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O'Reilly Automotive Reports Comparable Store Sales of 6.9% and Record Second Quarter Sales And Earnings

SPRINGFIELD, Mo.--July 29, 2003--O'Reilly Automotive, Inc. ("O'Reilly" or "the Company") today announced record revenues and earnings for the second quarter of 2003, representing 39 quarters of record revenues and earnings for O'Reilly since becoming a public company in April 1993.

Net income for the second quarter ended June 30, 2003, totaled $26.9 million, up 19.4% from $22.5 million for the same period in 2002. Diluted earnings per share for the second quarter of 2003 increased 19.1% to $0.50 on 54.2 million shares compared to $0.42 for the second quarter of 2002 on 53.7 million shares. Product sales for the three months ended June 30, 2003, totaled $393.1 million, up 14.6% from $343.2 million for the same period a year ago. Gross profit for the second quarter of 2003 increased to $165.7 million (or 42.2% of product sales) from $144.2 million (or 42.0% of product sales) for the second quarter of 2002, representing an increase of 14.9%.

Net income for the first six months of 2003 totaled $46.7 million, up 19.0% from $39.2 million for the same period a year ago. Diluted earnings per common share for the first six months of 2003 increased 17.8% to $0.86 on 54.0 million shares versus $0.73 a year ago on 53.7 million shares. Product sales for the first six months of 2003 totaled $732.6 million, up 14.7% from $638.7 million in the first six months of the previous year. Gross profit for the first six months of 2003 increased to $306.7 million (or 41.9% of product sales) from $270.2 million (or 42.3% of product sales) for the first six months of the prior year, representing an increase of 13.5%.

Comparable store product sales for stores open at least one year increased 6.9% and 6.6% for the second quarter and first six months of 2003, respectively.

"We continue to be very pleased with our performance this quarter, highlighted by comparable store sales of 6.9%, operating margin of 11.4% and a net margin of 6.9%," said David O'Reilly, co-chairman and chief executive officer. "We generated positive free cash flows of $20.2 million and reduced debt resulting in a debt to total capital ratio of 16.1%."

The Company will host a conference call Wednesday, July 30, 2003, at 10:00 a.m. central time to discuss its results as well as future expectations. The call will be available by webcast at www.oreillyauto.com, www.vcall.com or www.streetevents.com. Investors may listen to the conference call live on the Company web site, www.oreillyauto.com, by clicking "Investor Information," then "Conference Calls." A replay will also be available on the web site shortly after the call.

O'Reilly Automotive is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States, serving both the do-it-yourself and professional installer markets. Founded in 1957 by the O'Reilly family, the Company operated 1,041 stores within the states of Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, North Carolina, Oklahoma, Tennessee and Texas as of June 30, 2003.

The Company claims the protection of the safe-harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. These statements discuss, among other things, expected growth, store development and expansion strategy, business strategies, future revenues and future performance. These forward-looking statements are based on estimates, projections, beliefs and assumptions and are not guarantees of future events and results. Such statements are subject to risks, uncertainties and assumptions, including, but not limited to, competition, product demand, the market for auto parts, the economy in general, inflation, consumer debt levels, governmental approvals, our ability to hire and retain qualified employees, risks associated with the integration of acquired businesses, weather, terrorist activities, war and the threat of war. Actual results may materially differ from anticipated results described in these forward-looking statements. Please refer to the Risk Factors sections of the Company's Form 10-K for the year ended December 31, 2002, for more details.

              O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED BALANCE SHEETS

                                               June 30,  December 31,
                                                 2003        2002
                                               --------  ------------
                                              (Unaudited)   (Note)
                                                   (In thousands)
Assets
Current assets:
   Cash                                         $26,230     $29,333
   Accounts receivable, net                      56,344      45,421
   Amounts receivable from vendors               47,192      42,918
   Inventory                                    528,006     504,098
   Deferred income taxes                          3,681       5,040
   Other current assets                           5,020       4,235
                                              ---------   ---------
         Total current assets                   666,473     631,045

Property and equipment, at cost                 557,916     491,523
Accumulated depreciation and amortization       157,108     137,922
                                              ---------   ---------
         Net property and equipment             400,808     353,601

Notes receivable                                  1,820       1,880
Other assets                                     24,701      22,893
                                              ---------   ---------
Total assets                                 $1,093,802  $1,009,419
                                              =========   =========

Liabilities and shareholders' equity
Current liabilities:
   Income taxes payable                         $18,133      $9,798
   Accounts payable                             142,750      85,370
   Accrued payroll                               16,061      15,257
   Accrued benefits and withholdings             22,330      19,165
   Other current liabilities                     19,476      17,150
   Current portion of long-term debt                475         682
                                              ---------   ---------
          Total current liabilities             219,225     147,422

Long-term debt, less current portion            135,317     190,470
Deferred income taxes                            22,025      15,939
Other liabilities                                 7,103       5,064

Shareholders' equity:
   Common stock, $0.01 par value:
      Authorized shares -- 90,000,000
      Issued and outstanding shares --
       53,933,788 at June 30, 2003,
       and 53,371,242 at December 31, 2002          539         534
   Additional paid-in capital                   281,981     269,030
   Retained earnings                            427,612     380,960
                                              ---------   ---------
Total shareholders' equity                      710,132     650,524
                                              ---------   ---------
Total liabilities and shareholders' equity   $1,093,802  $1,009,419  
                                              =========   =========

Note: The balance sheet at December 31, 2002, has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.

