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AutoNation Reports 2009 Second Quarter Results of Operations

- AutoNation remained solidly profitable despite a distressed industry environment
- Results driven by cost reductions and disciplined inventory management

FORT LAUDERDALE, Fla., July 31 /PRNewswire-FirstCall/ -- AutoNation, Inc. (NYSE: AN), America's largest automotive retailer, today reported 2009 second quarter net income from continuing operations of $55 million or $0.31 per share, compared to year-ago net income from continuing operations of $56 million or $0.31 per share. After adjusting for certain items disclosed in the attached financial tables, net income from continuing operations for the 2009 second quarter was $51 million or $0.29 per share, compared to $59 million or $0.33 per share in the prior year.

Second quarter 2009 revenue totaled $2.6 billion, compared to $3.7 billion in the year-ago period. The decrease was driven primarily by lower new vehicle sales. In the second quarter, total U.S. industry retail new vehicle sales declined 40% compared to last year, based on CNW Research data. In comparison, in the second quarter AutoNation's new vehicle unit sales declined 38%.

Commenting on the second quarter, Mike Jackson, Chairman and Chief Executive Officer, said, "Despite extraordinarily difficult industry conditions, AutoNation delivered solid profitability, driven by cost reduction, lower interest expense, and our disciplined operating model and inventory management. The second quarter was a pivotal moment for the automotive industry. Long-awaited volume stabilization, the successful government-led restructuring of General Motors and Chrysler, and significant dealer consolidations were accomplished. The industry is now positioned for a healthy rebound when macroeconomic conditions, particularly consumer credit, improved." Mr. Jackson also noted, "Our continued disciplined inventories led to a year-over-year improvement in gross profit per vehicle retailed and lower floor plan expense."

Mike Jackson added, "The stabilization of the SAAR in the second quarter is the first step to a gradual recovery and marks the first time since the end of 2007 that we did not see a significant sequential decline in industry new vehicle sales. We also expect the 'Cash for Clunkers' program to stimulate new vehicle sales. Going forward, we expect a gradual improvement of new vehicle sales beginning in the second half of 2009 and intend to increase our inventory of vehicles in a disciplined manner to meet demand. Having weathered the storm, AutoNation remains in an excellent position to capitalize on dealer consolidation and the gradual recovery in industry volumes. We will continue to benefit from our $200 million structural cost reduction program."

At the end of the second quarter, AutoNation had nearly $450 million in liquidity, including cash of $129 million and remained well within the limits of the financial covenants in our debt agreements.

AutoNation has three operating segments: Domestic, Import, and Premium Luxury. The Domestic segment is comprised of stores that sell vehicles manufactured by General Motors, Ford, and Chrysler; the Import segment is comprised of stores that sell vehicles manufactured primarily by Toyota, Honda, and Nissan; and the Premium Luxury segment is comprised of stores that sell vehicles manufactured primarily by Mercedes, BMW, and Lexus.


    --  Domestic  -- Domestic segment income for the second quarter of 2009
        was $26 million compared to year-ago segment income of $33 million.
        Second quarter Domestic retail new vehicle unit sales declined 34%.


    --  Import  -- Import segment income for the second quarter of 2009 was
        $42 million compared to year-ago segment income of $57 million.
        Second quarter Import retail new vehicle unit sales declined 41%.


    --  Premium Luxury -- Premium Luxury segment income for the second quarter
        of 2009 was $43 million compared to year-ago segment income of $52
        million. Second quarter Premium Luxury retail new vehicle unit sales
        declined 34%.

For the six-month period ended June 30, 2009, the Company reported net income from continuing operations of $108 million or $0.61 per share compared to $111 million or $0.62 per share in the prior year. After adjusting for certain items as disclosed in the attached financial tables, net income from continuing operations for the six-month period ended June 30, 2009 was $91 million or $0.51 per share, compared to $114 million or $0.63 per share. The Company's revenue for the six-month period ended June 30, 2009 totaled $5.0 billion, down 32% compared to $7.4 billion in the prior year.

The second quarter conference call may be accessed at 10:00 a.m. Eastern Time on July 31, 2009 by phone at 888-769-8515 (pass code: AutoNation) or via the Internet (audio webcast) at http://www.AutoNation.com by clicking on the "Investors Relations" link then clicking "Webcasts." A playback of the conference call will be available after 12:00 (noon) p.m. Eastern Time July 31, 2009 through August 7, 2009 by calling 866-395-4250 (pass code: 75300).

