Earl Scheib Repurchases 301,500 Shares of Common Stock

27 August 1998

Earl Scheib Repurchases 301,500 Shares of Common Stock

    BEVERLY HILLS, Calif.--Aug. 26, 1998--Earl Scheib Inc. (AMEX:ESH) Wednesday announced that it has recently repurchased 301,500 shares, or 6.5 percent, of Earl Scheib's common stock outstanding as of April 30, 1998.
    The shares were repurchased for approximately $1,914,000, or an average price of $6.35.
    Commenting on the stock repurchases, Dan Seigel, president and chief executive officer, said: "Earl Scheib's share price, relative to the company's present financial condition and results, makes the stock purchase an attractive opportunity and one that should help us achieve our goal of improving both near-term and long-term shareholder value, while leaving the company essentially debt-free, and should not limit our ability to continue growing.
    "A significant portion of the repurchases (250,000 shares) were acquired from the estate of Earl Scheib, the proceeds of which were primarily used by the estate to pay taxes that were due to the IRS."
    The recent share purchases were under a stock-purchase program authorizing the company to buy back up to 500,000 shares of its common stock.
    Reflecting the recent stock repurchase, Earl Scheib currently has approximately 4,357,500 common shares outstanding.
    Earl Scheib operates more than 160 automotive paint and body shops in 31 states.

    "Safe-harbor" statement under the Private Securities Litigation Reform Act of 1995: The statements that are not historical facts contained in this news release are forward-looking statements that involve risks and uncertainties, including but not limited to the effect of weather, the effect of economic conditions, the impact of competitive products, services and pricing, capacity and supply constraints or difficulties, changes in laws and regulations applicable to the company, the impact of Year 2000 hardships, the impact of the company's new EuroPaint, the impact of advertising and promotional activities, the impact of the company's expansion and fleet sales, and the potential adverse effects of certain litigation.