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Group 1 Automotive Completes $125 Million Credit Facility

6 January 1998

Group 1 Automotive Completes $125 Million Credit Facility

    HOUSTON, Jan. 6 -- Group 1 Automotive, Inc. , a
leading operator and consolidator in the automotive retailing industry,
announced today that it has closed a three-year, $125 million revolving credit
facility.  Funds will be used for future acquisitions, inventory financing,
capital expenditures, working capital and general corporate purposes.
    B.B. Hollingsworth, Jr., Group 1's chairman, president and chief executive
officer, said, "We are pleased to complete this facility since it provides an
important alternative source of financing.  We now have added flexibility in
funding acquisitions and inventory.  This credit facility consolidates a large
portion of the company's financing and will reduce the company's cost of
funds."
    The credit facility is secured by inventory and property, plant and
equipment and carries an interest rate below the prime rate.  The bank group
is comprised of administrative agent Chase Securities, Inc., Comerica Bank,
the floor plan agent, Nationsbank of Texas, the documentation agent, co-agent
U.S. Bank and participant Bank of Scotland.
    Hollingsworth continued, "Our new credit facility not only gives us access
to below prime financing but more importantly, establishes a relationship with
a group of strong financial partners that understands our industry and our
strategy.  These financial institutions are very seasoned in automotive
lending and we are delighted they have teamed with Group 1."
    Group 1 was founded to become a leading operator and consolidator in the
highly fragmented automotive retailing industry and completed its initial
public offering in October, 1997.  Following the completion of the pending
acquisitions, Group 1 will own 48 dealership franchises comprised of 24
different brands, and nine collision service centers located in Texas,
Oklahoma, Florida and Georgia.  Through these dealerships, the company sells
new and used cars and light trucks, provides maintenance and repair services,
sells replacement parts and provides related financing, insurance and service
contracts.

SOURCE  Group 1 Automotive, Inc.