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Precision Auto Care Refinances Senior Debt

2 October 2000

Precision Auto Care Refinances Senior Debt

    LEESBURG, Va., Oct. 2 Precision Auto Care, Inc.
today announced that it refinanced its senior indebtedness with
First Union National Bank. Precision Funding, LLC, controlled and owned by
Arthur Kellar and Mauricio Zambrano, two members of Precision Auto Care, Inc.
Board of Directors, completed the financing of a loan to the company for
$11.25 million, pursuant to the commitment announced on August 4, 2000. The
bulk of the loan was used to satisfy the company's indebtedness to First Union
of approximately $7.3 million, which was to mature on October 5, 2000. The
balance will be used to finance the company's working capital needs. The
credit facility will mature on September 3, 2003.

    Precision Auto Care, Inc. is the world's largest franchisor of auto care
centers, with nearly 564 operating centers. 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.