Midas in Discussions to Sell Majority of PWI Quick-Delivery LocationS

    ITASCA, Ill.--Jan. 10, 2003--Midas, Inc. is in discussions with potential buyers to sell the majority of its network of 77 Parts Warehouse, Inc. (PWI) quick-delivery parts distribution locations. A number of PWI locations will be closed or consolidated with other distribution locations as part of this process. The company is not identifying potential buyers.
    Midas launched the PWI business in early 2000, when it acquired 27 quick-delivery sites that stocked climate control parts, primarily radiators and other heat exchange parts. From that base, Midas has added 50 locations and a wide range of aftermarket parts, such as brakes, shocks and struts, exhaust, chassis, electrical and maintenance items including belts, hoses and wiper blades.
    About a third of the sales at a typical PWI location is to Midas dealers, with the remainder going to professional installers at other aftermarket service providers. PWI does not sell parts over-the-counter.
    Midas had an initial objective to open 250 PWI sites to serve approximately 85 percent of the nearly 2,000 Midas shops in the United States and Canada. The current network of 77 PWI locations reaches only about 25 percent of the Midas shops. The typical PWI site occupies 5,000 square feet of space and stocks about 10,000 types and sizes of parts.
    "As part of our continuing review of our corporate strategies, it has been determined that further expansion of PWI does not represent an attractive long-term investment for us," said Robert R. Schoeberl, Midas' chairman. "However, the current PWI customer base makes many of these sites attractive to companies already in the quick-delivery parts business and we are in discussions with a number of these companies."
    Schoeberl said that the sale or closure of PWI locations is expected to be completed in 2003. These actions will result in charges for costs associated with employee severance, lease terminations and asset write-downs.

    Midas will announce its 2002 full-year results in February.

    Midas is one of the world's largest providers of automotive service, offering exhaust, brake, steering and suspension services, as well as batteries, climate control and maintenance services at 2,700 franchised, licensed and company-owned Midas shops in 19 countries, including nearly 2,000 in the United States and Canada.

    NOTE: This news release contains certain forward-looking statements that are based on management's beliefs as well as assumptions made by and information currently available to management. Such statements are subject to risks and uncertainties, both known and unknown, that could cause actual results, performance or achievement to vary materially from those expressed or implied in the forward-looking statements. The company may experience significant fluctuations in future results, performance or achievements due to a number of economic, competitive, governmental, technological or other factors. Additional information with respect to these and other factors, which could materially affect the company and its operations, is included in the company's filings with the Securities and Exchange Commission, including the company's 2001 annual report on Form 10-K and subsequent 10-Q filings.