Precision Auto Care Announces 3rd Quarter Results

    LEESBURG, Va., May 16 Precision Auto Care, Inc.
released its operating results from the third quarter of
FY2001.  As expected, the Company experienced a loss in the second quarter.
The loss was $864K or $(.11) 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, "The Company's operating results
continue to improve. On an operating basis, we are approaching break even. We
believe that the results for the last quarter of the year will continue to
show some improvement."

    Lou Brown also said "During the third quarter, we began deployment of our
new point of sale system. While the entire effort will take 12-18 months, we
are excited about the new system's ability to provide more timely and accurate
management data, and we believe that we will begin seeing results almost
immediately. During the fourth quarter, we will launch our new advertising
campaign, Precision Man, on national TV to increase our market visibility."
He went on to say that, "The Company and its franchisees are very excited
about these two new initiatives."

    Robert Falconi, the company's CFO added, "In addition to the new
advertising campaign and the launch of the point of sale system, the Company
also consolidated two of its manufacturing facilities, PBSI and Hydro-Spray.
These changes should significantly reduce operating expenses and improve
operating margins."

    
                                           Three Months Ending March 31, 2001
    000s except per share amounts

                                                      2001           2000
    Revenue                                          $ 5,785        $ 7,387
    Net income (loss)                                ($ 865)      ($ 1,298)
    Diluted earnings (loss) per share                ($0.11)        ($0.21)
    Shares outstanding - diluted                       8,082          6,258


                                            Nine Months Ending March 31, 2001
    000s except per share amounts

                                                      2001           2000
    Revenue                                          $17,512        $26,260
    Net income (loss)                              ($ 5,636)       ($4,226)
    Diluted earnings (loss) per share                ($0.70)        ($0.69)
    Shares outstanding - diluted                       8,082          6,193