Group 1 Automotive Appoints Northeast Regional Vice President

HOUSTON--June 30, 2006--

Announces Franchise Dispositions

Group 1 Automotive, Inc. , a Fortune 500 automotive retailer, today announced the appointment of David W. Hult as Northeast regional vice president effective July 1. Hult, 41, has 20 years of automotive experience, most recently serving as the market director for the Northeast region. In this new position, he will oversee Group 1's dealership operations in Massachusetts, New Hampshire, New Jersey and New York that encompass 21 franchises in 20 dealerships.

"We are fortunate to have a leader with David Hult's experience to assume this vital role in our Northeast region," said Earl J. Hesterberg, Group 1's president and chief executive officer. "As a 15-year member of the Ira Group management team, this new position will serve as an expansion of his current duties and will allow for a smooth transition in the Northeast region leadership."

Hult's promotion follows the retirement of David S. Rosenberg, one of the founding members of the Ira Auto Group based in Boston, and a member of Group 1 since 2000.

"We would like to thank David Rosenberg for his many contributions to Group 1 Automotive during his time with our company," said Hesterberg.

Disposition Update

In June, the company disposed of Chrysler, Dodge and Jeep franchises in the Boston market and a Dodge franchise in New Orleans. The four franchises had total revenues of $58 million in 2005. These transactions bring the year-to-date disposals to $122 million. As a result of these actions, the company has revised its 2006 disposition target from $110 million to $190 million in annual revenues.

About Group 1 Automotive, Inc.

Group 1 owns 94 automotive dealerships comprised of 135 franchises, 33 brands and 30 collision service centers in California, Colorado, Florida, Georgia, Louisiana, Massachusetts, New Hampshire, New Jersey, New Mexico, New York, Oklahoma and Texas. Through its dealerships, the company sells new and used cars and light trucks; arranges related financing, vehicle service and insurance contracts; provides maintenance and repair services; and sells replacement parts.

Group 1 Automotive can be reached on the Internet at www.group1auto.com.