Pep Boys Declares Quarterly Dividend; Renews Share Repurchase Program

PHILADELPHIA--Sept. 7, 2006--The Pep Boys - Manny, Moe & Jack , the nation's leading automotive aftermarket retail and service chain, announced that its Board of Directors approved the payment of the next quarterly dividend of $.0675 per share payable on October 23, 2006 to shareholders of record on October 9, 2006. The annual dividend of $.27 per share currently yields approximately 2.1%.

The Board of Directors also approved the renewal of its share repurchase program, which had approximately $45,000,000 of its original $100,000,000 authorization remaining and was set to expire on September 30, 2006. The Company has not made any share repurchases during fiscal 2006. Under the renewed program, the Board reset the authority back to $100,000,000 for repurchases to be made from time to time in the open market or in privately negotiated transactions through September 30, 2007.

About Pep Boys

Pep Boys has 593 stores and over 6,000 service bays in 36 states and Puerto Rico. Along with its vehicle repair and maintenance capabilities, the company also serves the commercial auto parts delivery market and is one of the leading sellers of replacement tires in the United States. Customers can find the nearest location by calling 1-800-PEP-BOYS or by visiting pepboys.com.