AutoNation Reports 2008 First Quarter Results of Operations

FORT LAUDERDALE, Fla., April 24 -- AutoNation, Inc. , America's largest automotive retailer, today reported 2008 first quarter net income from continuing operations of $56 million or $0.31 per share, compared to year-ago net income from continuing operations of $83 million or $0.39 per share. Results for the first quarter of 2008 reflected a decline in vehicle retail sales, especially in AutoNation's key markets in California, Florida, Nevada and Arizona where the housing crisis has significantly impacted the automotive retail business. First quarter 2008 results also were impacted by lower gross profit per new and used vehicle sold, partially offset by continued share repurchases. Prior year results benefited from favorable tax adjustments of $0.02 per share.

First quarter 2008 revenue totaled $4.0 billion, compared to $4.3 billion in the year-ago period, driven primarily by lower vehicle sales. In the first quarter, industry new vehicle U.S. retail sales declined approximately 11%, according to CNW Research. AutoNation new vehicle unit sales declined 8%. Industry new vehicle retail sales for California, Florida, Nevada and Arizona were off approximately 15% compared to last year, based on CNW Research data. AutoNation's decline for new vehicle unit sales in those markets was 11%. Together, California, Florida, Nevada and Arizona represent approximately 60% of the Company's new vehicle business and approximately 25% of the industry retail new vehicles sold in the U.S.

Commenting on the first quarter, Mike Jackson, Chairman and Chief Executive Officer, said, "In the first quarter we continued to experience a challenging economic environment for new vehicle sales, particularly in our key markets of California, Florida, Nevada and Arizona where the housing crisis has clearly impacted overall economic activity and consumer demand for new vehicles." Mr. Jackson also noted, "We expect to continue to see a challenging automotive retail market as long as the current economic difficulties persist. However, AutoNation continues to have confidence in the long-term health of California, Florida, Nevada and Arizona."

The first quarter conference call may be accessed at 11:00 a.m. Eastern Time today by phone at 888-769-8515 or via the Internet (audio webcast) at autonation.com by clicking on the "About Us" link then clicking on "Investors" and then "Webcasts." A playback of the conference call will be available after 2:30 p.m. Eastern Time April 24, 2008 through May 1, 2008 by calling 800-463-4964.

About AutoNation, Inc.

AutoNation, Inc., headquartered in Fort Lauderdale, Fla., is America's largest automotive retailer. AutoNation owns and operates 321 new vehicle franchises in 15 states. For additional information, please visit, autonation.com where more than 80,000 vehicles are available for sale along with AutoNation's E-Vehicle program.