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Biglari Holdings Inc. Commences Exchange Offer for Shares of Advance Auto Parts

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Biglari Holdings' offer is not conditioned on any minimum number of Advance shares being tendered. The complete terms and conditions of the exchange offer are set forth in the registration statement and the other offering documents filed today by Biglari Holdings with the Securities and Exchange Commission. The exchange offer is conditioned upon, among other things, the registration statement for the issuance of Biglari Holdings shares in the exchange offer being declared effective by the Securities and Exchange Commission and the New York Stock Exchange having authorized the listing of the shares of Biglari Holdings common stock to be issued in the offer.

The exchange offer is scheduled to expire at 5:00 p.m., New York City time, on Thursday, May 27, 2010, unless extended.

Morrow & Co., LLC is acting as Information Agent for the exchange offer.

This press release is for informational purposes only and is neither an offer to sell nor a solicitation of an offer to buy any securities. Any exchange offer will be made only through a registration statement and related materials. In connection with the exchange offer, Biglari Holdings has filed a registration statement on Form S-4 (containing a prospectus) with the Securities and Exchange Commission. Investors and stockholders of Advance are advised to read this registration statement and related disclosure materials carefully because they contain important information. Investors and stockholders may obtain a free copy of the disclosure materials and other documents filed by Biglari Holdings with the Securities and Exchange Commission at the SEC's website at www.sec.gov. A free copy of the disclosure materials and other documents of Biglari Holdings may also be obtained from Biglari Holdings upon request by directing such request to the Information Agent, Morrow & Co., LLC, 470 West Avenue, Stamford, CT 06902, E-mail: offer.info@morrowco.com. Banks and brokerage firms please call: (203) 658-9400. Stockholders call toll free: (800) 607-0088.

Forward-Looking Statements

This release contains forward-looking statements relating to Biglari Holdings Inc.'s exchange offer for shares of Advance Auto Parts, Inc. common stock and Biglari Holdings' expectations with regard to the proposed transaction. These forward-looking statements are based on Biglari Holdings' current intent, expectations, estimates and projections and are not guarantees of future performance. These statements involve risks, uncertainties, assumptions and other factors that are difficult to predict and that could cause actual results to vary materially from those expressed in or indicated by them. In addition, some factors are beyond Biglari Holdings' control. Factors that could cause actual results to differ materially from the statements made in this release include, among others: (i) the willingness of Advance stockholders to tender their shares in the exchange offer and the number and timing of shares tendered; (ii) the satisfaction, or waiver by Biglari Holdings to the extent legally permissible, of all conditions to the exchange offer; and (iii) other factors as described in filings with the Securities and Exchange Commission, including the factors discussed under the heading "Risk Factors" in Biglari Holdings' prospectus included in its registration statement on Form S-4 as filed with the Securities and Exchange Commission on April 30, 2010.

Auto-Parts Firms' Results Improve

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Auto-parts suppliers American Axle & Manufacturing Holdings Inc. and Visteon Corp. each reported improved first-quarter results Friday as a result of lower costs and improving sales, providing further evidence of an auto-industry recovery.

American Axle, which relies on General Motors Co. for 75% of its sales, reported profit of $16.3 million, or 22 cents a share, compared with a loss of $32.7 million, or 59 cents, a year earlier. Revenue jumped 30% to $521.9 million.

Chief Financial Officer Michael Simonte said the axle maker is benefiting from downsizing.

"We are seeing the results we expected after cutting our fixed costs by 50% over the past two years," Mr. Simonte said in an interview. "We are optimistic about the improving economy, but we know it is fragile."

Gross margin, or the difference between the cost of producing products and the price received for them, widened to 16.7% from 6.7% because of the restructuring.

Visteon, which filed for bankruptcy protection nearly a year ago and is still struggling to exit from Chapter 11, said earnings rose to $233 million, or $1.79 a share, from $2 million, or two cents a share. The latest quarter included a $237 million gain from the termination of certain postretirement employee benefits. Revenue rose 41% to $1.9 billion.

The supplier rebound is a relief for the U.S. auto industry, which has lost thousands of jobs amid the recession and has suffered through bankruptcy filings by GM and Chrysler Group LLC last year. Parts suppliers were hit equally as hard. Delphi Corp., Dana Corp. and Lear Corp. were among the two dozen that went through bankruptcy. Some, such as Collins & Aikman Corp., were liquidated.

The earnings improvements by American Axle and Visteon follow other solid reports. In the past week, turbocharger maker BorgWarner Inc. swung to a profit and raised its forecast, saying it now expects its 2010 revenue to rise 28% to 32% instead of its previous guidance for a 15% to 19% increase.

Dana, another axle maker, narrowed its loss to $31 million from $157 million, and Tenneco Inc., which makes shock absorbers, reported a profit of $7 million, compared with a year earlier loss of $49 million.

The brighter outlook for suppliers appears to be helping many small manufacturing towns, where some jobs are returning, but the hurdles for the suppliers aren't over. Smaller components makers that supply the larger companies continue to wrestle with the inability to access loans, and there is still too much capacity.

Most companies also will have to weather a temporary drop in auto production in Europe, where sales are softening as governments phase out incentives that encouraged consumers to trade in older models and boosted sales in 2009.

Advance Auto Parts

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In this scenario, the management needs a good, strong and logic driven decision making tool which and can serve as easily referable, is common in language, can be applied globally with standard parameters as also is accepted by various independent assessors .

A tool as useful as this which is numerically driven and with accepted logic is Aruvian's R'searchs Financial Analysis.

