Precision Auto Care Announces FY 2007 Year End Results

LEESBURG, Va., Sept. 27 -- Precision Auto Care, Inc. (BULLETIN BOARD: PACI) announced its financial results for the fiscal year ending June 30, 2007. Revenue was $12.1 million and profit was $3.4 million, or $0.12 per share, compared with a profit of $721,000, or $0.02 per share, on revenue of $11.7 million for the prior year. For the quarter ending June 30, 2007, the Company earned a profit of $3.2 million, or $0.11 per share on revenue of $3.2 million, compared to a profit of $127,000, or $0.00 per share on revenue of $3.1 million for the comparable quarter in 2006.

The Company's President and CEO, Robert Falconi, stated, "I am pleased with the Company's performance this past year. This is the fifth year in a row that the Company has shown solid operating profit and our balance sheet continues to get stronger. While the comparison with last year's profits has to take into account the fact that the Company was able to recognize $2.9 million of deferred tax credits this year while we did not have that option last year, the bottom line is that same store sales were up by 2.26% and we have reason to believe that trend will continue and that the Company will continue to operate profitably throughout FY08. In addition, the Company now owns and operates two Precision Tune Auto Care centers and we intend to look for more stores to own and operate in FY08. This will offer another avenue to increase top line growth more rapidly along with bottom line growth as long as we can manage those stores profitably."

Lou Brown, Chairman of PACI, said "The Board of Directors continues to be pleased with the Company's operating results and the prospects for FY 2008. The Company's financial position is strong and looks better every quarter. The Board of Directors feels the Company will grow in the upcoming year."

Precision Auto Care, Inc.'s affiliate, Precision Franchising LLC, is one of the world's leading franchisors of auto care centers, with 393 operating centers as of September 21, 2007. The Company franchises Precision Tune Auto Care centers around the world.

                                               Three Months Ending June 30
  000s except per share amounts
                                                    2007           2006
  Revenue                                          $3,176         $3,062
  Net income                                       $3,173*          $127
  Diluted income per share                          $0.11          $0.00
  Shares outstanding - diluted                     29,060         29,360

*Includes release of the valuation allowance of approximately $2.9 million for the three months ending June 30, 2007.

                                              Twelve Months Ending June 30
  000s except per share amounts
                                                     2007           2006
  Revenue                                          $12,072        $11,719
  Net income                                        $3,407**         $721
  Diluted income per share                           $0.12          $0.02
  Shares outstanding - diluted                      29,118         29,647

** Includes release of the valuation allowance of approximately $2.9 million for the year ending June 30, 2007.