The Auto Channel
The Largest Independent Automotive Research Resource
The Largest Independent Automotive Research Resource
Official Website of the New Car Buyer

Sonic Automotive, Inc. Announces Acquisitions

7 April 1999

Sonic Automotive, Inc. Announces Acquisitions of Eight New Dealerships and Closes Two Previously Announced Acquisitions
    CHARLOTTE, N.C., April 6 -- Sonic Automotive, Inc.
announced today that it has entered into definitive agreements to
acquire four of the five dealerships owned by the Manhattan Dealership Group
in the Washington, D.C. area: Reading Buick-Pontiac-GMC Truck and Reading
Toyota in Baytown, Texas; Shottenkirk Honda in Pensacola, Florida; and Classic
Dodge in Mobile, Alabama.  These dealerships collectively had 1998 revenues of
approximately $270 million.
    Combined, these transactions are valued at approximately $56 million.  A
combination of Convertible Preferred Stock and Common Stock will be issued for
approximately $15 million of the purchase price and the remainder will be
payable in cash.  All of these acquisitions are expected to close by the end
of the third quarter of 1999.
    Sonic Automotive is also pleased to announce that it has closed its
previously announced acquisitions of the Tom Williams Automotive Group in
Birmingham, Alabama and Bondesen Chevrolet-Oldsmobile-Cadillac in Deland,
Florida.
    In 1999, the Company has closed ten dealership acquisitions representing
approximately $440 million in 1998 revenues.  Including the dealerships listed
above, Sonic Automotive has announced definitive agreements to acquire 20
dealerships representing approximately $750 million in 1998 revenues.

    "Hub" Acquisition

    The acquisition of the Manhattan Dealership Group gives Sonic Automotive
its first presence in the Washington, D.C. market area, which is one of the
premier luxury vehicle markets in the United States.  The Company will now
have operations in the states of Virginia and Maryland.  The dealerships being
acquired include Lexus of Rockville and Rockville Porsche Audi in Rockville,
Maryland; BMW of Fairfax in Fairfax, Virginia; and Nissan Jeep of Waldorf in
Waldorf, Maryland.
    These dealerships have won awards such as the Elite of Lexas Award, and
management has served on BMW, Porsche and Audi dealer councils.
    O. Bruton Smith, the Company's Chairman and Chief Executive Officer,
stated, "Sonic Automotive is proud to add the Manhattan Group to its family of
dealerships.  Management of the Manhattan Group brings to Sonic innovative
service and parts business practices, expense controls and compensation plans.
These programs have led to industry leading profit margins."

    "Spoke" Acquisitions

    Sonic Automotive is also acquiring Reading Buick-Pontiac-GMC Truck and
Reading Toyota in Baytown, Texas.  This "spoke" acquisition will increase the
number of the Company's Houston-area dealerships to six and further
diversifies its Houston-area portfolio.  Sonic will now own and operate Ford,
Chevrolet, Cadillac, Oldsmobile, Pontiac, Buick, GMC, Chrysler, Plymouth, Jeep
and Toyota franchises in this market.
    Shottenkirk Honda in Pensacola, Florida and Classic Dodge in Mobile,
Alabama will complement existing dealerships in the Company's Alabama and
northern Florida region.  The Company is acquiring its third Honda franchise
and 22nd Chrysler franchise.
    B. Scott Smith, the Company's President and Chief Operating Officer,
stated, "Our acquisition strategy continues to include building market share
in our existing markets.  This regional growth enables Sonic to leverage
existing management and infrastructure to improve profit margins of acquired
dealerships.  The benefits of these spoke acquisitions are readily apparent in
cost savings such as the over 40% average reduction in advertising costs Sonic
has achieved in the Houston market.  Additional Toyota, Honda and Chrysler
spoke acquisitions improve our mix of brands and continues our efforts to be
less dependent on any single brand."

    First Quarter Operations

    O. Bruton Smith stated, "Sales and profit performance in our dealerships
was robust in the first quarter of 1999.  The benefits of our operating
strategies are reflected in continued operating margin improvements when
compared to the prior year.  Company management is comfortable with analysts'
earnings estimates for the first quarter."
    Sonic Automotive, Inc. is one of the leading automotive retailers in the
United States, with operations in Alabama, Florida, Georgia, Maryland, North
Carolina, Ohio, South Carolina, Tennessee, Texas, and Virginia.  Upon
completion of these acquisitions, Sonic will operate 111 franchises and 28
collision repair centers.
    Included herein are forward-looking statements, including statements with
respect to anticipated revenue growth.  There are many factors which affect
management's views about future events and trends of the Company's business.
These factors involve risk and uncertainties that could cause actual results
or trends to differ materially from management's view, including without
limitation, economic conditions, risks associated with acquisitions and the
risk factors set forth from time to time in the Company's recent filings with
the Securities and Exchange Commission.