<HTML>
<center><b>UNITED STATES</b>
<br><b>SECURITIES AND EXCHANGE COMMISSION</b>
<br><b>WASHINGTON, D.C. 20549</b>
<p><b>SCHEDULE 14A</b>
<br>Proxy Statement Pursuant to Section 14(a) of the Securities
<br>Exchange Act of 1934 (Amendment No. )</center>
<p>Filed by the Registrant [X]
<p>Filed by a Party other than the Registrant [_]
<p>Check the appropriate box:
<br>
<table WIDTH="74%" >
<tr>
<td WIDTH="3%">[_]</td>
<td WIDTH="1%"> </td>
<td WIDTH="96%">Preliminary Proxy Statement </td>
</tr>
<tr>
<td WIDTH="3%"> </td>
<td WIDTH="1%"> </td>
<td WIDTH="96%"> </td>
</tr>
<tr>
<td VALIGN=TOP WIDTH="3%">[_]</td>
<td WIDTH="1%"> </td>
<td WIDTH="96%">CONFIDENTIAL, FOR USE OF THE
<br>COMMISSION ONLY (AS PERMITTED BY
<br>RULE 14A-6(E)(2))</td>
</tr>
<tr>
<td WIDTH="3%"> </td>
<td WIDTH="1%"> </td>
<td WIDTH="96%"> </td>
</tr>
<tr>
<td WIDTH="3%">[X]</td>
<td WIDTH="1%"> </td>
<td WIDTH="96%">Definitive Proxy Statement</td>
</tr>
<tr>
<td WIDTH="3%"> </td>
<td WIDTH="1%"> </td>
<td WIDTH="96%"> </td>
</tr>
<tr>
<td WIDTH="3%">[_]</td>
<td WIDTH="1%"> </td>
<td WIDTH="96%">Definitive Additional Materials</td>
</tr>
<tr>
<td WIDTH="3%"> </td>
<td WIDTH="1%"> </td>
<td WIDTH="96%"> </td>
</tr>
<tr>
<td WIDTH="3%">[_]</td>
<td WIDTH="1%"> </td>
<td NOWRAP WIDTH="96%">Soliciting Material Pursuant to (S) 240.14a-11(c)
or (S) 240.14a-12 </td>
</tr>
<tr>
<td WIDTH="3%"> </td>
<td WIDTH="1%"> </td>
<td WIDTH="96%"> </td>
</tr>
<center>
<p>AutoZone, Inc
<hr NOSHADE WIDTH="100%" SIZE="1">(Name of Registrant as Specified In Its
Charter)
<p>
<hr NOSHADE WIDTH="100%" SIZE="1">(Name of Person(s) Filing Proxy Statement,
if other than the Registrant)</center>
<p><br>
<br>
<br>
<br>
<br>
<br>
<p>Payment of Filing Fee (Check the appropriate box):
<table WIDTH="75%" >
<tr>
<td VALIGN=TOP WIDTH="2%">[X]</td>
<td WIDTH="2%"> </td>
<td COLSPAN="4">No fee required.</td>
</tr>
<tr>
<td VALIGN=TOP WIDTH="2%"> </td>
<td WIDTH="2%"> </td>
<td WIDTH="37%"> </td>
<td WIDTH="25%"> </td>
<td WIDTH="16%"> </td>
<td WIDTH="18%"> </td>
</tr>
<tr>
<td VALIGN=TOP WIDTH="2%">[_]</td>
<td WIDTH="2%"> </td>
<td COLSPAN="4" NOWRAP>Fee computed on table below per Exchange Act Rules
14a-6(i)(4) and 0-11.</td>
</tr>
<tr>
<td VALIGN=TOP WIDTH="2%" HEIGHT="19"> </td>
<td WIDTH="2%" HEIGHT="19"> </td>
<td WIDTH="37%" HEIGHT="19"> </td>
<td COLSPAN="3" NOWRAP HEIGHT="19"> </td>
</tr>
<table WIDTH="89%" >
<tr>
<td WIDTH="1%"> </td>
<td WIDTH="1%"> </td>
<td WIDTH="1%"> </td>
<td VALIGN=TOP WIDTH="3%">(1) </td>
<td WIDTH="1%"> </td>
<td COLSPAN="2">Title of each class of securities to which transaction
applies: </td>
</tr>
<tr>
<td WIDTH="1%" HEIGHT="18"> </td>
<td WIDTH="1%" HEIGHT="18"> </td>
<td WIDTH="1%" HEIGHT="18"> </td>
<td VALIGN=TOP COLSPAN="4" HEIGHT="18">
<hr NOSHADE WIDTH="100%"
SIZE="1"></td>
</tr>
<tr>
<td WIDTH="1%" HEIGHT="25"> </td>
