Group 1 Automotive Announces Common Stock Offering Under Shelf

    HOUSTON, Aug. 6 Group 1 Automotive, Inc. , a
Fortune 500 company and a leading operator in the automotive retailing
industry, announced today that it intends to publicly offer and sell
2.2 million shares of its common stock.  Group 1 will also grant the
underwriters of the offering an option to purchase up to 330,000 shares of
common stock to cover over-allotments, if any.
    Goldman, Sachs & Co., Merrill Lynch & Co., Banc of America Securities LLC
and Robertson Stephens will act as representatives of the underwriting group
for the offering.
    Group 1 intends to use the net proceeds from the offering to repay
indebtedness outstanding under its revolving credit facility, which amounts
may be subsequently re-borrowed for corporate purposes, including
acquisitions.
    A copy of the preliminary prospectus supplement and prospectus relating to
the offering may be obtained, when available, from the Prospectus Department
of Goldman, Sachs & Co., 85 Broad Street, New York, NY 10004.  These documents
have also been filed with the Securities and Exchange Commission and are
available over the Internet at the SEC's website at http://www.sec.gov .
    The shares will be issued pursuant to a shelf registration statement that
was previously filed.  This press release shall not constitute an offer to
sell or a solicitation of an offer to buy shares of Group 1 common stock.  An
offering of shares of Group 1 common stock will be made only by means of a
prospectus.  The prospectus shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of these
securities, in any state in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws of
any such state.

    Group 1 has revenues of $3.8 billion, and owns 59 automotive dealerships
comprised of 101 franchises, 30 different brands, and 22 collision service
centers located in Texas, Oklahoma, Florida, New Mexico, Colorado, Georgia,
Louisiana and Massachusetts.  Through its dealerships and Internet sites, 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.