ROCHESTER, N.Y. – May 17, 2001 – Monro Muffler Brake, Inc. (Nasdaq: MNRO), today announced results for its fourth quarter and year ended March 31, 2001, reporting a 22% increase in net income for the fourth quarter over the prior year period.

Sales for the fiscal 2001 fourth quarter were $50.1 million, compared to $50.0 million for the corresponding quarter ended March 31, 2000. Comparable store sales decreased 2.4%, offset by an increase in sales from new stores of $0.8 million.

Net income for the fourth quarter of fiscal 2001 increased 22.3% to $1.4 million, or $0.16 per diluted share, as compared to $1.2 million, or $0.13 per diluted share, in the prior year period.

Sales for the twelve months ended March 31, 2001 decreased 0.3% to $223.0 million as compared to $223.6 million in the prior year. Net income for the twelve months ended March 31, 2001 increased 18.1% to $9.7 million, or $1.09 per diluted share, versus $8.2 million, or $0.92 per diluted share, for fiscal 2000. During the year, the Company opened four stores, and closed one Speedy and four Monro stores which were redundant or underperforming. The Company plans to open approximately five stores in fiscal 2002.“In the fourth quarter, we continued our strong track record of year-on-year earnings growth with a 22.3% increase in our bottom-line performance,” commented Robert G. Gross, President and Chief Executive Officer. “While comparable store sales and store traffic in the fourth quarter were adversely impacted by extreme winter conditions, traffic for the full year was up in both Monro and Speedy stores. We were also very encouraged that ticket average for the fourth quarter increased by approximately 3% over the prior year fourth quarter. Over the past several quarters, we have significantly reduced our cost structure while implementing new initiatives focused on driving sales, increasing market share and improving customer satisfaction. The early success of our efforts is beginning to be reflected in these positive trends in store traffic and ticket average in spite of weak industry conditions.”

Monro Muffler Brake Reports Fourth Quarter and Year-End Results

Mr. Gross continued,“In order to effectively improve sales, we are employing innovative retail strategies new to the undercar repair/maintenance market. For example, our recent marketing initiative targeting non-customers who live within one mile of a Monro store received an excellent 4.0% response rate, consistent with our strategy to turn new visitors into loyal customers. We continue to reward our top-performing store managers with special bonuses and stock option plans, furthering the Company's mission to provide customers superior service at a fair price, while retaining and incentivizing motivated employees.

“Additionally, in this first quarter of fiscal 2002, we are beginning to see an increase in repeat business, notably in scheduled maintenance. We believe this success stems from the steady increase in oil change traffic during the past year, which introduced many first-time customers to Monro. The new, fully implemented point-of-sale system, now shared by all Monro and Speedy stores, also helps employees promote scheduled maintenance to customers, and will contribute to our operating performance going forward.”

“Looking ahead, we are very optimistic about our near-term prospects and long-term opportunity,” concluded Mr. Gross. “As a result of our outlined efforts to drive store traffic, increase customer spending through improved service, and implement price increases while still maintaining our price advantage versus the competition, we are confident that we will see positive growth in comparable stores sales in the first quarter. Also, as a result of current sales trends and improved margins, combined with favorable interest rates and a reduction in our tax rate, we now anticipate first quarter earnings to be in the range of $0.44 to $0.46 per diluted share, versus the previously forecasted $0.43 to $0.44 range.”

Monro Muffler Brake operates a chain of stores providing automotive undercar repair services in the United States. The Company currently operates 512 stores and has 19 dealer locations in New York, Pennsylvania, Ohio, Connecticut, Massachusetts, West Virginia, Virginia, Maryland, Vermont, New Hampshire, New Jersey, North Carolina, South Carolina, Indiana, Rhode Island, Delaware and Michigan. Monro's stores provide a full range of services for exhaust systems, brake systems, steering and suspension systems and many vehicle maintenance services.

Certain statements made above may be forward-looking and are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve uncertainties which may cause the Company's actual results in future periods to differ materially from those expressed. These uncertainties include, but are not necessarily limited to, uncertainties affecting retail generally (such as consumer confidence and demand for auto repair); risks relating to leverage and debt service (including sensitivity to fluctuations in interest rates); dependence on, and competition within, the primary markets in which the Company's stores are located; the need for, and costs associated with, store renovations and other capital expenditures; and the risks described from time to time in the Company's SEC reports which include the report on Form 10K for the fiscal year ended March 31, 2000.

      

	March 31, 2001	March 31, 2000
Assets
Current assets
Cash	$751	$507
Inventories	41,071	39,698
Other current assets	7,945	7,932
Total current assets	49,767	48,137
Property, plant and equipment, net	131,486	133,875
Other noncurrent assets	12,586	14,013
Total assets	$193,839	$196,025
Liabilities and Shareholders’ Equity
Current liabilities	$36,569	$36,261
Long-term debt	50,857	63,639
Other long-term liabilities	8,603	7,350
Total liabilities	96,029	107,250
Total shareholders’ equity	97,810	88,775
Total liabilities and shareholders’ equity	$193,839	$196,025