Exhibit 99.1

FOR IMMEDIATE RELEASE
THURSDAY, FEB. 23, 2006

GROUP 1 AUTOMOTIVE REPORTS 44 PERCENT RISE IN FOURTH-QUARTER EARNINGS

Declares First Quarterly Cash Dividend

HOUSTON, Feb. 23, 2006 — Group 1 Automotive, Inc. (NYSE: GPI), a Fortune 500 automotive retailer, today reported that 2005 fourth-quarter net income rose 44 percent over the comparable period of 2004 to $16.2 million. Earnings per diluted share increased 40 percent to $0.66.

The company also announced that its board of directors declared its first cash dividend of $0.13 per share for the fourth quarter of 2005. The dividend will be paid on March 15, 2006, to stockholders of record on March 6.

Although total revenues for the quarter represented a 1 percent decrease from the prior year to $1.4 billion, a 50 basis-point improvement in total gross margin had a major impact on overall results. The margin improvement was driven by a 70 basis-point increase in used vehicle retail margins, a significant decrease in used vehicle wholesale losses and a 3.9 percent growth in parts and service sales. Additionally, the company realized for the fourth quarter a 280 basis-point reduction in total selling, general and administrative (SG&A) expenses to 80.4 percent of gross profit. Finally, results were positively impacted by adjustments to deferred tax items for certain assets and liabilities of $0.08 per diluted share, offset by asset impairment charges of $0.07 per diluted share.

“Despite lower domestic-brand new vehicle sales during the fourth quarter, our company was able to realize meaningful improvements in our overall profit performance,” said Earl J. Hesterberg, Group 1’s president and chief executive officer. “This improvement was made possible by strong performances in our used vehicle and parts and service businesses, two key areas of strategic focus. We were able to increase revenues in both areas, and I was particularly pleased with our dramatic improvement in managing our used vehicle inventory.”

Full-Year Results
For the year ended Dec. 31, 2005, income before cumulative effect of a change in accounting principle for the year was $70.3 million, or $2.90 per diluted share, compared with $27.8 million, or $1.18 per diluted share, in 2004. The 2005 results include the previously-noted favorable tax adjustments, asset impairments during the year and the net impact of Hurricanes Katrina and Rita on the company’s third- and fourth-quarter results.

Total revenues increased 9.8 percent to $6.0 billion, highlighted by a parts and service revenue increase of 14.9 percent. New vehicle revenues increased 9.7 percent, used vehicle revenues were up 8.8 percent, and finance and insurance revenues improved 7.6 percent over the prior year. On a same store basis, revenues were up 0.5 percent from 2004, with a 100 basis-point increase in same store operating margin to 2.8 percent.

Group 1 Automotive, Inc.

In February 2006, the company disposed of three franchises with 2005 revenues of $27.5 million. Additionally, Group 1 confirmed that it expects to acquire at least $300 million in estimated annual revenues in 2006.

Hesterberg noted that, “Our 2005 results demonstrate that we are making progress in our efforts to improve our profitability and return to shareholders. Despite our corporate restructuring, some key personnel changes and weak domestic-brand vehicle sales in the fourth quarter of 2005, we were able to turn in a very respectable profit performance. This is a testimony to the quality of our management team from Houston all the way through the individual dealership level. Additionally, our brand mix continues to strengthen with 66 percent of our revenue in the fourth quarter derived from luxury and import brands. I believe Group 1 Automotive has a very bright future due to our strong brands, experienced people and strong balance sheet. Our confidence in the company is reflected in the dividend that we announced today. This is just a small signal to confirm our intention to continue to enhance overall shareholder value while growing our company in a responsible and profitable manner.”

