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Grease Monkey Announces Second Quarter Results

11 August 1997

Grease Monkey Announces Second Quarter Results

    DENVER, Aug. 11 -- Grease Monkey Holding Corporation
, the largest independent quick lube organization in the United
States, today announced results for its second quarter ended June 30, 1997.
    The Company reported an increase in revenue to $5,676,192 from $5,122,749
a year ago.  Net profit for the quarter was $393,257, or $.07 per share,
versus a loss of $71,934, or $.02 per share loss in the comparable period last
year.
    For the six months ended June 30, 1997, revenue increased to $10,628,839
from $9,755,938 a year ago.  The loss in the six months was reduced to $83,688
from $193,974 a year ago.
    The profit in the second quarter was significantly impacted by a
settlement of a lawsuit in which the Company recognized past royalties of
approximately $207,000 and was reimbursed for costs related to the dispute.
In addition, over $100,000 of the improvement in profitability can be
attributed to Company owned Center operations and franchise Center openings.
    Operating income (income before gain or loss on sale/disposition of
centers, canceled undeveloped licenses, and interest income and expense)
increased to $584,783 for the quarter compared to $40,840 for the comparable
quarter a year ago.  Year to date operating income rose to $264,218 from
$89,741.
    "I am very pleased with the progress we are making in positioning Grease
Monkey for profitable growth into the future," said Charles E. Steinbrueck,
president and CEO.  "We have continued to make gains in our Company owned
Centers with an increase of operating margins to 14.5% in the quarter just
ended compared to 13.8% for the comparable period a year ago.  Our strategies
are starting to work and I appreciate all of the effort and understanding of
our valued franchisees, associates and shareholders during this period of re-
positioning."
    Grease Monkey Holding Corporation is the largest independent quick lube
organization in the United States and a premier provider of preventive
maintenance services for automobiles.  The Company has over 200 Grease Monkey
Centers operating in the United States and Mexico.  In 1996, Grease Monkey
served approximately 3 million customers nationwide.

SOURCE  Grease Monkey Holding Corporation