Getty Petroleum Marketing and Precision Auto Care Announce Alliance
24 April 2000
Getty Petroleum Marketing Inc. and Precision Auto Care, Inc. Announce A Strategic AllianceLEESBURG, Va., April 24 Getty Petroleum Marketing Inc. (NYSE: GPM) and Precision Auto Care, Inc. (Nasdaq: PACI) today announced the formation of a strategic alliance to test Precision Auto Care's franchise systems at Getty service stations in New England. There are 18 potential sites in Massachusetts, New Hampshire, Rhode Island and Maine designated for the initial test. Under the Agreement, certain Getty dealers will be offered a Precision Auto Care franchise. Precision Auto Care presently markets three distinct car care service offerings: Precision Tune Auto Care(R), Precision Lube Express(R) and Precision Auto Wash centers(R). Vincent J. DeLaurentis, President and Chief Operating Officer of Getty Petroleum Marketing Inc., said that "this alliance creates an enormous opportunity for our service station dealer network with service bays to gain the state-of-the-art marketing and training expertise from the Precision Auto Care experts." Charles L. Dunlap, Chief Executive Officer and President of Precision Auto Care, Inc., indicated that "the landscape of the auto service world requires more specialization and sophistication. Our multiple franchise system brings this to the marketplace. By joining with Getty, we will be able to build off of a proven brand. Both of us will benefit from the other's expertise." Getty Petroleum Marketing Inc., one of the nation's largest independent marketers of gasoline and petroleum products, supplies approximately 1,300 branded locations in thirteen Northeastern and Middle-Atlantic states. The Company is also a marketer of heating oil in the New York Mid-Hudson Valley and is a wholesale distributor of a variety of petroleum products through its east coast petroleum storage and distribution network. Precision Auto Care, Inc., is the world's largest franchisor of auto care centers, with 596 operating centers as of April 24, 2000. 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. For example, there can be no assurance that the Company will be able to modify the terms of its outstanding debt, obtain additional capital, or complete any divestiture, partnership or other restructuring transactions in a timely fashion or on terms and conditions that are acceptable to the Company. Other 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. operates, (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 other risks and uncertainties which could cause actual results, performance or achievements to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's most recently filed Annual Report on Form 10-K.