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Big O announces success of Cost-U-Less program.

ENGLEWOOD, Colo.--(AutomotiveWire)--Feb. 10, 1995--Big O Tires Inc. (NASDAQ/NMS:BIGO) Friday reported that revenues for the company continue to see significant strength based on the success of the Cost-U-Less marketing program that was introduced by the company in the third quarter, 1994.

Steven P. Cloward, president and chief executive officer, stated: "Despite the distractions presented by the shareholder proposal, the success of the Cost-U-Less program has been at the forefront of the company's continued financial success. Revenues for the last six months are up approximately $6.1 million, compared to the same period in 1993, resulting in an increase of approximately $4.7 million for the year. This revenue increase is a direct result of the support this new marketing program received from the franchised dealers of the company. Industry analysts have indicated that sales during the fourth quarter, 1994, for the replacement market were up approximately 3-4%; however, as a result of the Cost-U-Less program and new store growth, sale of units within Big O were up 21.3% in the fourth quarter, and sales of our own Big O brand were up 32.7%.

"Combining this revenue increase with our continued efforts to reduce overhead costs, the company anticipates reporting strong financial performance in the fourth quarter, 1994. Our auditors are just starting the year end work, but we anticipate reporting fourth-quarter earnings that will be one of the best ever achieved by the company. Our year-end earnings announcement is currently scheduled for March 7, 1995.

"Management and dealers of the company remain committed to the success of the entire franchised system. We believe that the Cost-U-Less marketing program is a stepping stone for continued growth of our franchise system."

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 private 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 R. Hayne, 303/790-2800
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Publication:Business Wire
Date:Feb 10, 1995
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