Precision Auto Care Announces 1st Quarter Loss Of Almost 2 Million Dollars

LEESBURG, Va., Nov. 21 -- Precision Auto Care, Inc. today announced a loss of $1.9 million or $(0.19) per share for the fiscal quarter ending September 30, 2001, compared with a loss of $2.7 million or $(0.36) per share for the comparable prior year quarter.

Lou Brown, President and CEO, stated ``Even though the bottom line is not where we want to it to be, I am pleased that the Company showed improvement from the comparable period a year ago. I believe that we are headed in the right direction and that the operating results will continue to improve in both our franchise business and our manufacturing and distribution business.'' Robert Falconi, PACI CFO, stated, ``The Company is especially happy over the results in the manufacturing and distribution division. A year ago, that division was losing a great deal of money. This year, it is off to a good start. We believe that we are beginning to see the dividends from the consolidation of our car wash plant, Hydro-Spray, and our modular building plant, Precision Building Solutions, in Mansfield, Ohio.''

Precision Auto Care, Inc. is the world's largest franchisor of auto care centers, with over 500 operating centers as of November 21, 2001. The Company franchises and operates Precision Tune Auto Care centers around the world, and offers a vertically integrated organization with manufacturing and distribution subsidiaries.

Three Months Ending September 30, 2001 000s except per share amounts 2001 2000 Revenue $5,793 $6,229 Net income (loss) $(1,888) $(2,664) Diluted earnings (loss) per share $(0.19) $(0.36) Shares outstanding - diluted 9,906 7,429