Group 1 owns and operates 100 automotive dealerships, 133 franchises, and 25 collision service centers in the United States and the United Kingdom that offer 31 brands of automobiles. Through its dealerships, the company sells new and used cars and light trucks; arranges related financing, vehicle service and insurance contracts; provides maintenance and repair services; and sells replacement parts.

Group 1 Automotive can be reached on the Internet at www.group1auto.com.

This press release contains "forward-looking statements," which are statements related to future, not past, events. In this context, the forward-looking statements often include statements regarding our goals, plans, projections and guidance regarding our financial position, results of operations, market position, pending and potential future acquisitions and business strategy, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks" or "will." Any such forward-looking statements are not assurances of future performance and involve risks and uncertainties that may cause results to differ materially from those set forth in the statements. These risks and uncertainties include, among other things, (a) general economic and business conditions, (b) the level of manufacturer incentives, (c) the future regulatory environment, (d) our ability to obtain an inventory of desirable new and used vehicles, (e) our relationship with our automobile manufacturers and the willingness of manufacturers to approve future acquisitions, (f) our cost of financing and the availability of credit for consumers, (g) our ability to complete acquisitions and dispositions and the risks associated therewith, (h) foreign exchange controls and currency fluctuations, and (i) our ability to retain key personnel. These factors, as well as additional factors that could affect our forward-looking statements, are described in our Form 10-K under the headings "Business--Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations." We urge you to carefully consider this information. We undertake no duty to update our forward-looking statements, including our earnings outlook.

SOURCE: Group 1 Automotive, Inc.

Group 1 Automotive, Inc., Houston 
President and CEO 
Earl J. Hesterberg, 713-647-5700 
or 
Senior Vice President and CFO 
John C. Rickel, 713-647-5700 
or 
Manager, Investor Relations 
Kim Paper Canning, 713-647-5700 
or 
Fleishman-Hillard 
Investors 
John Roper, 713-513-9505 
or 
Pierpont Communications 
Media 
Clint L. Woods, 713-627-2223

Expected next investor conference call information:
Conference Call Date: 10/28/2008
Conference Call Time: 10:00 AM
Conference Call URL: http://www.group1auto.com/irfs.html

Expected next dividend:
Dividend Announcement Date: 8/15/2008
Dividend Record Date: 9/1/2008
Dividend Pay Date: 9/15/2008
Dividend Amount: 0.14

Same-store gross margin improved 50 basis points, to 16.0 percent, from the third quarter of 2007. The gross margin growth reflected an increase in the mix of the higher-margin parts and service and F&I businesses, partially offset by lower margins in new vehicles, retail used vehicles and in the parts and service businesses.

On a consolidated basis, selling, general and administrative (SG&A) expenses as a percent of gross profit increased 540 basis points, to 82.4 percent, as lower gross profit offset the decline in SG&A expenses. SG&A expenses declined 2.2 percent, or $4.3 million, from the prior-year period, as cost saving measures were realized.

"As we previously announced, third-quarter results were affected by Hurricane Gustav and Hurricane Ike, which negatively impacted our revenues, profits and expenses," said Earl J. Hesterberg, Group 1's president and chief executive officer. "In addition, the current financial crisis has eroded consumer confidence and negatively impacted the traffic we are seeing at our stores. In this environment, we continue to focus on our parts and service business, which continued to show growth this quarter."

Share Repurchase

During the quarter, Group 1 repurchased 37,300 shares of its common stock at an average price of $20.76 under a board-authorized $20 million share repurchase program.

2008 Corporate Development Update

Group 1 reported that no acquisitions were completed during the third quarter. Year to date, Group 1 acquired a total of five franchises expected to generate $90.2 million in estimated annual revenues. The company announced that it does not anticipate completing any further acquisitions in 2008.

In addition, Group 1 disposed of five franchises in the third quarter with 12-month revenues of $17.7 million. These dispositions include the disposal of four franchises (Pontiac, Buick, GMC and Cadillac) in Beaumont, Texas, in late July that were previously announced and the termination of a Volkswagen franchise in Kansas on Aug. 31.

2008 Full-Year Guidance

Group 1 announced that it is suspending its 2008 full-year earnings guidance.

