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Sonic Automotive, Inc. Announces Real Estate Financing

1 July 1999

Sonic Automotive, Inc. Announces Real Estate Financing

    CHARLOTTE, N.C., June 30 -- Capital Automotive REIT
and Sonic Automotive, Inc. have entered into a firm
commitment to provide Sonic Automotive with up to $75,000,000 in real estate
financing through December 31, 1999.  This commitment provides a source of
funding at attractive rates for Sonic Automotive's expected real estate needs
through the end of 1999.
    O. Bruton Smith, the Company's Chairman and Chief Executive Officer,
stated, "We evaluated many sources of potential real estate financing for our
dealership acquisition strategy.  CARS was the most responsive and flexible
funding source.  We're pleased to have strategically aligned ourselves with
the premier source of automobile dealership real estate financing."
    "Sonic's recent debt rating upgrade and strong operating performance has
expanded the available sources of capital to support Sonic's acquisition
program.  Lowering the cost of capital is one way Sonic Automotive is creating
value by consolidating automotive retailing operations," stated B. Scott
Smith, the Company's President and Chief Operating Officer.
    Sonic Automotive also has terminated its previously disclosed Strategic
Alliance Agreement with Mar Mar Realty Trust and MMR Holdings, LLC, an
affiliated entity, for providing real estate financing, acquisition referral
and related services.  In a separate transaction, Capital Automotive REIT has
signed a definitive agreement to acquire MMR Holdings, LLC which owns, or will
own after closing of previously announced acquisitions, 52 properties leased
or to be leased by Sonic Automotive.
    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 pending acquisitions, Sonic will operate 113 franchises and
26 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.