AutoZone To Acquire Auto Palace

14 January 1998

    MEMPHIS, Tenn., Jan. 14 -- AutoZone, Inc. has
reached a definitive agreement to acquire Auto Palace in a transaction valued
at $55 million, John C. Adams, Jr., chairman and CEO of AutoZone announced
today.
    Auto Palace, a 22-year-old privately held company based in Brockton,
Massachusetts, owns 112 retail auto parts stores in six northeastern states --
Connecticut, Massachusetts, New Hampshire, New York, Rhode Island and Vermont.
The Auto Palace stores will be converted to AutoZone stores.  The transaction
is subject to regulatory approvals.
    "This acquisition gives AutoZone a meaningful presence in a brand new
market.  Prior to this, we didn't have any stores in five of the six states
where Auto Palace operates and only a handful of stores in New York," Adams
said.  "We're comfortable with the value, we've visited their locations and
we've researched the markets extensively.  Auto Palace is a dominant player in
the Northeast, and I'm tremendously excited to be adding so many top-notch
parts people to the AutoZone team.  Strategically, this purchase makes sense,
and it's a solid boost to our already rapid expansion plans."
    AutoZone sells auto parts, chemicals and accessories through its chain of
1,772 stores in 32 states.
    Certain statements contained in this press release are forward-looking
statements.  These statements discuss, among other things, expected growth,
store development and expansion strategy, business strategies, future revenues
and future performance.  The forward-looking statements are subject to risks,
uncertainties and assumptions including, but not limited to, competitive
pressures, demand for the company's products, the market for auto parts, the
economy in general, inflation, consumer debt levels and the weather.  Actual
results may materially differ from anticipated results described in these
forward-looking statements.

SOURCE  AutoZone Inc.