Asbury Automotive Group Reports Record Second Quarter Financial Results

EPS from Continuing Operations Increases 10%; Up 22% Adjusted for Non-Operating Items

NEW YORK, July 26, 2007 -- Asbury Automotive Group, Inc. , one of the largest automotive retail and service companies in the U.S., today reported financial results for the second quarter and six months ended June 30, 2007.

Income from continuing operations for the second quarter was $21.2 million, or $0.64 per diluted share, an 8% increase from $19.5 million, or $0.58 per diluted share, a year ago. Results for this year's second quarter include $0.02 per diluted share in non-operating expenses related to the completion of the Company's debt refinancing and a secondary stock offering, while the results a year ago included non-operating items that added $0.04 per diluted share. Excluding these items, income from continuing operations for the second quarter increased 20% to $22.0 million, or $0.66 per diluted share, from $18.3 million, or $0.54 per diluted share, a year ago.

For the first six months of 2007, income from continuing operations was $23.6 million, or $0.70 per diluted share, compared with $33.2 million, or $0.99 per diluted share, in the corresponding period last year. Non-operating items reduced earnings per diluted share by $0.40 in the first half of 2007, while non-operating items increased results a year ago by $0.04 per diluted share. Excluding these items, income from continuing operations for the first half of 2007 increased 16% to $37.3 million, or $1.10 per diluted share.

President and CEO Charles R. Oglesby said, "Asbury's excellent results for the second quarter reflect the fundamental strength of our diversified retail and services business model, as well as the resourcefulness and flexibility of our people in the face of a challenging vehicle sales environment. Retail sales, both new and used, were soft during the quarter, but thanks to record results in finance and insurance, both in total revenue and on a PVR basis, and solid results in fixed operations, we were again able to deliver record earnings per share."

J. Gordon Smith, Senior Vice President and CFO, said, "The second quarter marks our 11th consecutive quarter of improved expenses as a percentage of gross profit, with 70 basis points of improvement on an adjusted basis. In addition, our EPS growth was further enhanced through two capital markets events: the repurchase of approximately 4% of our outstanding common stock at the end of the first quarter of 2007 and the refinancing of our 9% senior subordinated notes, which was completed in mid-June."

Additional financial information for the second quarter of 2007, as compared to last year's second quarter, included:

  -- Total revenue for the quarter of approximately $1.5 billion was
     essentially unchanged from a year ago.  Total gross profit was
     $232.4 million, up 4% adjusted for non-operating items.
  -- New light vehicle retail revenue increased 2% (1% on a same-store
     basis) and new light vehicle unit sales increased 1% (down 1% same-
     store).  New vehicle retail gross profit was down 1% (2% same-store).
     New heavy truck retail revenue decreased 45% and new heavy truck unit
     sales declined 43%.
  -- Used vehicle retail revenue increased 3% (1% same-store), and unit
     sales increased 1% (flat on a same-store basis).  Used vehicle retail
     gross profit decreased 2% (4% same-store).
  -- Parts, service and collision repair revenue increased 3% (2% same-
     store), and gross profit rose 7% (5% same-store).
  -- Net finance and insurance (F&I) revenue increased 2% (1% same-store).
     Dealership-generated F&I for the quarter was up 13% (12% same-store).
     Dealership-generated F&I per vehicle retailed increased 14% to a record
     level of $1,000.
  -- Selling, general and administrative (SG&A) expenses as a percentage of
     gross profit were 74.7% for the quarter.  Adjusting both periods for
     non-operating items, the SG&A expenses were 74.6% of gross profit, a 70
     basis-point improvement from 75.3% a year ago.

During the first half of 2007, Asbury acquired three dealerships with approximately $140 million in annualized revenues. The Company currently expects to exceed its annual growth target of adding $200 million in annualized revenues through acquisitions for the full year.

The Company noted that it remains comfortable with its previous earnings guidance for 2007 in a range between $2.20 and $2.28 per diluted share from continuing operations.

Asbury will host a conference call to discuss its second quarter results this morning at 10:00 a.m. Eastern Time. The call will be simulcast live on the Internet and can be accessed by logging onto http://www.asburyauto.com/ or http://www.ccbn.com/. In addition, a live audio of the call will be accessible to the public by calling 800-500-3170 (domestic), or 719-457-2733 (international); no access code is necessary. Callers should dial in approximately 5 to 10 minutes before the call begins.