---

Penske Corporation Increases Its Stake in UnitedAuto Group, Inc.

29 December 2000

Penske Corporation Increases Its Stake in UnitedAuto Group, Inc.

    DETROIT--Dec. 28, 2000--Penske Corporation, UnitedAuto Group, Inc.'s controlling shareholder, announced today that it purchased 3,993,110 of UnitedAuto's common shares from the Bank of Nova Scotia at a price of $10.50 per share, or approximately $42 million.
    Penske Corporation also invested $23 million in exchange for 2,139,535 newly issued common shares of UnitedAuto. With these investments, Penske Corporation, along with Penske Capital Partners and its affiliates, holds approximately 57.6% of UnitedAuto's common stock on a fully diluted basis.
    Roger S. Penske, Chairman and CEO of Penske Corporation, commented, "The purchase of these shares reflects our strong commitment to UAG and our confidence in the company as one of the premier players in the retail automotive business. UnitedAuto is now a core investment for Penske Corporation and we expect the company will continue to grow and build shareholder value."
    UnitedAuto Group operates more than 126 dealership franchises in 17 states, Puerto Rico and Brazil. UnitedAuto dealerships sell new and used vehicles and market a complete line of after-market automotive products and services.