AutoNation Up 23% in Q2 EPS

FORT LAUDERDALE, FL., July 25 - America's largest retailer of both new and 
used vehicles, today reported record second-quarter earnings per share of 
$0.32, up 23% from $0.26 a year earlier, as higher gross margin, lower 
inventory - carrying costs and the elimination of goodwill amortization 
drove results.
Net income also rose 20% to $103.8 million from $86.3 million last year.

Last year's results include two cents of net gain resulting primarily from 
the sale of the Company's Flemington Group of dealerships.  On a comparable 
basis -- after excluding the net gain and approximately
$14 million, or $0.04 per share, of after-tax goodwill amortization from 
last year's results -- the Company's second-quarter earnings per share rose 
14% ($0.32 versus $0.28).

Commenting on the 2002 second-quarter performance, Mike Jackson, 
AutoNation's Chief Executive Officer, said, "AutoNation delivered another 
record quarter of earnings per share, demonstrating again the strength of 
our operations.  We continue to benefit from lower inventory-carrying 
costs, a diverse portfolio of vehicle brands and local markets, and 
significant profits from higher-margin areas such as finance and insurance 
and parts and service."

Total revenue for the second quarter ended June 30, 2002 increased to $5.02 
billion from $4.95 billion a year ago as total revenue grew 9.2% for 
finance and insurance, 3.9% for parts and service, 2.7% for used vehicles 
and 1.3% for new vehicles.  Total gross margin increased to $750.6 million, 
up from $723.1 million last year as gross margin percentage rose 40 basis 
points to 15%.  Net margin rose 40 basis points to 2.1%.

The Company also reported that in accordance with new accounting rules it 
performed a required impairment analysis of its goodwill and other 
intangibles that resulted in no adjustments.

Also included in the Q2 results:

* The signing of an agreement to acquire Claridge's BMW in Fremont, 
Calif.  The acquisition is expected to close during this year's third 
quarter.  In 2001, Claridge's BMW had revenue of approximately $63 million.

* Record earnings before interest, taxes, depreciation and amortization of 
$195.1 million, up 5.7% from last year's $184.5 million.

* The repurchase of 7 million of the Company's shares at a cost of $115.2 
million, leaving a board-authorized amount of $109.2 million for future 
repurchases.

Looking ahead, Mr. Jackson said, "Based on our continued confidence in our 
operations and the U.S. vehicle market's relative health, we're raising our 
full-year 2002 outlook for earnings per share to the range of $1.15 to 
$1.17 and expect our third-quarter earnings per share to be in the range of 
$0.28 to
$0.30."

For the six-month period ended June 30, 2002, the Company earned net income 
of $195.5 million, or $0.60 per share, up 34% from net income of $146.2 
million, or $0.43 per share, in the prior year.  The Company's revenue 
during the six-month period ended June 30, 2002 totaled $9.77 billion, down 
from revenue of $9.83 billion during the prior year.