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AutoNation Announces Tax-Free Spin Off Of Automotive Rental Business

30 September 1999

AutoNation Announces Tax-Free Spin Off Of Automotive Rental Business

           AutoNation Shareholders to Receive Distribution of Stock

    FORT LAUDERDALE, Fla., Sept. 30 -- AutoNation, Inc.
announced today that it will separate its automotive rental
business from its automotive retail business in the form of a tax-free
dividend of shares of the new automotive rental company to the shareholders of
AutoNation.  The company said it has received a favorable ruling from the
Internal Revenue Service regarding the distribution of the stock.  The
separation is subject to the Company's satisfaction of certain conditions,
including bank approvals and compliance with regulatory requirements.
    AutoNation anticipates that the distribution of the stock will occur
during the second half of January, 2000.  The Company also said that it
expects to set a record date that will occur in late December, 1999, and that
the distribution will be at a ratio of one share of the new automotive rental
company for every six to eight shares of AutoNation owned.  AutoNation
emphasized that the actual record date, distribution date and ratio have not
yet been finalized.
    Following the separation, AutoNation, Inc. will be focused solely on the
automotive retail business.  AutoNation's automotive rental business, which
includes Alamo, National and CarTemps USA, will be a free-standing public
company, which in 1998 had revenue of about $3.5 billion.
    Commenting on the proposed distribution, AutoNation Chairman H. Wayne
Huizenga said, "We are very pleased to be rewarding AutoNation shareholders
with stock in what will be one of the largest publicly traded automotive
rental companies in the world.  AutoNation's Board of Directors examined all
the alternatives for the separation and determined that a tax-free
distribution of shares in the rental company offers AutoNation and its
shareholders the greatest long-term value."
    Based in Fort Lauderdale, Florida, AutoNation, Inc. is America's largest
automotive retailer, with 412 franchises and/or 42 AutoNation USA used vehicle
megastores in 24 states.  On August 2, 1999, the Company announced its plan to
separate its automotive rental businesses from its automotive retail business
and to focus its efforts on building the AutoNation automotive retail
business.
    Certain statement and information incurred in this release constitute
"forward-looking statements" within the meaning of the Federal Private
Securities Litigation Reform Act of 1995.  Such forward-looking statements
involve known and unknown risks, uncertainties and other factors which may
cause the actual results, performance, or achievements of the Company to be
materially different from any future results, performances, or achievements
expressed or implied in such forward-looking statements.  Additional
discussion of factors that could cause actual results to differ materially
from management's projections, forecasts, estimates and expectations is
contained in the Company's SEC filings.