Pep Boys Completes $14 Million Financing; Receives Commitment on a New $90 Million Facility

    PHILADELPHIA--May 14, 2001--The Pep Boys - Manny, Moe & Jack announced that it has received $14,000,000 in an equipment sale - leaseback with Heller Financial Inc. .
    The facility is structured as four, one-year leases and is secured with the leasedback store equipment and certain real estate.
    In addition, the Company received a commitment for a $90,000,000 Senior Secured Credit Facility from GMAC Business Credit, Equipment Finance Division. The facility, which will be secured by certain store equipment and real estate, is to provide up to $45,000,000 each in two term loans with one repaid over two years and the other repaid over five years.
    The facility is expected to be funded before the end of this fiscal quarter.
    The Company plans to repurchase, with cash, any zero coupon convertible Liquid Yield Option Notes ("LYONs") that are put back to the Company on the September 21, 2001 put date. The Company may repurchase the LYONs in the open market, from time to time, prior to the put date.
    Pep Boys is the nation's leading full-service automotive aftermarket chain with 628 stores and nearly 6,500 service bays in 36 states and Puerto Rico.

    Note: Certain statements made herein, including those discussing management's expectations for future periods, are forward-looking and involve risks and uncertainties. The Company's actual results may differ materially from the results discussed in the forward-looking statements due to factors beyond the control of the Company, including the strength of the national and regional economies and retail and commercial consumers' ability to spend, the health of the various sectors of the market that the Company serves, the weather in geographical regions with a high concentration of the Company's stores, competitive pricing, location and number of competitors' stores and product and labor costs. Further factors that might cause such a difference include, but are not limited to, the factors described in the Company's filings with the Securities and Exchange Commission.

    Internet: http://www.pepboys.com