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Precision Auto Care Acquires Mexican Master Licensee and Greenwood Manufacturing

31 March 1998

Precision Auto Care Acquires Mexican Master Licensee and Greenwood Manufacturing

    LEESBURG, Va., March 31 -- Precision Auto Care, Inc. (PACI),
an international provider of automotive maintenance services and the nation's
largest franchisor of automotive car care centers, announced today that it
acquired Promotora de Franquicias Praxis, S.A. de C.V. (PRAXIS), its Mexican
master licensee.
    In addition to license rights to Mexico, Precision Auto Care, Inc. also
became the owner of the license rights to Puerto Rico, five operating
Precision Tune Auto Care centers owned by PRAXIS, and the Mexican auto parts
distribution operation.  In return, PRAXIS received 619,265 shares of PACI
common stock and Precision Auto Care, Inc. assumed $3.4 million in debt.
Including the five company operated centers, PRAXIS has 59 operational centers
and 53 centers under development.
    "We have added a proven management team and the infrastructure required to
directly develop the Latin American market place, which will enable us to
increase our ongoing revenues and earnings from franchising operations in this
strategic area of the world." said Jay Ripley, President and CEO of Precision
Auto Care, Inc.  "We anticipate that this transaction could add approximately
$7.5 million and $1.6 million in fiscal year 1999 revenue and earnings before
income taxes, depreciation and amortization ("EBITDA"), respectively,
exclusive of the longer term gains to be achieved by going directly into other
Latin American countries."
    In a separate transaction, Precision Auto Care, Inc. also acquired
Greenwood Manufacturing which was established in 1995 and specializes in sheet
metal fabrication including products used in the production of HydroSpray, the
self-service and touchless automatic car wash equipment technology used in
Precision Auto Wash outlets.  Greenwood Manufacturing was purchased for
$475,000 cash and is expected to add approximately $400,000 and $150,000 to
annual Company revenues and EBITDA, respectively.
    "Greenwood Manufacturing produces vital components needed in our car wash
equipment manufacturing cycle," said Ripley.  "This acquisition will enable us
to have control of the manufacturing and distribution of the products while
lowering overhead and capitalizing on product sales to outside entities."
    Precision Tune Auto Care recently merged two new franchise concepts,
Precision Lube Express and Precision Auto Wash, to become Precision Auto Care,
Inc., a public company recently listed on the Nasdaq national market:  PACI.
Precision Tune Auto Care has 466 franchised automotive centers operating in
the United States and 116 centers operating in Taiwan, Canada, Mexico, Puerto
Rico, Brazil, Curacao and the Bahamas.  New centers are scheduled to open soon
in Oman, Jamaica, Indonesia and Singapore.  Precision Auto Wash has 36
Company-owned operational facilities in Ohio, Colorado and Iowa, and Precision
Lube Express has 23 operational centers throughout the Midwest.
    This press release contains certain forward-looking statements which
involve known and unknown risks, uncertainties or other factors not under the
Company's control which may cause actual results, performance or achievements
of the Company to be materially different from the result, performance, or
other expectations implied by these forward-looking statements.  For further
information about the Company, investors are encouraged to review the
Company's most recent SEC filings.

SOURCE  Precision Auto Care, Inc.