<td WIDTH="1%" HEIGHT="25"> </td>
<td WIDTH="1%" HEIGHT="25"> </td>
<td VALIGN=TOP WIDTH="3%" HEIGHT="25">(2)</td>
<td WIDTH="1%" HEIGHT="25"> </td>
<td COLSPAN="2" NOWRAP HEIGHT="25">Aggregate number of securities to which
transaction applies: </td>
</tr>
<tr>
<td WIDTH="1%"> </td>
<td WIDTH="1%"> </td>
<td WIDTH="1%"> </td>
<td COLSPAN="4">
<hr NOSHADE WIDTH="100%" SIZE="1"></td>
</tr>
<tr>
<td WIDTH="1%"> </td>
<td WIDTH="1%"> </td>
<td WIDTH="1%"> </td>
<td VALIGN=TOP WIDTH="3%">(3)</td>
<td WIDTH="1%"> </td>
<td COLSPAN="2">Per unit price or other underlying value of transaction
computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which
the filing fee is calculated and state how it was determined): </td>
</tr>
<tr>
<td WIDTH="1%"> </td>
<td WIDTH="1%"> </td>
<td WIDTH="1%"> </td>
<td VALIGN=TOP COLSPAN="4">
<hr NOSHADE WIDTH="100%" SIZE="1"></td>
</tr>
<tr>
<td WIDTH="1%"> </td>
<td WIDTH="1%"> </td>
<td WIDTH="1%"> </td>
<td VALIGN=TOP WIDTH="3%">(4)</td>
<td WIDTH="1%"> </td>
<td COLSPAN="2">Proposed maximum aggregate value of transaction: </td>
</tr>
<tr>
<td WIDTH="1%"> </td>
<td WIDTH="1%"> </td>
<td WIDTH="1%"> </td>
<td COLSPAN="4">
<hr NOSHADE WIDTH="100%" SIZE="1"></td>
</tr>
<tr>
<td WIDTH="1%"> </td>
<td WIDTH="1%"> </td>
<td WIDTH="1%"> </td>
<td WIDTH="3%">(5)</td>
<td WIDTH="1%"> </td>
<td WIDTH="53%">Total fee paid: </td>
<td WIDTH="43%"> </td>
</tr>
<tr>
<td WIDTH="1%"> </td>
<td WIDTH="1%"> </td>
<td WIDTH="1%"> </td>
<td COLSPAN="4">
<hr NOSHADE WIDTH="100%" SIZE="1"></td>
</tr>
<tr>
<td WIDTH="1%"> </td>
<td WIDTH="1%"> </td>
<td WIDTH="1%"> </td>
<td WIDTH="3%"> </td>
<td WIDTH="1%"> </td>
<td WIDTH="53%"> </td>
<td WIDTH="43%"> </td>
</tr>
<table WIDTH="89%" >
<tr>
<td VALIGN=TOP WIDTH="3%">[_]</td>
<td WIDTH="1%"> </td>
<td COLSPAN="4" NOWRAP WIDTH="96%">Fee paid previously with preliminary
materials. </td>
</tr>
<tr>
<td VALIGN=TOP WIDTH="3%"> </td>
<td WIDTH="1%"> </td>
<td COLSPAN="4" WIDTH="96%"> </td>
</tr>
<tr>
<td VALIGN=TOP WIDTH="3%">[_]</td>
<td WIDTH="1%"> </td>
<td COLSPAN="4" WIDTH="96%">Check box if any part of the fee is offset
as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for
which the offsetting fee was paid previously. Identify the previous filing
by registration statement number, or the Form or Schedule and the date
of its filing.</td>
</tr>
<table WIDTH="89%" >
<tr>
<td WIDTH="1%"> </td>
<td WIDTH="1%"> </td>
<td WIDTH="1%"> </td>
<td WIDTH="2%"> </td>
<td COLSPAN="3"> </td>
</tr>
<tr>
<td WIDTH="1%"> </td>
<td WIDTH="1%"> </td>
<td WIDTH="1%"> </td>
<td WIDTH="2%">(1)</td>
<td WIDTH="1%"> </td>
<td COLSPAN="2" WIDTH="97%">Amount Previously Paid: </td>
</tr>
<tr>
<td WIDTH="1%" HEIGHT="19"> </td>
<td WIDTH="1%" HEIGHT="19"> </td>
<td WIDTH="1%" HEIGHT="19"> </td>
<td COLSPAN="4" HEIGHT="19">
<hr NOSHADE WIDTH="100%" SIZE="1"></td>
