Precision Auto Care Announces 2nd Quarter Results

LEESBURG, Va., Feb. 17, 2004 -- Precision Auto Care, Inc. (BULLETIN BOARD: PACI) today announced a profit of approximately $266,000 or $0.01 per share for the fiscal quarter ending December 31, 2003, compared with a profit of $6.6 million or $0.44 per share for the comparable prior year quarter. Lou Brown, Chairman and CEO, stated "We are very happy with the fact that we continue to show positive operating results. The prospects for continued profitability look very good." Robert Falconi, President and COO, stated, "For the sixth consecutive quarter, we have generated positive EBITDA. Given the addition of some new Area Developers and other initiatives that we are taking to grow the number of centers and same store sales, I am hopeful that we will begin to see revenue increases in the months and years ahead of us. As we grow, we should be able to keep a tight lid on costs and raise our profit margin."

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

Cautionary Statement: The statements in this press release contain forward-looking statements within the meaning of the Securities Act of 1933 or the Securities Exchange Act of 1934. These statements are based on the Company's current expectations, estimates and projections. Statements that are not historical facts are forward-looking statements and typically are identified by words like "believe," "anticipate," "could," "estimate," "expect," "intend," "plan," "project," "will" and similar terms. These statements are not guarantees of future performance, events or results and involve potential risks and uncertainties. Accordingly, actual results may differ from current expectations, estimates and projections. The Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Important factors that may impact the Company's actual results include: (i) business conditions and the general economy; (ii) the federal, state and local regulatory environment; (iii) increased competitive pressure in the automotive after-market services business; (iv) significant automotive technology advances; (v) management's ability to execute the Company's business plan; and (vi) the Company's ability to sell franchises in each state. Additional information concerning risks and uncertainties that could cause actual results to differ materially from those projected or suggested in the forward-looking statements in the Company's filings with the Securities and Exchange Commission and in its Annual Report on Form 10-KSB for the year ended June 30, 2003. The forward-looking statements contained in this prospectus represent the Company's judgment as of the date of this prospectus, and you should not unduly rely on these statements.

                                  Three Months Ending December 31,

  000s except per share amounts

                                        2003        2002
  Revenue                              $2,794      $2,667
  Net income                             $266      $6,621
  Diluted earnings per share            $0.01       $0.44
  Shares outstanding - diluted         24,545      15,014

                                   Six Months Ending December 31,

  000s except per share amounts

                                        2003        2002
  Revenue                              $5,972      $6,076
  Net income                             $557      $6,188
  Diluted earnings per share            $0.02       $0.44
  Shares outstanding - diluted         23,381      14,176