Precision Auto Care Announces 2nd Quarter Results

    LEESBURG, Va., Feb. 13 Precision Auto Care, Inc.
released its operating results from the second quarter of
FY2001.  In line with expectations, the Company experienced a loss in the
second quarter.  The loss was $2.1 million or $(.26) per share compared with a
loss of $1.3 million or $(.21) per share for the comparable prior year
quarter.
    Lou Brown, President and CEO stated that, "although we experienced an
operating loss, it did represent an improvement over the prior quarter.  The
improvement was due primarily to significant cost reductions implemented in
conjunction with refocusing the Company's business.  Further, there have been
several positive events the first six months of this fiscal year.  In October,
the Company refinanced its debt and was able to completely liquidate all of
its bank debt.  The overwhelming majority of debt of the Company now is with
entities controlled by principal director/shareholders.  This fact, in
combination with the fact that in October the "Going Concern" opinion which
had appeared in the 1999 financials was lifted by the Company's audit firm,
makes us feel much more comfortable about the Company going forward."
    The Company also announced plans to consolidate two of its manufacturing
divisions in the third quarter (January-March) of its current fiscal year.
Robert Falconi, Senior Vice President/CFO stated that, "this move will not
only cut costs dramatically, but will also solidify the manufacturing
operations, in particular the manufacturing economics and quality."
    "We also now have two major initiatives underway that should improve the
Company's performance and market presence.  We will be deploying a new point
of sale (POS) management system throughout the Precision Tune Auto Care system
to provide more timely and accurate management data, and we are also launching
a new marketing/advertising campaign, Precision Man(TM), to increase our
market visibility," said Brown.  "These two new initiatives should
significantly enhance the value proposition to our franchisees and ultimately
to store customers, and help our stores improve sales and profitability."
    Falconi added, "although the financial results for the second quarter are
not where we would like to be, I am pleased that the numbers do represent an
improvement over the first quarter.  I believe that we have taken the steps
that will enable us to steadily improve the bottom line over the next year."
    Precision Auto Care, Inc. is the world's largest franchiser of auto care
centers, with over 581 operating centers as of February 13, 2001.  The Company
franchises and operates Precision Tune Auto Care centers around the world.

    Cautionary Statement:  The statements in this press release constitute
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
These statements are subject to risks and uncertainties that could cause
Precision Auto Care Inc.'s actual results, performance or achievements to
differ materially from any future results, performance or achievements
expressed or implied by such forward-looking statements.  For example, there
can be no assurance that the Company will be able to modify the terms of its
outstanding debt, obtain additional capital, or complete any divestiture,
partnership or other restructuring transactions in a timely fashion or on
terms and conditions that are acceptable to the Company.  Other risks and
uncertainties include, but are not limited to, (i) the risks and uncertainties
reflected and set forth in the text of this press release, (ii) the fact that
Precision Auto Care Inc. and the companies it acquired on and subsequent to
the date of its initial public offering have only recently conducted
operations as a combined company, (iii) the seasonal nature of portions of the
business, (iv) the highly competitive markets in which Precision Auto Care
Inc. operates, (v) difficulties in integrating all of the businesses Precision
Auto Care Inc. has acquired, (vi) risks associated with Precision Auto Care
Inc.'s ability to continue its strategy of growth through acquisitions and
(vii) risks associated with Company's ability to make or effect acquisitions
in the future and to successfully integrate newly-acquired businesses into
existing operations and the risks associated with such newly-acquired
businesses.  For a discussion of such other risks and uncertainties which
could cause actual results, performance or achievements to differ from those
contained in the forward-looking statements, see "Risk Factors" in the
Company's most recently filed Annual Report on Form 10-K.

                                        Three Months Ending December 31, 2000
    000s except per share amounts
                                                        2000           1999
    Revenue                                           $5,498         $8,773
    Net income (loss)                                ($2,107)       ($1,278)
    Diluted earnings (loss) per share                 ($0.26)        ($0.21)
    Shares outstanding - diluted                       8,081          6,164


                                          Six Months Ending December 31, 2000
    000s except per share amounts
                                                        2000           1999
    Revenue                                          $11,727        $18,873
    Net income (loss)                                ($4,771)       ($2,928)
    Diluted earnings (loss) per share                 ($0.61)        ($0.48)
    Shares outstanding - diluted                       7,762          6,162