exv99w1

Exhibit 99.1


N E W S R E L E A S E
		800 Gessner • Suite 500 • Houston, TX 77024


AT GROUP 1:	President and CEO	Earl J. Hesterberg	(713) 647-5700
	Senior Vice President and CFO	John C. Rickel	(713) 647-5700
	Manager, Investor Relations	Kim Paper Canning	(713) 647-5700

AT Fleishman-Hillard:	Investors	John Roper	(713) 513-9505

AT Pierpont
Communications:	Media	Clint L. Woods	(713) 627-2223

FOR IMMEDIATE RELEASE
TUESDAY, APRIL 29, 2008

GROUP 1 AUTOMOTIVE REPORTS FIRST-QUARTER 2008 FINANCIAL RESULTS

Continued Growth in Parts and Service and F&I

HOUSTON, April 29, 2008 — Group 1 Automotive, Inc. (NYSE: GPI), a Fortune 500 automotive retailer, today reported net income for the first quarter ended March 31, 2008, of $16.4 million, or $0.73 per diluted share. This compares to net income of $17.4 million, or $0.72 per diluted share, in the first quarter of 2007. The 2007 first-quarter results included after-tax charges of $2.5 million, or $0.10 per diluted share, for lease terminations.

First-quarter 2008 same-store revenues fell 3.8 percent, to $1.4 billion. This decline is more than explained by an 8.8 percent reduction in new vehicle unit sales that resulted in 7.0 percent lower new vehicle revenues, as well as a slight decrease in total used vehicle revenues. Retail used vehicle revenues rose 2.3 percent on a 0.3 percent unit sales increase, offset by a 13.5 percent decline in wholesale used vehicle revenues. This is consistent with Group 1’s strategy of reducing its low-margin used vehicle wholesale business. Parts and service revenues increased 4.6 percent, as the initiatives Group 1 has been implementing in this area continued to gain traction. Finance and insurance (F&I) revenues increased 4.9 percent on 5.6 percent fewer vehicles retailed, as F&I per retail unit increased 11.2 percent to $1,165.

Same-store gross margin improved 40 basis points, to 16.6 percent, from the first quarter of 2007. The gross margin improvement reflected a 120 basis-point increase in parts and service margin, partially offset by a 50 basis-point decline and a 110 basis-point decline in new and total used vehicle margins, respectively.

On a consolidated basis, selling, general and administrative (SG&A) expense as a percent of gross profit improved 100 basis points, to 79.2 percent.

“Although the new vehicle sales environment continued to be challenging during the first quarter, much of that profit pressure was offset by improvements in other areas of our business,” said Earl J. Hesterberg, Group 1’s president and chief executive officer. “The results this quarter continue to demonstrate the strength of our business model, with both the parts and service business and the finance and insurance business showing growth in this slowing new vehicle sales environment.”

Group 1 Automotive, Inc.

2008 Full-Year Guidance and Outlook Reaffirmed
Group 1 reaffirmed its 2008 full-year guidance of $2.95 to $3.25 based on its outlook and the following assumptions:

	•		Industry seasonally adjusted annual sales rate (SAAR) of 15.0 to 15.5 million vehicles

	•		Same-store revenues three-to-five percent lower

	•		SG&A expense as a percent of gross profit at 78 percent to 79 percent, excluding any one-time items, as lower sales revenues are expected to offset cost improvements

	•		Libor interest rates at 3.5 percent throughout 2008

	•		Tax rate of 38 percent

	•		Estimated average diluted shares outstanding of 22.5 million

	•		Guidance excludes the impact of future acquisitions and dispositions, as well as the potential related one-time costs estimated at $10 million to $15 million.

First-Quarter Earnings Conference Call
Group 1’s senior management will host a conference call today at 10 a.m. EDT 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.

The conference call will also be available live by dialing in 10 minutes prior to the start of the call at: 800-218-8862 (domestic) or 303-275-2170 (international).

A telephonic replay will be available following the call through May 6 by dialing: 800-405-2236 (domestic) or 303-590-3000 (international) with passcode 11112383#.

About Group 1 Automotive, Inc.
Group 1 owns and operates 104 automotive dealerships, 143 franchises, and 26 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. 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 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 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.

