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Group 1 Automotive Acquires Four Dealerships

20 March 1998

Group 1 Automotive Acquires Four Dealerships

          First Round of Acquisitions Close; Ford Added to Brand Mix

    HOUSTON, March 20 -- Group 1 Automotive, Inc. , a
leading operator and consolidator in the automotive retailing industry,
announced today that it has completed the previously announced acquisitions of
the Carroll Automotive Group Ford dealerships in Fort Lauderdale, Fla., Miami
and Atlanta, and a fourth Ford dealership in Elgin, Texas, near Austin.
    The Carroll Automotive Group is among the Top 100 dealer groups in terms
of revenues in the United States, according to Automotive News.  Jim Carroll,
chairman, and his management team have executed long-term employment contracts
and will retain their current duties.  Elgin Ford will augment Group 1's
current operations and will be run by existing local management.  Combined
revenues of these new Group 1 dealerships are approximately $265 million, with
retail unit sales of over 11,000 cars and trucks.
    B.B. Hollingsworth Jr., chairman, president and chief executive officer,
stated, "I am very pleased to announce the closings of these transactions
since they represent Group 1's first Ford dealership franchises.  Carroll
establishes platform operations in two new, fast-growing markets -- Atlanta
and South Florida, while Elgin expands our Austin presence.  We are executing
our strategy of enhancing geographic and brand diversity and expanding
existing markets.
    "Since our initial public offering in October 1997, Group 1 has announced
execution of definitive agreements to acquire 29 automobile dealership
franchises located in five states," Hollingsworth said.  "When closed, they
will bring our annualized revenue run rate to approximately $1.6 billion,
representing over 68,000 retail car and truck sales.  Completion of all
previously announced acquisitions is expected by the end of the second quarter
of 1998."
    Group 1 was founded to become a leading operator and consolidator in the
highly fragmented automotive retailing industry.  Upon completion of all
previously announced acquisitions, Group 1 will own 58 dealership franchises
comprised of 24 different brands, and 12 collision service centers located in
Texas, Oklahoma, New Mexico, Colorado, Florida and Georgia.  Through its
dealerships the company sells new and used cars and light trucks, provides
maintenance and repair services, sells replacement parts and arranges related
financing, insurance and service contracts.
    This press release contains certain forward-looking statements within the
meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934,
which involve known and unknown risks, uncertainties or other factors not
under the company's control which may cause the actual results, performance or
achievements of the company to be materially different from the results,
performance or other expectations implied by these forward-looking statements.
Some of these risks and factors include, but are not limited to, those
disclosed in the company's October 29, 1997 Prospectus filed with the
Securities and Exchange Commission.

SOURCE  Group 1 Automotive, Inc.