Precision Auto Care Announces Second Quarter FY 05 Results

LEESBURG, Va., Feb. 10, 2005 -- Precision Auto Care, Inc. (BULLETIN BOARD: PACI) announced its financial results for the second quarter of fiscal year ending December 31, 2004. Revenues were $2.8 million and profits were $400,000, or $0.01 per share, compared with a profit of $266,000 or $0.01 per share, on revenues of $2.8 million for the same period in the prior year.

The Company's President, Robert Falconi, stated, "We are very pleased with PACI's operating results over the past quarter. Our operating model works. That much is clear. The challenge for the Company now that we are achieving sustainable profitability quarter to quarter is to grow, both domestically and internationally, both same store sales and the number of franchisees. To address the goal of growing the number of stores in the system, we are making progress, particularly on the international front as we begin our expansion into Mainland China and Spain and continue to grow in Portugal."

Lou Brown, Chairman and CEO of PACI, said "The Company is on the right track, and growing the Precision Tune Auto Care system will be the challenge in 2005 and beyond. To grow same store sales, we will continue to strongly emphasize our training programs for our franchisees. Both technical training and sales training are critical components to allow our franchisees to improve both their top line and their bottom line."

Precision Auto Care, Inc.'s affiliate, Precision Franchising LLC, is one of the world's leading franchisors of auto care centers, with 428 operating centers as of November 10, 2004. The Company franchises Precision Tune Auto Care centers around the world.

                                       Three Months Ending December 31,

   000s except per share amounts

                                            2004               2003

   Revenue                                $  2,785           $  2,794
   Net income                             $    400           $    266
   Diluted income per share               $   0.01           $   0.01
   Shares outstanding -- diluted            27,502             24,545

                                        Six Months Ending December 31,

   000s except per share amounts

                                            2004               2003

   Revenue                                $   6,499          $  5,972
   Net income                             $   1,656          $    557
   Diluted income per share               $    0.06          $   0.02
   Shares outstanding -- diluted             27,006            23,381