About AutoNation, Inc.

AutoNation, Inc., headquartered in Fort Lauderdale, Fla., is America's largest automotive retailer and has been named America's Most Admired Automotive Retailer by FORTUNE Magazine in five of the last seven years. A component of the Standard and Poor's 500 Index, AutoNation owns and operates 264 new vehicle franchises in 15 states. For additional information, please visit http://corp.AutoNation.com or www.AutoNation.com, where more than 70,000 vehicles are available for sale along with AutoNation's E-Vehicle program.

FORWARD LOOKING STATEMENTS

Certain statements and information included in this release constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied in such forward-looking statements. Additional discussion of factors that could cause actual results to differ materially from management's projections, estimates and expectations is contained in the Company's SEC filings. The Company undertakes no duty to update its forward-looking statements.

NON-GAAP FINANCIAL MEASURES

The attached financial tables contain certain non-GAAP financial measures as defined under SEC rules, such as net income and diluted earnings per share from continuing operations, adjusted in each case to exclude certain items disclosed in the attached financial tables. As required by SEC rules, the Company has provided reconciliations of these measures to the most directly comparable GAAP measures, which are set forth in the attachments to this release. The Company believes that each of the foregoing non-GAAP financial measures improves the transparency of the Company's disclosure, provides a meaningful presentation of the Company's results from its core business operations excluding the impact of items not related to the Company's ongoing core business operations, and improves the period-to-period comparability of the Company's results from its core business operations.




                                 AUTONATION, INC.
                UNAUDITED CONDENSED CONSOLIDATED INCOME STATEMENTS
                      ($ in millions, except per share data)

                                            Three Months     Six Months Ended
                                           Ended June 30,         June 30,
                                           2009      2008      2009      2008
                                           ----      ----      ----      ----
      Revenue:
        New vehicle                    $1,339.1  $2,062.0  $2,524.5  $4,133.7
        Used vehicle                      632.6     868.6   1,224.8   1,771.6
        Parts and service                 537.4     588.2   1,075.3   1,191.9
        Finance and insurance, net         89.0     128.4     166.0     265.0
        Other                              11.5      16.4      24.9      32.9
                                           ----      ----      ----      ----
      Total revenue                     2,609.6   3,663.6   5,015.5   7,395.1
                                        -------   -------   -------   -------

      Cost of sales:
        New vehicle                     1,252.8   1,925.6   2,364.3   3,858.9
        Used vehicle                      574.3     793.3   1,102.8   1,618.2
        Parts and service                 301.5     330.9     603.0     671.9
        Other                               4.5       7.4      10.6      14.6
                                            ---       ---      ----      ----
      Total cost of sales               2,133.1   3,057.2   4,080.7   6,163.6
                                        -------   -------   -------   -------

      Gross profit                        476.5     606.4     934.8   1,231.5

      Selling, general and
       administrative expenses            364.1     451.4     717.6     910.8
      Depreciation and amortization        19.1      20.8      39.0      42.7
      Franchise rights impairment           1.5         -       1.5         -
      Other expenses (income), net        (10.5)      0.1     (21.3)      0.4
                                          -----       ---     -----       ---

      Operating income                    102.3     134.1     198.0     277.6

      Floorplan interest expense           (9.3)    (19.7)    (19.1)    (42.5)
      Other interest expense              (10.5)    (21.6)    (22.3)    (48.4)
      Gain on senior note repurchases       0.6         -      12.5         -
      Interest income                       0.3       0.3       0.6       0.8
      Other losses, net                     3.5       1.0       1.8      (0.7)
                                            ---       ---       ---      ----

      Income from continuing
       operations before income taxes      86.9      94.1     171.5     186.8

      Income tax provision                 32.1      38.6      63.7      76.2
                                           ----      ----      ----      ----

      Net income from continuing
       operations                          54.8      55.5     107.8     110.6

      Loss from discontinued
       operations, net of income taxes    (18.1)     (3.7)    (36.5)     (8.1)
                                          -----      ----     -----      ----


      Net income                          $36.7     $51.8     $71.3    $102.5
                                          =====     =====     =====    ======


      Diluted earnings (loss) per share:
        Continuing operations             $0.31     $0.31     $0.61     $0.62
        Discontinued operations          $(0.10)   $(0.02)   $(0.21)   $(0.05)

        Net income                        $0.21     $0.29     $0.40     $0.57


      Weighted average common shares
       outstanding                        178.8     178.7     178.0     179.6

