Precision Auto Care Announces Year End Results Turnaround - congrats

LEESBURG, Va., Oct. 1, 2003 -- Precision Auto Care, Inc. (BULLETIN BOARD: PACI) announced its financial results for the fiscal year ending June 30, 2003. Revenues were $11.9 million and profits were $10.9 million, or $0.72 per share, compared with a loss of $7.7 million, or $0.69 per share, on revenues of $13.5 million for the prior year. For the quarter ending June 30, 2003, the Company earned a profit of $2.0 million, or $0.11 per share on revenues of $3.1 million, compared to a loss of $128,000 or $0.01 per share on revenues of $3.1 million for the comparable quarter in 2002.

The Company's CEO, Louis M. Brown, Jr., stated, "It has been a terrific year for the company. Although the bottom line was driven by the refinancing which accounted for $10.4 million of the total profits, we are extremely pleased that we are making operating profits. We believe that we have turned the corner at Precision."

Robert Falconi, the company CFO stated, "PACI's balance sheet is significantly stronger than it was at the same time a year ago and the company has been showing operating profits for the past three quarters. We feel the company will be able to grow in the upcoming year and management is determined to make that happen."

Precision Auto Care, Inc.'s affiliate, Precision Franchising LLC, is one of the world's largest franchisor of auto care centers, with 428 operating centers as of June 30, 2003. The Company franchises and operates Precision Tune Auto Care centers around the world.

                                                Three Months Ending June 30
  000s except per share amounts
                                                     2003           2002

  Revenue                                          $ 3,098        $ 3,146
  Net income (loss)                                $ 2,021*       $  (128)
  Diluted income (loss) per share                  $  0.11        $ (0.01)
  Shares outstanding - diluted                      17,711         13,033

  *   Includes gain on debt restructuring of $659,893.

                                                Twelve Months Ending June 30
  000s except per share amounts
                                                     2003           2002

  Revenue                                          $11,937        $13,471
  Net (loss)                                       $10,932**      $(7,699)
  Diluted (loss) per share                         $  0.72        $ (0.69)
  Shares outstanding - diluted                      15,188         11,116

  **  Includes gain on debt restructuring of $10,405,993.