Capital Automotive Signs Letter of Intent to Purchase Approximately $80 Million in Automotive Properties from Sonic Automotive

MCLEAN, Va., Jan. 25 /PRNewswire-FirstCall/ -- Capital Automotive REIT , the nation's leading specialty finance company for automotive retail real estate, today announced that it has signed a letter of intent to acquire 14 automotive properties valued at approximately $80 million from Sonic Automotive. Sonic Automotive, headquartered in Charlotte, North Carolina is the second largest auto retailer in the nation with estimated annual run rate revenues of $7.5 billion. The properties are located in seven states (Colorado, Florida, Michigan, Nevada, North Carolina, Tennessee, and Texas). These properties include 13 franchises including Cadillac, Honda, Oldsmobile, and Volvo. The acquisition, which is expected to close during the second quarter of 2002, is subject to the negotiation and execution of a purchase agreement, and the completion of due diligence and customary closing conditions. Thomas D. Eckert, President and Chief Executive Officer, stated, "By focusing on building long-term relationships with our existing tenants, we have consistently demonstrated the ability to obtain repeat business. Sonic is one of the best automotive retailers in the nation with a strong management team and a solid business strategy." Theodore M. Wright, Sonic Automotive's Chief Financial Officer stated, "Capital Automotive understands the automotive retailing industry and has consistently provided us real estate financing that recognizes the requirements of our business. Once again, Sonic Automotive has worked with Capital Automotive to obtain the flexible, competitively priced terms to support our growth strategy."

About Capital Automotive Capital Automotive, headquartered in McLean, Virginia, is a self- administered, self-managed real estate investment trust that acquires real property and improvements used by operators of multi-site, multi-franchised automotive dealerships and related businesses. Additional information on Capital Automotive is available on the Company's Web site at http://www.capitalautomotive.com .