Sonic Automotive Completes Private Offering of $200 Million in Senior Subordinated Notes

CHARLOTTE, N.C., Aug. 13, 2003 -- Sonic Automotive, Inc. announced today that it completed the previously announced private placement of $200 million of a new issue of 8 5/8% senior subordinated notes due 2013 to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Act"), and to other eligible purchasers pursuant to offers and sales that occurred outside the United States within the meaning of Regulation S under the Act. The notes were issued at 98.3628% of par with an 8 5/8% coupon, to yield 8 7/8%. The net proceeds of the offering will be used to redeem all of the Company's outstanding 11% senior subordinated notes due 2008.

O. Bruton Smith, the Company's Chairman and Chief Executive Officer stated, "Replacing the existing 11% notes will result in a reduction in our interest expense that will improve earnings per diluted share by $0.05 annually until 2008. Additionally, the new issue has extended the maturity on $182.4 million of our senior subordinated debt by five years to 2013. The redemption of the outstanding 11% notes will require a one time, after tax charge in the third quarter of 2003 of approximately $8.8 million, or $0.21 per diluted share, which reflects the call premium and the write-off of unamortized discount and debt issuance costs."

This announcement is neither an offer to sell nor a solicitation of an offer to buy any of the senior subordinated notes due 2008 or the senior subordinated notes due 2013 or any other security of the Company. The senior subordinated notes due 2013 have not been registered under the Act or applicable state securities laws, and were sold to qualified institutional buyers in reliance on the exemption from registration provided by Rule 144A and to other eligible purchasers pursuant to offers and sales that occurred outside the United States within the meaning of Regulation S under the Act. Unless so registered, the senior subordinated notes due 2013 may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Act and applicable state securities laws.

Included herein are forward-looking statements, including statements with respect to anticipated reductions in future interest expense and corresponding impacts on future earnings per share, as well as the anticipated redemption of outstanding senior subordinated notes due 2008. There are many factors that affect management's views about future events and trends of the Company's business. These factors involve risk and uncertainties that could cause actual results or trends to differ materially from management's view, including without limitation, economic conditions, risks associated with acquisitions and the risk factors described in the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on August 4, 2003. The Company does not undertake any obligation to update forward-looking information.