</tr>
<tr>
<td WIDTH="1%"> </td>
<td WIDTH="1%"> </td>
<td WIDTH="1%"> </td>
<td WIDTH="2%">(2)</td>
<td WIDTH="1%"> </td>
<td COLSPAN="2" WIDTH="97%">Form, Schedule or Registration Statement No.: </td>
</tr>
<tr>
<td WIDTH="1%" HEIGHT="21"> </td>
<td WIDTH="1%" HEIGHT="21"> </td>
<td WIDTH="1%" HEIGHT="21"> </td>
<td COLSPAN="4" HEIGHT="21">
<hr NOSHADE WIDTH="100%" SIZE="1"></td>
</tr>
<tr>
<td WIDTH="1%" HEIGHT="19"> </td>
<td WIDTH="1%" HEIGHT="19"> </td>
<td WIDTH="1%" HEIGHT="19"> </td>
<td WIDTH="2%" HEIGHT="19">(3)</td>
<td WIDTH="1%" HEIGHT="19"> </td>
<td COLSPAN="2" WIDTH="97%" HEIGHT="19">Filing Party: </td>
</tr>
<tr>
<td WIDTH="1%"> </td>
<td WIDTH="1%"> </td>
<td WIDTH="1%"> </td>
<td COLSPAN="4">
<hr NOSHADE WIDTH="100%" SIZE="1"></td>
</tr>
<tr>
<td WIDTH="1%"> </td>
<td WIDTH="1%"> </td>
<td WIDTH="1%"> </td>
<td WIDTH="2%">(4) </td>
<td WIDTH="1%"> </td>
<td COLSPAN="2" WIDTH="97%">Date Filed: </td>
</tr>
<tr>
<td WIDTH="1%"> </td>
<td WIDTH="1%"> </td>
<td WIDTH="1%"> </td>
<td COLSPAN="4">
<hr NOSHADE WIDTH="100%" SIZE="1"></td>
</tr>
<p>Notes:
<hr WIDTH="100%">
<br>
<br>
<br>
<center>
<p><b><font face="Arial,
Helvetica"><font color="#000000"><font size=+0>Notice
Of Annual Meeting Of Stockholders</font></font></font></b>
<br><b><font face="Arial,
Helvetica"><font color="#000000"><font size=+0>December
9, 1999</font></font></font></b></center>
<p><br>
<br>
<br>
<br>
<br>
<br>
<br>
<p> <font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>To
our Stockholders:</font></font></font>
<p><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>
You are cordially invited to attend the Annual Meeting of Stockholders
of AutoZone, Inc. at the Orpheum Theater, 203 South Main Street, Memphis,
Tennessee, on Thursday, December 9, 1999, at 10 a.m. At the meeting, the
stockholders will vote to:</font></font></font>
<br>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="2%"></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="98%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>1.
Elect ten directors.</font></font></font></td>
</tr>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="2%"></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="98%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>2.
Approve the AutoZone, Inc. 2000 Executive Incentive Compensation Plan.</font></font></font></td>
</tr>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="2%"></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="98%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>3.
Approve the appointment of Ernst & Young LLP as independent auditors.</font></font></font></td>
</tr>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="2%"></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="98%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>4.
