Hometown Auto Retailers Dismisses Arthur Andersen As Independent Auditors

    WATERTOWN, Conn.--June 25, 2002--Hometown Auto Retailers Inc. (OTCBB:HCAR) today announced that it has dismissed Arthur Andersen LLP as the company's independent public accountants for fiscal year 2002.
    The decision to change independent public accountants was driven by continuing uncertainty regarding Andersen's future. Hometown is in the process of interviewing new independent public accountants for the fiscal year 2002.
    Hometown will file a Form 8-K with the U.S. Securities and Exchange Commission detailing the change in independent public accountants.
    Additionally, Hometown announced that Stephen Zelnick, a member of Hometown's board and the Audit and Compensation Committees, has resigned from Hometown's board for personal reasons.

    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 12 American and Asian automotive brands, including Chevrolet, Chrysler, Daewoo, Dodge, Ford, Isuzu, Jeep, Lincoln, Mazda, Mercury, Oldsmobile, and Toyota. Hometown also operates a freestanding Ford and Lincoln Mercury factory authorized service center that provides maintenance and repair services of cars and trucks.

    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 that any forward-looking statement will prove to be accurate.