Revenues Rise 4% to $3.2 Billion

Income from Continuing Operations of $33.8 Million; 17% Increase Versus Adjusted Q1 '07

Earnings Per Share from Continuing Operations of $0.36; 16% Increase Versus Adjusted Q1 '07

Penske Automotive Group, Inc. (NYSE: PAG), an international automotive retailer, today reported that first quarter income from continuing operations was $33.8 million, which represents a 17.4% increase over adjusted income from continuing operations of $28.8 million in the prior year. Related earnings per share were $0.36 in the first quarter, which compares to $0.31 per share in the prior year. Net income in the first quarter was $33.9 million, or $0.36 per share, compared with adjusted net income of $26.9 million, or $0.28 per share, in the prior year. Adjusted 2007 earnings exclude $12.3 million ($0.13 per share) of after-tax costs relating to the redemption of the Company’s 9.625% Senior Subordinated Notes in March of 2007. In the first quarter of 2007, reported income from continuing operations and reported net income were $16.5 million, or $0.18 per share, and $14.6 million, or $0.15 per share, respectively.

Revenues in the first quarter increased 4.0% to $3.2 billion. On a same-store basis, retail revenues declined 2.3%, due primarily to a decline in new vehicle unit sales at the Company’s U.S. dealerships. “I’m pleased with the performance of our business in the first quarter,” said Penske Automotive Group Chairman Roger Penske. “While the new vehicle sales environment was difficult, particularly in the U.S., our business continued to perform well. In particular, I am pleased that we were able to generate same-store retail revenue increases in our used vehicle, finance & insurance, and service and parts operations. Further, our overall gross margin increased to 15.4%, due primarily to the strength of our used vehicle and service and parts performance.” Penske continued, “I also remain excited about our distribution of the smart fortwo in the U.S., and am optimistic about its prospects and its potential to further diversify the Company’s overall business model.”

During the first quarter, the Company did not effect any repurchases under its previously announced share buyback authority. The Company currently projects earnings from continuing operations in the second quarter to be in the range of $0.45 to $0.47 per share, and continues to project earnings from continuing operations for the year in the range of $1.63 to $1.71 per share. Earnings per share information in 2008 is based on an estimated average of 95.0 million shares outstanding.

Penske Automotive will host a conference call discussing financial results relating to the first quarter of 2008 on April 29, 2008, at 2:00 p.m. EDT. To listen to the conference call, participants must dial (800) 230-1951 [International, please dial (612) 332-0530]. The call will be simultaneously broadcast over the Internet through the Penske Automotive Group website at www.penskeautomotive.com.

About Penske Automotive

Penske Automotive Group, Inc., headquartered in Bloomfield Hills, Michigan, operates 316 retail automotive franchises, representing more than 40 different brands, and 27 collision repair centers. Penske Automotive, which sells new and previously owned vehicles, finance and insurance products and replacement parts, and offers maintenance and repair services on all brands it represents, has 171 franchises in 19 states and Puerto Rico and 145 franchises located outside the United States, primarily in the United Kingdom. Penske Automotive is a member of the Fortune 500 and Russell 1000 and has approximately 16,000 employees. smart and fortwo are registered trademarks of Daimler AG.

Statements in this press release may involve forward-looking statements, including forward-looking statements regarding Penske Automotive Group, Inc.’s future sales and earnings potential. Actual results may vary materially because of risks and uncertainties, including external factors such as interest rate fluctuations, changes in consumer spending and other factors over which management has no control. These forward-looking statements should be evaluated together with additional information about Penske Automotive’s business, markets, conditions and other uncertainties which could affect Penske Automotive’s future performance. These risks and uncertainties are addressed in Penske Automotive’s Form 10-K for the year ended December 31, 2007, and its other filings with the Securities and Exchange Commission (“SEC”). This press release speaks only as of its date, and Penske Automotive disclaims any duty to update the information herein.

This release contains certain non-GAAP financial measures as defined under SEC rules, such as adjusted income from continuing operations and related earnings per share, which exclude certain items disclosed in the release. The Company has reconciled these measures to the most directly comparable GAAP measures in the release. The Company believes that these non-GAAP financial measures improve the transparency of the Company's disclosure and the period-to-period comparability of the Company's results from operations.

Penske Automotive Group, Inc.
Bob O’Shaughnessy, 248-648-2800
Chief Financial Officer
boshaughnessy@penskeautomotive.com
or
Tony Pordon, 248-648-2540
Senior Vice President
tpordon@penskeautomotive.com