      Common shares outstanding, net
       of treasury stock, at June 30      178.0     176.7     178.0     176.7



                                 AUTONATION, INC.
                           UNAUDITED SUPPLEMENTARY DATA
                     ($ in millions, except per vehicle data)

          Operating Highlights            Three Months Ended June 30,
          --------------------          -------------------------------
                                      2009      2008  $ Variance  % Variance
                                      ----      ----  ----------  ----------


    Revenue:
      New vehicle                 $1,339.1  $2,062.0     $(722.9)      (35.1)
        Retail used vehicle          554.4     727.9      (173.5)      (23.8)
        Wholesale                     78.2     140.7       (62.5)      (44.4)
                                      ----     -----       -----
      Used vehicle                   632.6     868.6      (236.0)      (27.2)
                                     -----     -----      ------
      Parts and service              537.4     588.2       (50.8)       (8.6)
      Finance and insurance, net      89.0     128.4       (39.4)      (30.7)
      Other                           11.5      16.4        (4.9)
                                      ----      ----        ----
    Total revenue                 $2,609.6  $3,663.6   $(1,054.0)      (28.8)
                                  ========  ========   =========


    Gross profit:
      New vehicle                    $86.3    $136.4      $(50.1)      (36.7)
        Retail used vehicle           56.9      75.9       (19.0)      (25.0)
        Wholesale                      1.4      (0.6)        2.0
                                       ---      ----         ---
      Used vehicle                    58.3      75.3       (17.0)      (22.6)
                                      ----      ----       -----
      Parts and service              235.9     257.3       (21.4)       (8.3)
      Finance and insurance           89.0     128.4       (39.4)      (30.7)
      Other                            7.0       9.0        (2.0)
                                       ---       ---        ----
    Total gross profit               476.5     606.4      (129.9)      (21.4)

    Selling, general and
     administrative expenses         364.1     451.4        87.3        19.3

    Depreciation and amortization     19.1      20.8         1.7
    Franchise rights impairment        1.5         -        (1.5)
    Other expenses, net              (10.5)      0.1        10.6
                                     -----       ---        ----
      Operating income (loss)        102.3     134.1       (31.8)      (23.7)

    Floorplan interest expense        (9.3)    (19.7)       10.4
    Other interest expense           (10.5)    (21.6)       11.1
    Gain on senior note
     repurchases                       0.6         -         0.6
    Interest income                    0.3       0.3           -
    Other losses, net                  3.5       1.0         2.5
                                       ---       ---         ---
      Income from continuing
       operations before income
       taxes                         $86.9     $94.1       $(7.2)       (7.7)
                                     =====     =====       =====

    Retail vehicle unit sales:
         New                        43,512    69,805     (26,293)      (37.7)
         Used                       34,141    45,961     (11,820)      (25.7)
                                    ------    ------     -------
                                    77,653   115,766     (38,113)      (32.9)
                                    ======   =======     =======

    Revenue per vehicle retailed:
         New                       $30,775   $29,539      $1,236         4.2
         Used                      $16,239   $15,837        $402         2.5

    Gross profit per vehicle retailed:
         New                        $1,983    $1,954         $29         1.5
         Used                       $1,667    $1,651         $16         1.0
         Finance and insurance      $1,146    $1,109         $37         3.3




          Operating Highlights             Six Months Ended June 30,
          --------------------           -----------------------------
                                      2009      2008  $ Variance  % Variance
                                      ----      ----  ----------  ----------


    Revenue:
      New vehicle                 $2,524.5  $4,133.7   $(1,609.2)      (38.9)
        Retail used vehicle        1,080.3   1,476.3      (396.0)      (26.8)
        Wholesale                    144.5     295.3      (150.8)      (51.1)
                                     -----     -----      ------
      Used vehicle                 1,224.8   1,771.6      (546.8)      (30.9)
                                   -------   -------      ------
      Parts and service            1,075.3   1,191.9      (116.6)       (9.8)
      Finance and insurance, net     166.0     265.0       (99.0)      (37.4)
      Other                           24.9      32.9        (8.0)
                                      ----      ----        ----
    Total revenue                 $5,015.5  $7,395.1   $(2,379.6)      (32.2)
                                  ========  ========   =========


