Precision Auto Care Announces 3rd Quarter 2004 Results

LEESBURG, Va., May 17, 2004 -- Precision Auto Care, Inc. (BULLETIN BOARD: PACI) today announced a profit of approximately $307,000 or $0.01 per share for the fiscal quarter ending March 31, 2004, compared with a profit of $2.7 million or $0.17 per share for the comparable prior year quarter. Robert Falconi, President and COO, stated, "We are very pleased that PACI is reporting operating profits for seven consecutive quarters. Even though the bottom line profit was lower than it was a year ago, last year's number was driven by the debt to equity conversion, an extraordinary one time event. On the other hand, this year, both the third quarter and year-to-date operating profits are more than three times higher than they were one year ago. We believe we are on the right track to continued financial success and growth." Lou Brown, Chairman and CEO, said, "PACI is poised for growth. Our financial position has been improving every month and given our organizational cost structure, there is no reason to believe that this trend will not continue."

Precision Auto Care, Inc.'s affiliate, Precision Franchising LLC, is one of the world's leading franchisors of auto care centers, with 428 operating centers as of May 17, 2004. The Company franchises Precision Tune Auto Care centers around the world.

                                          Three Months Ending March 31, 2004
  000s except per share amounts

                                                  2004               2003
   Revenue                                      $2,841             $2,761
   Net income                                     $307             $2,722
   Diluted earnings per share                    $0.01              $0.17
   Shares outstanding - diluted                 23,352             15,915

                                           Nine Months Ending March 31, 2004

  000s except per share amounts

                                                  2004               2003
   Revenue                                      $8,813             $8,837
   Net income                                     $864             $8,909
   Diluted earnings per share                    $0.04              $0.60
   Shares outstanding - diluted                 21,125             14,748