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Group 1 Automotive Expands Credit Facility

23 June 1998

Group 1 Automotive Expands Credit Facility

    HOUSTON, June 22 -- Group 1 Automotive, Inc. , a
leading operator and consolidator in the automotive retailing industry,
announced today that it has closed its syndicated credit facility.  The
existing $125 million revolving credit facility has been increased to
$345 million and the term has been extended to June 2001.  Funds will be used
for 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, "Our syndicated credit facility was significantly over-
subscribed, allowing us to increase it from the $250 million originally
planned.  We are extremely pleased with the vote of confidence we have
received from the commercial banking market."
    Certain dealerships' inventory and property, plant and equipment secure
the credit facility.  The bank group is comprised of administrative agent
Chase Securities, Inc., Comerica Bank, the floorplan agent, NationsBank of
Texas, the documentation agent, co-agents U.S. Bank and Bank of America and
six other participants.
    "This facility provides acquisition funds at a rate below the prime rate,
evidencing the benefit of our increasing economies of scale," Hollingsworth
added.  "Our new bank relationships will be an important source of financing
as we build Group 1 into one of the nation's premier automotive retailers."
    Group 1 was founded to become a leading operator and consolidator in the
highly fragmented automotive retailing industry.  Upon completion of one
previously announced acquisition, 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.
    Group 1 Automotive, Inc. can be reached on the Internet at
http://www.group1auto.com.