The Auto Channel: North America | Europe

O'Reilly Automotive Reports Record Sales and Earnings for the Third Quarter and Comparable Store Sales of 8.3%

SPRINGFIELD, Mo.--Oct. 2, 20038, 2003--O'Reilly Automotive, Inc. ("O'Reilly" or "the Company") today announced record revenues and earnings for the third quarter of 2003, representing 40 quarters of record revenues and earnings for O'Reilly since becoming a public company in April 1993.

Net income for the third quarter ended September 30, 2003, totaled $29.5 million, up 22.6% from $24.1 million for the same period in 2002. Diluted earnings per common share for the third quarter of 2003 increased 20.0% to $0.54 on 54.9 million shares compared to $0.45 for the third quarter of 2002 on 53.7 million shares. Product sales for the third quarter ended September 30, 2003, totaled $412.2 million, up 14.6% from $359.6 million for the same period a year ago. Gross profit for the third quarter of 2003 increased to $175.7 million (or 42.6% of product sales) from $152.2 million (or 42.3% of product sales) for the third quarter of 2002, representing an increase of 15.4%.

Net income for the first nine months of 2003 totaled $76.2 million, up 20.4% from $63.3 million for the same period a year ago. Diluted earnings per common share for the first nine months of 2003 increased 18.6% to $1.40 on 54.3 million shares versus $1.18 a year ago on 53.7 million shares. Product sales for the first nine months of 2003 totaled $1.14 billion, up 14.7% from $998.2 million in the first nine months of the previous year. Gross profit for the first nine months of 2003 increased to $482.3 million (or 42.1% of product sales) from $422.4 million (or 42.3% of product sales) for the first nine months of 2002, representing an increase of 14.2%.

Comparable store product sales for stores open at least one year increased 8.3% and 7.2% for the third quarter and first nine months of 2003, respectively.

"The hard work and dedication of Team O'Reilly can be seen in yet another record breaking quarter," stated David O'Reilly, co-chairman and chief executive officer. "An operating margin of 11.7%, net margin of 7.2% and comparable store sales of 8.3% highlighted this quarter's results. Our positive free cash flow has allowed us to reduce our outstanding indebtedness by more than $80 million this year. We are also excited to have expanded into Virginia this quarter, bringing our presence to 18 contiguous states."

The Company will host a conference call Wednesday, October 29, 2003, at 10:00 a.m. central time to discuss its results as well as future expectations. The call will be available by web cast at www.oreillyauto.com, www.vcall.com or www.streetevents.com. Investors may listen to the conference call live on the Company web site, www.oreillyauto.com, by clicking "News." A replay will also be available on the web site shortly after the call.

O'Reilly Automotive is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States, serving both the do-it-yourself and professional installer markets. Founded in 1957 by the O'Reilly family, the Company operated 1,074 stores within the states of Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, North Carolina, Oklahoma, Tennessee, Texas and Virginia as of September 30, 2003.

              O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED BALANCE SHEETS

                                         September 30,   December 31,
                                             2003            2002
                                         -------------   ------------
                                          (Unaudited)        (Note)
                                                 (In thousands)
Assets
Current assets:
   Cash                                       $33,045         $29,333
   Accounts receivable, net                    55,870          45,421
   Amounts receivable from vendors             51,715          42,918
   Inventory                                  538,463         504,098
   Deferred income taxes                        5,514           5,040
   Other current assets                         4,719           4,235
                                     -----------------  --------------
         Total current assets                 689,326         631,045

Property and equipment, at cost               589,309         491,523
Accumulated depreciation and
 amortization                                 167,071         137,922
                                     -----------------  --------------
         Net property and equipment           422,238         353,601

Notes receivable                                1,793           1,880
Other assets                                   27,260          22,893
                                     -----------------  --------------
Total assets                               $1,140,617      $1,009,419
                                     =================  ==============

Liabilities and shareholders' equity
Current liabilities:
   Income taxes payable                       $23,950          $9,798
   Accounts payable                           154,767          85,370
   Accrued payroll                             15,327          15,257
   Accrued benefits and withholdings           28,881          19,165
   Other current liabilities                   25,701          17,150
   Current portion of long-term debt              407             682
                                     -----------------  --------------
          Total current liabilities           249,033         147,422

Long-term debt, less current portion          110,216         190,470
Deferred income taxes                          25,237          15,939
Other liabilities                               7,133           5,064

Shareholders' equity:
   Common stock, $0.01 par value:
      Authorized shares - 90,000,000
      Issued and outstanding shares -
       54,279,497 at September 30,
       2003,
        and 53,371,242 at December
         31, 2002                                 543             534
   Additional paid-in capital                 291,310         269,030
   Retained earnings                          457,145         380,960
Total shareholders' equity           -----------------   -------------
Total liabilities and shareholders'           748,998         650,524
 equity                              -----------------   -------------
                                           $1,140,617      $1,009,419
                                     =================   =============

Note: The balance sheet at December 31, 2002, has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States.