Group 1 provided 2006 full-year earnings guidance of $3.15 to $3.45 per diluted share based on assumptions of relatively flat industry sales, a 50 basis-point increase in interest rates and an estimated average of 24.5 million shares outstanding. Guidance includes the implementation of SFAS No. 123(R), “Share Based Payment,” that the company estimates will have a negative earnings impact of $0.10 per diluted share, and excludes the impacts of any future acquisitions or dispositions. This guidance is consistent with the company’s previously announced target of at least 15 percent annual earnings-per-share growth over the next three to five years.

About Group 1 Automotive, Inc.
Group 1 owns 95 automotive dealerships comprised of 139 franchises, 31 brands and 30 collision service centers located in California, Colorado, Florida, Georgia, Louisiana, Massachusetts, New Hampshire, New Jersey, New Mexico, New York, Oklahoma and Texas. 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. 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” or “will.” Any such forward-looking statements are not assurances of future performance and involve risks and uncertainties that may cause results to differ materially from those set forth in the statements. These risks and uncertainties include, among other things, (a) general economic 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, and (h) our ability to retain key personnel. These factors, as well as additional factors that could affect our forward-looking statements, are described in our 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.

FINANCIAL TABLES TO FOLLOW

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

	Three Months Ended December 31,									Twelve Months Ended December 31,
	2005			2004			% Change			2005			2004			% Change
REVENUES:
New vehicle retail sales	$	883,068		$	896,959			(1.5	)%	$	3,674,880		$	3,348,875			9.7	%
Used vehicle retail sales		255,790			251,256			1.8			1,075,606			988,797			8.8
Used vehicle wholesale sales		82,437			94,399			(12.7	)		383,856			359,247			6.9
Parts and service		161,687			155,625			3.9			649,221			565,213			14.9
Finance and insurance		42,379			42,459			(0.2	)		186,027			172,901			7.6
Total revenues		1,425,361			1,440,698			(1.1	)%		5,969,590			5,435,033			9.8	%
COST OF SALES:
New vehicle retail sales		819,134			831,903			(1.5	)%		3,413,513			3,112,140			9.7	%
Used vehicle retail sales		223,458			221,333			1.0			939,436			868,351			8.2
Used vehicle wholesale sales		84,132			97,487			(13.7	)		387,834			367,513			5.5
Parts and service		73,928			70,031			5.6			296,401			255,263			16.1
Total cost of sales		1,200,652			1,220,754			(1.6	)%		5,037,184			4,603,267			9.4	%
GROSS PROFIT		224,709			219,944			2.2	%		932,406			831,766			12.1	%
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		180,618			182,901			(1.2	)%		741,471			672,210			10.3	%
DEPRECIATION AND AMORTIZATION EXPENSE		4,405			4,596			(4.2	)%		18,927			15,836			19.5	%
ASSET IMPAIRMENTS		2,620			3,338			(21.5	)%		7,607			44,711			(83.0	)%
INCOME FROM OPERATIONS		37,066			29,109			27.3	%		164,401			99,009			66.0	%
OTHER INCOME (EXPENSE):
Floorplan interest expense		(9,999	)		(7,688	)		30.1	%		(37,997	)		(25,349	)		49.9	%
Other interest expense, net		(3,948	)		(5,672	)		(30.4	)		(18,122	)		(19,299	)		(6.1	)
Loss on redemption of senior subordinated notes		—			—			—			—			(6,381	)		(100.0	)
Other income (expense), net		30			35			(14.3	)		125			(28	)		(546.4	)
INCOME BEFORE INCOME TAXES		23,149			15,784			46.7	%		108,407			47,952			126.1	%
PROVISION FOR INCOME TAXES		6,995			4,589			52.4	%		38,138			20,171			89.1	%
INCOME BEFORE CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING PRINCIPLE		16,154			11,195			44.3	%		70,269			27,781			152.9	%
CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING PRINCIPLE, NET OF TAX BENEFIT OF $10,231		—			—			—			(16,038	)		—			N/A
NET INCOME	$	16,154		$	11,195			44.3	%	$	54,231		$	27,781			95.2	%
DILUTED EARNINGS PER SHARE:
Income before cumulative effect of a change in accounting principle	$	0.66		$	0.47			40.4	%	$	2.90		$	1.18			145.8	%
Cumulative effect of a change in accounting principle		—			—			—			(0.66	)		—			—
Net income	$	0.66		$	0.47			40.4	%	$	2.24		$	1.18			89.8	%
Weighted average diluted shares outstanding		24,465,479			23,693,037			3.3	%		24,229,208			23,493,899			3.1	%

