LEESBURG, VA -- Precision Auto Care, Inc. (PACI) announced that it intends to voluntarily deregister its common stock on or about Feb. 22. Precision Auto Care intends to suspend its reporting obligations under the Securities Exchange Act of 1934 by filing a Form 15 with the Securities and Exchange Commission (SEC). It is eligible to voluntarily deregister because it has fewer than 300 shareholders of record.

Upon the filing of the Form 15, Precision Auto Care's obligation to file certain reports with the SEC, including Forms 10-KSB, 10-QSB and 8-K, will immediately be suspended. The company expects that the deregistration of its common stock will become effective 90 days after the date of filing the Form 15 with the SEC, and anticipates that its common stock will no longer be quoted on the Over-the-Counter Bulletin Board. Following deregistration with the SEC, the company expects that its common stock will be quoted on the Pink Sheets, an electronic quotation service for over-the- counter securities.

"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," said President and CEO Robert 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."

For more information about Precision Auto Care, go to: http://www.PrecisionTune.com.