Pep Boys Announces Share Repurchase Program; Declares Quarterly Dividend.

PHILADELPHIA -- The Pep Boys - Manny, Moe & Jack (NYSE:PBY), the nation's leading full-service automotive aftermarket chain, announced that at a Board meeting held today, its Board of Directors authorized a share repurchase program for the purchase of up to $100,000,000 of its outstanding common stock. Share repurchases may be made from time-to-time in the open market or in privately negotiated transactions.

This new program replaces the one previously authorized by the Board of Directors in March 2003 under which no shares were repurchased.

"We remain excited about the opportunities we have to grow the Company and are committed to reinvesting in the business, primarily through our store remodel program and future store expansion. In the future, should this inherent value not be reflected in our stock price, we now have the flexibility to buy back shares," commented Chief Financial Officer Harry Yanowitz.

"As we discussed on our last earnings call, we expect sales and earnings to fluctuate during the next few quarters. Further, we do not expect our service offering initiatives to begin to build momentum from our second quarter's results until next year," said Chief Executive Officer Larry Stevenson. "Nonetheless, I remain confident in our ability to realize the Company's potential over the next few years."

Pep Boys also announced that its Board of Directors approved the payment of the next quarterly dividend of $.0675 per share on October 25, 2004, to holders of record on October 11, 2004. The annual dividend of $.27 per share currently yields 1.72%.

In addition, at today's meeting, the Board's newest Director, M. Shan Atkins CPA, was named to the Audit Committee. Ms. Atkins, former EVP-Strategic Initiatives for Sears, is currently Managing Director of Chetrum Capital LLC, a private investment firm, and a Director and member of the Audit Committee of Spartan Stores, Inc. (NASDAQ:SPTN).

Pep Boys has 595 stores and more than 6,000 service bays in 36 states and Puerto Rico. Along with its vehicle repair and maintenance capabilities, the Company also serves the commercial auto parts delivery market and is one of the leading sellers of replacement tires in the United States. Customers can find the nearest location by calling 1-800 - PEP-BOYS or by visiting pepboys.com.

Certain statements contained herein constitute "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. The word "guidance," "expect," "anticipate," "estimates," "forecasts" and similar expressions are intended to identify such forward-looking statements. Forward-looking statements include management's expectations regarding future financial performance, automotive aftermarket trends, levels of competition, business development activities, future capital expenditures, financing sources and availability and the effects of regulation and litigation. Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved. The Company's actual results may differ materially from the results discussed in the forward-looking statements due to factors beyond the control of the Company, including the strength of the national and regional economies, retail and commercial consumers' ability to spend, the health of the various sectors of the automotive aftermarket, the weather in geographical regions with a high concentration of the Company's stores, competitive pricing, the location and number of competitors' stores, product and labor costs and the additional factors described in the Company's filings with the SEC. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.