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

	December 31,			December 31,
	2005			2004			% Change
ASSETS:
CURRENT ASSETS:
Cash and cash equivalents	$	37,695		$	37,750			(0.1	)%
Contracts in transit and vehicle receivables, net		187,769			172,402			8.9
Accounts and notes receivable, net		81,463			76,687			6.2
Inventories		756,838			877,575			(13.8	)
Deferred income taxes		18,780			14,755			27.3
Prepaid expenses and other current assets		23,283			26,046			(10.6	)
Total current assets		1,105,828			1,205,215			(8.2	)
PROPERTY AND EQUIPMENT, net		161,317			160,297			0.6
GOODWILL		372,844			366,673			1.7
INTANGIBLE FRANCHISE RIGHTS		164,210			187,135			(12.3	)
OTHER ASSETS		29,419			27,900			5.4
Total assets	$	1,833,618		$	1,947,220			(5.8	)%
LIABILITIES AND STOCKHOLDERS’ EQUITY:
CURRENT LIABILITIES:
Floorplan notes payable — credit facility	$	407,396		$	632,593			(35.6	)%
Floorplan notes payable — manufacturer affiliates		316,189			215,667			46.6
Current maturities of long-term debt		786			1,054			(25.4	)
Accounts payable		124,857			108,920			14.6
Accrued expenses		119,404			91,528			30.5
Total current liabilities		968,632			1,049,762			(7.7	)
LONG-TERM DEBT, net of current maturities		158,074			156,747			0.8
ACQUISITION LINE		—			84,000			(100.0	)
DEFERRED INCOME TAXES		28,862			33,197			(13.1	)
OTHER LIABILITIES		25,356			24,288			4.4
Total liabilities before deferred revenues		1,180,924			1,347,994			(12.4	)
DEFERRED REVENUES		25,901			32,052			(19.2	)
STOCKHOLDERS’ EQUITY:
Common stock		246			239			2.9
Additional paid-in capital		276,904			265,645			4.2
Retained earnings		373,162			318,931			17.0
Accumulated other comprehensive loss		(706	)		(173	)		308.1
Deferred stock-based compensation		(5,413	)		—			N/A
Treasury stock		(17,400	)		(17,468	)		(0.4	)
Total stockholders’ equity		626,793			567,174			10.5
Total liabilities and stockholders’ equity	$	1,833,618		$	1,947,220			(5.8	)%
BALANCE SHEET DATA:
Working capital	$	137,196		$	155,453			(11.7	)%
Current ratio		1.14			1.15			(0.9	)
Long-term debt to capitalization		20	%		30	%
Inventory days supply: (1)
New vehicle		56			70			(20.0	)%
Used vehicle		28			29			(3.4	)

⁽¹⁾ Inventory days supply equals units in inventory as of the end of the period, divided by unit sales for the month then ended, times 30 days.

