Key questions and answers from the fourth quarter earnings call conducted by Advance Auto Parts Inc. on February 14, 2008.

Gary Balter & Seth Basham (Credit Suisse): Comment on the positive developments that are going on?

Darren Jackson: We are doing it in comp and commercial today and when you get into the supporting capabilities whether they are how we are doing the delivery, how we are supporting the call systems.

We are architected from a supply chain point of view, to be a retail company and we built the company to this level being a very good retail DIY company its going to take some different types of investments in order to continue to enjoy the growth in Commercial and be able to support the strength of the DIY business going forward.

Gary Balter & Seth Basham (Credit Suisse): How much room is there is Commercial for everybody to focus on it?

Jim Wade: The commercial market on an overall basis is large, it still remains fragmented and it is still growing. Over time there is an opportunity for us to be a much bigger player in that business than we are today.

In regard to store location specifically the majority of our stores over our history has been not main on main locations. As we have done our research around Commercial over the last year or so one of our strengths is the convenience of our stores to the deliver to garage and to have DIY customers as well.

Gary Balter & Seth Basham (Credit Suisse): Is Florida still the biggest lag on your business?

Mike Norona: During the quarter Florida and the Gulf Coast definitely lagged behind, causing about a half point drag on the comparable.

Matthew Fassler (Goldman Sachs): On the increased focus on customers and customer segments, how do you apply it to the auto parts sector?

Darren Jackson: We may have thought of the Commercial customer as an additional product offering or an accessory in our business. As opposed to beginning to understand which commercial customer we want to win with.

If we can simply hold on to them we can tell within our own data our comps grow double digits. In our DIY business, all of us talk about the Hispanic customer and the growth potential, the margin potential and everything and AutoZone has done a better job than many of us in the industry.

Elwyn Murray: On DIY from a Hispanic standpoint, we see that as about 15% of the population growing 20% a year and twice as likely to DIY it’s a missed opportunity for us so we clearly see that and are targeting that.

Part of our brand campaign is creating a platform that resonates with these targeted audiences and also provides a relevant platform. We talk more specifically about parts and parts availability and some of the functional attributes that we will be enhancing.

From a Commercial standpoint clearly to date we have pursued that opportunistically rather than strategically and a lot of our Commercial segments are the smaller bay operations and clearly we think in order to grow we are going to need to win with some larger bay operations. That is what will become a strategic focus of ours.

Tony Cristello (BB&T Capital Markets): At the store level, how is morale and how is the training and approach being transitioned to focus more on that customer?

Jim Wade: A lot of the things around the parts initiative simplifying the front room and a lot of other things that we have done. We have heard a lot of good feedback from our stores in regard to how that’s being accepted. We are well positioned and our team is ready to respond to the initiatives that we have underway.

Darren Jackson: We are real early in terms of the tools to help our store teams, our DM’s our RVP’s to actually begin to manage a business and have tools around the business to do a better job with the customer.

We are working on tools today and capabilities that will allow us to assess how our traffic moving. We are building top 10 customer reports so we can begin to have conversations all the way down to our Commercial pros to our DCSM’s to the field teams about conversations that speak to how are you doing with your top 10 customers because they are very valuable to us on a store by store basis.

Gregory Melich (Morgan Stanley): How are you looking at closing the gap between yourself and the industry?