Rallye Motors and Penske Automotive Mutually Agree to Terminate Transaction

ROSLYN, N.Y., Dec. 21, 2007 -- Rallye Motors, the premier luxury car retailer on Long Island, announced today that Rallye and Penske Automotive Group, Inc. have mutually agreed to terminate their previously announced transaction by which Penske Automotive was to acquire Rallye.

"Upon further evaluation, we mutually agreed with Penske Automotive to terminate the proposed transaction. Our priority continues to be to serve our clients and build on our position as the premier luxury car retailer on Long Island," said Juliana C. Terian, Chairman of Rallye. "Our business is performing very well and we have a number of near-term initiatives that will enhance our ability to provide unparalleled service and quality to our clients. Next month will mark Rallye's 50th year in business, and the leadership team and I look forward to continuing to work with all of our talented employees to grow and expand Rallye as an independent company well into the future."

About Rallye Motors

Rallye Motors, which represents the Acura, BMW, Lexus and Mercedes-Benz brands, has been growing and expanding steadily over the past few years. The company, whose franchises represent approximately $700 million in revenue on an annualized basis, opened a state-of-the-art BMW dealership in Westbury, N.Y. earlier this year and plans to open Long Island's first Smart Car dealership in January 2008. Rallye's earnings for 2007 are tracking ahead of last year's results and the company is well positioned to build on its nearly 50-year history of excellence and continue to deliver a unique and valuable luxury car buying experience to clients. More information about Rallye can be found on the company's Web site at www.rallyemotors.com.