Aruvian's R'searchs Financial Analysis is a compact, focused report which helps management's critical decision making by lending itself to analyzing a company's profitability, solvency as well as financial stability. These facts, Financial Analysis help the management to make different decisions on segregating priority businesses, present funding requirements, mergers and acquisition activities, etc.

Aruvian's R'searchs Financial Analysis brings to the management a complete profile of the company which is under consideration and also provides an insight on the business segments in which the company operates as well as its subsidiaries and some of the key executives of that company.

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Aruvian's R'searchs Financial Analysis report combines a complete SWOT analysis of the company thereby increasing the strategic management analysis presented in the report. The report documents a complete board of the latest financial information of the company including stock prices over a period, earnings per share, income statements, balance sheets, EPS growth Qtr. on Qtr. and Yr. over Yr.

The report further presents the complete array of financial ratios of the company which points to the basic health of its activities and even goes a step further to present the efficiency of the company's management. Some of the ratios as Price, Profitability, Liquidity, give a very accurate picture of the financial health of the company and are explained in detail in Aruvian's R'searchs Financial Analysis.

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In the ever increasing haze of globalization wherein it is imperative for organizations to expand their global footprint either by investing or by mergers & acquisitions, This Financial Analysis helps them steer the right business direction to islands of profit mining and greater returns on their invested capital.

Company profile: Weaver Auto Parts, from humble beginnings to a major player in Wisconsin

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Merlyn Brockman was looking for a part-time job when he retired from working his town of Roxbury farm.

What he found, after completing the first job interview in his life, was a position that allowed him to drive the countryside and use his good nature to interact with mechanics at auto repair shops throughout south-central Wisconsin.

After 22 years as a delivery driver for Weaver Auto Parts, Brockman, 80, whose wife Betty has worked in the corporate office for the past 10 years, has no plans to retire.

He also is one of several employees who have more than 20 years with the Sauk City-based company founded in 1972 out of a garage in Portage.

"It's interesting and I get to meet a lot of interesting people," Brockman said recently as he prepared to load his silver Chevrolet HHR delivery vehicle for a route that includes shops in Black Earth, Mazomanie, Spring Green and Plain. "I never know where I'm going to stop."

And the founders never dreamed of how big their company would get.

Mary and Mark Weaver, both 60 and high school sweethearts from Antigo, have grown their business to 17 stores and are completing a $3 million expansion at the company's warehouse and distribution center at 808 Industry Road on Sauk City's south side.

With 135 employees, Weaver is the largest Wisconsin-based auto parts company in the state, a terrain filled with national players such as NAPA, Auto Zone, O'Reilly and Carquest.

"It's getting more competitive, but Mark is certainly a guy who has demonstrated the ability to withstand the competition," said Dick Beirne, president of the 13-store United Auto Supply based in La Crosse. "He and his wife built that from scratch and they've become very good at it."

Emphasis on service

Like most smaller companies competing against national giants, customer service is key. That's where drivers such as Brockman become valuable, along with managers who co-own stores with the company.

"The company grew as we found people that wanted to manage and own," said Mark Weaver, president. "We always hope they go the extra mile on customer service and do what it takes to make it successful. It helps us survive against the big guys."

Weaver also has its own machine shops to quickly repair radiators, perform brake drum and rotor machining and other work.

Each of the stores can do minor machine work, but larger jobs are sent to its machine shops in Sauk City, Portage and the Odana Road location in Madison.

Meeting the fast-paced demands of repair shops is critical, because of the saturation of auto parts stores, said Paul Flogel, program director for the automotive department at Madison Area Technical College.

"It really is about customer service and who you're comfortable buying from," said Flogel, who spent 15 years doing repair work in Madison-area shops. "You have to find someone you trust and is going to work for you. If the customer isn't satisfied, you may not see them again."

Years in the making

Mark Weaver had just completed a four-year stint in the U.S. Coast Guard when he and Mary moved to Portage from Baltimore to join Mark's brother selling auto parts out of a truck to repair shops. That lasted a few weeks before the Weavers decided to open an auto parts store along the Portage canal in 1972. Rent for the 2,000-square-foot space was $100 a month.

"And we didn't know where it was going to come from in those days," Mary Weaver said.

About 18 months later, they opened a store in Sauk City. Their third store was in Westfield and that began the business model used to this day.

"We had an employee that did a great job in Portage and he lived in Westfield and it was a likely place to open a store," Mark Weaver said.

Continued growth

The growth has continued along with more brands of vehicles on the market, which means a need for more varieties of parts to be on hand.

That's one of the reasons the main floor of the distribution center is being expanded from 18,000 to 59,000 square feet. In addition, the second floor is being expanded from 11,000 to 27,000 square feet. The project also includes a $200,000 solar energy system and a geothermal heating and cooling system.

But it's the growth in inventory that has driven the expansion.

The new space will allow for better organization of the millions of parts under 220 brand names and more room for delivery vehicles to load. Inventory control is one of the biggest challenges facing the automotive parts supply industry, Mark Weaver said.

"Our inventory is typically up between 5 and 10 percent a year and that's a big number," Weaver said. "We constantly have to be managing that inventory, getting rid of the old, putting in new. There's a constant demand on the cash because inventory growth is so strong."

The Weavers are focusing on expanding existing stores instead of adding more locations. The Oregon store was expanded last year, while the store in Randolph moved Thursday into a larger space. Other stores are also being considered for expansion.

Jeff Ganser, 41, has been an owner-manager since 1992 and has been with the company for 23 years. His first jobs included stocking and delivery. He now operates the Sauk City store but is part owner of stores in Reedsburg and Baraboo.

"They've done a lot to make the company go," Ganser said of the Weavers. "They're serious about what they want to do."

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