    Gross profit:
      New vehicle                   $160.2    $274.8     $(114.6)      (41.7)
        Retail used vehicle          118.7     154.2       (35.5)      (23.0)
        Wholesale                      3.3      (0.8)        4.1
                                       ---      ----         ---
      Used vehicle                   122.0     153.4       (31.4)      (20.5)
                                     -----     -----       -----
      Parts and service              472.3     520.0       (47.7)       (9.2)
      Finance and insurance          166.0     265.0       (99.0)      (37.4)
      Other                           14.3      18.3        (4.0)
                                      ----      ----        ----
    Total gross profit               934.8   1,231.5      (296.7)      (24.1)

    Selling, general and
     administrative expenses         717.6     910.8       193.2        21.2

    Depreciation and amortization     39.0      42.7         3.7
    Franchise rights impairment        1.5         -        (1.5)
    Other expenses, net              (21.3)      0.4        21.7
                                     -----       ---        ----
      Operating income (loss)        198.0     277.6       (79.6)      (28.7)

    Floorplan interest expense       (19.1)    (42.5)       23.4
    Other interest expense           (22.3)    (48.4)       26.1
    Gain on senior note
     repurchases                      12.5         -        12.5
    Interest income                    0.6       0.8        (0.2)
    Other losses, net                  1.8      (0.7)        2.5
                                       ---      ----         ---
      Income from continuing
       operations before income
       taxes                        $171.5    $186.8      $(15.3)       (8.2)
                                    ======    ======      ======

    Retail vehicle unit sales:
         New                        81,776   137,234     (55,458)      (40.4)
         Used                       68,139    92,514     (24,375)      (26.3)
                                    ------    ------     -------
                                   149,915   229,748     (79,833)      (34.7)
                                   =======   =======     =======

    Revenue per vehicle retailed:
         New                       $30,871   $30,122        $749         2.5
         Used                      $15,854   $15,958       $(104)       (0.7)

    Gross profit per vehicle
     retailed:
         New                        $1,959    $2,002        $(43)       (2.1)
         Used                       $1,742    $1,667         $75         4.5
         Finance and insurance      $1,107    $1,153        $(46)       (4.0)



                                             Three Months       Six Months
                                              Ended June        Ended June
              Operating Percentages              30,               30,
              ---------------------         -------------     ------------
                                            2009(%)  2008(%)  2009(%)  2008(%)
                                            ----     ----     ----     ----

    Revenue mix percentages:
      New vehicle                           51.3     56.3     50.3     55.9
      Used vehicle                          24.2     23.7     24.4     24.0
      Parts and service                     20.6     16.1     21.4     16.1
      Finance and insurance, net             3.4      3.5      3.3      3.6
      Other                                  0.5      0.4      0.6      0.4
                                             ---      ---      ---      ---
                                           100.0    100.0    100.0    100.0
                                           =====    =====    =====    =====

    Gross profit mix percentages:
      New vehicle                           18.1     22.5     17.1     22.3
      Used vehicle                          12.2     12.4     13.1     12.5
      Parts and service                     49.5     42.4     50.5     42.2
      Finance and insurance                 18.7     21.2     17.8     21.5
      Other                                  1.5      1.5      1.5      1.5
                                             ---      ---      ---      ---
                                           100.0    100.0    100.0    100.0
                                           =====    =====    =====    =====

    Operating items as a percentage of
     revenue:
      Gross profit:
         New vehicle                         6.4      6.6      6.3      6.6
         Used vehicle - retail              10.3     10.4     11.0     10.4
         Parts and service                  43.9     43.7     43.9     43.6
         Total                              18.3     16.6     18.6     16.7
      Selling, general and administrative
       expenses                             14.0     12.3     14.3     12.3
      Operating income                       3.9      3.7      3.9      3.8

    Operating items as a percentage of total
     gross profit:
      Selling, general and administrative
       expenses                             76.4     74.4     76.8     74.0
      Operating income                      21.5     22.1     21.2     22.5



                                  AUTONATION, INC.
                           UNAUDITED SUPPLEMENTARY DATA
                     ($ in millions, except per vehicle data)

     Segment Operating Highlights           Three Months Ended June 30,
     ----------------------------           ---------------------------
                                          2009    2008   $ Variance % Variance
                                          ----    ----   ---------- ----------
     Revenue:
        Domestic                        $842.4  $1,147.9    $(305.5) (26.6)
        Import                         1,004.4   1,500.1     (495.7) (33.0)
        Premium luxury                   733.9     988.3     (254.4) (25.7)
        Corporate and other               28.9      27.3        1.6    5.9
                                          ----      ----        ---
     Total revenue                    $2,609.6  $3,663.6  $(1,054.0) (28.8)
                                      ========  ========  =========