              O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
              CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                              (Unaudited)

                              Three Months Ended    Six Months Ended
                                   June 30,             June 30,
                              ------------------    ----------------
                               2003       2002       2003       2002
                               ----       ----       ----       ----
                               (In thousands, except per share data)

Product sales               $393,112   $343,181   $732,587   $638,670

Cost of goods sold, including 
 warehouse and distribution 
 expenses                    227,399    198,995    425,928    368,456
                             -------    -------    -------    -------

Gross profit                 165,713    144,186    306,659    270,214
Operating, selling, general 
 and administrative expenses 120,987    106,417    228,592    203,807
                             -------    -------    -------    -------

Operating income              44,726     37,769     78,067     66,407
Other expense, net            (1,652)    (1,527)    (3,415)    (3,398)
                             -------    -------    -------    -------

Income before income taxes    43,074     36,242     74,652     63,009

Provision for income taxes    16,150     13,695     28,000     23,820
                             -------    -------    -------    -------

Net income                   $26,924    $22,547    $46,652    $39,189
                             =======    =======    =======    =======

Net income per common share    $0.50      $0.42      $0.87      $0.74
                             =======    =======    =======    =======
Net income per common share 
 -- assuming dilution          $0.50      $0.42      $0.86      $0.73
                             =======    =======    =======    =======

Weighted average common 
 shares outstanding           53,634     53,058     53,518     52,971
                             =======    =======    =======    =======
Adjusted weighted average 
 common shares outstanding 
 -- assuming dilution         54,222     53,698     53,988     53,653
                             =======    =======    =======    =======

              O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
                    SELECTED FINANCIAL INFORMATION
                              (Unaudited)

                                                   June 30,
                                             --------------------
                                             2003            2002
                                             ----            ----

Inventory turnover (1)                       1.62            1.58
Inventory turnover, net of payables (2)      2.09            1.92

AP to Inventory (3)                          27.0%           17.6%
Debt-to-capital (4)                          16.1%           22.5%
Return on equity (5)                         13.6%           13.6%
Return on assets (6)                          8.8%            8.8%

Square footage (in thousands)               7,070           6,304

Store count:
  New stores, net                              30              30
  Total stores                              1,041             929

Total employment                           15,568          14,030


                                              Three Months Ended
                                                   June 30,
                                              ------------------
                                             2003            2002
                                             ----            ----
Miscellaneous (in thousands):
  Capital Expenditures                     $35,409         $23,916
  Depreciation & Amortization              $10,211          $8,946
  Interest Expense                          $2,075          $2,113
  Lease & Rental Expense                    $7,943          $6,783

Sales per weighted-average square foot (7)  $55.24          $54.19

Sales per weighted-average store 
 (in thousands) (8)                           $375            $366


(1)  Calculated as cost of sales for the last 12 months divided by 
average inventory. Average inventory is calculated as the average of 
beginning and ending inventory for the same period used in determining
the numerator.
(2)  Calculated as cost of sales divided by average inventory less 
accounts payable. Average inventory is calculated as the average of 
beginning and ending inventory for the same period used in determining
the numerator.
(3)  Accounts payable divided by inventory.
(4)  The sum of long-term debt and current portion of long-term debt, 
divided by the sum of long-term debt, current portion of long-term 
debt and total shareholder's equity.
(5)  Last 12 months net income divided by average shareholders' 
equity. Average shareholders' equity is calculated by taking a simple 
average of the beginning and ending shareholders' equity for the same 
period used in determining the numerator.
(6)  Last 12 months net income divided by average total assets. 
Average total assets is calculated by taking a simple average of the 
beginning and ending total assets for the same period used in 
determining the numerator.
(7)  Total sales less jobber sales, divided by weighted average square
feet. Weighted-average sales per square foot is weighted to consider 
the approximate dates of store openings or expansions.
(8)  Total sales less jobber sales, divided by weighted-average 
stores. Weighted-average sales per store is weighted to consider the 
approximate dates of store openings or expansions.

              O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
        RECONCILIATION OF FREE CASH FLOW TO OPERATING CASH FLOW
                              (Unaudited)

                              Three Months Ended    Six Months Ended
                                   June 30,             June 30,
                              ------------------    ----------------
                               2003       2002       2003       2002
                               ----       ----       ----       ----
                                           (In thousands)

Net cash provided by operating 
 activities                  $55,611    $32,858   $112,955    $60,820

Capital expenditures          35,409     23,916     67,599     45,344
                             -------    -------    -------    -------

Free cash flow               $20,202     $8,942    $45,356    $15,476
                             =======    =======    =======    =======