Sonic Automotive, Inc. Suspends Dividend

CHARLOTTE, N.C., Feb. 11, 2009 -- Sonic Automotive, Inc. , a leader in automotive retailing, today announced that its Board of Directors has decided to suspend the Company's quarterly dividend. Previously, the Company paid a quarterly dividend of $0.12 per share.

In addition, the Company has retained Moelis & Company as financial advisor to assist the Company in evaluating alternatives to enhance liquidity and to address the Company's 2009 and 2010 debt maturities.

Commenting on the announcement, Scott Smith, the Company's President, said, "While this is the most challenging business environment in recent years, Sonic has responded by reducing costs and managing liquidity for our ongoing operational needs. In addition, we remain in compliance with the financial covenants under our revolving credit facility. However, given the continued upheaval in the credit markets and our upcoming debt maturities in 2009 and 2010, we believe the suspension of the dividend and the engagement of Moelis & Company represent a prudent course of action as we evaluate the alternatives available to the Company to address our debt maturities."