     *Segment income (loss)
        Domestic                         $25.8     $32.9      $(7.1) (21.6)
        Import                            41.6      57.1      (15.5) (27.1)
        Premium luxury                    42.8      51.5       (8.7) (16.9)
        Corporate and other              (17.2)    (27.1)       9.9
                                         -----     -----        ---
     Total segment income                 93.0     114.4      (21.4) (18.7)

     Add:  Floorplan interest expense      9.3      19.7      (10.4)

     Operating income                   $102.3    $134.1     $(31.8) (23.7)
                                        ======    ======     ======

    * Segment income (loss) is defined as operating income net of floorplan
      interest expense

     Retail new vehicle unit sales:
        Domestic                        12,797    19,447     (6,650) (34.2)
        Import                          23,436    39,414    (15,978) (40.5)
        Premium luxury                   7,279    10,944     (3,665) (33.5)
                                         -----    ------     ------
                                        43,512    69,805    (26,293) (37.7)
                                        ======    ======    =======



     Segment Operating Highlights           Six Months Ended June 30,
     ----------------------------           -------------------------
                                         2009     2008   $ Variance % Variance
                                         ----     ----   ---------- ----------
     Revenue:
        Domestic                      $1,622.5  $2,422.2    $(799.7) (33.0)
        Import                         1,897.0   2,961.8   (1,064.8) (36.0)
        Premium luxury                 1,437.8   1,950.7     (512.9) (26.3)
        Corporate and other               58.2      60.4       (2.2)  (3.6)
                                          ----      ----       ----
     Total revenue                    $5,015.5  $7,395.1  $(2,379.6) (32.2)
                                      ========  ========  =========


     *Segment income (loss)
        Domestic                         $48.0     $70.1     $(22.1) (31.5)
        Import                            70.9     112.3      (41.4) (36.9)
        Premium luxury                    83.8     102.2      (18.4) (18.0)
        Corporate and other              (23.8)    (49.5)      25.7
                                         -----     -----       ----
     Total segment income                178.9     235.1      (56.2) (23.9)

     Add:  Floorplan interest expense     19.1      42.5      (23.4)

     Operating income                   $198.0    $277.6     $(79.6) (28.7)
                                        ======    ======     ======


    * Segment income (loss) is defined as operating income net of floorplan
      interest expense


     Retail new vehicle unit sales:
        Domestic                        23,922    40,288    (16,366) (40.6)
        Import                          43,455    75,636    (32,181) (42.5)
        Premium luxury                  14,399    21,310     (6,911) (32.4)
                                        ------    ------     ------
                                        81,776   137,234    (55,458) (40.4)
                                        ======   =======    =======



     Brand Mix - New Vehicle Retail
      Units Sold
     ------------------------------
                                        Three Months         Six Months
                                         Ended June          Ended June
                                            30,                 30,
                                       -------------       ------------
                                       2009(%)  2008(%)    2009(%)  2008(%)
                                       ----     ----       ----     ----

      Domestic:
         Ford, Lincoln-Mercury         14.8     12.8       14.6     13.7
         Chevrolet, Pontiac, Buick,
          Cadillac, GMC                10.8     11.9       11.1     12.3
         Chrysler, Jeep, Dodge          3.8      3.1        3.6      3.4
                                        ---      ---        ---      ---
           Domestic total              29.4     27.8       29.3     29.4
                                       ----     ----       ----     ----

      Import:
         Honda                         15.5     15.6       14.8     14.5
         Toyota                        19.3     23.0       19.9     22.4
         Nissan                        12.4     12.2       11.7     12.5
         Other imports                  6.7      5.7        6.8      5.7
                                        ---      ---        ---      ---
           Import total                53.9     56.5       53.2     55.1
                                       ----     ----       ----     ----

      Premium Luxury:
         Mercedes                       8.1      7.0        8.4      6.9
         BMW                            4.4      4.5        4.7      4.4
         Lexus                          2.4      2.8        2.7      2.9
         Other premium luxury (Land
          Rover, Porsche)               1.8      1.4        1.7      1.3
                                        ---      ---        ---      ---
           Premium Luxury total        16.7     15.7       17.5     15.5
                                       ----     ----       ----     ----

                                      100.0    100.0      100.0    100.0
                                      =====    =====      =====    =====



