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AutoNation to Acquire BMW Dealership in Arizona

Oct. 17, 2007

FORT LAUDERDALE, Fla., Oct. 17 /PRNewswire-FirstCall/ -- AutoNation, Inc. (NYSE: AN), America's largest retailer of new and used automobiles, today announced that it has signed an agreement to acquire Don Mackey BMW in Tucson, Arizona from owners Don Mackey and Pete Cunningham.

The store will be renamed BMW Tucson after the anticipated completion of the transaction in January 2008. BMW Tucson will become the 23rd new vehicle franchise owned by AutoNation in Arizona and AutoNation's 13th BMW dealership nationwide. Terms of the all-cash transaction, which is subject to customary conditions and approvals, were not disclosed. AutoNation estimates that revenue generated by the dealership in 2007 will total approximately $45 million.

"Don Mackey BMW will be an outstanding addition to our brand mix in Arizona," said Michael E. Maroone, AutoNation's president and chief operating officer. "BMW is a great franchise, that will continue to have strong growth and an expanding product line up. This fits perfectly in our portfolio since Arizona is the fastest-growing state in the nation, and Tucson is the state's second largest market. This acquisition puts us in position to better serve the widest possible customer base. Add in the fact, that the luxury vehicle market is the fastest growing segment for auto retailers, this transaction also strengthens our ability to deliver great opportunities to our associates and great value to our shareholders."

Neither of the current owners will retain a position with the dealership following the closing. The store is located at 835 West Auto Mall Drive in Tucson, AZ,. AutoNation intends to relocate the dealership to a new, state-of- the-art facility at a nearby location within the next 24 months, a move that is intended to double the size of the existing store. The current facility will be used to accommodate the expansion of Dobbs Honda, AutoNation's other franchise in the Tucson market. All current employees are expected to continue in their current positions.

Currently, AutoNation's franchises in Arizona offer new vehicles from Buick, Chevrolet, Chrysler, Dodge, Ford, GMC, Honda, Hyundai, Isuzu, Jeep, Nissan, Pontiac, Scion, Subaru and Toyota, as well as used vehicles, parts and services, and finance and insurance products.

About AutoNation, Inc.

AutoNation, Inc., headquartered in Fort Lauderdale, Fla., is America's largest automotive retailer and a component of the Standard and Poor's 500 Index. AutoNation has approximately 25,000 full-time employees and owns and operates 325 new vehicle franchises in 16 states. For additional information, please visit http://corp.AutoNation.com or http://www.AutoNation.com, where more than 80,000 vehicles are available for sale.

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, including its earnings outlook.

SOURCE AutoNation, Inc.

CONTACT:
Marc Cannon
AutoNation, Inc.
+1-954-769-7208

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