Hometown Auto Retailers Files Preliminary Information Statement with the SEC Announcing the Approval by Written Consent of an Agreement and Plan of Merger

WATERBURY, Conn.--Hometown Auto Retailers, Inc. (OTCBB:HCAR) filed a Preliminary Schedule 14C Information Statement on November 24, 2006 with the United States Securities and Exchange Commission (SEC).

The purpose of the Information Statement is to inform the company’s stockholders of certain actions taken by the written consent of the holders of a majority of the voting power of Hometown Auto Retailers’ stock, which actions will not become effective until at least twenty (20) days after the initial mailing of the Information Statement to the stockholders. The mailing of the Information Statement will not take place until at least 10 days after the filing of the Preliminary Information Statement with the SEC.

The written consent approved an Agreement and Plan of Merger pursuant to which the holders of the 2,740,727 shares of the company’s Class A Common Stock not held by members of the Shaker Group or the Muller Group (as defined in the Information Statement) will receive $2.30 per share in cash. Following the merger, all of the shares of stock of the company will be owned by members of the Shaker Group or the Muller Group. After consummation of the merger, certain of the assets of the company will be transferred to the Shaker Group, leaving Hometown Auto Retailers owned by the Muller Group.

The Information Statement will be mailed on a future date to shareholders of record as of November 10, 2006. The Preliminary Information Statement can be reviewed online at the SEC’s Web site at http://sec.gov/Archives/edgar/data/1061117/000114420406049968/v 058863_pre14c.htm. (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.)

Investors interested in additional copies of the Information Statement (which will be provided without charge), or who have any questions about the planned merger or exchanges, may contact Charles F. Schwartz, Chief Financial Officer and Secretary of Hometown Auto Retailers, Inc. at 1309 South Main Street, Waterbury, Connecticut 06706 or by phone at (203) 756-1300.

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 eight franchised dealerships located in New Jersey, New York, Connecticut, Massachusetts and Vermont. The company’s dealerships offer 10 American and Asian automotive brands, including Chevrolet, Chrysler, Dodge, Ford, Jeep, Lincoln, Mazda, Nissan, Mercury and Toyota.

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.