Condor Auto Group is a newly formed company, which will ultimately be capitalized with over $250 million of private capital to fund a business growth and industry consolidation strategy. Condor will be managed by several experienced auto industry executives, who have had tremendous auto industry retail experience, but never an adequate ownership stake or sufficient capitalization to leverage their skills in the retail sector of the auto industry.

The principal owner of one small group of six family-owned auto dealerships in the Philadelphia area is buying out certain family members from a couple of those dealerships, and rolling forward his equity into Condor. Two other senior executives have been recruited from the Buchanan Auto Group, Sarasota, Florida, which is being scaled-down after its founder decided to pursue a political career. The new executive team members will also invest some of their personal capital in this transaction, as well.

The first acquisition of a new dealership group has recently been announced. Condor has agreed to acquire Pennmark Auto Group, a series of three consecutively located Mercedes Benz stores, which service Wilmington, Delaware, Ft. Washington, Pennsylvania and West Chester, Pennsylvania. Condor Auto Group should grow from six dealerships in 2007 to over 30 dealerships by 2011, at which point in time it will have in excess of $2.5 billion in revenue, which will accomplish the equity building objectives of the executive group.

Source has helped plan the strategy, arrange the capital support, target certain of the acquisitions, and build the financial models and, also, James Bly is a member of the Company’s Board of Directors.

Since 1982, Source Capital, Ltd. has assisted many clients with leveraged growth and acquisition strategies, which have generated equity value creation for shareholders.