Press Release

United Auto Group Announces Plans to Buy Nissan Dealership

02/14/97

United Auto Group Announces Acquisition of Las Vegas
Nissan Dealership

NEW YORK--Company to Expand Presence in Southwest
Through Gary Hanna Nissan Acquisition

United Auto Group, Inc. , the nation's second largest
publicly-traded automotive retailer, has signed a definitive agreement
to acquire 100% of the capital stock of Las Vegas-based Gary Hanna
Nissan Inc., the largest Nissan dealership in Nevada. The announcement
was made today by Carl Spielvogel, Chairman and Chief Executive
Officer of United Auto and Marshall S. Cogan, Chairman of the
Executive Committee.

The aggregate consideration for the acquisition is approximately $12.5
million, including approximately $7.0 million in cash and
approximately $5.5 million in United Auto common stock. The Company
has agreed to make an additional cash payment to the extent that the
common stock issued in the transaction is valued at less than $6.0
million when the shares become freely tradable. The transaction is
expected to close by April 30, 1997 and is subject to manufacturer
approval as well as other customary conditions

The dealership, which will be renamed United Nissan, had estimated
1996 revenues of $68.0 million. The acquisition expands United Auto's
presence in the Southwest where it also owns Sun Automotive Group,
located in Phoenix and Scottsdale, Arizona.

Mr. Spielvogel said, "This acquisition, located in one of the nation's
fastest growing population centers, reflects our commitment to build
United Auto in tandem with the best-selling automotive brands." United
Auto also owns four Nissan dealerships in the Southeast, he added.

Mr. Cogan said, "United Auto will continue to pioneer consolidation in
automotive retailing. Since our October 1996 IPO we've made good
progress in acquiring profitable franchised dealerships in the South,
structuring transactions in the three to five times operating profit
range and expanding market presence."

Gary Hanna Nissan, founded in 1980, was honored in 1996 with Nissan's
coveted Circle of Excellence Award for sales performance and customer
satisfaction. The dealership also sells previously-owned vehicles and
offers a complete range of services including service and parts, and
the placement of financing and insurance.

United Auto has pursued a business strategy based on internal growth
from existing dealerships and on strategic acquisitions. The
acquisition of Gary Hanna Nissan is United Auto's second since
completing its initial public offering on October 28, 1996. The
Company expects to complete the previously announced acquisition of
Houston-based Shannon Automotive Ltd., which operates Crown Dodge and
Jeep Eagle Chrysler-Plymouth, by March 1, 1997.

United Auto operates 38 franchises in Arizona, Arkansas, Connecticut,
Georgia, New Jersey, New York and Tennessee.  As an integral part of
its dealership operations, United Auto sells used vehicle and operates
eight stand-alone United Auto Mart used car retail centers. United
Auto dealerships market a complete line of aftermarket automotive
products and services through United AutoCare.  The Company also owns
Atlantic Auto Finance Corporation, a finance company engaged in the
purchase, sale and servicing of prime credit quality automobile loans.

CONTACT: Carl Spielvogel | Chairman and Chief Executive Officer |
Robert Nelson | Chief Financial Officer | 212/223-3300 | or | Bob Amen
| Amen & Associates | 212/448-4200