Group 1 Automotive Acquires Additional Mercedes-Benz Dealership

Group 1 Automotive, Inc. (NYSE:GPI), a Fortune 500 automotive retailer, today announced it has acquired Mercedes-Benz of Escondido in Southern California. The dealership is expected to generate approximately $132.3 million in estimated annual revenues. Year to date, including the above-mentioned acquisition, Group 1 has acquired 13 import/luxury franchises that are expected to generate $542.5 million in estimated annual revenues. More than half of the franchises acquired in 2007 have been luxury brands. "With the addition of Mercedes-Benz of Escondido, Group 1 continues to increase its luxury brand offerings,” said Earl J. Hesterberg, Group 1’s president and chief executive officer. "The acquisitions Group 1 has made in 2007 have improved our brand offerings, which will better position the company as we approach what appears to be a challenging retail market in 2008.” About Group 1 Automotive, Inc. Group 1 owns and operates 100 automotive dealerships, 135 franchises, and 24 collision service centers in the United States and three dealerships, six franchises and two collision centers in the United Kingdom that offer 31 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.