Big O Tires reports lawsuit to stop proposed purchase by Dealer-Management Group.

ENGLEWOOD, Colo.--(BUSINESS WIRE)--Dec. 21, 1994--Big O Tires Inc. (NASDAQ/NMS:BIGO) announced that a lawsuit was commenced against Big O Tires, Inc. ("Big O") and its nine directors in District Court, Clark County, Nevada, asking the Court to certify all Big O shareholders as a class and to enjoin the Dealer-Management group's offer to purchase Big O.

The lawsuit seeks to enjoin the implementation of the recently adopted shareholder rights plan, obtain unspecified damages, require the disclosure of Big O's internal forecasts and award Plaintiff's their attorneys' fees and costs, including experts' fees.

The lawsuit also requests that the Court order the Directors to carry out their fiduciary duties to the Plaintiffs and the other members of the class by announcing their intention to cooperate and do all that is necessary to encourage the buy-out or takeover of Big O by enhancing Big O's attractiveness as a merger/acquisition candidate, effectively exposing Big O to the marketplace in an effort to create an active auction of Big O, act independently and resolve all conflicts of interest in the best interests of the class.

If the contemplated transaction with the Dealer-Management group is consummated, the Court is asked to rescind the transaction and, among other actions, award rescissionary damages.

Chairman of the Board of Big O, John E. Siipola, stated that "after consulting with our attorneys, we believe that we will prevail in this litigation. Our investment bankers have investigated and reviewed many contacts over the several months since the shareholder proposal directed the Board to review all alternatives for enhancing Big O's value. We believe that this represents the best transaction that we have evaluated."

Mr. Kenneth W. Pavia, Sr., general partner of the Balboa Investment Group, L.P. (Balboa), one of Big O's largest shareholders, and proponent of the shareholder proposal, states that "the proposed management-dealer buy out is clearly in the shareholders best interest."

Big O Tires, Inc. is one of the largest independent retail tire and auto service franchisors in North America, with 370 stores in 18 states primarily in the West and Midwest. The Company also distributes tires and other automotive products to 41 Associated Dealers in British Columbia, Canada. It is the sole distributor of its Big O brand tires and a major distributor of other brands such as Michelin, B.F. Goodrich and Uniroyal, as well as aftermarket suspension parts manufactured by Monroe Auto Equipment. Big O Tires' common stock is traded on the NASDAQ National Market System under the symbol BIGO.

CONTACT: Big O Tires Inc., Englewood

             Beth Hayne, Philip J. Teigen, 303/790-2800
               Fax, 303/790-0225