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With 49 stores in Mexico, AutoZone is establishing a position in the $5 billion * Mexican automotive aftermarket retail market . With an estimated 16 million cars, * averaging almost 14 years in age, * Mexico is an attractive market for expansion. 

## #3 Growth Priority: AutoZone de Mexico 

Millions of older-aged vehicles, varied driving terrain and a dearth of full-assortment parts retailers make Mexico an ideal market for AutoZone. 

This past year, we opened 10 new stores to finish fiscal 2003 with 49 locations. To further solidify our Mexico presence we opened our first in-country distribution facility solely dedicated to supplying our growing number of Mexico stores. 

Our efforts in Mexico, begun in 1999, have been entirely unique to the Mexican automotive aftermarket landscape as most competition is highly fragmented and dedicated to very specific lines of merchandise. 

The one-stop vehicle solutions destination is an entirely new concept for most consumers and has been embraced as evidenced by our growing customer count. However, development is not without challenges. The logistical challenges for delivering product to 49 stores across northern Mexico, the foreign currency risks, and product challenges all need to be managed appropriately. 

We will continue to prudently and profitably develop AutoZone de Mexico for many years to come! 

* AAIA Global Aftermarket Trends—Mexico 2003 

We’re prudent in pacing our international expansion efforts. 

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