Pep Boys First Quarter Earnings Up 49%; Company Reports $.26 vs. $.18 Per Share

    PHILADELPHIA--May 15, 2002--The Pep Boys - Manny, Moe & Jack , the nation's leading full service automotive aftermarket chain, announced a 49% increase in earnings for the thirteen weeks ended May 4, 2002.

    First Quarter Results

    Earnings

    Increased sales, higher merchandise margins and leveraged operating expenses enabled the Company to achieve net earnings of $13,565,000 ($.26 per share - basic and diluted), 49% higher than the $9,108,000 ($.18 per share - basic and diluted) recorded last year.

    Sales

    Sales for the quarter ended May 4, 2002, were $558,973,000, 1% more than the $551,577,000 recorded last year.
    Comparable store sales, which improved over the course of the quarter, increased 1% and included increases of 3% and 2% in retail merchandise and commercial delivery, respectively. Comparable tire sales and service labor revenue decreased 1% and 3%, respectively.

    Commentary

    Pep Boys' Chief Executive Officer, Mitchell G. Leibovitz, made the following comments:
    "Improved sales, higher merchandise margins and leveraged operating expenses enabled us to achieve our sixth consecutive significant increase in quarterly earnings."
    "Although tire sales and service labor revenue have been negatively impacted by two recalls and the recession, aggregate comparable store sales were ahead of plan for the first quarter. Sales improved over the course of the quarter and, in April, comparable store sales rose 3% and included increases of 3%, 4% and 3% in retail merchandise, commercial delivery and tires respectively, while service labor revenue was unchanged."
    "With stable merchandise margins and excellent expense control, a continued improvement in sales should be quite visible in our future results."

                     Pep Boys Financial Highlights

                                     Thirteen          Thirteen
                                   Weeks Ended       Weeks Ended
                                   May 4, 2002       May 5, 2001
                                  -------------------------------
Total Revenues                    $ 558,973,000     $ 551,577,000
Net Earnings                      $  13,565,000     $   9,108,000
Average Shares - Basic               51,445,000        51,266,000
Average Shares - Diluted             52,608,000        51,266,000
Basic Earnings Per Share          $         .26     $         .18
Diluted Earnings Per Share        $         .26     $         .18

    Pep Boys has 628 stores and over 6,500 service bays in 36 states and Puerto Rico. Along with its vehicle repair and maintenance capabilities, the company also serves the commercial auto parts delivery market and is one of the leading sellers of replacement tires in the United States. Customers can find the nearest location by calling 1-800-PEP-BOYS or by visiting pepboys.com.

    Notes: Certain statements made herein, including those discussing management's expectations for future periods, are forward-looking and involve risks and uncertainties.
    The Company's actual results may differ materially from the results discussed in the forward-looking statements due to factors beyond the control of the Company, including the strength of the national and regional economies and retail and commercial consumers' ability to spend, the health of the various sectors of the market that the Company serves, the weather in geographical regions with a high concentration of the Company's stores, competitive pricing, location and number of competitors' stores and product and labor costs.
    Further factors that might cause such a difference include, but are not limited to, the factors described in the Company's filings with the Securities and Exchange Commission.

    In accordance with the SEC's Regulation FD (fair disclosure), investors will now have an opportunity to listen to the Company's quarterly conference calls discussing its results and related matters. The calls will be broadcast live over the Internet at Broadcast Networks' Vcall web site, located at http://www.vcall.com.
    The call for the first quarter will be broadcast live on Wednesday, May 15, at 8:30 AM EST. To listen to the call live, please go to the web site at least 15 minutes early to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call.
    Supplemental financial information is available on Pep Boys web site at www.pepboys.com.

    Internet: http://www.pepboys.com