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

		Three Months Ended						Twelve Months Ended
		December 31,						December 31,
Region	State(s)	2005			2004			2005			2004
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:
Northeast	Massachusetts		12.3	%		12.2	%		13.0	%		12.8	%
	New Hampshire		0.6			—			0.3			—
	New Jersey		3.1			3.0			2.9			2.9
	New York		2.5			2.6			2.3			1.1
			18.5			17.8			18.5			16.8
Southeast	Florida		5.2			6.0			5.9			6.1
	Georgia		4.2			4.6			4.8			5.1
	Louisiana		8.1			5.6			5.8			6.4
			17.5			16.2			16.5			17.6
South Central	Oklahoma		10.1			10.7			11.5			12.0
	Central Texas		11.3			12.3			12.1			13.2
	Southeast Texas		18.5			15.4			15.4			14.7
			39.9			38.4			39.0			39.9
West Central	Colorado		0.3			1.1			0.8			1.2
	New Mexico		2.1			2.6			2.6			2.8
	West Texas		5.3			5.4			5.6			6.2
			7.7			9.1			9.0			10.2
California	California		16.4			18.5			17.0			15.5
Total			100.0	%		100.0	%		100.0	%		100.0	%
NEW VEHICLE UNIT SALES BRAND MIX:
Toyota/Scion/Lexus			31.1	%		28.3	%		29.2	%		27.7	%
Ford			17.5			18.8			18.5			20.5
DaimlerChrysler			14.2			14.8			14.8			14.1
Nissan/Infiniti			10.2			11.5			10.9			10.9
GM			8.7			9.9			9.8			10.7
Honda/Acura			10.2			8.8			9.6			9.5
Other			8.1			7.9			7.2			6.6
			100.0	%		100.0	%		100.0	%		100.0	%
NEW VEHICLE UNIT OTHER MIX:
Domestic			34.3	%		36.9	%		37.6	%		40.6	%
Import			46.4			45.5			46.1			45.4
Luxury			19.3			17.6			16.3			14.0
			100.0	%		100.0	%		100.0	%		100.0	%
Car			46.6	%		43.7	%		46.0	%		42.8	%
Truck			53.4			56.3			54.0			57.2
			100.0	%		100.0	%		100.0	%		100.0	%

Group 1 Automotive, Inc.

Additional Information — Consolidated

(Unaudited)

(Dollars in thousands, except per unit amounts)

	Three Months Ended December 31,									Twelve Months Ended December 31,
	2005			2004			% Change			2005			2004			% Change
REVENUES:
New vehicle retail sales	$	883,068		$	896,959			(1.5	)%	$	3,674,880		$	3,348,875			9.7	%
Used vehicle retail sales		255,790			251,256			1.8			1,075,606			988,797			8.8
Used vehicle wholesale sales		82,437			94,399			(12.7	)		383,856			359,247			6.9
Total used		338,227			345,655			(2.1	)		1,459,462			1,348,044			8.3
Parts and service		161,687			155,625			3.9			649,221			565,213			14.9
Finance and insurance		42,379			42,459			(0.2	)		186,027			172,901			7.6
Total	$	1,425,361		$	1,440,698			(1.1	)%	$	5,969,590		$	5,435,033			9.8	%
