PHILADELPHIA, PA -- The Pep Boys announced the following results for the thirteen weeks (second quarter) and twenty-six weeks ending July 30, 2005. Second quarter sales for the thirteen weeks ending July 30, 2005 were $577,418,000, 2.7 percent less than the $593,426,000 recorded last year.

Comparable merchandise sales decreased 1.5 percent and comparable service revenue decreased 7.4 percent. In accordance with GAAP, merchandise sales includes merchandise sold through both our retail and service center lines of business and service revenue is limited to labor sales.

Recategorizing sales into the respective lines of business from which they are generated, comparable retail sales (DIY and Commercial) increased 0.1 percent and comparable Service Center revenue (labor plus installed merchandise and tires) decreased 6.4 percent. Net Earnings from continuing operations decreased from net earnings of $13,515,000 ($0.23 per share - basic, $0.22 per share - diluted) to net earnings of $832,000 ($0.01 per share - basic and diluted).

Sales for the six months ended July 30, 2005 were $1,141,644,000, 1.5 percent lower than the $1,159,559,000 recorded last year. Comparable sales decreased 1.4 percent, including a decrease in comparable merchandise sales of 0.4 percent and a decrease of 6.0 percent in comparable service revenue. Recategorizing sales, comparable retail sales increased 0.7 percent and comparable Service Center revenue decreased 4.5 percent. Net Earnings (Loss) from continuing operations decreased from net earnings of $28,597,000 ($.51 per share - basic and $.47 per share - diluted) to a net loss of$1,554,000 ($.03) per share ­ basic and diluted).

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