O'Reilly Automotive, Inc. Reports Third Quarter 2007 Earnings

Net income for the third quarter ended September 30, 2007, totaled $53.1 million, up 10.9% from $47.9 million for the same period in 2006. Diluted earnings per common share for the third quarter of 2007 increased 9.5% to $0.46 on 116.3 million shares compared to $0.42 for the third quarter of 2006 on 115.0 million shares. Sales for the three months ended September 30, 2007 totaled $662 million, up 10.8% from $597 million for the same period a year ago. Gross profit for the third quarter of 2007 increased to $294 million (or 44.4% of sales) from $263 million (or 44.1% of sales) for the third quarter of 2006, representing an increase of 11.5%. Operating, Selling, General and Administrative (“OSG&A”) expenses increased to $211 million (or 31.9% of sales) for the third quarter of 2007 from $188 million (or 31.5% of sales) for the third quarter of 2006, representing an increase of 12.1%.

Net income for the first nine months of 2007 totaled $153.4 million, up 11.4% from $137.7 million for the same period a year ago. Diluted earnings per common share for the first nine months of 2007 increased 10.0% to $1.32 on 116.0 million shares compared to $1.20 a year ago on 114.9 million shares. Sales for the first nine months of 2007 totaled $1.92 billion, up 11.2% from $1.72 billion for the same period a year ago. Gross profit for the first nine months of 2007 increased to $850 million (or 44.3% of sales) from $758 million (or 43.9% of sales) for the same period a year ago, representing an increase of 12.2%. OSG&A expenses increased to $609 million (or 31.7% of sales) for the first nine months of 2007 from $539 million (or 31.3% of sales) for the same period a year ago, representing an increase of 12.8%.

Comparable store sales for stores open at least one year increased 4.3% for both the third quarter and first nine months of 2007.

“We are very pleased with our strong performance in the third quarter as we continue to focus on building market share in both the professional and 'do it yourself' sides of our business,” stated Greg Henslee, CEO and Co-President. “Team O’Reilly continues to offer the highest levels of customer service in our industry, which resulted in another quarter of record sales and profits, and we are looking forward to offering these services to customers in markets new to our Company as we continue our aggressive expansion.”

Ted Wise, COO and Co-President, stated, “We opened 43 new stores during the quarter bringing our net new store total to 134 for the year. Through the first three quarters our store openings were slightly behind our plan due to permitting and construction delays. However, we are confident that by the end of the fourth quarter we will meet our target of 190 new store openings for the year. Our dedication to providing the best service to the professional installer and do-it-yourself customer continues to be the first priority in our expansion efforts.”

The Company will host a conference call Wednesday, October 24, 2007, at 10:00 a.m. central time to discuss its results as well as future expectations. Investors may listen to the conference call live on the Company’s web site, , by clicking on “Investor Relations” then “News Room.”

O’Reilly Automotive, Inc. is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States, serving both the do-it-yourself and professional installer markets. Founded in 1957 by the O’Reilly family, the Company operated 1,774 stores in the states of Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Minnesota, Mississippi, Missouri, Montana, Nebraska, North Carolina, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Virginia, Wisconsin and Wyoming as of September 30, 2007.

The Company claims the protection of the safe-harbor for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by forward-looking words such as “expect,” “believe,” “anticipate,” “should,” “plan,” “intend,” “estimate,” “project,” “will” or similar words. In addition, statements contained within this press release that are not historical facts are forward-looking statements, such as statements discussing among other things, expected growth, store development and expansion strategy, business strategies, future revenues and future performance. These forward-looking statements are based on estimates, projections, beliefs and assumptions and are not guarantees of future events and results. Such statements are subject to risks, uncertainties and assumptions, including, but not limited to, competition, product demand, the market for auto parts, the economy in general, inflation, consumer debt levels, governmental approvals, our ability to hire and retain qualified employees, risks associated with the integration of acquired businesses, weather, terrorist activities, war and the threat of war. Actual results may materially differ from anticipated results described or implied in these forward-looking statements. Please refer to the Risk Factors sections of the Company’s Form 10-K for the year ended December 31, 2006, for more details.