"Given the current volatility in the automotive industry, consumer lending and the overall economy, it is virtually impossible to project near-term industry sales levels," said Hesterberg. "Therefore our management team determined that it is not feasible to issue earnings guidance at this time. Group 1 wants our shareholders to know that we are taking the appropriate steps to rightsize the business for the current environment, including a series of additional cost-cutting actions we began to implement as of October. These actions should be fully implemented by year end and are expected to generate approximately $35 million in annualized savings."

Third-Quarter Earnings Conference Call

Group 1's senior management will host a conference call today at 10 a.m. EDT to discuss the third-quarter financial results and the company's outlook and strategy.

The conference call will be simulcast live on the Internet at www.group1auto.com through the Investor Relations section. A replay will be available for 30 days.

The conference call will also be available live by dialing in 10 minutes prior to the start of the call at: 800-257-2182 (domestic) or 303-262-2005 (international).

A telephonic replay will be available following the call through Nov. 4 by dialing: 800-405-2236 (domestic) or 303-590-3000 (international) with passcode 11120953#.

About Group 1 Automotive Inc.

Group 1 owns and operates 100 automotive dealerships, 133 franchises, and 25 collision service centers in the United States and the United Kingdom that offer 31 brands of automobiles. Through its dealerships, the company sells new and used cars and light trucks; arranges related financing, vehicle service and insurance contracts; provides maintenance and repair services; and sells replacement parts.

Group 1 Automotive can be reached on the Internet at www.group1auto.com.

This press release contains "forward-looking statements," which are statements related to future, not past, events. In this context, the forward-looking statements often include statements regarding our goals, plans, projections and guidance regarding our financial position, results of operations, market position, pending and potential future acquisitions and business strategy, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks" or "will." Any such forward-looking statements are not assurances of future performance and involve risks and uncertainties that may cause results to differ materially from those set forth in the statements. These risks and uncertainties include, among other things, (a) general economic and business conditions, (b) the level of manufacturer incentives, (c) the future regulatory environment, (d) our ability to obtain an inventory of desirable new and used vehicles, (e) our relationship with our automobile manufacturers and the willingness of manufacturers to approve future acquisitions, (f) our cost of financing and the availability of credit for consumers, (g) our ability to complete acquisitions and dispositions and the risks associated therewith, (h) foreign exchange controls and currency fluctuations, and (i) our ability to retain key personnel. These factors, as well as additional factors that could affect our forward-looking statements, are described in our Form 10-K under the headings "Business--Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations." We urge you to carefully consider this information. We undertake no duty to update our forward-looking statements, including our earnings outlook.

