Based on the Company's analysis of initial test volumes for the first six months of 2008 across all of these new stores, the Company identified 8 stores it believes will not generate enough test volume over time to produce a reasonable expectation of positive cash flow. On July 15, 2008, the Company committed to closing 8 of the 12 vehicle emissions testing and safety inspection facilities in the Greater Dallas-Ft. Worth area by the end of the month as part of its initiative to improve financial performance. These facilities were all opened within the last 8 months. The Company also decided not to open the 13th store.

The Company expects to reposition most of its equipment used at these locations to existing Company stores in other markets and no asset impairment charge is expected. The Company will return approximately $120,000 worth of equipment to the equipment manufacturer. The total cost of repositioning and returning the equipment, severance, reimbursements to Sears Auto Centers for the cost of the initial site preparation and other costs is expected to be less than $100,000.