Group 1 Automotive, Inc.

Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)


	Three Months Ended March 31,
	2008			2007			% Change
REVENUES:
New vehicle retail sales	$	902,041		$	932,094			(3.2	)%
Used vehicle retail sales		311,568			289,714			7.5
Used vehicle wholesale sales		68,614			74,644			(8.1	)
Parts and service		193,555			175,839			10.1
Finance and insurance		53,667			50,447			6.4

Total revenues		1,529,445			1,522,738			0.4	%

COST OF SALES:
New vehicle retail sales		844,019			867,614			(2.7	)%
Used vehicle retail sales		277,054			252,941			9.5
Used vehicle wholesale sales		68,691			73,475			(6.5	)
Parts and service		87,534			81,551			7.3

Total cost of sales		1,277,298			1,275,581			0.1	%

GROSS PROFIT		252,147			247,157			2.0	%

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		199,796			198,163			0.8	%

DEPRECIATION AND AMORTIZATION EXPENSE		5,927			4,848			22.3	%


INCOME FROM OPERATIONS		46,424			44,146			5.2	%

OTHER INCOME (EXPENSE):
Floorplan interest expense		(12,290	)		(12,238	)		0.4	%
Other interest expense, net		(8,395	)		(5,207	)		61.2
Other income net		759			95			698.9


INCOME BEFORE INCOME TAXES		26,498			26,796			(1.1	)%

PROVISION FOR INCOME TAXES		10,122			9,349			8.3	%


NET INCOME	$	16,376		$	17,447			(6.1	)%


DILUTED EARNINGS PER SHARE:	$	0.73		$	0.72			1.4	%

Weighted average diluted shares outstanding		22,548			24,081			(6.4	)%

Group 1 Automotive, Inc.

Consolidated Balance Sheets

(Dollars in thousands)


	March 31,			December 31,
	2008			2007			% Change
ASSETS:

CURRENT ASSETS:
Cash and cash equivalents	$	20,379		$	33,749			(39.6	)%
Contracts in transit and vehicle receivables, net		154,861			193,401			(19.9	)
Accounts and notes receivable, net		81,865			83,687			(2.2	)
Inventories		987,515			899,792			9.7
Deferred income taxes		18,906			18,287			3.4
Prepaid expenses and other current assets		18,734			31,168			(39.9	)

Total current assets		1,282,260			1,260,084			1.8
PROPERTY AND EQUIPMENT, net		504,506			429,238			17.5
GOODWILL AND OTHER INTANGIBLES		787,538			787,245			0.0
OTHER ASSETS		27,665			28,730			(3.7	)

Total assets	$	2,601,969		$	2,505,297			3.9	%


LIABILITIES AND STOCKHOLDERS’ EQUITY:

CURRENT LIABILITIES:
Floorplan notes payable — credit facility	$	779,354		$	670,820			16.2	%
Floorplan notes payable — manufacturer affiliates		156,057			170,911			(8.7	)
Current maturities of long-term debt		15,200			12,260			24.0
Accounts payable		109,608			113,589			(3.5	)
Accrued expenses		104,980			101,951			3.0

Total current liabilities		1,165,199			1,069,531			8.9
2.25% CONVERTIBLE SENIOR NOTES		282,064			281,915			0.1
8.25% SENIOR SUBORDINATED NOTES		82,126			100,273			(18.1	)
MORTGAGE FACILITY, net of current maturities		168,456			124,633			35.2
OTHER LONG-TERM DEBT, net of current maturities		58,779			33,017			78.0
ACQUISITION LINE		65,000			135,000			(51.9	)
DEFERRED INCOME TAXES		12,504			14,711			(15.0	)
LIABILITIES FROM INTEREST RISK MANAGEMENT ACTIVITIES		33,416			16,188			106.4
OTHER LIABILITIES		29,732			29,017			2.5

Total liabilities before deferred revenues		1,897,276			1,804,285			5.2


DEFERRED REVENUES		15,120			16,531			(8.5	)

STOCKHOLDERS’ EQUITY:
Common stock		256			255			0.4
Additional paid-in capital		293,531			293,675			(0.0	)
Retained earnings		515,907			502,783			2.6
Accumulated other comprehensive (loss)		(20,310	)		(9,560	)		112.4
Treasury stock		(99,811	)		(102,672	)		(2.8	)

