Sonic Automotive, Inc. Announces Acquisition of Five Dealerships

CHARLOTTE, N.C., Nov. 26 -- Sonic Automotive, Inc. announced today that it has entered into agreements to purchase five dealerships. The dealerships have combined revenues of approximately $260 million annually. Completion of these transactions is subject to normal closing conditions and manufacturers' approval. The acquisitions are expected to close in the first quarter of 2002. Funding for the acquisitions will be provided by a portion of the proceeds from Sonic's recent private offering of senior subordinated notes.

The dealerships to be acquired are:

* Park Place Audi, located in the Dallas, Texas metropolitan area. * Don Kott Ford, Don Kott Lincoln-Mercury, Don Kott Chrysler-Jeep, and Don Kott Mazda/Isuzu/Kia - all located in the Los Angeles, California metropolitan area.

All dealerships to be acquired operate in markets where Sonic has existing operations. The acquired dealerships will improve brand diversity in these markets, build local market share and take advantage of the Company's existing management infrastructure.

O. Bruton Smith, the Company's Chairman and Chief Executive Officer, stated ``These acquisitions demonstrate our commitment to the execution of our disciplined acquisition growth strategy by adding additional stores in two of our best markets. The Don Kott platform has an exceptional location and tremendous potential. The Park Place Audi store complements our existing Dallas portfolio and helps diversify our brands in Dallas with greater exposure to luxury brands. These dealership acquisitions, after giving effect to the Company's recent debt offering, allow us to increase our 2002 earnings targets to $2.23 to $2.30.''

Upon completion of these acquisitions, Sonic's Los Angeles market dealerships will represent Honda (3), Toyota, BMW, Chrysler-Jeep (2), Volvo, Ford, Mazda, Lincoln-Mercury, Kia, Isuzu and Cadillac in 8 dealerships, representing approximately $450 million in annual revenues. Sonic's Dallas/Ft. Worth operations will represent Audi, Ford, Honda, Toyota and Volvo in 5 dealerships representing approximately $600 million in annual revenues. In each of these markets, the Company has developed the scale necessary to realize locally available economies of scale and an attractive portfolio of import, luxury and domestic brands.

``More challenging economic conditions are creating opportunities for Sonic to grow through selective acquisitions. We expect to announce acquisition of additional dealerships representing at least $800 million in annual revenue between now and the end of third quarter of 2002. These additional acquisitions are not included in our 2002 earnings targets but would add an estimated $0.20 to $0.30 to earnings per share for a full year of ownership,'' stated Mr. Smith.

About Sonic Automotive, Inc.

Sonic Automotive, Inc., a Fortune 300 company and member of the Russell 2000 Index, is one of the largest automotive retailers in the United States operating 156 franchises and 29 collision repair centers in Alabama, California, Florida, Georgia, Maryland, Nevada, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas and Virginia. Sonic Automotive can be reached on the Web at www.sonicautomotive.com.