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Precision Transfers to Nasdaq SmallCap Market

16 August 1999

Precision Transfers to Nasdaq SmallCap Market

    LEESBURG, Va., Aug. 13 -- Precision Auto Care, Inc.
today announced that the Nasdaq Listing Qualification Panel has
determined that the Company's securities be transferred to the Nasdaq SmallCap
Market effective August 16, 1999.  The Company had previously petitioned for
transfer through an oral hearing and transfer application on May 13, 1999.
The Company's continued listing on the Nasdaq SmallCap Market is contingent
upon the completion of an application and review process by the panel.
    The Company believes it meets the criteria for listing on the Nasdaq
SmallCap.
    Precision Auto Care, Inc. is the world's largest franchisor of auto care
centers, with 652 operating centers as of August 11, 1999.  The Company
franchises and operates Precision Tune Auto Care, Precision Auto Wash, and
Precision Lube Express centers around the world, and offers a vertically
integrated organization with manufacturing and distribution subsidiaries.
    Cautionary Statement:  The statements in this press release constitute
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
These statements are subject to risks and uncertainties that could cause
Precision Auto Care Inc.'s actual results, performance or achievements to
differ materially from any future results, performance or achievements
expressed or implied by such forward-looking statements.  Such risks and
uncertainties include, but are not limited to, (i) the risks and uncertainties
reflected and set forth in the text of this press release, (ii) the fact that
Precision Auto Care Inc. and the companies it acquired on and subsequent to
the date of its initial public offering have only recently conducted
operations as a combined company, (iii) the seasonal nature of portions of the
business, (iv) the highly competitive markets in which Precision Auto Care
Inc. operations, (v) difficulties in integrating all of the businesses
Precision Auto Care Inc. has acquired, (vi) risks associated with Precision
Auto Care Inc.'s ability to continue its strategy of growth through
acquisitions and (vii) risks associated with Company's ability to make or
effect acquisitions in the future and to successfully integrate newly-acquired
businesses into existing operations and the risks associated with such newly-
acquired businesses.  For a discussion of such risks and uncertainties which
could cause actual results, performance or achievements to differ from those
contained in the forward-looking statements, se "Risk Factors" in the
Company's Annual Report on Form 10-K for the most recently ended fiscal year.