Earl Scheib Signs Letter of Intent to Be Acquired by Elden Holding Group, LLC

SHERMAN OAKS, Calif.--May 2, 20040, 2004--The Board of Directors of Earl Scheib, Inc. (AMEX:ESH) (the "Company") approved the execution of a Letter of Intent with Elden Holding Group, LLC ("Elden"), a private real estate investment company whereby Elden will acquire all of the Company's issued and outstanding capital stock for approximately $15,000,000 (the "Purchase Price"), plus assumption of certain transaction and related costs estimated at over $2,000,000. Elden has received a preliminary financing commitment from Kimco Realty Corporation to provide acquisition financing. The Company currently has approximately 4,380,000 shares of common stock issued and outstanding.

Robert M. Smiland, Chairman of the Board of the Company, stated, "After a thorough review of the Company's current strategic alternatives with assistance from our investment bankers, Ryan Beck & Co., the Board of Directors firmly believes that this transaction and the premium being paid is in the best interests of our shareholders."

Cary Lefton, Managing Member of Elden, stated, "Our investment group is attracted to the Company's strong asset base including its terrific and well known brand name, and feels that we will be able to reposition the Company's assets and business in a way that will realize the Company's growth potential."

The transaction is subject to the execution of a definitive agreement, completion of due diligence and all requisite regulatory and shareholder approvals. In addition, the Purchase Price is subject to adjustment at the closing based on the level of working capital, as defined, and other financial factors. While not assured, the Company believes that these factors will not result in a significant reduction or increase, if any, to the Purchase Price; and currently anticipates that the transaction will close in approximately 120 days.

About Earl Scheib, Inc.

Earl Scheib, Inc., founded in 1937, is a nationwide operator of 113 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.

About Elden Holding Group, LLC

Elden Holding Group, LLC, founded in 1986, is a real estate investment company based in Sherman Oaks, CA. Elden and its affiliates own and/or manage real assets valued at approximately $180 million in California and Hawaii. Elden's diverse portfolio of assets includes shopping centers, apartment buildings and business parks.

About Kimco Realty Corporation

Kimco, a publicly-traded real estate investment trust, has specialized in shopping center acquisitions, development and management for more than 35 years, and owns and operates the nation's largest portfolio of neighborhood and community shopping centers with interests in 700 properties comprising approximately 103.0 million square feet of leasable space located throughout 41 states, Canada and Mexico.