GROSS MARGIN:
New vehicle retail sales		7.2	%		7.3	%					7.1	%		7.1	%
Used vehicle retail sales		12.6			11.9						12.7			12.2
Used vehicle wholesale sales		(2.1	)		(3.3	)					(1.0	)		(2.3	)
Total used		9.1			7.8						9.1			8.3
Parts and service		54.3			55.0						54.3			54.8
Finance and insurance		100.0			100.0						100.0			100.0
Total		15.8	%		15.3	%					15.6	%		15.3	%
GROSS PROFIT (LOSS):
New vehicle retail sales	$	63,934		$	65,056			(1.7	)%	$	261,367		$	236,735			10.4	%
Used vehicle retail sales		32,332			29,923			8.1			136,170			120,446			13.1
Used vehicle wholesale sales		(1,695	)		(3,088	)		45.1			(3,978	)		(8,266	)		51.9
Total used		30,637			26,835			14.2			132,192			112,180			17.8
Parts and service		87,759			85,594			2.5			352,820			309,950			13.8
Finance and insurance		42,379			42,459			(0.2	)		186,027			172,901			7.6
Total	$	224,709		$	219,944			2.2	%	$	932,406		$	831,766			12.1	%
UNITS SOLD:
Retail new vehicles sold		29,199			30,107			(3.0	)%		126,108			117,971			6.9	%
Retail used vehicles sold		15,777			16,018			(1.5	)		68,286			66,336			2.9
Wholesale used vehicles sold		10,969			12,857			(14.7	)		50,489			49,372			2.3
Total used		26,746			28,875			(7.4	)%		118,775			115,708			2.7	%
GROSS PROFIT (LOSS) PER UNIT SOLD:
New vehicle retail sales	$	2,190		$	2,161			1.3	%	$	2,073		$	2,007			3.3	%
Used vehicle retail sales		2,049			1,868			9.7			1,994			1,816			9.8
Used vehicle wholesale sales		(155	)		(240	)		35.4			(79	)		(167	)		52.7
Total used		1,145			929			23.3			1,113			970			14.7
Finance and insurance (per retail unit)		942			921			2.3			957			938			2.0
OTHER:
Adjusted used gross margin(1)		12.0	%		10.7	%					12.3	%		11.3	%
Adjusted used gross profit per retail unit(2)	$	1,942		$	1,675			15.9	%	$	1,936		$	1,691			14.5	%
SG&A expenses	$	180,618		$	182,901			(1.2	)%	$	741,471		$	672,210			10.3	%
SG&A as % revenues		12.7	%		12.7	%					12.4	%		12.4	%
SG&A as % gross profit		80.4	%		83.2	%					79.5	%		80.8	%
EBITDA Margin(3)		3.1	%		2.6	%					3.2	%		2.8	%
Operating margin		2.6	%		2.0	%					2.8	%		1.8	%
Pretax income margin		1.6	%		1.1	%					1.8	%		0.9	%
Floorplan interest	$	(9,999	)	$	(7,688	)		30.1	%	$	(37,997	)	$	(25,349	)		49.9	%
Floorplan assistance		8,083			8,748			(7.6	)		35,610			33,206			7.2
Net floorplan benefit (expense)	$	(1,916	)	$	1,060			(280.8	)%	$	(2,387	)	$	7,857			(130.4	)%

