CSK Auto Corporation Announces the Completion of New $30 Million Capital Investment and Implementation of Profitability Enhancement Program

    PHOENIX, Aug. 15 CSK Auto Corporation , the
parent company of CSK Auto, Inc., a specialty retailer in the automotive
aftermarket, today announced details of several strategic and financial
initiatives aimed at improving the Company's balance sheet and enhancing its
future profitability.

    New Capital Investment
    The Company announced the closing of a private placement of $30.0 million
aggregate principal amount of 7% convertible subordinated notes due
September 1, 2006 with OppenheimerFunds.  Interest on these notes will be
payable semiannually on March 1 and September 1, commencing March 1, 2002.
The notes are convertible into common stock at a conversion price of $6.63 per
share, which represents a 10% premium to the average of the company's closing
prices on the NYSE for the 10 days preceding the issuance of the notes.  The
new notes provide CSK Auto with additional subordinated, equity-linked capital
that will increase the Company's financial flexibility; moreover, due to
certain mandatory conversion provisions of the notes, it is possible that the
notes will be converted into common stock in the short to medium term.  The
Company intends to deploy the proceeds from this investment in a series of
transactions aimed at deleveraging its balance sheet and generating increased
earnings through vendor allowances.

    Profitability Enhancement Program
    Over the last several periods CSK Auto has instituted an intensive focus
throughout the organization on maximizing cash flow generation and increasing
return on assets, allowing for earnings enhancement through improved store
profitability and lower debt levels.  Consistent with this focus, the Company
has recently completed a thorough review of its asset utilization performance
and operating effectiveness.  As a result of this review and in line with the
Company's objective of maximizing cash flow generation, the Company has:

    -- identified 36 stores that have been or will be closed because they are
       not performing at acceptable return levels.  The closure of these
       stores is expected to increase profitability by approximately
       $4 million on an annual basis;
    -- reduced corporate staffing by 120 positions through involuntary
       terminations and the elimination of open positions.  This action is
       expected to reduce cash salaries by approximately $7 million on an
       annual basis;
    -- completed a comprehensive review of slower-selling items that meet
       neither current return criteria nor the Company's objective for
       inventory turns.  This review has resulted in a plan to eliminate
       certain merchandise, and to transfer certain goods to stores that are
       turning them satisfactorily; and,
    -- re-negotiated certain equipment leases and service arrangements to a
       lower cost.

    These initiatives are expected to reduce operating expenses by
approximately $9.3 million during the second half of fiscal 2001, and by
approximately $16.5 million in fiscal 2002.
    As part of the immediate implementation of the profitability enhancement
program, the Company expects to record a non-recurring after-tax charge of
approximately $23 million to $27 million, in the second quarter of fiscal 2001
ended August 5, 2001.  The majority of the non-recurring charge will be
non-cash.  The non-recurring charge estimate includes expenses related to the
anticipated store closures (which includes future lease obligations), employee
severance costs and charges related to merchandise and property that are in
excess of anticipated needs or are otherwise under-performing.

    Outlook
    Excluding the effect of these expected non-recurring charges, the Company
expects net income for the second quarter of fiscal 2001 to increase
approximately 20% over the results of the first quarter of fiscal 2001.  In
addition, the Company's net income for the third quarter ending November 4,
2001 is expected to increase by approximately 50% over the second quarter.
The Company noted that the improvement in expected quarter-over-quarter net
income reflects the anticipated effect of the steps taken to reduce costs and
improve profitability.
    Separately, CSK Auto said that comparable store sales for the second
quarter of fiscal 2001 increased 2%.  The Company plans to report results for
the second quarter of fiscal 2001 on September 6, 2001.
    "The private placement of convertible notes not only strengthens CSK
Auto's balance sheet, but also demonstrates an appreciation of the Company's
value by an existing major institutional investor, OppenheimerFunds," said
Maynard Jenkins, Chairman and Chief Executive Officer of CSK Auto Corporation.
"As we take this important step in strengthening our financial position, I am
pleased that we are making significant expense reductions and operating
enhancements in order to immediately improve our profitability.  These new
initiatives are a direct result of the Company's intensive plan to increase
the return on the Company's assets for its shareholders.
    "We are excited about increasing our investment in CSK Auto at the current
time," commented Michael Levine, of OppenheimerFunds, Inc.  "We believe that
CSK's improved liquidity and cost reduction efforts position it extremely well
for the future."

    CSK Auto Corporation is the parent company of CSK Auto, Inc., a specialty
retailer in the automotive aftermarket.  As of August 5, 2001, the Company
operated 1,157 stores in 19 states under the brand names Checker Auto Parts,
Schuck's Auto Supply and Kragen Auto Parts.

    Certain statements contained in this release are forward-looking
statements.  They discuss, among other things, expected growth, future store
development and relocation strategy, business strategies, future revenues and
future performance.  The forward-looking statements are subject to risks,
uncertainties and assumptions, including, but not limited to, competitive
pressures, demand for the Company's products, the state of the economy,
inflation, consumer debt levels and the weather.  Actual results may differ
materially from anticipated results described in these forward-looking
statements.  The Company undertakes no obligation to publicly release any
revisions to forward-looking statements contained in this press release to
reflect events or circumstances occurring after the date of this release or to
reflect the occurrence of unanticipated events.

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