LEESBURG, VA -- Precision Auto Care, Inc. (PACI) announced its financial results for the third quarter of fiscal year ending June 30. Revenue was $3 million and profit was $110,000, or less than $0.01 per share, compared with a profit of $630,000, or $0.02 per share, on revenue of $2.8 million for the same period in the prior year. Year to date, the revenues are $8.7 million and profit is $594,000, or $.02 per share compared with revenues of $9.3 million and profit of $2.3 million or $.08 per share for the same period in the previous fiscal year.

The company's president, Robert Falconi, stated, "While I am disappointed that the top line has not increased, I am pleased with PACI's financial performance. Our balance sheet continues to get stronger every quarter. Although the results are not as impressive as the numbers from last year, there are mitigating circumstances. Last year, we did not have to recognize a tax expense as we do in the current year. Last year, the company was able to recognize $965,000 as a tax benefit due to the release of the valuation allowance through the nine months ended March 31, 2005.

Finally, last year, the company generated $500,000 by selling the rights to the Seattle market, which was a one-time event. I am confident that the company will continue to operate profitably and we will continue to look for opportunities to grow."

For more information about PACI, go to: PrecisionTune.com .

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