Asbury Automotive Group to Acquire Bob Baker Auto Group

STAMFORD, Conn., Aug. 29 Asbury Automotive Group, Inc. today announced that it has signed a definitive agreement to acquire Bob Baker Auto Group of San Diego, California. The acquisition establishes Asbury's first platform in California.

Bob Baker Auto Group is the largest multi-franchise dealership group in the San Diego market, with current annual revenues of $445 million. Bob Baker operates six dealerships with 10 franchises, including Toyota, Lexus, Ford, Chevrolet, Volkswagen, Chrysler, Jeep, Mitsubishi, and two Subaru dealerships. It was ranked as the 53rd largest dealership group in the United States in 2001, according to Automotive News. In keeping with Asbury's business model, current CEO, Robert H. Baker, will remain on board as platform CEO to manage the day-to-day operations including follow-on acquisitions in the Southern California market.

"The acquisition of the Bob Baker Auto Group marks an important strategic milestone for Asbury Automotive," said Kenneth B. Gilman, President and CEO. "We have been interested in entering the Southern California market for quite a while. There is no better group we could join forces with than Bob Baker. The Bob Baker Auto Group holds a clear leadership position in one of the nation's largest and most rapidly growing auto retailing markets. The Bob Baker name is a very well known and respected brand with an attractive franchise mix and a superior management team. This group will provide a solid foundation for significant expansion through tuck-in acquisitions in the Southern California market over the next few years."

"I am delighted to be joining forces with Asbury," said Bob Baker. "I am very impressed with Asbury's track record and solid reputation in the industry, and look forward to working with such a top-notch management team. With Asbury's financial resources and industry knowledge we can now significantly accelerate our expansion under the Bob Baker banner throughout California. My partners and I can continue to focus on running our business as usual and growing it without any distractions -- this acquisition is truly a win-win proposition for everyone at Bob Baker Auto Group."

The acquisition is subject to customary closing conditions, including approval from various manufacturers. Asbury expects to close the transaction no later than the fourth quarter of 2002. The Company expects the acquisition will be accretive to earnings per share in 2003, but will not make a significant earnings contribution to its 2002 results.

Following the close of this acquisition and other previously announced deals, Asbury will operate ten geographically concentrated platforms in the United States. These platforms are comprised of 98 dealerships representing 139 franchises and 37 brands.