Precision Auto Care Announces FY 2006 Year End Results

LEESBURG, Va., Sept. 29 -- Precision Auto Care, Inc. (BULLETIN BOARD: PACI) announced its financial results for the fiscal year ending June 30, 2006. Revenue was $11.7 million and profit was $721,000, or $0.02 per share, compared with a profit of $4.6 million, or $0.16 per share, on revenue of $12.8 million for the prior year. For the quarter ending June 30, 2006, the Company earned a profit of $127,000, or $0.00 per share on revenue of $3.1 million, compared to a profit of $2.3 million, or $0.08 per share on revenue of $3.5 million for the comparable quarter in 2005.

The Company's President and CEO, Robert Falconi, stated, "I am very pleased with the Company's performance this past year. Operating profit was $1.2 million. This is the fourth year in a row that the Company has shown solid operating profit. The comparison with last year's profits has to take into account the fact that the Company was able to recognize $3.0 million of deferred tax credits last year while we did not have that option this year. Most important, our stores are generating more sales. Same store sales were up 2.86% in FY06 and we have reason to believe that trend will continue and that the Company will continue to operate profitably throughout FY07."

Lou Brown, Chairman of PACI, said, "The Board of Directors is very pleased with the Company's operating results and the prospects for the upcoming year. The Company's balance sheet is strong and looks better every quarter. The Board of Directors feels the Company will grow in the upcoming year and continue the positive trend that has been established."

Precision Auto Care, Inc.'s affiliate, Precision Franchising LLC, is one of the world's leading franchisors of auto care centers, with 414 operating centers as of September 22, 2006. The Company franchises Precision Tune Auto Care centers around the world.

                                          Three Months Ending June 30

  000s except per share amounts

                                            2006                2005
  Revenue                               $  3,062           $   3,537
  Net income                            $    127           $   2,339*
  Diluted income per share              $   0.00           $    0.08
  Shares outstanding - diluted            29,360              29,761

*Includes release of the valuation allowance of $2,053,720 for the three months ending June 30, 2005.

                                         Twelve Months Ending June 30

  000s except per share amounts

                                            2006                2005
  Revenue                               $ 11,719           $  12,803
  Net income                            $    721           $   4,625**
  Diluted income per share              $   0.02           $    0.16
  Shares outstanding - diluted            29,647              28,186

** Includes release of the valuation allowance of $3,018,720 for the year ending June 30, 2005.