Monday, September 12, 2005

TBC Corporation Comments on Impact of Hurricane Katrina

TBCCorporation (Nasdaq: TBCC), one of the nation's leading marketers ofautomotive replacement tires, today commented on the impact of HurricaneKatrina based on information that is currently available. Within the 613 Company-operated stores at the end of the second quarter,TBC has 20 stores in the Louisiana and Mississippi markets that were in thepath of Hurricane Katrina. Of those 20 stores, seven have re-opened. TheCompany estimates that over half of the stores in the area have sustainedsignificant damage. Once a visual inspection of these locations has beencompleted, the Company will be able to assess the impact. None of theCompany's 562 franchised Big O locations are in the region affected by thehurricane. The Company does not currently expect any material impact to the thirdquarter. However, once the impact to all of the stores has been assessed, theCompany will be able to determine the magnitude of any damage related to fixedassets, inventory and lost sales. Larry Day, TBC President and Chief Executive Officer, commented, "Ourimmediate concern is for the welfare of our employees and their families whohave been affected by this devastating storm. The near-term impact to theCompany's operations has been minimal, and we will provide a further updatewhen we report our third quarter results in October." About TBC: TBC Corporation is one of the nation's largest marketers of automotivereplacement tires through a multi-channel strategy. The Company's retailoperations include company-operated retail centers under the "Tire Kingdom","Merchant's Tire & Auto Centers" and "National Tire & Battery" brands andfranchised retail tire stores under the "Big O Tires" brand. TBC markets on awholesale basis to regional tire chains and distributors serving independenttire dealers throughout the United States and in Canada and Mexico. TheCompany's proprietary brands of tires have a longstanding reputation forquality, safety and value. TBC Corporation Safe Harbor Statement This document contains "forward-looking statements," as that term isdefined under the Private Securities Litigation Reform Act of 1995, regardingexpectations for future financial performance, which involve uncertainty andrisk. It is possible that the Company's future financial performance maydiffer from expectations due to a variety of factors including, but notlimited to: changes in economic and business conditions in the world;increased competitive activity; consolidation within and among competitors,suppliers and customers; unexpected changes in the replacement tire market;the Company's inability to attract as many new franchisees or open as manydistribution outlets as stated in its goals; changes in the Company's abilityto identify and acquire additional companies in the replacement tire industryand successfully integrate acquisitions and achieve anticipated synergies orsavings; fluctuations in tire prices charged by manufacturers, includingfluctuations due to changes in raw material and energy prices, changes ininterest and foreign exchange rates; the cyclical nature of the automotiveindustry and the loss of a major customer or program. It is not possible toforesee or identify all such factors. Any forward-looking statements in thisrelease are based on certain assumptions and analyses made by the Company inlight of its experience and perception of historical trends, currentconditions, expected future developments and other factors it believes areappropriate in the circumstances. Prospective investors are cautioned that anysuch statements are not a guarantee of future performance and actual resultsor developments may differ materially from those projected. The Company makesno commitment to update any forward-looking statement included herein, or todisclose any facts, events or circumstances that may affect the accuracy ofany forward-looking statement. Additional information on factors that couldpotentially affect the Company or its financial results may be found in theCompany's filings with the Securities and Exchange Commission.


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