Total stockholders’ equity		689,573			684,481			0.7

Total liabilities and stockholders’ equity	$	2,601,969		$	2,505,297			3.9	%


BALANCE SHEET DATA:
Working capital	$	117,061		$	190,553
Current ratio		1.10			1.18

Long-term debt to capitalization		49	%		50	%
Excluding Mortgage Facility		41	%		45	%

Inventory days supply: ⁽¹⁾
New vehicle		71			63
Used vehicle		29			35


⁽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
		March 31,
		2008			2007
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:
Region	Geographic Market
Eastern	Massachusetts		11.5	%		11.3	%
	New Jersey		6.3			5.3
	New York		4.0			2.3
	Louisiana		3.6			3.7
	Georgia		3.4			3.5
	New Hampshire		3.2			3.3
	Florida		2.9			3.8
	Mississippi		1.4			1.6
	Alabama		1.0			1.0
	South Carolina		0.3			—

			37.6			35.8

Central	Texas		32.7			31.2
	Oklahoma		9.0			9.3
	New Mexico		1.6			2.2
	Kansas		1.1			0.8

			44.4			43.5

Western	California		16.3			19.5

International	United Kingdom		1.7			1.2

			100.0	%		100.0	%

NEW VEHICLE UNIT SALES BRAND MIX:
Toyota/Scion/Lexus			34.4	%		34.9	%
Nissan/Infiniti			13.0			13.3
Honda/Acura			12.8			11.8
Ford			11.7			13.3
Chrysler			7.3			7.9
BMW/Mini			7.1			5.6
GM			5.6			6.9
Daimler			5.4			3.2
Other			2.7			3.1

			100.0	%		100.0	%

NEW VEHICLE UNIT OTHER MIX:
Import			54.7	%		54.9	%
Luxury			23.0			19.3
Domestic			22.3			25.8

			100.0	%		100.0	%

Car			54.8	%		51.7	%
Truck			45.2			48.3

			100.0	%		100.0	%

Group 1 Automotive, Inc.

Additional Information — Consolidated

(Unaudited)

(Dollars in thousands, except per unit amounts)


	Three Months Ended March 31,
	2008			2007			% Change
REVENUES:
New vehicle retail sales	$	902,041		$	932,094			(3.2	)%

Used vehicle retail sales		311,568			289,714			7.5
Used vehicle wholesale sales		68,614			74,644			(8.1	)

Total used		380,182			364,358			4.3
Parts and service		193,555			175,839			10.1
Finance and insurance		53,667			50,447			6.4

Total	$	1,529,445		$	1,522,738			0.4	%

GROSS MARGIN:
New vehicle retail sales		6.4	%		6.9	%
Used vehicle retail sales		11.1			12.7
Used vehicle wholesale sales		(0.1	)		1.6

Total used		9.1			10.4
Parts and service		54.8			53.6
Finance and insurance		100.0			100.0

Total		16.5	%		16.2	%

GROSS PROFIT:
New vehicle retail sales	$	58,022		$	64,480			(10.0	)%
Used vehicle retail sales		34,514			36,773			(6.1	)
Used vehicle wholesale sales		(77	)		1,169			(106.6	)

Total used		34,437			37,942			(9.2	)
Parts and service		106,021			94,288			12.4
Finance and insurance		53,667			50,447			6.4

Total	$	252,147		$	247,157			2.0	%

UNITS SOLD:
Retail new vehicles sold		28,985			31,236			(7.2	)%
Retail used vehicles sold		17,591			17,328			1.5
Wholesale used vehicles sold		10,166			10,772			(5.6	)

Total used		27,757			28,100			(1.2	)%

GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	2,002		$	2,064			(3.0	)%
Used vehicle retail sales		1,962			2,122			(7.5	)
Used vehicle wholesale sales		(8	)		109			(107.3	)
Total used		1,241			1,350			(8.1	)
Finance and insurance (per retail unit)		1,152			1,039			10.9

OTHER:
SG&A expenses	$	199,796		$	198,163			0.8	%
SG&A as % revenues		13.1	%		13.0	%
SG&A as % gross profit		79.2	%		80.2	%
Operating margin		3.0	%		2.9	%
Pretax income margin		1.7	%		1.8	%

Floorplan interest	$	(12,290	)	$	(12,238	)		0.4	%
Floorplan assistance		7,967			9,088			(12.3	)

Net floorplan expense	$	(4,323	)	$	(3,150	)		37.2	%

Group 1 Automotive, Inc.

