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Ace Auto Parts to Purchase Distribution Center

25 August 1998

The Parts Source, Inc. d/b/a Ace Auto Parts Secures Financial Commitment and Signs Definitive Agreement to Purchase Distribution Center

    CLEARWATER, Fla., Aug. 25 -- The Parts Source, Inc. d/b/a Ace
Auto Parts announced today it has signed a definitive agreement
with A.P.S. Holdings Corporation of Houston, Texas, to purchase certain assets
of A.P.S.'s Ocala, Florida, Distribution Center. In February 1998, A.P.S.
filed a petition with the U.S. Bankruptcy Court for protection seeking
reorganization under Chapter 11 of the Bankruptcy Code. The agreement is
subject to that court's approval.
    The acquisition marks Ace Auto Part's return to the distribution business
along with distributing to the independent jobber customer. Combining A.P.S.'s
Ocala Distribution operation with the Company's store operations is expected
to bring revenues to between 55 and 60 million dollars after eliminating inner
Company sales.
    The Company further announced it has secured a commitment from its lending
institution to raise the Company's credit facility from $12 million to
$19 million for the purchase of the distribution center and working capital.
    "This has been a long time in the making," said Thomas Cox, Chief
Executive Officer of Ace Auto Parts. "This will enable the Company to improve
its acquisition cost of merchandise which should improve gross profit
margins." Cox added, "As previously announced, we have joined Auto Value
Associates to assist us in negotiating with manufacturers to buy product
direct. This is the last big piece of the puzzle, and with the Company's
management team being experienced in the distribution business, we will stand
ready to provide distribution to not only our own stores, but to the
independent jobber segment of the market."
    The Company anticipates receiving the necessary court approval and closing
on the acquisition prior to the end of September.
    Some of the information in this press release constitutes forward-looking
information based on current information and expectations of the Company that
involve a number of uncertainties. Among the factors that could materially
affect the validity of the forward-looking information are the following:
changes in current industry trends, changes in competitive factors, changes in
the economic environment in which the Company has its operations, and other
factors which would generally affect the operation of the Company.
    Ace Auto Parts is a specialty supplier and retailer of automotive
replacement parts, tools, supplies equipment and accessories to both
professional mechanics and do-it-yourself customers. The Company presently
operates 42 stores in the State of Florida.