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Group 1 Automotive Acquires Three Dealerships

1 April 1998

Group 1 Automotive Acquires Three Dealerships

                            Austin Market Expanded

    HOUSTON, April 1 -- Group 1 Automotive, Inc. , a
leading operator and consolidator in the automotive retailing industry,
announced today that it has completed the previously announced acquisition of
the Maxwell Automotive Group in the Austin, Texas, area.
    Maxwell will strengthen Group 1's current market position and provide
important brand diversity.  The three dealerships include Chrysler, Plymouth,
Jeep, Eagle, Dodge and Subaru franchises.  Nyle Maxwell, president, and his
management team have executed long-term employment contracts with Group 1 and
will retain their current duties.  Maxwell Automotive Group's 1997 revenues
were approximately $110 million, with retail unit sales of over 4,500 cars and
trucks.
    B.B. Hollingsworth, Jr., chairman, president and chief executive officer,
stated, "I am very pleased to announce the closing of this transaction.
Austin is a fast-growing market with enormous opportunity and these dealership
franchises represent a significant augmentation of our operations there.  We
continue to execute our strategy of enhancing 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.  We now have completed
the acquisitions of 14 franchises.  Completion of the remaining 15 previously
announced acquisitions are 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 Form 10-K filed with the Securities and Exchange
Commission.

SOURCE  Group 1 Automotive, Inc.