                           AUTONATION, INC.
                UNAUDITED SUPPLEMENTARY DATA, Continued
                ($ in millions, except per share data)



        Capital Expenditures / Stock and     Three Months    Six Months
         Debt Repurchases                   Ended June 30,  Ended June 30,
        ---------------------------------   -------------   -------------
                                            2009    2008    2009    2008
                                            ----    ----    ----    ----

      Capital expenditures                 $13.8   $17.7   $34.2   $41.1
      Acquisitions                            $-      $-    $0.2   $29.4
      Proceeds from exercises of stock
       options                              $9.6      $-    $9.8    $1.0
      Senior note repurchases (aggregate
       principal)                           $6.0      $-   $78.0      $-
      Stock repurchases:
        Aggregate purchase price              $-   $26.3      $-   $54.1
        Shares repurchased (in millions)       -     1.9       -     3.8



        Floorplan
         Assistance
         and Expense   Three Months Ended June 30,  Six Months Ended June 30,
        ------------   --------------------------   ------------------------
                         2009   2008   Variance    2009   2008   Variance
                         ----   ----  ----------   ----   ----  ----------
      Floorplan
       assistance
       earned
       (included in
       cost of sales)   $11.0  $18.1     $(7.1)   $21.0  $37.4      $(16.4)
      Floorplan
       interest
       expense (new
       vehicles)         (8.1) (18.9)     10.8    (17.3) (41.7)       24.4
                         ----  -----      ----    -----  -----        ----

        Net inventory
         carrying
         benefit
         (cost)          $2.9  $(0.8)     $3.7     $3.7  $(4.3)       $8.0
                         ====  =====      ====     ====  =====        ====



        Balance Sheet and
         Other Highlights
       -----------------------

                                                 December
                                  June 30, 2009  31, 2008 June 30, 2008
                                  ------------- --------- -------------

      Cash and cash equivalents          $128.9    $110.1         $42.8
      Inventory                        $1,257.9  $1,749.9      $2,108.3
      Total floorplan notes
       payable                         $1,200.7  $1,805.8      $2,078.4
      Non-vehicle debt                 $1,133.0  $1,258.9      $1,518.1
      Equity                           $2,290.4  $2,198.1      $3,535.1
      New days supply (industry
       standard of selling
       days, including fleet)           53 days   82 days       60 days

      Used days supply (trailing
       30 days)                         35 days   30 days       41 days



                              AUTONATION, INC.
                  UNAUDITED SUPPLEMENTARY DATA, Continued
                   ($ in millions, except per share data)

      Comparable Basis
       Reconciliations*
      -----------------
                                            Three Months Ended June 30,
                                            ---------------------------
                                                             Diluted
                                                             Earnings
                                             Net Income     Per Share
                                            ------------  ------------

                                             2009    2008   2009   2008
                                             ----    ----   ----   ----

      As reported                           $36.7   $51.8  $0.21  $0.29

        Discontinued operations, net of
         income taxes                        18.1     3.7  $0.10  $0.02
                                             ----     ---
      From continuing operations, as
       reported                              54.8    55.5  $0.31  $0.31

        Net gain on asset sales and
         dispositions                        (3.7)      - $(0.02)    $-
        Stock compensation expense
         adjustment                             -     3.1     $-  $0.02
        Franchise impairments**                 -       -     $-     $-
                                              ---     ---

      Adjusted                              $51.1   $58.6  $0.29  $0.33
                                            =====   =====


                                             Six Months Ended June 30,
                                             -------------------------
                                                             Diluted
                                              Net Income     Earnings
                                                (Loss)      Per Share
                                             -----------  ------------

                                             2009    2008   2009   2008
                                             ----    ----   ----   ----

      As reported                           $71.3  $102.5  $0.40  $0.57

        Discontinued operations, net of
         income taxes                        36.5     8.1  $0.21  $0.05
                                             ----     ---
      From continuing operations, as
       reported                             107.8   110.6  $0.61  $0.62


        Net gain on asset sales and
         dispositions                        (9.6)      - $(0.05)    $-
        Gain on senior note repurchases      (7.7)      - $(0.04)    $-
        Property and other impairments***     0.7       -  $0.00     $-
        Stock compensation expense
         adjustment                             -     3.1     $-  $0.02
        Franchise impairments***                -       -     $-     $-
                                              ---     ---

      Adjusted                              $91.2  $113.7  $0.51  $0.63
                                            =====  ======

      * Please refer to the "Non-GAAP Financial Measures" section of the
        Press Release.
     ** Franchise impairments for the three and six months ended June 30,
        2008, totaled $3.0 million after-tax, which has been reclassified to
        loss from discontinued operations since they related to dealerships
        classified as discontinued operations during the three months ended
        June 30, 2009.
    *** Property and other impairments for the three months ended March 31,
        2009 totaled $4.8 million after-tax, of which $4.5 million has been
        reclassified to loss from discontinued operations since they related
        to dealerships classified as discontinued operations during the three
        months ended June 30, 2009.