(1)	Adjusted used gross margin equals total used vehicle gross profit, which includes net wholesale loss, divided by used vehicle retail sales revenues. The profit or loss on wholesale sales is included in this number, as these transactions facilitate retail vehicle sales and are not expected to generate profit.
(2)	Adjusted used gross profit per retail unit equals total used vehicle gross profit, which includes net wholesale loss, divided by retail used vehicle unit sales. The profit or loss on wholesale sales is included in this number, as these transactions facilitate retail vehicle sales and are not expected to generate profit.
(3)	Earnings before interest, taxes, depreciation, amortization, and asset impairments divided by total revenues.

Group 1 Automotive, Inc.

Additional Information — Same Store⁽¹⁾

(Unaudited)

(Dollars in thousands, except per unit amounts)

	Three Months Ended December 31,									Twelve Months Ended December 31,
	2005			2004			% Change			2005			2004			% Change
REVENUES:
New vehicle retail sales	$	871,235		$	892,939			(2.4	)%	$	3,339,754		$	3,344,855			(0.2	)%
Used vehicle retail sales		252,963			250,001			1.2			997,393			987,542			1.0
Used vehicle wholesale sales		81,588			93,749			(13.0	)		352,880			358,596			(1.6	)
Total used		334,551			343,750			(2.7	)		1,350,273			1,346,138			0.3
Parts and service		160,215			155,096			3.3			589,093			564,683			4.3
Finance and insurance		42,110			42,361			(0.6	)		175,610			172,812			1.6
Total	$	1,408,111		$	1,434,146			(1.8	)%	$	5,454,730		$	5,428,488			0.5	%
GROSS MARGIN:
New vehicle retail sales		7.2	%		7.3	%					7.1	%		7.1	%
Used vehicle retail sales		12.7			12.0						12.7			12.2
Used vehicle wholesale sales		(2.1	)		(3.3	)					(1.1	)		(2.3	)
Total used		9.1			7.8						9.1			8.3
Parts and service		54.2			55.0						54.3			54.8
Finance and insurance		100.0			100.0						100.0			100.0
Total		15.8	%		15.3	%					15.7	%		15.3	%
GROSS PROFIT (LOSS):
New vehicle retail sales	$	63,063		$	64,769			(2.6	)%	$	235,955		$	236,448			(0.2	)%
Used vehicle retail sales		32,026			29,901			7.1			127,130			120,424			5.6
Used vehicle wholesale sales		(1,696	)		(3,052	)		44.4			(3,986	)		(8,231	)		51.6
Total used		30,330			26,849			13.0			123,144			112,193			9.8
Parts and service		86,891			85,283			1.9			319,640			309,638			3.2
Finance and insurance		42,110			42,361			(0.6	)		175,610			172,812			1.6
Total	$	222,394		$	219,262			1.4	%	$	854,349		$	831,091			2.8	%
UNITS SOLD:
Retail new vehicles sold		28,904			29,974			(3.6	)%		116,610			117,838			(1.0	)%
Retail used vehicles sold		15,612			15,923			(2.0	)		64,300			66,241			(2.9	)
Wholesale used vehicles sold		10,874			12,775			(14.9	)		47,377			49,290			(3.9	)
Total used		26,486			28,698			(7.7	)%		111,677			115,531			(3.3	)%
GROSS PROFIT (LOSS) PER UNIT SOLD:
New vehicle retail sales	$	2,182		$	2,161			1.0	%	$	2,023		$	2,007			0.8	%
Used vehicle retail sales		2,051			1,878			9.2			1,977			1,818			8.7
Used vehicle wholesale sales		(156	)		(239	)		34.7			(84	)		(167	)		49.7
Total used		1,145			936			22.3			1,103			971			13.6
Finance and insurance (per retail unit)		946			923			2.5			971			939			3.4
OTHER:
Adjusted used gross margin(2)		12.0	%		10.7	%					12.3	%		11.4	%
Adjusted used gross profit per retail unit(3)	$	1,943		$	1,686			15.2	%	$	1,915		$	1,694			13.0	%
SG&A expenses	$	178,820		$	181,730			(1.6	)%	$	678,527		$	671,038			1.1	%
SG&A as % revenues		12.7	%		12.7	%					12.4	%		12.4	%
SG&A as % gross profit		80.4	%		82.9	%					79.4	%		80.7	%
EBITDA Margin(4)		3.1	%		2.6	%					3.3	%		2.8	%
Operating margin		2.6	%		2.1	%					2.8	%		1.8	%
Floorplan interest	$	(9,853	)	$	(7,641	)		28.9	%	$	(34,860	)	$	(25,301	)		37.8	%
Floorplan assistance		8,052			8,691			(7.4	)		34,007			33,148			2.6
Net floorplan benefit	$	(1,801	)	$	1,050			(271.5	)%	$	(853	)	$	7,847			(110.9	)%

(1)	Same store amounts include the results for the identical months in each period presented in the comparison, commencing with the first month we owned the dealership and, in the case of dispositions, ending with the last month we owned it. Same store results also include the activities of the corporate office.
(2)	Adjusted used gross margin equals total used vehicle gross profit, which includes net wholesale loss, divided by used vehicle retail sales revenues. The profit or loss on wholesale sales is included in this number, as these transactions facilitate retail vehicle sales and are not expected to generate profit.
(3)	Adjusted used gross profit per retail unit equals total used vehicle gross profit, which includes net wholesale loss, divided by retail used vehicle unit sales. The profit or loss on wholesale sales is included in this number, as these transactions facilitate retail vehicle sales and are not expected to generate profit.
(4)	Earnings before interest, taxes, depreciation, amortization, and asset impairments divided by total revenues.