Earl Scheib Elects Robert Smiland as Independent Chairman of the Board and Adopts an Independent Nominating Process

SHERMAN OAKS, Calif.--Jan. 2, 20042, 2004--Earl Scheib, Inc. (AMEX:ESH) announced that its Board of Directors elected Robert M. Smiland as independent Chairman of the Board of Directors at a meeting of the Board of Directors held January 21, 2004. Mr. Smiland replaces interim Chairman Mr. Christian K. Bement, who continues as the Company's Chief Executive Officer.

Mr. Smiland has been a member of the Board of Directors since December 2001. Mr. Smiland is Chief Executive Officer of Smiland Paint Company and a partner in Smiland Land Company. Mr. Smiland also serves in various fiduciary capacities in a number of civic and community organizations, including as a Trustee of the University of California Foundation at Berkeley.

The Board also reconfigured its director-nominating process to establish that nominations will be reviewed and approved by the 3 current independent directors.

Earl Scheib, Inc., founded in 1937, is a nationwide operator of 115 auto paint and body shops located in approximately 100 cities throughout the United States. In addition, through a wholly-owned subsidiary, Earl Scheib, Inc. manufactures paint coating systems that are used not only by its paint and body shops, but are also sold to original equipment manufacturers. For more information, visit Earl Scheib on the web at www.earlscheib.com.