1019849--3/16/2006--UNITED_AUTO_GROUP

related topics

{acquisition, growth, future}

{condition, economic, financial}

{cost, regulation, environmental}

{customer, product, revenue}

{debt, indebtedness, cash}

{operation, international, foreign}

{stock, price, operating}

{product, candidate, development}

{personnel, key, retain}

{stock, price, share}

{interest, director, officer}

{competitive, industry, competition}

Our volumes and profitability may be affected if automotive manufacturers discontinue their incentive programs. Adverse conditions affecting one or more automotive manufacturers may negatively impact our revenues and profitability. Our failure to meet manufacturers consumer satisfaction requirements may adversely affect us. Automotive manufacturers impose limits on our ability to issue additional equity and on the ownership of our common stock by third parties, which may hamper our ability to meet our financing needs. Risks Relating to Our Acquisition Strategy Growth in our revenues and earnings depends substantially on our ability to acquire and successfully operate new dealerships. Manufacturers restrictions on acquisitions may limit our future growth. Our business is susceptible to adverse economic conditions, including changes in consumer confidence, fuel prices and credit availability. Substantial competition in automotive sales and services may adversely affect our profitability. Our capital costs and our results of operations may be adversely affected by a rising interest rate environment. Our substantial indebtedness may limit our ability to obtain financing for acquisitions and may require that a significant portion of our cash flow be used for debt service. Our inability to raise capital, if needed, could adversely affect us. Shares eligible for future sale may cause the market price of our common stock to drop significantly, even if our business is doing well. Business interruptions at some of our dealerships could impact our operating results. If we lose key personnel or are unable to attract additional qualified personnel, our business could be adversely affected. Our quarterly operating results may fluctuate due to seasonality and other factors. Our business may be adversely affected by import product restrictions and foreign trade risks that may impair our ability to sell foreign vehicles profitably. Our automotive dealerships are subject to substantial regulation which may adversely affect our profitability. If state dealer laws in the United States are repealed or weakened, our dealership franchise agreements will be more susceptible to termination, non-renewal or renegotiation. Our dealerships are subject to environmental regulations that may result in claims and liabilities which could be material. Our principal stockholders have substantial influence over us and may make decisions with which you disagree. Some of our directors and officers may have conflicts of interest with respect to certain related party transactions and other business interests. Our operations outside the U.S. subject us to foreign currency translation risk and exposure to changes in exchange rates.

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1019849--3/16/2006--UNITED_AUTO_GROUP_INC