2010 with adjusted earnings per share more than doubling from the same period a year ago,” said Earl J. Hesterberg, Group 1’s president and chief executive officer. “These solid results reflect the benefits of an improved business structure coupled with a strengthening auto retail market.”

Corporate Development Update

Group 1 announced it acquired an Audi dealership in Columbia, S.C., on April 26. The dealership is expected to generate $14.5 million of estimated annual revenues. This dealership will complement the company’s existing BMW of Columbia store.

The company previously announced that it had acquired Toyota/Scion of Rock Hill in South Carolina with expected annual revenues of $55 million in April.

During the first quarter, as previously announced, Group 1 acquired two BMW/Mini dealerships in the United

Group 1 Automotive, Inc.

Kingdom – Barons Farnborough and Barons Hindhead – located southwest of London. Additionally, Mercedes-Benz USA awarded Group 1 Sprinter franchises in Massapequa, N.Y., and Augusta, Ga.

Year to date, Group 1 has added eight franchises that are expected to generate $242.2 million in estimated annual revenues.

Balance Sheet

New vehicle inventory was $454.3 million as of March 31, 2010, an increase of $26.4 million compared to Dec. 31, 2009. During the first quarter, the company issued $100.0 million of 3.00 percent convertible bonds and subsequently redeemed all of its outstanding 8.25 percent senior subordinated notes. The company ended the quarter with overall immediately available funds of $113.6 million and overall available liquidity of $291.0 million.

First-Quarter Earnings Conference Call

Group 1’s senior management will host a conference call today at 10 a.m. ET to discuss the first-quarter financial results and the company’s outlook and strategy.

The conference 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. A slide presentation will be posted to Group 1’s website prior to the call.

The conference call will also be available live by dialing in 10 minutes prior to the start of the call at:

Domestic: 888.417.2254
International: 719.457.2605
Participant Passcode: 7454724

A telephonic replay will be available following the call through May 4 by dialing:

Domestic: 888.203.1112

International: 719.457.0820

Replay Passcode: 7454724

About Group 1 Automotive, Inc.

Group 1 owns and operates 102 automotive dealerships, 138 franchises, and 25 collision service centers in the United States and the United Kingdom that offer 32 brands of automobiles. Through its dealerships, the company sells new and used 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 contains “forward-looking statements,” which are statements related to future, not past, events and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. In this context, the forward-looking statements often include statements regarding our goals, plans, projections and guidance regarding our financial position, results of operations, market position, pending and potential future acquisitions and business strategy, and often contain words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “may” or “will” and similar expressions. Any such forward-looking statements are not assurances of future performance and involve risks and uncertainties that may cause actual results to differ materially from those set forth in the statements. These risks and uncertainties include, among other things, (a) general economic and business conditions, (b) the level of manufacturer incentives, (c) the future regulatory environment, (d) our ability to obtain an inventory of desirable new and used vehicles, (e) our relationship with our automobile manufacturers and the willingness of manufacturers to approve future acquisitions, (f) our cost of financing and the availability of credit for consumers, (g) our ability to complete acquisitions and dispositions and the risks associated therewith, (h) foreign exchange controls and currency fluctuations, and (i) our ability to retain key personnel. These factors, as well as additional factors that could affect our forward-looking statements, are described in our

Group 1 Automotive, Inc.

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, whether as a result of new information, future developments or otherwise, except as may be required by law.

Investor contacts:

Kim Paper Canning, Manager, Investor Relations | Group 1 Automotive Inc. | 713-647-5741 | kpaper@group1auto.com

Media contacts:

Pete DeLongchamps, Vice President, Manufacturer Relations and Public Affairs
Group 1 Automotive Inc. | 713-647-5770 | pdelongchamps@group1auto.com

or
Clint Woods, Pierpont Communications, Inc. | 713-627-2223 | cwoods@piercom.com

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


	Three Months Ended March 31,
	2010			2009			% Change
REVENUES:
New vehicle retail sales	$	646,121		$	547,292			18.1	%
Used vehicle retail sales		279,609			224,859			24.3
Used vehicle wholesale sales		42,512			34,736			22.4
Parts and service		185,435			180,865			2.5
Finance and insurance		37,476			32,065			16.9

Total revenues		1,191,153			1,019,817			16.8

COST OF SALES:
New vehicle retail sales		606,747			517,818			17.2
Used vehicle retail sales		253,172			200,253			26.4
Used vehicle wholesale sales		40,849			33,792			20.9
Parts and service		85,864			85,300			0.7

Total cost of sales		986,632			837,163			17.9


GROSS PROFIT		204,521			182,654			12.0

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		166,406			153,234			8.6

DEPRECIATION AND AMORTIZATION EXPENSE		6,485			6,508			(0.4	)

