PENSKE AUTOMOTIVE REPORTS FIRST QUARTER RESULTS
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Total Revenue Increases 15.3% to $2.9 Billion

Income From Continuing Operations Increases 51.7% to $36.4 Million

Earnings Per Share From Continuing Operations Increases 50% to $0.39 Per Share

$87.3 Million of Convertible Notes Repurchased April 1, 2011
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BLOOMFIELD HILLS, MI, April 28, 2011 – Penske Automotive Group, Inc. (NYSE: PAG), an international automotive retailer, today reported a 51.7% increase in first quarter income from continuing operations attributable to common shareholders to $36.4 million, which compares to income from continuing operations attributable to common shareholders of $24.0 million in the first quarter last year. Earnings per share from continuing operations attributable to common shareholders increased 50.0% to $0.39 per share from $0.26 per share in the first quarter last year. Total revenue in the first quarter increased 15.3% to $2.9 billion, including an 11.6% increase in same-store retail revenues, due in large part to increases in new and used retail vehicle unit sales.

First Quarter Highlights

“Our first quarter results exceeded my expectations” said Penske Automotive Group Chairman Roger Penske. “I am particularly pleased with the same-store retail revenue growth generated in all lines of our business. Our operating results are highlighted by an improvement in our used-to-new ratio to 0.79:1; a 13.5% increase in same-store used vehicle retail unit sales; and improving trends in our service and parts operations, including 3.4% growth in same-store revenues and a 63 basis-point increase in margin.” Penske continued, “Our U.K. business generated another quarter of outstanding operating results, highlighted by new vehicle unit sales that outperformed the overall U.K. market and a 4.1% increase in same-store used vehicle retail unit sales.”

Commenting on the impact of the earthquake and tsunami in Japan, Penske added, “We extend our deepest sympathies to the people of Japan, including our colleagues at our partner companies, OEMs, suppliers, and their families, that have been impacted by this disaster.  While our OEM partners are working tirelessly to minimize the disruption to the automotive supply chain, we expect the recently announced production cuts will impact the availability of new vehicles of certain brands later this year.  However, we believe that the diversification of the retail automotive business model, including our recurring fixed operations, which generate approximately 45% of our gross profit and our ability to offer a full range of used vehicles, will enable us to manage through any reduction in the availability of new vehicles caused by these unfortunate events.”

Financing Activity

On April 1, 2011, the Company repurchased $87.3 million of its 3.5% Senior Subordinated Convertible Notes due 2026 (the “Convertible Notes”) at par value pursuant to an investor put right under the indenture governing the Convertible Notes. The repurchase was funded using existing working capital and borrowings under the Company’s U.S. revolving credit facility. After the repurchase, $63.3 million of the Convertible Notes remain outstanding, which are redeemable by the Company at any time at par value. As of April 28, 2011, the Company has repaid all of the borrowings incurred under the U.S. revolving credit facility in connection with the repurchase of the Convertible Notes, and currently has $300 million of availability under the U.S. revolving credit facility.

The Company also has authorization to repurchase up to $150.0 million of its outstanding common stock, debt or convertible debt. Securities may be acquired from time to time either through open market purchases, negotiated transactions or other means.

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Acquisition Activity

During the first quarter, the Company acquired three franchises, including an Audi franchise in Willoughby, Ohio, and a BMW and MINI franchise in the U.K. These franchises are expected to generate approximately $100 million of revenue on an annualized basis. The Company was also awarded the rights to Nissan and Infiniti franchises in downtown San Francisco, California. These franchises are expected to open in the third quarter of 2011.

smart USA

As previously announced, the Company is in discussions with Mercedes-Benz USA to transition distribution of the smart fortwo to Mercedes-Benz USA. The Company currently expects the transition to be complete in the second quarter of this year. As a result, smart USA has been treated as a discontinued operation for all periods presented in the accompanying financial statements and selected data.

Conference Call

Penske Automotive will host a conference call discussing financial results relating to the first quarter of 2011 on April 28, 2011, at 2:00 p.m. Eastern Daylight Time. To listen to the conference call, participants must dial (800) 230-1092 [International, please dial (612) 332-0107]. The call will also 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 326 retail automotive franchises, representing 39 different brands and 26 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 172 franchises in 17 states and Puerto Rico and 154 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 14,500 employees. smart and fortwo are registered trademarks of Daimler AG.

Non-GAAP Financial Measures

This release contains certain non-GAAP financial measures as defined under SEC rules, such as EBITDA. The Company has reconciled this measure to the most directly comparable GAAP measure in the release. The Company believes that this widely accepted measure of operating profitability improves the transparency of the Company’s disclosures. This non-GAAP financial measure is not a substitute for GAAP financial results, and should only be considered in conjunction with the Company’s financial information that is presented in accordance with GAAP.

Caution Concerning Forward Looking Statements

Statements in this press release may involve forward-looking statements, including forward-looking statements regarding Penske Automotive Group, Inc.’s future sales potential. Actual results may vary materially because of risks and uncertainties, including the results of our efforts to transition the smart USA business to Mercedes-Benz USA, as well as external factors such as consumer credit conditions; adverse conditions affecting a particular manufacturer, including the adverse impact to the vehicle and parts supply chain due to the earthquake in Japan in March 2011; macro-economic factors; 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, 2010, 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.

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Reconciliation of 2011 and 2010 net income to EBITDA:

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