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Precision Auto Care, Inc. Seeks to Overturn Verdict

25 March 2000

    LEESBURG, Va. - Precision Auto Care, Inc. today announced that it intends to 
request a new trial and, if necessary, file an appeal in a lawsuit involving a 
franchisee in Broward County, Florida.

    The Company said that a jury in the Broward County Circuit Court case
recently returned a verdict against the Company in the amount of approximately
$850,000. The case was filed in the Florida State court by a franchisee
shortly after the Company issued a notice that it intended to terminate his
franchise. In his lawsuit, the franchisee sought an injunction to prevent his
franchise from being terminated and alleged additional claims including breach
of contract, tortious interference with business relationships, and slander.
The Company had filed counter claims against the franchisee and had asserted
various defenses to the franchisee's claims, but an earlier court order barred
the Company from presenting those claims and defenses at trial. As a result,
the jury was only permitted to consider evidence relating to the franchisee's
alleged damages, and was not presented with the complete evidence respecting
the franchisee's claims or any evidence relating to the Company's claims or
defenses.

    The Company believes that it has ample grounds for seeking appellate
remedies which, if granted, would result in a new trial in which all of the
relevant claims and evidence would be presented.

    Precision Auto Care, Inc. is the world's largest franchisor of auto care
centers, with 630 operating centers as of March 24, 2000. The Company
franchises and operates Precision Tune Auto Care, Precision Auto Wash, and
Precision Lube Express centers around the world, and offers a vertically
integrated organization with manufacturing and distribution subsidiaries.