Additional Information — Same Store⁽¹⁾

(Unaudited)

(Dollars in thousands, except per unit amounts)


	Three Months Ended March 31,
	2008			2007			% Change
REVENUES:
New vehicle retail sales	$	852,702		$	916,651			(7.0	)%

Used vehicle retail sales		288,935			282,359			2.3
Used vehicle wholesale sales		62,518			72,272			(13.5	)

Total used		351,453			354,631			(0.9	)
Parts and service		178,727			170,934			4.6
Finance and insurance		52,343			49,896			4.9

Total	$	1,435,225		$	1,492,112			(3.8	)%

GROSS MARGIN:
New vehicle retail sales		6.4	%		6.9	%
Used vehicle retail sales		11.4			12.6
Used vehicle wholesale sales		(0.2	)		1.8

Total used		9.3			10.4
Parts and service		54.8			53.6
Finance and insurance		100.0			100.0

Total		16.6	%		16.2	%

GROSS PROFIT:
New vehicle retail sales	$	54,703		$	63,287			(13.6	)%
Used vehicle retail sales		32,827			35,635			(7.9	)
Used vehicle wholesale sales		(135	)		1,290			(110.5	)

Total used		32,692			36,925			(11.5	)
Parts and service		97,868			91,633			6.8
Finance and insurance		52,343			49,896			4.9

Total	$	237,606		$	241,741			(1.7	)%

UNITS SOLD:
Retail new vehicles sold		28,048			30,752			(8.8	)%
Retail used vehicles sold		16,886			16,837			0.3
Wholesale used vehicles sold		9,758			10,452			(6.6	)

Total used		26,644			27,289			(2.4	)%

GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales	$	1,950		$	2,058			(5.2	)%
Used vehicle retail sales		1,944			2,116			(8.1	)
Used vehicle wholesale sales		(14	)		123			(111.4	)
Total used		1,227			1,353			(9.3	)
Finance and insurance (per retail unit)		1,165			1,048			11.2

OTHER:
SG&A expenses	$	187,767		$	188,693			(0.5	)%
SG&A as % revenues		13.1	%		12.6	%
SG&A as % gross profit		79.0	%		78.1	%
Operating margin		3.1	%		3.2	%

Floorplan interest	$	(11,489	)	$	(11,823	)		(2.8	)%
Floorplan assistance		7,965			8,821			(9.7	)

Net floorplan expense	$	(3,524	)	$	(3,002	)		17.4	%


⁽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 our corporate office.

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures

(Unaudited)

(Dollars in thousands, except per share amounts)

NET INCOME RECONCILIATION:


	Three Months Ended March 31,
	2008		2007		% Change
As reported	$	16,376	$	17,447		(6.1	)%
Adjustments:
Lease terminations		—		2,478

Adjusted⁽¹⁾	$	16,376	$	19,925		(17.8	)%

DILUTED EARNINGS PER SHARE RECONCILIATION:


	Three Months Ended March 31,
	2008		2007		% Change
As reported	$	0.73	$	0.72		1.4	%
Adjustments:
Lease Terminations		—		0.10

Adjusted⁽¹⁾	$	0.73	$	0.82		(11.0	)%


(1)		Adjusted net income and adjusted diluted earnings per share means net income or diluted earnings per share, as the case may be, plus the adjustments noted above. We use adjusted net income and adjusted diluted earnings per share in our evaluation of the performance of the company, as we believe that they provide additional information regarding the performance of our operations. We believe the presentation of these measures is relevant and useful to investors because they improve period-to-period comparability and are more reflective of our operating performance. Neither of these measures is a measure of financial performance under GAAP. Accordingly, they should not be considered as substitutes for net income or diluted earnings per share 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 net income and diluted earnings per share calculated in accordance with GAAP. Therefore, we typically use these adjusted numbers in conjunction with our GAAP results to address these limitations.