Pep Boys Reaffirms Position on Military Leave

    PHILADELPHIA--March 18, 2003--The Pep Boys - Manny, Moe & Jack , the nation's leading full-service automotive aftermarket chain today reaffirmed that its military leave policy has been and continues to be in full compliance with and in some areas exceeds state and federal law.
    The policy is consistent with the guidelines of the Employer Support of the Guard and Reserve, a volunteer organization serving reserve and guard members.
    At the present time, more than 30 Pep Boys associates have been called to active duty. Pep Boys would never terminate an employee for military service in support of our nation and is very proud, not only of those Pep Boys associates currently serving our country, but of every U.S. service man and woman who has ever served.
    Unfortunately, recent press reports have drawn attention to a former Pep Boys employee who has filed a lawsuit alleging termination due to military obligations.
    While it is not the Company's practice to comment on ongoing litigation and personnel matters, this employee's termination, on June 27, 2002, was unrelated to his military reserve status and solely related to other factors dating back to the summer of 2001.

    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 vibrancy 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.