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Sonic Automotive, Inc. Announces Acquisition of Clearwater Dealerships

7 January 1998

Sonic Automotive, Inc. Announces Acquisition of Clearwater Dealerships

    CHARLOTTE, N.C., Jan. 7 -- Sonic Automotive, Inc.
announced today that it has agreed to acquire Clearwater Toyota, Clearwater
Mitsubishi and Clearwater Collision Center in Clearwater, Florida ("Clearwater
Dealerships").
    The transaction is valued at approximately $17,590,000 including
$1,750,000 contingent future earnings of the dealerships.  Of this purchase
$3,960,000 will be payable in convertible preferred stock of Sonic Automotive,
Inc.  The remainder of the purchase price is payable in cash.  Closing is
expected in the first quarter of 1998.
    "The acquisition of the Clearwater Dealerships represents continued
execution of our strategy of building market share in selected markets.  These
acquisitions also increase our brand diversity," stated O. Bruton Smith,
Chairman and Chief Executive Officer of Sonic Automotive, Inc.  Mr. Smith
further stated that economies of scale and operating efficiencies will be
gained by these additional acquisitions in the Clearwater market.  Sonic
Automotive, Inc. currently owns and operates Ken Marks Ford in Clearwater.
    Mr. Scott Fink, one of the owners of the Clearwater Dealerships, will
continue as General Manager.  Under Mr. Fink's leadership, these dealerships
generated revenues of approximately $113 million in 1996 and expect 1997
annual revenues to approximate $123 million.
    Sonic Automotive, Inc. is one of the leading automotive retailers in the
United States, with operations in Texas, Florida, North Carolina, South
Carolina, Georgia and Tennessee.

SOURCE  Sonic Automotive, Inc.