FINANCIAL TABLES TO FOLLOW

Group 1 Automotive, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
                                                                  Three Months Ended September 30,                                       Nine Months Ended September 30,
                                                                  2008                      2007                      % Change           2008                      2007                      % Change
REVENUES:
New vehicle retail sales                                          $    877,669              $    1,023,117            (14.2     )%       $    2,737,732            $    2,976,110            (8.0     )%
Used vehicle retail sales                                              262,443                   288,420              (9.0      )             865,031                   865,071              (0.0     )
Used vehicle wholesale sales                                           58,689                    84,859               (30.8     )             193,412                   239,605              (19.3    )
Parts and service                                                      188,576                   176,391              6.9                     572,165                   525,592              8.9
Finance and insurance                                                  46,597                    52,618               (11.4     )             152,012                   153,705              (1.1     )
Total revenues                                                         1,433,974                 1,625,405            (11.8     )%            4,520,352                 4,760,083            (5.0     )%
COST OF SALES:
New vehicle retail sales                                               821,964                   954,434              (13.9     )%            2,561,863                 2,774,735            (7.7     )%
Used vehicle retail sales                                              234,527                   255,092              (8.1      )             771,132                   761,599              1.3
Used vehicle wholesale sales                                           59,623                    86,264               (30.9     )             195,081                   240,361              (18.8    )
Parts and service                                                      88,241                    78,323               12.7                    263,667                   238,774              10.4
Total cost of sales                                                    1,204,355                 1,374,113            (12.4     )%            3,791,743                 4,015,469            (5.6     )%
GROSS PROFIT                                                           229,619                   251,292              (8.6      )%            728,609                   744,614              (2.1     )%
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES                           189,209                   193,511              (2.2      )             579,608                   578,511              0.2
DEPRECIATION AND AMORTIZATION EXPENSE                                  6,734                     5,390                24.9                    19,049                    15,228               25.1
ASSET IMPAIRMENTS                                                      48,086                    346                  13,797.7                48,086                    702                  6,749.9
OPERATING INCOME                                                       (14,410    )              52,045               (127.7    )%            81,866                    150,173              (45.5    )%
OTHER INCOME (EXPENSE):
Floorplan interest expense                                             (11,236    )              (11,518    )         (2.4      )             (35,636    )              (34,906    )         2.1
Other interest expense, net                                            (7,199     )              (5,695     )         26.4                    (22,103    )              (16,356    )         35.1
Gain (Loss) on redemption of senior subordinated notes                 495                       (1,596     )         (131.0    )             904                       (1,596     )         (156.6   )
Other income (expense), net                                            (41        )              187                  (121.9    )             273                       377                  (27.6    )
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES                                                    (32,391    )              33,423               (196.9    )%            25,304                    97,692               (74.1    )%
PROVISION (BENEFIT) FOR INCOME TAXES                                   (11,820    )              12,592               (193.9    )             10,280                    34,940               (70.6    )
INCOME FROM CONTINUING OPERATIONS                                      (20,571    )              20,831               (198.8    )%            15,024                    62,752               (76.1    )%
DISCONTINUED OPERATIONS:
Loss related to discontinued operations                                -                         (18        )         (100.0    )             (3,481     )              (400       )         770.3
Income tax benefit related to loss on discontinued operations          -                         3                    (100.0    )             1,478                     127                  1,063.8
LOSS RELATED TO DISCONTINUED OPERATIONS                                -                         (15        )         (100.0    )%            (2,003     )              (273       )         633.7    %
NET INCOME (LOSS)                                                 $    (20,571    )         $    20,816               (198.8    )%       $    13,021               $    62,479               (79.2    )%
DILUTED EARNINGS (LOSS) PER SHARE:
Earnings (Loss) per share from continuing operations              $    (0.91      )         $    0.90                 (201.1    )%       $    0.66                 $    2.64                 (75.0    )%
Loss per share related to discontinued operations                      -                    $    -                    -                       (0.09      )              (0.01      )         (800.0   )
Earnings (Loss) per share                                         $    (0.91      )         $    0.90                 (201.1    )%       $    0.57                 $    2.63                 (78.3    )%
Weighted average diluted shares outstanding                            22,716                    23,229               (2.2      )%            22,641                    23,730               (4.6     )%

