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TBC Expects to Report Record Sales and Sharply Higher Operating Earnings

14 July 1999

TBC Expects to Report Record Sales and Sharply Higher Operating Earnings for Second Quarter of 1999

    LONDON--July 13, 1999--Speaking today at the Morgan Stanley Dean Witter Annual Global Tyre and European Auto Seminar, Louis S. DiPasqua, Vice Chairman and Chief Executive Officer, said that TBC Corporation expects to report record quarterly sales for the second quarter of 1999. DiPasqua also said that the Company expects to report sharply higher earnings for the quarter from a year ago, excluding a non-recurring charge related to the settlement of litigation, which was initiated in 1989.
    For the second quarter of 1998, TBC reported net income of $3.7 million, or $0.16 per share, on net sales of $161.9 million.
    DiPasqua remarked, "We believe that our second-quarter results will mark an extension of the positive momentum demonstrated by the gains in net sales and net income in the first period. We expect to set a new second-quarter record in net sales and believe that the year-to-year percentage gain in earnings will surpass the 29% increase that was attained in the first quarter. The inclusion of Carroll's, Inc. has been an important factor in our progress thus far this year, but we are also benefitting from the enhancements made to our Total Advantage 2000 marketing program. With the broadest product line in the tire aftermarket, TBC is well positioned to expand through a variety of marketing channels. Serving independent tire dealers remains a core objective, and we intend to maintain the superior rankings that TBC's brands are consistently accorded in national surveys conducted of these dealers. Our Big O Tire subsidiary is continuing to expand, and we are exploring other joint ventures that could accelerate the growth of this network of retail tire stores. We have the benefit of a sound financial position and plan to make additional repurchases of our shares depending on market conditions."
    TBC Corporation, based in Memphis, Tennessee, is one of the nation's largest marketers and distributors of private brand tires for the automotive replacement market.
    Statements in this press release or otherwise attributable to the Company regarding the Company's business which are not historical fact, including those regarding growth in its business, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Many factors could cause the Company's actual results to differ materially from those expressed in the forward-looking statements made by or on behalf of the Company including, without limitation, trends in consumer demand for replacement tires, changes in tire prices, the availability of tires from suppliers, the impact of competitive tire brands, the ability to achieve and manage growth, and other risks detailed in the Company's Annual Report on Form 10K and other filings with the SEC.