                                AUTONATION, INC.
                            UNAUDITED SAME STORE DATA
                    ($ in millions, except per vehicle data)




          Operating Highlights            Three Months Ended June 30,
          --------------------            ---------------------------
                                      2009     2008  $ Variance  % Variance
                                      ----     ----  ----------  ----------


    Revenue:
      New vehicle                 $1,324.5 $2,048.4     $(723.9)      (35.3)
        Retail used vehicle          547.9    717.9      (170.0)      (23.7)
        Wholesale                     76.5    138.5       (62.0)      (44.8)
                                      ----    -----       -----
      Used vehicle                   624.4    856.4      (232.0)      (27.1)
      Parts and service              533.4    578.7       (45.3)       (7.8)
      Finance and insurance, net      88.4    127.4       (39.0)      (30.6)
      Other                           10.6     15.8        (5.2)      (32.9)
                                      ----     ----        ----
    Total revenue                 $2,581.3 $3,626.7   $(1,045.4)      (28.8)
                                  ======== ========   =========


    Gross profit:
      New vehicle                    $85.8   $135.6      $(49.8)      (36.7)
        Retail used vehicle           56.0     74.7       (18.7)      (25.0)
        Wholesale                      1.5     (0.5)        2.0
                                       ---     ----         ---
      Used vehicle                    57.5     74.2       (16.7)      (22.5)
      Parts and service              234.1    254.0       (19.9)       (7.8)
      Finance and insurance           88.4    127.4       (39.0)      (30.6)
      Other                            6.8      8.8        (2.0)
                                       ---      ---        ----
    Total gross profit              $472.6   $600.0     $(127.4)      (21.2)
                                    ======   ======     =======




    Retail vehicle unit sales:
         New                        43,171   69,385     (26,214)      (37.8)
         Used                       33,808   45,249     (11,441)      (25.3)
                                    ------   ------     -------
                                    76,979  114,634     (37,655)      (32.8)
                                    ======  =======     =======

    Revenue per vehicle retailed:
         New                       $30,680  $29,522      $1,158         3.9
         Used                      $16,206  $15,866        $340         2.1

    Gross profit per vehicle
     retailed:
         New                        $1,987   $1,954         $33         1.7
         Used                       $1,656   $1,651          $5         0.3
         Finance and insurance      $1,148   $1,111         $37         3.3



          Operating Highlights             Six Months Ended June 30,
          --------------------           -----------------------------
                                      2009     2008  $ Variance  % Variance
                                      ----     ----  ----------  ----------


    Revenue:
      New vehicle                 $2,496.4 $4,103.6   $(1,607.2)      (39.2)
        Retail used vehicle        1,066.6  1,455.4      (388.8)      (26.7)
        Wholesale                    141.2    290.5      (149.3)      (51.4)
                                     -----    -----      ------
      Used vehicle                 1,207.8  1,745.9      (538.1)      (30.8)
      Parts and service            1,066.0  1,172.3      (106.3)       (9.1)
      Finance and insurance, net     164.6    262.7       (98.1)      (37.3)
      Other                           23.3     31.9        (8.6)      (27.0)
                                      ----     ----        ----
    Total revenue                 $4,958.1 $7,316.4   $(2,358.3)      (32.2)
                                  ======== ========   =========


    Gross profit:
      New vehicle                   $158.7   $273.1     $(114.4)      (41.9)
        Retail used vehicle          116.6    151.5       (34.9)      (23.0)
        Wholesale                      3.5     (0.7)        4.2
                                       ---     ----         ---
      Used vehicle                   120.1    150.8       (30.7)      (20.4)
      Parts and service              468.2    513.4       (45.2)       (8.8)
      Finance and insurance          164.6    262.7       (98.1)      (37.3)
      Other                           13.8     18.2        (4.4)
                                      ----     ----        ----
    Total gross profit              $925.4 $1,218.2     $(292.8)      (24.0)
                                    ====== ========     =======