Group 1 Automotive, Inc.
Consolidated Balance Sheets
(Dollars in thousands)
                                                                      September 30,              December 31,
                                                                      2008                       2007                       % Change
ASSETS:
CURRENT ASSETS:
Cash and cash equivalents                                             $     42,207               $     34,248               23.2    %
Contracts in transit and vehicle receivables, net                           89,511                     189,400              (52.7   )
Accounts and notes receivable, net                                          71,719                     82,698               (13.3   )
Inventories                                                                 856,921                    878,168              (2.4    )
Assets related to discontinued operations                                   -                          30,531               (100.0  )
Deferred income taxes                                                       19,943                     18,287               9.1
Prepaid expenses and other current assets                                   20,877                     29,651               (29.6   )
Total current assets                                                        1,101,178                  1,262,983            (12.8   )
PROPERTY AND EQUIPMENT, net                                                 536,942                    427,223              25.7
GOODWILL AND OTHER INTANGIBLES                                              771,022                    787,245              (2.1    )
OTHER ASSETS                                                                23,978                     28,730               (16.5   )
Total assets                                                          $     2,433,120            $     2,506,181            (2.9    )%
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES:
Floorplan notes payable - credit facility                             $     697,399              $     648,469              7.5     %
Floorplan notes payable - manufacturer affiliates                           138,321                    170,911              (19.1   )
Current maturities of long-term debt                                        13,635                     12,260               11.2
Accounts payable                                                            94,114                     111,458              (15.6   )
Liabilities related to discontinued operations                              -                          35,180               (100.0  )
Accrued expenses                                                            99,711                     100,000              (0.3    )
Total current liabilities                                                   1,043,180                  1,078,278            (3.3    )
2.25% CONVERTIBLE SENIOR NOTES                                              282,365                    281,915              0.2
8.25% SENIOR SUBORDINATED NOTES                                             72,889                     100,273              (27.3   )
MORTGAGE FACILITY, net of current maturities                                170,937                    124,633              37.2
OTHER REAL ESTATE RELATED AND LONG-TERM DEBT, net of current                36,587                     6,104                499.4
maturities
CAPITAL LEASE OBLIGATIONS RELATED TO REAL ESTATE, net of current            39,816                     26,913               47.9
maturities
ACQUISITION LINE                                                            15,000                     135,000              (88.9   )
DEFERRED INCOME TAXES                                                       20,406                     6,849                197.9
LIABILITIES FROM INTEREST RISK MANAGEMENT ACTIVITIES                        17,627                     16,188               8.9
OTHER LIABILITIES                                                           32,493                     29,016               12.0
Total liabilities before deferred revenues                                  1,731,300                  1,805,169            (4.1    )
DEFERRED REVENUES                                                           11,826                     16,531               (28.5   )
STOCKHOLDERS' EQUITY:
Common stock                                                                256                        255                  0.4
Additional paid-in capital                                                  291,925                    293,675              (0.6    )
Retained earnings                                                           506,067                    502,783              0.7
Accumulated other comprehensive loss                                        (13,939    )               (9,560     )         45.8
Treasury stock                                                              (94,315    )               (102,672   )         (8.1    )
Total stockholders' equity                                                  689,994                    684,481              0.8
Total liabilities and stockholders' equity                            $     2,433,120            $     2,506,181            (2.9    )%
BALANCE SHEET DATA:
Working capital                                                       $     57,998               $     184,705
Current ratio                                                               1.06                       1.17
Long-term debt to capitalization                                            48         %               50         %
Excluding real estate related debt                                          37         %               45         %

Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
                                              Three Months Ended               Nine Months Ended
                                              September 30,                    September 30,
                                              2008             2007            2008             2007
NEW VEHICLE UNIT SALES GEOGRAPHIC MIX:
Region               Geographic Market
Eastern              Massachusetts            12.9   %         13.1   %        12.1   %         12.4   %
                     New Jersey               7.1              5.6             6.9              5.5
                     New York                 4.0              2.7             4.2              2.5
                     New Hampshire            3.9              3.9             3.6              3.8
                     Louisiana                2.9              3.9             3.2              3.9
                     Georgia                  3.4              3.7             3.4              3.6
                     Florida                  2.3              3.4             2.5              3.6
                     Mississippi              1.6              1.5             1.6              1.6
                     Alabama                  0.9              0.7             0.9              0.9
                     Maryland                 0.8              -               0.5              -
                     South Carolina           0.3              -               0.3              -
                                              40.1             38.5            39.2             37.8
Central              Texas                    31.0             32.3            32.1             31.8
                     Oklahoma                 9.6              10.0            9.5              10.0
                     Kansas                   1.4              1.0             1.3              1.0
                                              42.0             43.3            42.9             42.8
Western              California               16.2             16.5            16.2             17.9
International        United Kingdom           1.7              1.7             1.7              1.5
                                              100.0  %         100.0  %        100.0  %         100.0  %
NEW VEHICLE UNIT SALES BRAND MIX:
Toyota/Scion/Lexus                            34.2   %         37.8   %        34.9   %         36.8   %
Honda/Acura                                   14.5             12.7            14.2             12.4
Nissan/Infiniti                               13.5             12.2            13.1             12.6
Ford                                          9.8              12.5            10.3             13.0
BMW/Mini                                      9.4              6.7             8.5              6.5
Chrysler                                      5.1              7.6             5.9              7.6
Mercedes-Benz                                 6.0              2.7             5.7              2.9
GM                                            4.9              5.5             4.8              5.6
Other                                         2.6              2.3             2.6              2.6
                                              100.0  %         100.0  %        100.0  %         100.0  %
NEW VEHICLE UNIT OTHER MIX:
Import                                        56.8   %         56.7   %        56.8   %         56.2   %
Luxury                                        25.4             19.8            24.3             19.8
Domestic                                      17.8             23.5            18.9             24.0
                                              100.0  %         100.0  %        100.0  %         100.0  %
Car                                           56.4   %         54.5   %        57.9   %         54.0   %
Truck                                         43.6             45.5            42.1             46.0
                                              100.0  %         100.0  %        100.0  %         100.0  %

