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Group 1 Automotive Doubles Credit Facility to $1 Billion

19 October 1999

Group 1 Automotive Doubles Credit Facility to $1 Billion

    Funds Available for Acquisitions, Floorplan Financing, Working Capital

    HOUSTON, Oct. 18 -- Group 1 Automotive, Inc., a leading operator and 
consolidator in the automotive retailing industry, announced it has doubled 
its existing revolving credit facility to $1 billion, increased the 
acquisition portion to $220 million and extended the term to December 31, 
2003.  The company's previous credit facility totaled $500 million with 
$110 million for acquisitions and matured December 31, 2001. The acquisition 
portion of the facility is not drawn.
    Lending syndicate members include 11 banks, as well as Ford Motor Credit
Company, Toyota Motor Credit Corporation, Chrysler Financial, General Motors
Acceptance Corporation, and BMW Credit Corporation.  The facility was arranged
through Chase Securities, Inc.  Group 1 believes the inclusion of automotive
captive finance companies in its core financing facility is unique and
demonstrates the excellent relationships the company has developed with
automobile manufacturers.
    B.B. Hollingsworth Jr., Group 1's chairman, president and chief executive
officer, noted this is the fourth time the facility has been increased since
the company arranged its first syndicated financing in December 1997, and,
once again, the company's request for an increase was significantly
oversubscribed.
    "Less than two years ago, we completed $125 million in financing with a
group of five banks.  We now have a $1 billion dollar long-term facility from
16 leading financial institutions, including five automotive captive finance
companies," Hollingsworth said.  "Thanks to the strong support we have
received from all of our lenders and our robust internally generated cash
flow, we have the resources to grow our business through continued successful
execution of our operating and acquisition strategies."
    Year-to-date, Group 1 has closed acquisitions with revenues totaling
$550 million.  Additionally, the company has announced pending acquisitions
totaling $540 million in revenues that are expected to close by year end.
    "Once all acquisitions are closed, we will have exceeded our 1999 target
to acquire $800 million to $1 billion in dealership revenue," Hollingsworth
said.  "We are now working on acquisitions for next year."
    Group 1 is a leading operator and consolidator in the highly fragmented
automotive retailing industry.  Upon completion of the announced acquisitions,
Group 1 will have an annualized revenue run rate of over $3 billion, and will
own 104 dealership franchises comprised of 31 different brands, and 18
collision service centers located in Texas, Oklahoma, Florida, New Mexico,
Colorado, Georgia, Louisiana and Massachusetts.  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,
vehicle service and insurance 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 are subject to known and unknown risks, uncertainties or other factors

not under Group 1's control that may cause the actual results, performance or
achievements of Group 1 to be materially different from the results,
performance or other expectations implied by these forward-looking statements.
Some of these risks, uncertainties and other factors include those disclosed
in Group 1's filings with the Securities and Exchange Commission.
    For additional information regarding Group 1 Automotive free of charge via
fax, dial 1-800-PRO-INFO and use the company's stock symbol, "GPI."
    Group 1 Automotive, Inc. can be reached on the Internet at
http://www.group1auto.com .