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Sonic Automotive Proposes Private Placement

9 July 1998

Sonic Automotive Announces Proposed Private Placement

    CHARLOTTE, N.C., July 9 -- Sonic Automotive, Inc.
announced that it intends to offer approximately $125 million of its Senior
Subordinated Notes due 2008.  The offering will be made by means of an
offering memorandum to qualified institutional buyers pursuant to Rule 144A
promulgated under the Securities Act of 1933, as amended, and is expected to
close in late July.  Sonic Automotive will use the net proceeds from the
offering to pay all indebtedness outstanding under its existing revolving
credit facility and certain indebtedness under its floor plan facility and to
finance certain acquisitions.  Amounts repaid under the revolving credit
facility and the floor plan facility may be re-borrowed for general corporate
purposes.  The securities to be offered in the private placement will not be
registered under the Securities Act of 1933, as amended, or applicable state
securities laws, and may not be offered or sold absent registration under the
Securities Act and applicable state securities laws or applicable exemptions
from registration requirements.