TBC Expects to Meet Forecasted Gain in Third Quarter Earnings

    MEMPHIS, Tenn.--Oct. 10, 2001--TBC Corporation today indicated that based on preliminary results, it expects to meet the consensus published estimate for earnings of $0.28 per share for the third quarter. That would represent a 12% gain compared with $0.25 per share for the year-earlier period. The Company said that it would release complete financial results for the quarter as scheduled on October 24, 2001.
    "We are very gratified with our preliminary results, which indicate that we met the forecasted increase in earnings for the third quarter and that sales increased 4% to a new third-quarter record of $279 million," said Larry Day, President and Chief Executive Officer. "These results extend the positive momentum from the gain we achieved for the first half. The tragic events of September 11 did cause a temporary pause in the solid progress we had established in the first two months of the third quarter, but we have experienced an improvement in demand subsequent to that immediate industrywide impact. The recovery has been more pronounced in our retail tire operations which we had expected because of the historical stability of consumer demand for replacement tires.
    "Although we recognize that there is considerable uncertainty about the near-term outlook for the economy, TBC has the advantage of an increasing retail presence in the automotive replacement tire market that has consistently shown to be recession-resistant. The trends in our business thus far in the fourth quarter are reassuring. Our margins are benefiting from the price increases that have become effective over the past year, and we are encouraged that the pricing environment has thus far remained firm throughout our business units."

    TBC Corporation is one of the nation's largest marketers of automotive replacement tires through a multi-channel marketing strategy. The Company's retail operations include company-owned retail centers under the Tire Kingdom brand and franchised retail stores under the Big O Tires brand. TBC also markets wholesale to customers who operate more than 200 regional distribution centers serving independent tire dealers throughout the United States and in Canada and Mexico.

    This release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks, uncertainties and other factors which could cause actual results to differ materially, including but not limited to, the degree of competition in the replacement tire industry, changes in consumer spending on automobiles and replacement automotive products and the Company's ability to continue to obtain products in sufficient quantity and at competitive prices. Additional information on factors that could potentially affect the Company or its financial results may be found in the Company's filings with the Securities and Exchange Commission.