    Retail vehicle unit sales:
         New                        81,146  136,319     (55,173)      (40.5)
         Used                       67,346   91,050     (23,704)      (26.0)
                                    ------   ------     -------
                                   148,492  227,369     (78,877)      (34.7)
                                   =======  =======     =======

    Revenue per vehicle retailed:
         New                       $30,764  $30,103        $661         2.2
         Used                      $15,838  $15,985       $(147)       (0.9)

    Gross profit per vehicle
     retailed:
         New                        $1,956   $2,003        $(47)       (2.3)
         Used                       $1,731   $1,664         $67         4.0
         Finance and insurance      $1,108   $1,155        $(47)       (4.1)



                                    Three Months       Six Months
                                     Ended June        Ended June
         Operating Percentages          30,               30,
         ---------------------     -------------     ------------
                                   2009(%)  2008(%)  2009(%)  2008(%)
                                   ----     ----     ----     ----

    Revenue mix percentages:
      New vehicle                  51.3     56.5     50.3     56.1
      Used vehicle                 24.2     23.6     24.4     23.9
      Parts and service            20.7     16.0     21.5     16.0
      Finance and insurance, net    3.4      3.5      3.3      3.6
      Other                         0.4      0.4      0.5      0.4
                                    ---      ---      ---      ---
                                  100.0    100.0    100.0    100.0
                                  =====    =====    =====    =====


    Gross profit mix percentages:
      New vehicle                  18.2     22.6     17.1     22.4
      Used vehicle                 12.2     12.4     13.0     12.4
      Parts and service            49.5     42.3     50.6     42.1
      Finance and insurance        18.7     21.2     17.8     21.6
      Other                         1.4      1.5      1.5      1.5
                                    ---      ---      ---      ---
                                  100.0    100.0    100.0    100.0
                                  =====    =====    =====    =====



    Operating items as a percentage
     of revenue:
      Gross Profit:
         New vehicle                6.5      6.6      6.4      6.7
         Used vehicle - retail     10.2     10.4     10.9     10.4
         Parts and service         43.9     43.9     43.9     43.8
         Total                     18.3     16.5     18.7     16.7



                            AUTONATION, INC.
          KEY CREDIT AGREEMENT COVENANT COMPLIANCE CALCULATIONS
                              June 30, 2009
                              -------------

    ($ millions)

    -----------------------------------------
    Income Statement information for the last
     twelve months (July 1, 2008 - June 30,
     2009):
    -----------------------------------------

    Net income (loss) from continuing operations          $(1,205.6)

    Floorplan and other interest expense                      120.4

    Income tax provision (benefit)                           (209.8)

    Depreciation and amortization                              81.1

    Stock-based compensation expense (SFAS
     No. 123R)                                                 17.2

    Impairment charges (including goodwill,
     franchise rights, and long-lived
     assets)                                                1,745.9
                                                            -------

    EBITDA                                                    549.2

    Floorplan interest expense                                (57.1)
                                                              -----

    Adjusted EBITDA                                          $492.1
                                                             ======


    --------------------
    As of June 30, 2009:
    --------------------

    Funded indebtedness (primarily comprised of
     current and long-term debt and letters of
     credit)                                               $1,205.0

    Vehicle secured indebtedness (floorplan
     payables)                                              1,200.7
                                                            -------

    Funded indebtedness including floorplan                 2,405.7

    Shareholders' equity                                    2,290.8
                                                            -------

    Total capitalization including floorplan               $4,696.5
                                                           ========


    ---------------------------------------------------------------
    Ratio of funded indebtedness/
    Adjusted EBITDA.........................                   2.45

    Covenant................................    less than      3.00
    ---------------------------------------------------------------

    ---------------------------------------------------------------
    Ratio of funded indebtedness including
     floorplan/
    Total capitalization including
     floorplan..............................                   51.2%

    Covenant................................    less than      65.0%
    ---------------------------------------------------------------


SOURCE AutoNation, Inc.

CONTACT:
Marc Cannon
+1-954-769-3146
cannonm@autonation.com
Investor Contact:
Derek Fiebig +1-954-769-7342
fiebigd@autonation.com
both of AutoNation, Inc.

Media Contact

Marc Cannon
Executive Vice President
Chief Marketing Officer, Communications and Public Policy
Phone: 954.769.3146
cannonm@autonation.com

Press inquiries, or interview requests can be sent to Marc via e-mail.

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