OPERATING INCOME		31,630			22,912			38.0

OTHER INCOME (EXPENSE):
Floorplan interest expense		(7,566	)		(8,962	)		(15.6	)
Other interest expense, net		(7,104	)		(6,963	)		2.0
Gain (loss) on redemption of long-term debt		(3,872	)		7,381			(152.5	)
Other income, net		—			3			(100.0	)


INCOME BEFORE INCOME TAXES		13,088			14,371			(8.9	)

PROVISION FOR INCOME TAXES		(5,107	)		(5,996	)		(14.8	)


NET INCOME	$	7,981		$	8,375			(4.7	)%


DILUTED INCOME PER SHARE	$	0.34		$	0.37			(8.1	)%

Weighted average diluted shares outstanding		23,688			22,923			3.3	%

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


	March 31,			December 31,
	2010			2009			% Change
	(Unaudited)
ASSETS:

CURRENT ASSETS:
Cash and cash equivalents	$	28,172		$	13,221			113.1	%
Contracts in transit and vehicle receivables, net		105,535			86,500			22.0
Accounts and notes receivable, net		65,337			62,496			4.5
Inventories		654,660			596,743			9.7
Deferred income taxes		15,385			14,653			5.0
Prepaid expenses and other current assets		44,375			48,425			(8.4	)

Total current assets		913,464			822,038			11.1
PROPERTY AND EQUIPMENT, net		480,285			475,828			0.9
GOODWILL AND INTANGIBLE FRANCHISE RIGHTS		660,811			658,281			0.4
OTHER ASSETS		12,253			13,267			(7.6	)

Total assets	$	2,066,813		$	1,969,414			4.9	%


LIABILITIES AND STOCKHOLDERS’ EQUITY:

CURRENT LIABILITIES:
Floorplan notes payable — credit facility	$	559,439		$	491,892			13.7	%
Offset account related to floorplan notes payable — credit facility		(85,353	)		(71,573	)		19.3
Floorplan notes payable — manufacturer affiliates		114,249			115,180			(0.8	)
Current maturities of long-term debt		14,862			14,355			3.5
Current liabilities from interest rate risk management activities		8,304			10,412			(20.2	)
Accounts payable		97,141			72,276			34.4
Accrued expenses		84,777			86,271			(1.7	)

Total current liabilities		793,419			718,813			10.4
2.25% CONVERTIBLE SENIOR NOTES (aggregate principal of $182,753 at March 31, 2010 and December 31, 2009)		133,443			131,932			1.1
3.00% CONVERTIBLE SENIOR NOTES (aggregate principal of $100,000 at March 31, 2010)		62,835			—			100.0
8.25% SENIOR SUBORDINATED NOTES		—			73,267			(100.0	)
MORTGAGE FACILITY, net of current maturities		179,572			182,216			(1.5	)
OTHER REAL ESTATE RELATED AND LONG-TERM DEBT,
net of current maturities		17,599			19,040			(7.6	)
CAPITAL LEASE OBLIGATIONS RELATED TO REAL ESTATE,
net of current maturities		37,237			37,686			(1.2	)
DEFERRED INCOME TAXES		36,979			33,932			9.0
LIABILITIES FROM INTEREST RATE RISK MANAGEMENT ACTIVITIES		21,238			20,151			5.4
OTHER LIABILITIES		27,780			26,633			4.3
DEFERRED REVENUES		4,690			5,588			(16.1	)

STOCKHOLDERS’ EQUITY:
Common stock		262			262			—
Additional paid-in capital		368,314			346,055			6.4
Retained earnings		479,913			471,932			1.7
Accumulated other comprehensive loss		(27,268	)		(26,256	)		3.9
Treasury stock		(69,200	)		(71,837	)		(3.7	)

Total stockholders’ equity		752,021			720,156			4.4

Total liabilities and stockholders’ equity	$	2,066,813		$	1,969,414			4.9	%


KEY DEBT COVENANT METRICS:
Senior secured leverage ratio (must be less than 2.75)		1.39			1.31
Total leverage ratio (must be less than 4.50)		3.71			3.29
Fixed charge coverage ratio (must be greater than 1.25)		1.67			1.76
Current ratio (must be greater than 1.15)		1.39			1.34

Group 1 Automotive, Inc.
Consolidated Statements of Adjusted Cash Flows from Operating Activities
(Unaudited)
(In thousands)


