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Hi-Lo Automotive Announces Q2 Earnings

24 July 1997

Hi-Lo Automotive Announces Second Quarter Earnings Increase 500%

    HOUSTON, July 24 -- Hi-Lo Automotive, Inc.
today announced earnings for its second quarter ended June 30,
1997.
    Sales for the second quarter ended June 30, 1997, decreased 5.0% to
$63.8 million from $67.1 million for the second quarter of 1996.  Same store
sales decreased 3.6% from the same period of the previous year.  Net income
for the quarter was $1.1 million, compared to net income of $0.2 million in
the second quarter of 1996.  Earnings per share for the quarter was $.10,
compared to earnings per share of $.02 for the second quarter of the previous
year.
    Sales for the six months ended June 30, 1997, decreased 6.8% to
$119.3 million from $127.9 million for the same period of 1996.  Same store
sales for the six months ended June 30, 1997, decreased 5.6%.  Net income for
the six month period was $0.6 million compared to a net loss of $(0.2) million
in 1996.  Earnings per share for the six months were $.06 compared to a loss
of $(.02) in 1996.
    T. Michael Young, Chief Executive Officer, commented, "Same store sales
for the quarter were adversely impacted by unseasonably cool weather in April
and May.  Earnings improvements resulted from slightly higher product gross
margins, together with continued cost reductions."
    Hi-Lo Automotive, Inc. sells automotive aftermarket parts, products and
accessories to retail and commercial customers through its 188 stores in
Texas, Louisiana and California.

                            Hi-Lo Automotive, Inc.
                               Income Statement
                      (In thousands, except share data)
                                 (Unaudited)

                             Quarter Ended             Six Months Ended
                                June 30,                    June 30,
                             1997       1996            1997       1996
    Sales                 $ 63,761   $ 67,092        $119,266    $127,927
    Operating Income         2,823      1,715           3,208       2,486
    Income (Loss) before
      taxes on income        1,704        412             986        (120)
    Net income (Loss)     $  1,097   $    185        $    619    $   (246)
    Net income (Loss) per
      share               $    .10   $    .02        $    .06    $   (.02)
    Average shares
      outstanding       10,775,000 10,756,000      10,775,000  10,756,000

SOURCE  Hi-Lo Automotive, Inc.