Heafner Tire Group Signs Letter of Intent to Sell Winston Tire Company

    CHARLOTTE, N.C.--May 15, 2001--Heafner Tire Group, Inc. ("Heafner") today announced the sale of its retail division, Winston Tire Company, headquartered in Burbank, California to Performance Management, Inc.
    Under this Agreement Performance will acquire 132 retail stores with approximately 1,000 employees located in northern and southern California. Winston has operated retail tire and automotive repair stores since 1962 and was acquired by Heafner in 1997 in a Stock Purchase Agreement from the shareholders of Oliver and Winston, Inc.
    "This decision was made to give Heafner the opportunity to place an increased focus on our core business," said Dick Johnson, President and CEO of Heafner. "Over the past several years Heafner has grown very rapidly through mergers and acquisitions. We feel it is time to concentrate our strategic initiatives and resources on the integration of our distribution business."
    Johnson further added, "Another very significant decision that was made between the parties was that Heafner will remain a supplier to Winston."
    "This decision was made after a great deal of thought. Heafner wasn't necessarily looking for the quickest sale. We were looking for an organization that was firmly committed to the retail business. The hardworking employees of Winston and their customers deserve this consideration. Winston's reputation for quality service and products is unrivaled in the California marketplace and we wanted to continue that positive momentum. Winston is not only strategic to Performance Management's retail objectives, it fits well with their current portfolio of businesses," said Johnson.
    Terms of the transaction are not being disclosed at this time.
&]]