	Three Months Ended March 31,
	2010			2009			% Change
Net income	$	7,981		$	8,375			(4.7	)%
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		6,485			6,508			(0.4	)
Deferred income taxes		4,330			6,138			(29.5	)
(Gain) loss on redemption of long-term debt		3,872			(7,381	)		152.5
Stock-based compensation		2,697			2,237			20.6
Amortization of debt discount and issue costs		1,635			1,971			(17.0	)
Tax effect from stock-based compensation		116			384			(69.8	)
Other		233			(649	)		135.9
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:
Inventories		(48,234	)		202,026			(123.9	)
Floorplan notes payable — credit facility		67,547			(197,660	)		134.2
Floorplan notes payable — manufacturer affiliates		(693	)		(25,285	)		(97.3	)
Contracts-in-transit and vehicle receivables		(19,097	)		16,910			(212.9	)
Accounts and notes receivable		(3,091	)		12,655			(124.4	)
Prepaid expenses and other assets		1,622			5,569			(70.9	)
Deferred revenues		(898	)		(1,241	)		(27.6	)
Accounts payable and accrued expenses		22,960			(10,715	)		314.3

Adjusted net cash provided by operating activities	$	47,465		$	19,842			139.2	%

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


		Three Months Ended
		March 31,
		2010			2009
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:
Region	Geographic Market
Eastern	Massachusetts		15.3	%		13.8	%
	New Jersey		6.5			7.0
	New Hampshire		4.6			3.7
	New York		3.7			4.3
	Georgia		3.7			3.6
	Louisiana		2.9			3.4
	Florida		1.9			2.1
	Mississippi		1.9			1.6
	Alabama		1.4			0.7
	Maryland		0.7			0.9
	South Carolina		0.3			0.3

			42.9			41.4

Central	Texas		30.9			31.9
	Oklahoma		7.7			8.3
	Kansas		0.9			1.0

			39.5			41.2

Western	California		13.8			15.6

International	United Kingdom		3.8			1.8

			100.0	%		100.0	%

NEW VEHICLE UNIT SALES BRAND MIX:
Toyota/Scion/Lexus			34.8	%		35.1	%
Nissan/Infiniti			15.8			11.7
Honda/Acura			12.6			13.6
BMW/Mini			10.4			9.1
Ford			9.2			9.2
Mercedes-Benz			5.6			6.2
GM			3.6			3.9
Chrysler			2.8			6.9
Other			5.2			4.3

			100.0	%		100.0	%

NEW VEHICLE UNIT SALES OTHER MIX:
Import			58.5	%		55.6	%
Luxury			26.9			25.4
Domestic			14.6			19.0

			100.0	%		100.0	%

Car			57.7	%		56.0	%
Truck			42.3			44.0

			100.0	%		100.0	%

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


	Three Months Ended March 31,
	2010			2009			% Change
REVENUES:
New vehicle retail sales	$	646,121		$	547,292			18.1	%
Used vehicle retail sales		279,609			224,859			24.3
Used vehicle wholesale sales		42,512			34,736			22.4

Total used		322,121			259,595			24.1
Parts and service		185,435			180,865			2.5
Finance and insurance		37,476			32,065			16.9

Total	$	1,191,153		$	1,019,817			16.8	%

GROSS MARGIN:
New vehicle retail sales		6.1	%		5.4	%
Used vehicle retail sales		9.5			10.9
Used vehicle wholesale sales		3.9			2.7
Total used		8.7			9.8
Parts and service		53.7			52.8
Finance and insurance		100.0			100.0
Total		17.2	%		17.9	%

GROSS PROFIT:
New vehicle retail sales	$	39,374		$	29,474			33.6	%
Used vehicle retail sales		26,437			24,606			7.4
Used vehicle wholesale sales		1,663			944			76.2

Total used		28,100			25,550			10.0
Parts and service		99,571			95,565			4.2
Finance and insurance		37,476			32,065			16.9

Total	$	204,521		$	182,654			12.0	%

UNITS SOLD:
Retail new vehicles sold		20,631			17,931			15.1	%
Retail used vehicles sold		14,993			13,092			14.5
Wholesale used vehicles sold		6,716			6,429			4.5

Total used		21,709			19,521			11.2	%

GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,908		$	1,644			16.1	%
Used vehicle retail sales		1,763			1,879			(6.2	)
Used vehicle wholesale sales		248			147			68.7
Total used		1,294			1,309			(1.1	)
Finance and insurance (per retail unit)	$	1,052		$	1,034			1.7	%

OTHER:
SG&A expenses	$	166,406		$	153,234			8.6	%
SG&A as % revenues		14.0	%		15.0	%
SG&A as % gross profit		81.4	%		83.9	%
Operating margin		2.7	%		2.2	%
Pretax margin		1.1	%		1.4	%

Floorplan interest	$	(7,566	)	$	(8,962	)		(15.6	)%
Floorplan assistance		5,235			4,534			15.5

