Midas Completes Uni-Select Agreement in Canada; Reports Progress on AutoZone Transition in U.S.

    ITASCA, Ill.--July 17, 2003--Midas, Inc. has reached final agreement with Uni-Select, Inc. (TSX:UNS) of Boucherville, Quebec, Canada, calling for Uni-Select to distribute automotive parts to Midas' 230 automotive service shops and other customers throughout Canada. The companies had signed a letter of intent in April.
    Under terms of the agreement, Uni-Select's distribution centers in Canada will ship weekly replenishment orders to Midas shops. In addition, Midas shops will have access to just-in-time deliveries from more than 700 automotive parts stores operated by Uni-Select members.
    The Canadian agreement is similar to an alliance launched in June in the United States under which Memphis-based AutoZone, Inc. has begun shipping parts to Midas shops.
    Midas previously has shipped weekly replenishment orders of exhaust, brake, steering, suspension and other parts to its franchised and company-owned shops from 12 Midas distribution centers in North America.
    Once the transition to AutoZone and Uni-Select is complete, only one North American warehouse will remain will remain in Chicago to support the company's exhaust manufacturing plant in Hartford, Wisc., and Midas' IPC-brand exhaust wholesale business. The transition is expected to be completed by year-end.
    "The transition of distribution responsibility from Midas to AutoZone is on track in the U.S.," Alan D. Feldman, Midas' president and chief executive officer, said. "Overall, the response from our dealers has been very positive and we are on schedule to complete this effort by year-end."
    In June, 184 Midas shops in the southeast previously served from Midas' distribution center in Atlanta, began receiving their weekly orders from AutoZone's distribution center in Lavonia, Ga. On July 21, AutoZone's distribution center in Lexington, Tenn., will begin shipments to an additional 79 Midas shops. The transition from Midas to AutoZone distribution centers in the U. S. will continue at three- to four-week intervals through November.
    Feldman said that dealer purchases of just-in-time parts delivered from AutoZone's 3,100 retail stores have been growing steadily each month since the program was announced in April.
    "The progress we have made to date in the transition to AutoZone in the U. S. has been the direct result of countless hours of effort by Midas dealers working closely with Midas and AutoZone on all the issues involving product availability, systems, logistics and communications," Feldman said. "Midas dealers in Canada already have made similar commitments to support the transition to Uni-Select."
    The Uni-Select transition will occur in the fourth quarter.
    Midas will take special charges throughout 2003 to cover the closing of distribution centers, an accrual for warranties, the write-down of inventories and resulting employment reductions.
    "As Midas exits the wholesale distribution business, we are enhancing our focus on growing the profitability of the Midas franchise system to become our customers' first choice for exhaust, brakes and maintenance services," Feldman said.
    Midas is one of the world's largest providers of automotive service, offering exhaust, brake, steering and suspension services, as well as batteries, climate control and maintenance services at 2,700 franchised, licensed and company-owned Midas shops in 19 countries, including 1,900 in the United States and Canada.