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Precision Auto Care Reports Q3 Earnings

30 April 1998

Precision Auto Care Reports Third Quarter Earnings

    LEESBURG, Va., April 30 -- Precision Auto Care, Inc.
, today reported a 130% increase in pro forma net earnings for
the third quarter ended March 31, 1998.  On a pro forma basis, revenues for
the three months ended March 31, 1998 increased 13% to $11.8 million, compared
to $10.4 million for the same period a year earlier.  These improved revenues,
combined with cost control measures, produced a 63% increase in operating
income and a 130% increase in net earnings.  Operating income rose to $2.1
million and net earnings rose to $1.0 million, or $.18 per share, from $1.3
million and $436,000 ($.08 per share), respectively, last year.  Earnings
before interest, taxes, depreciation and amortization (EBITDA) were $2.7
million vs. $1.7 million a year earlier.
    Nine month pro forma revenues were $35.1 million, representing a 6%
increase over the $33.1 million reported for the year-earlier period.  Pro
forma operating income and net earnings increased to $5.7 million and $2.8
million ($.51 per share), respectively, from $4.0 million and $1.8 million
($.32 per share), respectively, for the comparative nine month periods.
EBITDA for the current nine month period was $7.4 million compared to $5.7
million last year.
    "The improved sales and earnings results reflect the continuing operating
efficiencies achieved in connection with the successful integration of the
combined companies," said Jay Ripley, President and CEO of Precision Auto
Care, Inc.  "I am thrilled that we completed the acquisition of our Mexican
partner during the quarter.  As previously reported, we anticipate that this
transaction could add approximately $7.5 million and $1.6 million in fiscal
year 1999 revenue and EBITDA, respectively.  This transaction also is expected
to be accretive to earnings in 1998."  Ripley added, "I also am pleased to
report the Company's first sale under the Precision Turnkey Program and sale
of the master license for the Dominican Republic."
    Precision Auto Care, Inc. is the world's largest franchisor of auto care
centers, with 654 operating centers as of March 31, 1998.  The Company
franchises and operates Precision Tune Auto Care, Precision Auto Wash, and
Precision Lube Express centers around the world.
    This press release contains certain forward-looking statements which
involve known and unknown risks, uncertainties or other factors not under the
Company's control which may cause actual results, performance or achievements
of the Company to be materially different from the result, performance, or
other expectations implied by these forward-looking statements.  For further
information about the Company, investors are encouraged to review the
Company's most recent SEC filings.

SOURCE  Precision Auto Care, Inc.