              O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
              CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                              (Unaudited)

                          Three Months Ended      Nine Months Ended
                             September 30,           September 30,
                            2003      2002        2003         2002
                            ----      ----        ----         ----
                             (In thousands, except per share data)

Product sales            $ 412,182  $ 359,579   $1,144,769  $ 998,249

Cost of goods sold,
including warehouse
and distribution
 expenses                  236,529    207,383      662,457    575,839
                         ---------  ---------   ----------  ---------
Gross profit               175,653    152,196      482,312    422,410
Operating, selling,
general and
 administrative expenses   127,291    111,473      355,883    315,280
                         ---------  ---------   ----------  ---------

Operating income            48,362     40,723      126,429    107,130
Other expense, net          (1,179)    (1,972)      (4,594)    (5,370)
                         ---------  ---------   ----------  ---------

Income before income 
 taxes                      47,183     38,751      121,835    101,760
Provision for income 
 taxes                      17,650     14,655       45,650     38,475
                         ---------  ---------   ----------  ---------

Net income               $  29,533  $  24,096   $   76,185  $  63,285
                         =========  =========   ==========  =========

Net income per
 common share            $    0.55  $    0.45   $     1.42  $    1.19
                         =========  =========   ==========  =========
Net income per common
share - assuming
 dilution                $    0.54  $    0.45   $     1.40  $    1.18
                         =========  =========   ==========  =========

Weighted-average common
 shares outstanding         54,090     53,187       53,711     53,044
                         =========  =========   ==========  =========
Adjusted weighted-average
common shares outstanding
 - assuming dilution        54,864     53,715       54,282     53,675
                         =========  =========   ==========  =========


              O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
                    SELECTED FINANCIAL INFORMATION
                              (Unaudited)

                                                    September 30,
                                                 2003           2002
                                                 ----           ----
Inventory turnover (1)                           1.64           1.65
Inventory turnover, net of payables (2)          2.16           1.97

AP to Inventory (3)                              28.7%          18.9%
Debt-to-capital (4)                              12.9%          20.4%
Return on equity (5)                             13.8%          13.6%
Return on assets (6)                              9.0%           9.1%

Square footage (in thousands)                   6,989          6,150

Store count:
  New stores, net                                  33             29
  Total stores                                  1,074            958

Total employment                               15,660         14,420


                                                 Three Months Ended
                                                     September 30,
                                                 2003           2002
                                                 ----           ----
Miscellaneous (in thousands):
  Capital Expenditures                       $ 32,448       $ 27,266
  Depreciation & Amortization                $ 10,651       $  9,691
  Interest Expense                           $  1,546       $  2,402
  Lease & Rental Expense                     $  8,559       $  8,027

Sales per weighted-average square foot (7)   $  57.63       $  56.71

Sales per weighted-average
 store (in thousands) (8)                    $    380       $    369




(1) Calculated as cost of sales for the last 12 months divided by
    average inventory. Average inventory is calculated as the average
    of beginning and ending inventory for the same period used in
    determining the numerator.

(2) Calculated as cost of sales divided by average inventory less
    accounts payable. Average inventory is calculated as the average
    of beginning and ending inventory for the same period used in
    determining the numerator.

(3) Accounts payable divided by inventory.

(4) The sum of long-term debt and current portion of long-term debt,
    divided by the sum of long-term debt, current portion of long-term
    debt and total shareholders' equity.

(5) Last 12 months net income divided by average shareholders' equity.
    Average shareholders' equity is calculated by taking a simple
    average of the beginning and ending shareholders' equity for the
    same period used in determining the numerator.

(6) Last 12 months net income divided by average total assets. Average
    total assets is calculated by taking a simple average of the
    beginning and ending total assets for the same period used in
    determining the numerator.

(7) Total sales less jobber sales, divided by weighted-average square
    feet. Weighted-average sales per square foot is weighted to
    consider the approximate dates of store openings or expansions.

(8) Total sales less jobber sales, divided by weighted-average stores.
    Weighted-average sales per store is weighted to consider the
    approximate dates of store openings or expansions.

              O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
        RECONCILIATION OF FREE CASH FLOW TO OPERATING CASH FLOW
                              (Unaudited)

                          Three Months Ended      Nine Months Ended
                             September 30,           September 30,
                            2003      2002        2003         2002
                            ----      ----        ----         ----
                                       (In thousands)

Net cash provided by
 operating activities     $ 59,164   $ 44,305    $ 172,119  $ 105,124

Capital expenditures        32,448     27,266      100,047     72,610
                          --------   --------    ---------  ---------
Free cash flow            $ 26,716   $ 17,039    $  72,072  $  32,514
                          ========   ========    =========  =========