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Letter to the Editor

Genuine Parts Company Reports Record Q3 Sales and Earnings

For the nine months ended September 30, 2006, sales totaled $7.9 billion, up seven percent compared to the same period in 2005. Net income for the nine months was $355.9 million, an increase of eight percent over $328.4 million recorded in the previous year. Earnings per share on a diluted basis were $2.06, up ten percent compared to $1.87 for the same period last year.

Tom Gallagher, Chairman, President, and Chief Executive Officer, stated, "We are pleased to report record levels of revenues and earnings for the 3rd Quarter of 2006. Again this quarter, each of our four business segments contributed to the overall sales growth for the company. Motion Industries, our Industrial Group, grew sales by 11 percent, and EIS, our Electrical Group, posted a 23 percent sales increase for the quarter. Business conditions in the industries served by the industrial and electrical operations have remained strong and we are expecting another period of good results from these groups in the fourth quarter. S.P. Richards, our Office Products Group, generated a five percent sales increase for the quarter and the Automotive Group increased sales by one percent in the quarter. Our ongoing sales initiatives, combined with positive business indicators in all four of our businesses, provide each of our segments with continued growth opportunities in the fourth quarter of 2006 and we anticipate solid performances from all four groups."

Gallagher added, "The company also continues to generate consistent and steady cash flows and our cash position remains strong. Our priorities for cash remain, first, the dividend, which was increased in 2006 for the 50th consecutive year. Another priority for cash has been opportunistic share repurchases and, as part of our share repurchase program, we have purchased 2.9 million shares of our Company stock thus far in 2006. Other key uses for cash remain the ongoing reinvestment in each of our businesses and strategic complimentary types of acquisitions."

Genuine Parts Company is a distributor of automotive replacement parts in the U.S., Canada, and Mexico.

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