Group 1 Automotive Increases Quarterly Cash Dividend by 18 Percent -- Second Increase in 2011; Board Doubles Share Repurchase Authorization

Group 1 Automotive, Inc. GPI today announced that its board of directors declared a cash dividend of $0.13 per share for the second quarter of 2011. The dividend, which represents an increase of 18.2 percent, or $0.02 per share, from the first quarter, will be paid on Sept. 15, 2011, to stockholders of record on Sept. 1, 2011. In addition, the board of directors doubled the share repurchase program authorization that was announced on Aug. 8 to $50 million from $25 million. Purchases of the company's common stock may be made from time to time, based on market conditions, legal requirements and other corporate considerations, in the open market or in privately negotiated transactions. The company expects that any repurchase of shares will be funded by cash from operations. As of June 30, the company had 23.6 million shares of common stock outstanding. Repurchased shares will be held in treasury. "Group 1's exceptionally strong second-quarter financial results illustrated the leverage the company has achieved from its improved efficiencies and cost structure," said Earl J. Hesterberg, Group 1's president and chief executive officer. "We are pleased to be able to share this performance with our shareholders via another dividend increase and additional share repurchases."