Group 1 Automotive, Inc.
Additional Information - Consolidated
(Unaudited)
(Dollars in thousands, except per unit amounts)
                                            Three Months Ended September 30,                                        Nine Months Ended September 30,
                                            2008                       2007                       % Change          2008                       2007                       % Change
REVENUES:
New vehicle retail sales                    $   877,669                $   1,023,117              (14.2  )   %      $   2,737,732              $   2,976,110              (8.0   )   %
Used vehicle retail sales                       262,443                    288,420                (9.0   )              865,031                    865,071                (0.0   )
Used vehicle wholesale sales                    58,689                     84,859                 (30.8  )              193,412                    239,605                (19.3  )
Total used                                      321,132                    373,279                (14.0  )              1,058,443                  1,104,676              (4.2   )
Parts and service                               188,576                    176,391                6.9                   572,165                    525,592                8.9
Finance and insurance                           46,597                     52,618                 (11.4  )              152,012                    153,705                (1.1   )
Total                                       $   1,433,974              $   1,625,405              (11.8  )   %      $   4,520,352              $   4,760,083              (5.0   )   %
GROSS MARGIN:
New vehicle retail sales                        6.3            %           6.7            %                             6.4            %           6.8            %
Used vehicle retail sales                       10.6                       11.6                                         10.9                       12.0
Used vehicle wholesale sales                    (1.6       )               (1.7       )                                 (0.9       )               (0.3       )
Total used                                      8.4                        8.6                                          8.7                        9.3
Parts and service                               53.2                       55.6                                         53.9                       54.6
Finance and insurance                           100.0                      100.0                                        100.0                      100.0
Total                                           16.0           %           15.5           %                             16.1           %           15.6           %
GROSS PROFIT:
New vehicle retail sales                    $   55,705                 $   68,683                 (18.9  )   %      $   175,869                $   201,375                (12.7  )   %
Used vehicle retail sales                       27,916                     33,328                 (16.2  )              93,899                     103,472                (9.3   )
Used vehicle wholesale sales                    (934       )               (1,405     )           33.5                  (1,669     )               (756       )           120.8
Total used                                      26,982                     31,923                 (15.5  )              92,230                     102,716                (10.2  )
Parts and service                               100,335                    98,068                 2.3                   308,498                    286,818                7.6
Finance and insurance                           46,597                     52,618                 (11.4  )              152,012                    153,705                (1.1   )
Total                                       $   229,619                $   251,292                (8.6   )   %      $   728,609                $   744,614                (2.1   )   %
UNITS SOLD:
Retail new vehicles sold                        28,661                     34,185                 (16.2  )   %          89,548                     99,455                 (10.0  )   %
Retail used vehicles sold                       15,057                     16,440                 (8.4   )              48,945                     50,300                 (2.7   )
Wholesale used vehicles sold                    9,399                      12,060                 (22.1  )              29,651                     34,363                 (13.7  )
Total used                                      24,456                     28,500                 (14.2  )   %          78,596                     84,663                 (7.2   )   %
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales                    $   1,944                  $   2,009                  (3.2   )   %      $   1,964                  $   2,025                  (3.0   )   %
Used vehicle retail sales                       1,854                      2,027                  (8.5   )              1,918                      2,057                  (6.8   )
Used vehicle wholesale sales                    (99        )               (117       )           15.4                  (56        )               (22        )           154.5
Total used                                      1,103                      1,120                  (1.5   )              1,173                      1,213                  (3.3   )
Finance and insurance (per retail unit)     $   1,066                  $   1,039                  2.6        %      $   1,098                  $   1,026                  7.0        %
OTHER:
SG&A expenses                               $   189,209                $   193,511                (2.2   )   %      $   579,608                $   578,511                0.2        %
SG&A as % revenues                              13.2           %           11.9           %                             12.8           %           12.2           %
SG&A as % gross profit                          82.4           %           77.0           %                             79.5           %           77.7           %
Operating margin                                (1.0       )   %           3.2            %                             1.8            %           3.2            %
Pretax income margin                            (2.3       )   %           2.1            %                             0.6            %           2.1            %
Floorplan interest                              (11,236    )               (11,518    )           (2.4   )              (35,636    )               (34,906    )           2.1
Floorplan assistance                            7,383                      10,022                 (26.3  )              22,948                     28,514                 (19.5  )
Net floorplan (expense) income              $   (3,853     )           $   (1,496     )           157.6      %      $   (12,688    )           $   (6,392     )           98.5       %

