Penske Automotive Reports 2008 Fourth Quarter Results

BLOOMFIELD HILLS, Mich. february 17, 2009: Penske Automotive Group, Inc. , an international automotive retailer, today reported an adjusted fourth quarter loss from continuing operations of $2.0 million, or $0.02 per share. This compares to adjusted income from continuing operations of $32.0 million, or $0.34 per share, in the fourth quarter last year.

As more fully described in the attached tables, the Company recorded after-tax charges of $502.4 million, or $5.52 per share, during the fourth quarter of 2008. These charges include: a $493.1 million, or $5.42 per share, non-cash intangible asset impairment charge recorded pursuant to SFAS No. 142; $5.8 million, or $0.06 per share, of dealership consolidation and relocation costs incurred in response to market conditions; $2.5 million, or $0.03 per share, of severance costs incurred in connection with workforce reductions; and $1.0 million, or $0.01 per share, of other asset impairment charges. As part of the Company’s ongoing cost saving and expense reduction initiatives, the Company’s worldwide workforce was reduced by approximately 10% during 2008.

Retail unit sales decreased 22.5% in the quarter. Total revenue was $2.2 billion compared to $3.0 billion in the same period last year. The decline in revenue was driven principally by lower vehicle sales and changes in foreign exchange rates. Same-store retail revenues decreased by 33.5%, with same-store new units declining 34% and used units declining 11%. Despite the broad weakness in the new and used vehicle market, the Company’s service and parts business performed well, declining 1.5% on a same-store basis in the fourth quarter excluding the impact of exchange rates.

Commenting on the fourth quarter, Penske Automotive Group Chairman Roger Penske said, “The fourth quarter was one of the most challenging periods on record in the automotive industry. The lack of liquidity in worldwide credit markets and resulting economic effects caused a decrease in consumer confidence, and impacted the willingness and ability of consumers to purchase automobiles. As a result, new vehicle industry sales declined 35% and 27%, respectively, during the quarter in the United States and United Kingdom.”

Mr. Penske continued, “As business conditions deteriorated during the fourth quarter, the Company accelerated its cost reduction program. To date, the Company has initiated actions which it expects will result in annualized cost savings of approximately $100 million. As of the end of the year, our liquidity remained strong, including cash and availability under our long-term credit agreements of approximately $330 million. In addition, we elected to pay down $10 million of debt incurred in connection with our June 2008 acquisition of 9% of Penske Truck Leasing. It is important to note that the Company is in compliance will all financial covenants under its debt agreements.”

For the year ended December 31, 2008, revenues were $11.6 billion, which compare to $12.8 billion in the prior year. The loss from continuing operations and net loss for the year ended December 31, 2008, were $403.6 million, or $4.32 per share, and $411.9 million, or $4.41 per share, respectively. Adjusted income from continuing operations for the year was $101.6 million, or $1.09 per share, compared to adjusted income from continuing operations of $143.7 million, or $1.52 per share, in the prior year. A reconciliation of adjusted income from continuing operations and adjusted net income can be found in the tables contained in this press release.

Stock Repurchase Authority

The Company has repurchased 450,000 shares of its stock for an aggregate $3.6 million during the fourth quarter, bringing aggregate expenditures under the Company’s $150 million authorization to $53.7 million. The Company currently has approximately 91.4 million shares outstanding, and has an additional $96.3 million of repurchase capacity outstanding under the program.

smart USA

The Company’s smart USA distribution business completed a successful first year, delivering 27,054 vehicles and generating more than $400 million in revenue. In 2008, smart fortwo sales in the United States ranked third globally, and represented 18% of smart’s worldwide sales.

Guidance

Based on the significant volatility in the automotive industry and worldwide credit markets and their impact on consumer confidence and the overall economy, management has determined that it is not feasible to provide reliable earnings guidance at this time.

Conference Call

Penske Automotive will host a conference call discussing financial results relating to the fourth quarter of 2008 on February 17, 2009, at 2:00 p.m. EST. To listen to the conference call, participants must dial (800) 230-1096 [International, please dial (612) 332-0932]. The call will be simultaneously broadcast over the Internet through the Penske Automotive Group website at , PENSKE AUTOMOTIVE.