O'Reilly Automotive, Inc. Reports Record Third Quarter Results 11.8% Operating Margin

SPRINGFIELD, Mo.--Oct. 2, 20046, 2004--O'Reilly Automotive, Inc. ("O'Reilly" or "the Company") today announced record revenues and earnings for the third quarter of 2004, representing 44 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, 2004, totaled $33.2 million, up 12.6% from $29.5 million for the same period a year ago. Diluted earnings per share for the third quarter of 2004 increased 11.1% to $0.60 on 55.8 million shares compared to $0.54 for the third quarter of 2003 on 54.9 million shares. Product sales for the third quarter ended September 30, 2004, totaled $455.2 million, up 10.4% from $412.2 million for the same period a year ago. Gross profit for the third quarter of 2004 increased to $195.8 million (or 43.0% of product sales) from $175.7 million (or 42.6% of product sales) for the same period a year ago, representing an increase of 11.5%.

Net income for the first nine months of 2004 totaled $93.0 million, up 22.1% from $76.2 million for the same period a year ago. Diluted earnings per common share for the first nine months of 2004 increased 19.3% to $1.67 on 55.6 million shares compared to $1.40 a year ago on 54.3 million shares. Product sales for the first nine months of 2004 totaled $1.29 billion, up 13.0% from $1.14 billion for the same period a year ago. Gross profit for the first nine months of 2004 increased to $552.9 million (or 42.7% of product sales) from $482.3 million (or 42.1% of product sales) for the same period a year ago, representing an increase of 14.6%.

Comparable store product sales for stores open at least one year increased 3.4% and 6.2% for the third quarter and first nine months of 2004, respectively.

"We are very pleased with the company's performance this past quarter, particularly in light of the aftermarket's continued relative softness in sales and with the challenging circumstances that many of our stores in the southeast faced with the hurricane season," said David O'Reilly, co-chairman and chief executive officer. "Team O'Reilly fired on all eight cylinders throughout the quarter achieving a 3.4% comparable store sales increase and opening 35 new stores, driving a net income increase of 12.6%."

The Company will host a conference call Wednesday, October 27, 2004, 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's 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, Inc. 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 1,205 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, 2004.

              O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                 (In thousands, except per share data)

                                       September 30,    December 31,
                                           2004             2003
                                       --------------- ---------------
                                         (Unaudited)       (Note)

Assets
Current assets:
   Cash and cash equivalents                  $83,619         $21,094
   Accounts receivable, net                    61,493          52,235
   Amounts receivable from vendors, net        44,276          50,695
   Inventory                                  612,699         554,309
   Deferred income taxes                        5,854           4,753
   Other current assets                         6,143           4,399
                                       --------------- ---------------
         Total current assets                 814,084         687,485

Property and equipment, at cost               747,749         626,142
Accumulated depreciation and
 amortization                                 208,080         177,084
                                       --------------- ---------------
         Net property and equipment           539,669         449,058

Notes receivable, less current portion         22,082          24,313
Other assets, net                              29,493          26,736
                                       --------------- ---------------
Total assets                               $1,405,328      $1,187,592
                                       =============== ===============

Liabilities and shareholders' equity
Current liabilities:
   Income taxes payable                       $17,128          $6,872
   Accounts payable                           268,153         176,513
   Accrued payroll                             15,415          17,307
   Accrued benefits and withholdings           36,979          27,368
   Other current liabilities                   26,032          16,883
   Current portion of long-term debt              592             925
                                       --------------- ---------------
          Total current liabilities           364,299         245,868

Long-term debt, less current portion          100,469         120,977
Deferred income taxes                          38,120          29,448
Other liabilities                               7,770           7,014

Shareholders' equity:
   Common stock, $0.01 par value:
      Authorized shares - 90,000,000
      Issued and outstanding shares -
       55,208,493 at September 30,
       2004, and 54,664,976 at December
       31, 2003                                   552             547
   Additional paid-in capital                 320,050         302,691
   Retained earnings                          574,068         481,047
                                       --------------- ---------------
Total shareholders' equity                    894,669         784,285
                                       --------------- ---------------
Total liabilities and shareholders'
 equity                                    $1,405,328      $1,187,592
                                       =============== ===============

Note: The balance sheet at December 31, 2003, has been derived from
the audited consolidated 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 for
complete financial statements.

              O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
              CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                              (Unaudited)
                 (In thousands, except per share data)

                            Three Months Ended    Nine Months Ended
                              September 30,         September 30,
                           -------------------- ----------------------
                              2004      2003       2004        2003
                           ---------  --------- ---------   ----------


Product sales              $ 455,162 $ 412,182  $1,293,623 $1,144,769
Cost of goods sold,
 including warehouse and
 distribution expenses       259,314   236,529     740,679    662,457
                            --------- ---------  ---------- ----------

Gross profit                 195,848   175,653     552,944    482,312
Operating, selling, general
 and administrative
 expenses                    142,039   127,291     402,798    355,883
                            --------- ---------  ---------- ----------

Operating income              53,809    48,362     150,146    126,429
Other expense, net              (791)   (1,179)     (1,675)    (4,594)
                            --------- ---------  ---------- ----------

Income before income taxes    53,018    47,183     148,471    121,835
Provision for income taxes    19,775    17,650      55,450     45,650
                            --------- ---------  ---------- ----------

Net income                 $  33,243 $  29,533  $   93,021 $   76,185
                            ========= =========  ========== ==========

Net income per common share$    0.60 $    0.55  $     1.69 $     1.42
                            ========= =========  ========== ==========
Net income per common share
 - assuming dilution       $    0.60 $    0.54  $     1.67 $     1.40
                            ========= =========  ========== ==========

Weighted-average common
 shares outstanding           55,140    54,090      54,923     53,711
                            ========= =========  ========== ==========
Adjusted weighted-average
 common shares outstanding
 - assuming dilution          55,778    54,864      55,627     54,282
                            ========= =========  ========== ==========

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

                                                      September 30,
                                                   -------------------
                                                      2004      2003
                                                   --------- ---------

Inventory turnover (1)                                 1.65      1.64
Inventory turnover, net of payables (2)                2.61      2.16

AP to inventory (3)                                    43.8%     28.7%
Debt-to-capital (4)                                    10.2%     12.9%
Return on equity (5)                                   14.2%     13.8%
Return on assets (6)                                    9.2%      9.0%

Square footage (in thousands)                         8,016     7,082

Store count:
  New stores, net (three months ended)                   35        33
  Total stores                                        1,205     1,074

Total employment                                     17,320    15,660

                                                Three Months Ended
                                                   September 30,
                                            --------------------------
                                                 2004         2003
                                             ----------- -------------
Other information (in thousands):
  Capital expenditures                      $    44,472  $     32,448
  Depreciation & amortization               $    12,512  $     10,651
  Interest expense                          $     1,542  $      1,546
  Lease & rental expense                    $     8,478  $      8,559

Sales per weighted-average square foot (7)  $     56.65  $      57.63

Sales per weighted-average store (in
 thousands) (8)                             $       376  $        380

(1) Calculated as cost of sales for the last 12 months divided by
    average inventory. Average inventory is calculated as the simple
    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 simple
    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.