Group 1 Automotive, Inc.
Additional Information - Same Store(1)
(Unaudited)
(Dollars in thousands, except per unit amounts)
                                            Three Months Ended September 30,                                         Nine Months Ended September 30,
                                            2008                       2007                       % Change           2008                       2007                       % Change
REVENUES:
New vehicle retail sales                    $   832,839                $   1,014,879              (17.9   )   %      $   2,597,363              $   2,940,057              (11.7   )   %
Used vehicle retail sales                       246,664                    286,456                (13.9   )              813,002                    849,833                (4.3    )
Used vehicle wholesale sales                    54,422                     82,978                 (34.4   )              179,956                    233,922                (23.1   )
Total used                                      301,086                    369,434                (18.5   )              992,958                    1,083,755              (8.4    )
Parts and service                               176,017                    174,158                1.1                    533,574                    515,311                3.5
Finance and insurance                           45,281                     52,304                 (13.4   )              148,183                    152,308                (2.7    )
Total                                       $   1,355,223              $   1,610,775              (15.9   )   %      $   4,272,078              $   4,691,431              (8.9    )   %
GROSS MARGIN:
New vehicle retail sales                        6.3            %           6.7            %                              6.4            %           6.8            %
Used vehicle retail sales                       10.7                       11.6                                          11.0                       11.9
Used vehicle wholesale sales                    (1.1       )               (1.5       )                                  (0.7       )               (0.1       )
Total used                                      8.6                        8.6                                           8.9                        9.3
Parts and service                               53.3                       55.6                                          53.9                       54.6
Finance and insurance                           100.0                      100.0                                         100.0                      100.0
Total                                           16.0           %           15.5           %                              16.1           %           15.6           %
GROSS PROFIT:
New vehicle retail sales                    $   52,369                 $   68,230                 (23.2   )   %      $   165,262                $   198,645                (16.8   )   %
Used vehicle retail sales                       26,429                     33,132                 (20.2   )              89,520                     101,320                (11.6   )
Used vehicle wholesale sales                    (573       )               (1,226     )           53.3                   (1,328     )               (328       )           304.9
Total used                                      25,856                     31,906                 (19.0   )              88,192                     100,992                (12.7   )
Parts and service                               93,788                     96,886                 (3.2    )              287,796                    281,270                2.3
Finance and insurance                           45,281                     52,304                 (13.4   )              148,183                    152,308                (2.7    )
Total                                       $   217,294                $   249,326                (12.8   )   %      $   689,433                $   733,215                (6.0    )   %
UNITS SOLD:
Retail new vehicles sold                        27,736                     33,922                 (18.2   )   %          86,785                     98,294                 (11.7   )   %
Retail used vehicles sold                       14,505                     16,325                 (11.1   )              47,261                     49,338                 (4.2    )
Wholesale used vehicles sold                    9,063                      11,845                 (23.5   )              28,671                     33,618                 (14.7   )
Total used                                      23,568                     28,170                 (16.3   )   %          75,932                     82,956                 (8.5    )   %
GROSS PROFIT PER UNIT SOLD:
New vehicle retail sales                    $   1,888                  $   2,011                  (6.1    )   %      $   1,904                  $   2,021                  (5.8    )   %
Used vehicle retail sales                       1,822                      2,030                  (10.2   )              1,894                      2,054                  (7.8    )
Used vehicle wholesale sales                    (63        )               (104       )           39.4                   (46        )               (10        )           (360.0  )
Total used                                      1,097                      1,133                  (3.2    )              1,161                      1,217                  (4.6    )
Finance and insurance (per retail unit)     $   1,072                  $   1,041                  3.0         %      $   1,105                  $   1,032                  7.1         %
OTHER:
SG&A expenses                               $   179,814                $   190,882                (5.8    )   %      $   549,361                $   561,724                (2.2    )   %
SG&A as % revenues                              13.3           %           11.9           %                              12.9           %           12.0           %
SG&A as % gross profit                          82.8           %           76.6           %                              79.7           %           76.6           %
Operating margin                                2.3            %           3.3            %                              2.9            %           3.3            %
Floorplan interest                              (10,742    )               (11,266    )           4.7                    (33,821    )               (33,896    )           0.2
Floorplan assistance                            7,361                      9,831                  (25.1   )              22,925                     27,796                 (17.5   )
Net floorplan (expense) income              $   (3,381     )           $   (1,435     )           (135.6  )   %      $   (10,896    )           $   (6,100     )           (78.6   )   %