Net floorplan expense	$	(2,331	)	$	(4,428	)		(47.4	)%

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


	Three Months Ended March 31,
	2010			2009			% Change
REVENUES:
New vehicle retail sales	$	633,037		$	534,093			18.5	%
Used vehicle retail sales		272,500			218,587			24.7
Used vehicle wholesale sales		41,588			33,778			23.1

Total used		314,088			252,365			24.5
Parts and service		182,764			175,860			3.9
Finance and insurance		37,117			31,394			18.2

Total	$	1,167,006		$	993,712			17.4	%

GROSS MARGIN:
New vehicle retail sales		6.0	%		5.5	%
Used vehicle retail sales		9.5			10.9
Used vehicle wholesale sales		4.0			2.9
Total used		8.8			9.9
Parts and service		53.7			52.9
Finance and insurance		100.0			100.0
Total		17.2	%		18.0	%

GROSS PROFIT:
New vehicle retail sales	$	38,244		$	29,130			31.3	%
Used vehicle retail sales		25,915			23,923			8.3
Used vehicle wholesale sales		1,669			990			68.6

Total used		27,584			24,913			10.7
Parts and service		98,167			93,077			5.5
Finance and insurance		37,117			31,394			18.2

Total	$	201,112		$	178,514			12.7	%

UNITS SOLD:
Retail new vehicles sold		20,222			17,491			15.6	%
Retail used vehicles sold		14,691			12,679			15.9
Wholesale used vehicles sold		6,637			6,257			6.1

Total used		21,328			18,936			12.6	%

GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,891		$	1,665			13.6	%
Used vehicle retail sales		1,764			1,887			(6.5	)
Used vehicle wholesale sales		251			158			58.9
Total used		1,293			1,316			(1.7	)
Finance and insurance (per retail unit)	$	1,063		$	1,041			2.1	%

OTHER:
SG&A expenses	$	163,258		$	147,630			10.6	%
SG&A as % revenues		14.0	%		14.9	%
SG&A as % gross profit		81.2	%		82.7	%
Operating margin		2.7	%		2.5	%

Floorplan interest	$	(7,505	)	$	(8,849	)		(15.2	)%
Floorplan assistance		5,220			4,381			19.2

Net floorplan expense	$	(2,285	)	$	(4,468	)		(48.9)	%


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

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


	Three Months Ended March 31,
	2010		2009			% Change
NET INCOME RECONCILIATION:

As reported	$	7,981	$	8,375			(4.7	)%
Adjustments:
Loss on dealership disposition ⁽²⁾		—		549
Loss (gain) on debt redemption ⁽³⁾		2,458		(4,217	)

Adjusted net income ⁽¹⁾	$	10,439	$	4,707			121.8	%

DILUTED INCOME PER SHARE RECONCILIATION:

As reported	$	0.34	$	0.37			(8.1	)%
Adjustments:				.
Loss on dealership disposition		—		0.02
Loss (gain) on debt redemption		0.10		(0.19	)

Adjusted diluted income per share ⁽¹⁾	$	0.44	$	0.20			120.0	%


	Three Months Ended March 31,
	2010			2009			% Change

CASH FLOWS FROM OPERATING ACTIVITIES RECONCILIATION:

Net cash provided by (used in) operating activities	$	(20,082	)	$	217,502			(109.2	)%

Change in floorplan notes payable-credit facility, excluding floorplan offset account		67,547			(197,660	)

Adjusted net cash provided by operating activities ⁽¹⁾	$	47,465		$	19,842			139.2	%


(1)		Adjusted net income, adjusted diluted income per share and adjusted net cash provided by operating activities, mean net income, diluted income per share and net cash provided by operating activities in accordance with GAAP, as the case may be, plus the adjustments noted above. We believe that these adjusted financial measures are relevant and useful to investors because they provide additional information regarding the performance of our operations and improve period-to-period comparability. These measures are not measures of financial performance under GAAP. Accordingly, they should not be considered as substitutes for their unadjusted counterparts, which are prepared in accordance with GAAP. Although we find these non-GAAP results useful in evaluating the performance of our business, our reliance on these measures is limited because the adjustments often have a material impact on our financial statements calculated in accordance with GAAP. Therefore, we typically use these adjusted numbers in conjunction with our GAAP results to address these limitations.

(2)		Adjustment is net of a tax benefit of $135 for the three months ended March 31, 2009, calculated utilizing the applicable federal and state tax rates for the adjustment.

(3)		Adjustments are net of tax benefit of $1,414 and tax provision of $3,164 for the three months ended March 31, 2010 and 2009, respectively, calculated utilizing the applicable federal and state tax rates for the adjustment.