Advance Auto Parts Signs Agreement to Sell Majority Interest to Freeman Spogli & Co.

ROANOKE, VA, March 9, 1998 - Advance Auto Parts Chairman, Nicholas F. Taubman, announced today that the Taubman family has signed a definitive agreement to sell a majority interest in the Company to Freeman Spogli & Co., a private investment firm with offices in Los Angeles and New York. Completion of the transaction is expected to be in Spring, 1998.

Taubman stated that “Advance Auto Parts will continue as an independent company as it has been for the past 66 years.” He further stated that it was Freeman Spogli’s intention to maintain the same business philosophy and corporate culture that have existed in the past through the new owners.

Headquarters for Advance will continue to be in Roanoke, VA as it has been since 1932.

Garnett E. Smith, President and Chief Executive Officer, will continue in that position and Nicholas F. Taubman will continue as Chairman of the Board. Both will be directors of the continuing corporation.

Taubman further said that Freeman Spogli will continue Advance Auto Parts’ expansion as planned. In 1997, Advance had net sales in excess of $848,000,000 and opened 170 new stores. At the end of 1997, Advance has a total of 814 stores and 12,000 employees. In 1998, Advance will open new distribution centers in Thompson, GA and Knoxville, TN to support its continued growth.

Freeman Spogli is a private investment firm which has invested in a large number of retail firms in partnership with existing management.

Debt financing related to this investment as well as to support Advance’s growth strategy will be arranged by Chase Securities, Inc., Donaldson, Lufkin & Jenrette Securities Corporation and First Union Capital Markets, Inc.

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