Hometown Auto Retailers Secures Equity Investment Led by Original Founders of the Company

    WATERTOWN, Conn.--Aug. 1, 2001--Hometown Auto Retailers (OTC BB: HCAR) Wednesday announced it has secured approximately $1 million from a group of accredited investors led by members of the company's founders, the Shaker and Muller families, and which included four company officers and directors.
    Units were sold to the investors at $2.00 per unit, and consisted of two shares of Class A common stock and one warrant, which entitles the holder to purchase an additional share at an exercise price of $1.20 per share during a three-year period.
    "The equity investment demonstrates an invaluable show of support by the original founders of Hometown Auto," said Corey Shaker, president and chief executive officer of Hometown Auto.
    "Our investors are confident in what we are trying to accomplish at Hometown, in the opportunities that are in front of us and in the progress we have made since the end of 2000.
    "The company has taken many steps in the first two quarters of 2001 to increase shareholder value, including securing new floor plan financing and streamlining overhead costs. As a result, we reported a first quarter profit, and we are working hard to keep the momentum going forward. This equity investment provides us with added working capital to help us accomplish our goals."

    About Hometown

    Hometown Auto Retailers (www.htauto.com) sells new and used cars and light trucks, provides maintenance and repair services, sells replacement parts and provides related financing, insurance and service contracts through 10 franchised dealerships located in New Jersey, New York, Connecticut, Massachusetts and Vermont.
    The company's dealerships offer 13 American and Asian automotive brands, including Chevrolet, Chrysler, Daewoo, Dodge, Ford, Isuzu, Jeep, Lincoln, Mazda, Mercury, Oldsmobile, Plymouth and Toyota.
    Hometown is also active in two "niche" segments of the automotive market: the sale of Lincoln Town Cars and limousines to livery car and livery fleet operators and the maintenance and repair of cars and trucks at a Ford and Lincoln Mercury factory authorized free-standing service center.

    This release contains "forward-looking statements" based on current expectations but involving known and unknown risks and uncertainties. Actual results or achievements may be materially different from those expressed or implied.
    The company's plans and objectives are based on assumptions involving judgments with respect to future economic, competitive and market conditions, its ability to consummate, and the timing of, acquisitions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of the company.
    Therefore, there can be no assurance than any forward-looking statement will prove to be accurate.