Transact other business which may be properly brought before the meeting.</font></font></font></td>
</tr>
<p> <font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>
If you were a stockholder at the close of business on October 12, 1999,
you may vote at the meeting.</font></font></font>
<p><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>
We look forward to seeing you at the meeting.</font></font></font>
<br>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="48%"></td>
<td ALIGN=LEFT VALIGN=TOP><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>By
order of the Board of Directors,</font></font></font></td>
</tr>
<br>
<br>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="48%"></td>
<td ALIGN=LEFT VALIGN=TOP><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>HARRY
L. GOLDSMITH </font></font></font>
<br><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Secretary</font></font></font></td>
</tr>
<p><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>Memphis,
Tennessee</font></font></font>
<br><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>October
25, 1999</font></font></font>
<br>
<br>
<br>
<br>
<center>
<p><b><u><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>IMPORTANT</font></font></font></u></b>
<p><b><i><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>Please
VOTE by proxy card, telephone, or Internet</font></font></font></i></b>
<br><b><i><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>whether
or not you plan to attend the meeting.</font></font></font></i></b></center>
<hr WIDTH="100%">
<center>
<p><b><font face="Arial,
Helvetica"><font color="#000000"><font size=+0>Table
of Contents</font></font></font></b></center>
<table CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="Arial, Helvetica"><font color="#000000"><font size=+0>Notice
of Annual Meeting </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="Arial, Helvetica"><font color="#000000"><font size=+0> </font></font></font></td>
</tr>
<tr>
<td COLSPAN="3"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td COLSPAN="3"><font size=-2> </font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="Arial, Helvetica"><font color="#000000"><font size=+0><a href="#tx01">The
Meeting</a></font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP></td>
</tr>
<tr>
<td COLSPAN="3"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="Arial, Helvetica"><font color="#000000"><font size=+0>
<a href="#tx02">About this Proxy Statement</a></font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP></td>
</tr>
<tr>
<td COLSPAN="3"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="Arial, Helvetica"><font color="#000000"><font size=+0>
<a href="#tx03">Information about Voting</a></font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP></td>
</tr>
<tr>
<td COLSPAN="3"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="Arial, Helvetica"><font color="#000000"><font size=+0>
<a href="#tx04">Voting Securities</a></font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP></td>
</tr>
<tr>
<td COLSPAN="3"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="Arial, Helvetica"><font color="#000000"><font size=+0>
<a href="#tx05">Quorum and Required Votes</a></font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP></td>
</tr>
<tr>
<td COLSPAN="3"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td COLSPAN="3"><font size=-2> </font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="Arial, Helvetica"><font color="#000000"><font size=+0><a href="#tx06">The
Proposals</a></font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP></td>
</tr>
<tr>
<td COLSPAN="3"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="Arial, Helvetica"><font color="#000000"><font size=+0>
<a href="#tx07">PROPOSAL 1 - Election of Directors</a></font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP></td>
</tr>
<tr>
<td COLSPAN="3"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="Arial, Helvetica"><font color="#000000"><font size=+0>
<a href="#tx08">PROPOSAL 2 - Approval of Executive Incentive Compensation
Plan</a></font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP></td>
</tr>
<tr>
<td COLSPAN="3"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="Arial, Helvetica"><font color="#000000"><font size=+0>
<a href="#tx09">PROPOSAL 3 - Approval of Independent Auditors</a></font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP></td>
</tr>
<tr>
<td COLSPAN="3"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="Arial, Helvetica"><font color="#000000"><font size=+0>
<a href="#tx10">Other Matters</a></font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP></td>
</tr>
<tr>
<td COLSPAN="3"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td COLSPAN="3"><font size=-2> </font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="Arial, Helvetica"><font color="#000000"><font size=+0><a href="#tx11">Other
Information</a></font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP></td>
</tr>
<tr>
<td COLSPAN="3"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="Arial, Helvetica"><font color="#000000"><font size=+0>
