Monro To Acquire Automotive Repair Stores From Kimmel Automotive

    ROCHESTER, N.Y.--March 18, 2002--Monro Muffler Brake, Inc. announced today that it has signed a preliminary agreement with Kimmel Automotive, Inc. of Baltimore, Maryland to acquire 34 company-operated tire and automotive repair stores in Maryland and Virginia, their Wholesale Division and Truck Tire Division.
    Sales for the businesses to be acquired for the fiscal year ended December 31, 2001 were approximately $29.5 million, including $22.6 million from the 34 stores. The all-cash transaction will be for the purchase of all of the common stock of Kimmel Automotive, Inc. and is subject to customary terms and conditions. The majority of Kimmel's non-voting preferred stock will be retained by its current holders. The Company expects to sign a definitive agreement within the next two weeks and close the transaction in April.
    "We are delighted with the opportunity to substantially enhance our competitive position in the attractive mid-Atlantic market," said Robert G. Gross, Chief Executive Officer of Monro Muffler Brake. "The purchase of these stores will grow our store base to approximately 550 locations and increase sales by over 10% to approximately $250 million. Our expectation is that this acquisition will be accretive to earnings in our fiscal year 2003, which begins on March 31, 2002, and increasingly accretive in subsequent years. Upon the closing of the transaction, we intend to provide full year fiscal 2003 financial projections for the combined company.
    "Kimmel is an established chain, made up of talented employees, with an excellent reputation for providing customer-oriented service for over 60 years. They are doing a great job in their markets. The similarities in fundamental strategy, management infrastructure, geographic coverage and store size, are expected to enable Monro to achieve near-term synergies and economies with the new locations. Additionally, combining Kimmel's volume of tire purchases with Monro's is anticipated to improve tire margins chain wide.
    "We expect the new stores will create long-term opportunities to expand margins and overall operating performance as Monro diversifies and enhances the product and service offerings at the acquired locations, while continuing to grow their strong tire business."
    The Company noted that while the 15 Kimmel stores in Baltimore and 19 Tread Quarters stores in Virginia are in the same general markets in which Monro competes, Monro and Kimmel locations are mainly situated in non-overlapping areas. There are no plans to close any of the Kimmel stores, which will continue to operate under the current brand names. The Company intends to retain all Kimmel store employees.

    Monro Muffler Brake operates a chain of stores providing automotive undercar repair services in the United States. The Company currently operates 514 stores and has 19 dealer locations in New York, Pennsylvania, Ohio, Connecticut, Massachusetts, West Virginia, Virginia, Maryland, Vermont, New Hampshire, New Jersey, North Carolina, South Carolina, Indiana, Rhode Island, Delaware and Michigan. Monro's stores provide a full range of services for exhaust systems, brake systems, steering and suspension systems and many vehicle maintenance services.

    Certain statements made above may be forward-looking and are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve uncertainties which may cause the Company's actual results in future periods to differ materially from those expressed. These uncertainties include, but are not necessarily limited to, uncertainties affecting retail generally (such as consumer confidence and demand for auto repair); risks relating to leverage and debt service (including sensitivity to fluctuations in interest rates); dependence on, and competition within, the primary markets in which the Company's stores are located; the need for, and costs associated with, store renovations and other capital expenditures; risks relating to integration of the acquired business; and the risks described from time to time in the Company's SEC reports which include the report on Form 10K for the fiscal year ended March 31, 2001.