(1)    Same store amounts include the results for the identical months in
       each period presented in the comparison, commencing with the first
       full month we owned the dealership and, in the case of dispositions,
       ending with the last full month we owned it. Same store results also
       include the activities of our corporate office.

Group 1 Automotive, Inc.
Reconciliation of Certain Non-GAAP Financial Measures
(Unaudited)
(Dollars in thousands, except per share amounts)
NET INCOME FROM CONTINUING OPERATIONS RECONCILIATION:
                                                   Three Months Ended September 30,                                Nine Months Ended September 30,
                                                   2008                    2007              % Change              2008                   2007              % Change
As reported                                        $    (20,571  )         $    20,831       (198.8  )    %        $    15,024            $    62,752       (76.1  )    %
Adjustments:
Lease Terminations                                      135                     57                                      670                    2,823
Non-Cash Asset Impairments Charges                      30,174                  215                                     30,174                 450
(Gain) Loss on Bond Redemption                          (303     )              995                                     (555    )              995
Adjusted (1)                                       $    9,435              $    22,098       (57.3   )    %        $    45,313            $    67,020       (32.4  )    %
DILUTED EARNINGS PER SHARE FROM CONTINUING OPERATIONS
RECONCILIATION:
                                                   Three Months Ended September 30,                                Nine Months Ended September 30,
                                                   2008                    2007              % Change              2008                   2007              % Change
Earnings per share from continuing operations      $    (0.91    )         $    0.90         (201.1  )    %        $    0.66              $    2.64         (75.0  )    %
Adjustments:
Lease Terminations                                      0.01                    -                                       0.03                   0.12
Non-Cash Asset Impairments Charges                      1.33                    0.01                                    1.33                   0.02
(Gain) Loss on Bond Redemption                          (0.01    )              0.04                                    (0.02   )              0.04
Adjusted (1)                                       $    0.42               $    0.95         (55.8   )    %        $    2.00              $    2.82         (29.1  )    %

(1)    Adjusted net income from continuing operations and adjusted diluted
       earnings per share from continuing operations means net income from
       continuing operations or diluted earnings per share from continuing
       operations, as the case may be, plus the adjustments noted above. We
       use adjusted net income from continuing operations and adjusted
       diluted earnings per share from continuing operations in our
       evaluation of the performance of the company, as we believe that
       they provide additional information regarding the performance of our
       operations. We believe the presentation of these measures is
       relevant and useful to investors because they improve
       period-to-period comparability and are more reflective of our
       operating performance. Neither of these measures is a measure of
       financial performance under GAAP. Accordingly, they should not be
       considered as substitutes for net income from continuing operations
       or diluted earnings per share from continuing operations prepared in
       accordance with GAAP. Although we find these non-GAAP results useful
       in evaluating the performance of our business, our reliance on these
       measures is limited because the adjustments often have a material
       impact on our net income from continuing operations and diluted
       earnings per share from continuing operations calculated in
       accordance with GAAP. Therefore, we typically use these adjusted
       numbers in conjunction with our GAAP results to address these
       limitations.

SOURCE: Group 1 Automotive, Inc.

AT GROUP 1: 
President and CEO 
Earl J. Hesterberg, 713-647-5700 
or 
Senior Vice President and CFO 
John C. Rickel, 713-647-5700 
or 
Manager, Investor Relations 
Kim Paper Canning, 713-647-5700 
or 
AT Fleishman-Hillard: 
John Roper, 713-513-9505 (Investors) 
or 
AT Pierpont Communications: 
Clint L. Woods, 713-627-2223 (Media)