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AutoNation, Inc. To Acquire Dealerships In Five States With $1 Billion In Annualized Revenue

Jul. 08, 1999

FORT LAUDERDALE, Fla., July 8 /PRNewswire/ -- AutoNation, Inc. (NYSE: AN) today announced that it has signed definitive agreements to acquire 16 dealerships in a series of separate transactions that are expected to contribute approximately $1 billion of annualized revenue to AutoNation's operations. The aggregate purchase price, at approximately $200 million, will be paid in cash. Each transaction is subject to customary closing conditions, including manufacturer and government approval. The dealerships are located in California, Colorado, Florida, Texas and Washington.

In Southern California, AutoNation is purchasing the York Automotive Group, which includes nine automotive franchises, raising the Company's presence in this market to a total of 69 automotive franchises. The Company also operates five AutoNation USA used-vehicle megastores in Southern California. York operates seven franchises in the Valencia Auto Mall (Chrysler-Plymouth, Jeep, Dodge, Honda, Chevrolet, BMW and Isuzu), a Ford dealership in Huntington Beach and a Land Rover franchise located in Encino. With York, AutoNation will increase its presence at the Valencia Auto Mall to nine franchises from its current two, Magic Ford and Magic Lincoln-Mercury.

In Northern California, AutoNation is purchasing Shamrock Ford in the San Francisco Bay city of Dublin, raising the total number of AutoNation automotive franchises in northern California to 24. The Company also operates an AutoNation USA megastore in Dublin.

In South Florida, AutoNation has agreed to acquire Phil Smith Toyota, boosting AutoNation's total number of automotive franchises in this market to 36.

In Colorado, AutoNation has signed an agreement to purchase Courtesy Ford, the Company's 29th automotive franchise in the Denver market. The Company's franchised dealerships in Denver were successfully co-branded last year under the AutoNation name and converted to a no-haggle, one-price selling format. Courtesy, in Littleton, will be AutoNation's fourth Ford franchise in the Denver area.

In Texas, AutoNation has acquired Steakley Chevrolet, its first Chevrolet franchise and 14th automotive franchise overall in the Dallas market. The Steakley dealership includes a Subaru franchise. In Dallas, AutoNation also operates five AutoNation USA used-vehicle megastores.

In the state of Washington, AutoNation is acquiring six automotive franchises with the purchase of the Maria Smith Automotive Group and has agreed to acquire Prestige Ford of Bellevue, giving the Company a total of 16 franchises in this market. Maria Smith franchises include Town & Country Chrysler in Seattle, Kirkland Ford, Bellevue Dodge and Kirkland Pontiac-Buick- GMC.

"With these acquisitions, AutoNation continues its strategy of acquiring top-quality franchises, led by great management, in many of the nation's most- desirable, high-growth markets," said Steven R. Berrard, Co-CEO of AutoNation. "Sticking to this course will ensure AutoNation's network of dealerships will continue to evolve into one that's capable of re-defining the customer experience as it establishes the pre-eminent brand in automotive retailing."

AutoNation is a Fortune 100 company (No. 83) with more than $16 billion in annual revenue. AutoNation is also the leading online retailer of automobiles through its AutoNationDirect.com brand and its more than 270 dealership web sites. The Company's vehicle rental businesses include Alamo Rent-A-Car, Inc., National Car Rental System, Inc. and CarTemps USA, which collectively have operations nationwide and in more than 65 countries.

SOURCE AutoNation, Inc.
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