VALVOLINE INSTANT OIL CHANGE FRANCHISEES OPEN SERVICE CENTERS IN NORTH CAROLINA, NEW HAMPSHIRE, MASSACHUSETTS, WISCONSIN AND ILLINOIS (6/01)

Coastal Lube, LLC, a Wilmington, N.C.-based franchisee of Valvoline Instant Oil Change (VIOC), opened its first service center in New Bern, N.C. Operator Norm "Skip" Smith is a former executive vice president in the banking industry. He has obtained a Franchise license to open a second service center through Coastal Lube and has established a separate company, Coastal Oil & Lube, Inc., which opened its first location last month in Wilmington, N.C.

VIOC franchisee Henley Enterprises, Inc., based in Wellesley, Mass., opened its twentieth and twenty-first locations in Concord and in Laconia, N.H. in February, and a twenty-second location in Salisbury, Mass., last month.

Chicagoland Lube I, LP opened eight VIOC franchise service centers in Kenosha, Wisc., and Aurora, Crystal Lake, DeKalb, Loves Park, Lyons, Roscoe and Round Lake Beach, Ill., in the first three months of this year. The company has obtained franchise licenses to open three additional locations.

The VIOC system now includes 290 franchise units, approximately 45 percent of its total 658 locations. Additional licenses already have been granted for another 63 franchise locations, a number of which are currently under construction throughout the country.

Since the start of its fiscal year on October 1, VIOC has added eight new franchisees that have licenses for a total of 21 locations. Three of these franchisees are former VIOC employees who took advantage of an employee franchise program that provides fee-free franchise licenses and 100-percent financing for qualified employees.

The company's strategic growth plan for 2001 calls for the addition of 15 to 25 new franchisees and expansion by 45 franchisee locations. Attainment of this goal will be supported by the growing trend toward demand for 'do-it-for-me' automotive services, the brand strength of both VIOC and Valvoline, and VIOC's exceptional customer service and proven operational systems.

VIOC's automotive fluid maintenance program includes draining and replacing motor oil, installing new Valvoline oil filters and lubricating vehicles, checking tire pressure, air filters, breather filters, windshield wiper blades, radiator caps and brake-fluid levels, and refilling fluids for the power steering, battery, windshield washer, coolant system, transmission, differential and transfer case. Filter, cap and wiper blade replacements as well as radiator and transmission flushes are available for an additional charge, and all work is backed by a 100-percent satisfaction guarantee.

VIOC also features the proprietary Maximum Vehicle Performance (MVP^TM) program, a state-of-the-art automated system that lets technicians instantly access manufacturer recommendations for products and service, tracks each vehicle's maintenance history and provides access to it at any VIOC location. Another proprietary program, the hands-on SuperPro^® technical certification program, maps out daily operation procedures and doubles as an ongoing, regularly updated reference source.

VIOC offers a complete turnkey investment package and provides generous financing and competitive franchise fees.

The Valvoline Company entered the quick-lube business in 1986 with the acquisition of two chains in Michigan and another in Minnesota. Two years later, the company established Valvoline Instant Oil Change (VIOC) to operate its existing quick-lube centers and began an aggressive expansion program. VIOC is now one of the nation's largest providers of automotive fluid maintenance services. VIOC's franchise program includes unsurpassed services, products, knowledgeable personnel and technology and targets investors with the sophistication to use these assets to answer the growing demand for "do-it-for-me" automotive services. .