---

Group 1 Automotive Acquires Five Dealerships

13 May 1998

Group 1 Automotive Acquires Five Dealerships

                  Platform Operations Added in Albuquerque;
             Austin, Beaumont and South Florida Markets Expanded

    HOUSTON, May 13 -- 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
five dealerships, with revenues of approximately $230 million and retail unit
sales of over 9,500 cars and trucks.
    The Johns Automotive Group, a leading operator in the Albuquerque, N.M.,
market, establishes Group 1's first platform operation west of Texas.  The two
dealerships consist of a Chrysler, Plymouth, Jeep and Eagle franchise, and a
Chevrolet franchise.  Principals Ken and Cindy Johns along with their
management team have executed long-term employment contracts and will retain
their current positions.
    Flamingo Ford, located in Homestead, Fla., will strengthen Group 1's
market position in South Florida.  It will join the company's existing Carroll
Automotive platform.
    Group 1's current presence in the fast-growing Austin, Texas, market will
be enhanced by Highland Chrysler, Plymouth, Jeep, Eagle and Dodge, which will
join the existing Maxwell platform.  The Austin operations now consist of
10 different brands.
    Autoplex 2000 in Beaumont, Texas, consisting of Buick, Dodge, Mercedes-
Benz, Nissan and Volvo, joins the Mike Smith Autoplaza platform in
establishing a very strong presence for Group 1 in this market with
11 different brands.
    "I am pleased to announce the closing of these transactions,"
B.B. Hollingsworth, Jr., chairman, president and chief executive officer,
stated.  "The Johns dealerships give us geographic diversity through a new
platform in a great car and truck market.  Flamingo, Autoplex 2000 and
Highland expand our current operations, providing synergy in three important
markets."
    Group 1 also noted that its previously announced acquisition of Denver-
based Luby Chevrolet has received manufacturer approval.  "We are in the
process of completing due diligence," Hollingsworth commented.  "The Luby
acquisition remains on target to close during the second quarter.
    "Since our initial public offering in October 1997, we have acquired 30
automobile dealership franchises located in four states," Hollingsworth
continued.  "Once Luby closes, we will have completed all previously announced
acquisitions.  Our annualized revenue run rate will be approximately
$1.6 billion, representing over 68,000 retail car and truck sales."
    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 60 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 filings with the Securities and Exchange
Commission.

SOURCE  Group 1 Automotive, Inc.