PRECISION AUTO CARE 
By LEESBURG, Va.,
Upon the filing of the Form 15, Precision Auto Care, Inc.'s obligation to file certain reports with the SEC, including Forms 10-KSB, 10-QSB, and 8-K, will immediately be suspended. Precision Auto Care, Inc. expects that the deregistration of its common stock will become effective 90 days after the date of filing the Form 15 with the SEC. The Company anticipates that its common stock will no longer be quoted on the Over-the-Counter Bulletin Board, and expects that, following deregistration with the SEC, its common stock will be quoted on the Pink Sheets(R), an electronic quotation service for over-the- counter securities. The Pink Sheets is a provider of pricing and financial information for the over-the-counter securities markets. It is a centralized quotation service that collects and publishes market maker quotes in real time primarily through its website, www.pinksheets.com. The Company intends to provide to the public information for market makers to be able to quote the Company's common stock on the Pink Sheets, but the Company can give no assurances that any broker will make a market in the Company's common stock.
"The Company's Board of Directors decided to take this action because it believes that the burdens associated with operating as a registered public company currently outweigh any advantage to PACI and it stockholders. Among the factors that the Board considered were the costs of preparing and filing periodic reports with the SEC; the elimination of the substantial legal, audit and other costs associated with being a reporting company including the substantial increase in costs associated with the requirements of the Sarbanes-Oxley Act of 2002 and the related SEC rules; the limited nature and extent of current trade in the Company's common stock; and the lack of analysis' coverage and minimal liquidity for the Company's common stock," stated the Company's President & CEO, Robert R. Falconi. "Many small public companies are choosing to deregister because of these same concerns. We believe that freeing up these resources will create value for our shareholders by allowing us to better execute our business plan, and improve our long term financial strength."
Precision Auto Care, Inc.'s affiliate, Precision Franchising LLC, is one
of the world's leading franchisors of auto care centers, with 392 operating
centers as of
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 are in the Company's filings with the Securities and Exchange
Commission and in its Annual Report on Form 10-KSB for the year ended
SOURCE Precision Auto Care, Inc.