<a href="#tx12">Security Ownership of Management</a></font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP></td>
</tr>
<tr>
<td COLSPAN="3"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="Arial, Helvetica"><font color="#000000"><font size=+0>
<a href="#tx13">Security Ownership of Certain Beneficial Owners</a></font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP></td>
</tr>
<tr>
<td COLSPAN="3"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="Arial, Helvetica"><font color="#000000"><font size=+0>
<a href="#tx14">Compensation of Directors</a></font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP></td>
</tr>
<tr>
<td COLSPAN="3"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="Arial, Helvetica"><font color="#000000"><font size=+0>
<a href="#tx15">Executive Compensation</a></font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP></td>
</tr>
<tr>
<td COLSPAN="3"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="Arial, Helvetica"><font color="#000000"><font size=+0>
<a href="#tx16">Summary Compensation Table</a></font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP></td>
</tr>
<tr>
<td COLSPAN="3"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="Arial, Helvetica"><font color="#000000"><font size=+0>
<a href="#tx17">Option/SAR Grants in Last Fiscal Year</a></font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP></td>
</tr>
<tr>
<td COLSPAN="3"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="Arial, Helvetica"><font color="#000000"><font size=+0>
<a href="#tx18">Aggregated Option/SAR Exercises in Last Fiscal Year and
FY-End </a></font></font></font>
<br>
<font face="Arial, Helvetica"><font color="#000000"><font size=+0><a href="#tx18">Option/SAR
Values</a></font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP></td>
</tr>
<tr>
<td COLSPAN="3"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="Arial, Helvetica"><font color="#000000"><font size=+0>
<a href="#tx19">Pension Plan Table</a></font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP></td>
</tr>
<tr>
<td COLSPAN="3"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="Arial, Helvetica"><font color="#000000"><font size=+0>
<a href="#tx20">Compensation Committee Report on Executive Compensation</a></font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP></td>
</tr>
<tr>
<td COLSPAN="3"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="Arial, Helvetica"><font color="#000000"><font size=+0>
<a href="#tx21">Stock Performance Graph</a></font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP></td>
</tr>
<tr>
<td COLSPAN="3"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="Arial, Helvetica"><font color="#000000"><font size=+0>
<a href="#tx22">Employment Agreements</a></font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP></td>
</tr>
<tr>
<td COLSPAN="3"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="Arial, Helvetica"><font color="#000000"><font size=+0>
<a href="#tx23">Certain Relationships and Related Transactions</a></font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP></td>
</tr>
<tr>
<td COLSPAN="3"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="Arial, Helvetica"><font color="#000000"><font size=+0>
<a href="#tx24">Indebtedness of Management</a></font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP></td>
</tr>
<tr>
<td COLSPAN="3"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="Arial, Helvetica"><font color="#000000"><font size=+0>
<a href="#tx25">Section 16(a) Beneficial Ownership Reporting Compliance</a></font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP></td>
</tr>
<tr>
<td COLSPAN="3"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="Arial, Helvetica"><font color="#000000"><font size=+0>
<a href="#tx26">Stockholder Proposals for 2000 Annual Meeting</a></font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP></td>
</tr>
<tr>
<td COLSPAN="3"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="Arial, Helvetica"><font color="#000000"><font size=+0>
<a href="#tx27">Annual Report</a></font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP></td>
</tr>
<tr>
<td COLSPAN="3"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="Arial, Helvetica"><font color="#000000"><font size=+0><a href="#exa01">AutoZone,
Inc. 2000 Executive Incentive Compensation Plan</a></font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP></td>
</tr>
<p>
<hr WIDTH="100%">
<center>
<p><b><font face="Arial,
Helvetica"><font color="#000000"><font size=+0>AutoZone,
Inc.</font></font></font></b>
<br><font face="Arial,
Helvetica"><font color="#000000"><font size=+0>123
South Front Street</font></font></font>
<br><font face="Arial,
Helvetica"><font color="#000000"><font size=+0>Memphis,
Tennessee 38103</font></font></font>
<p><b><font face="Arial,
Helvetica"><font color="#000000"><font size=+0>Proxy
Statement</font></font></font></b>
<br><font face="Arial,
Helvetica"><font color="#000000"><font size=+0>for</font></font></font>
<br><font face="Arial,
Helvetica"><font color="#000000"><font size=+0>Annual
Meeting of Stockholders</font></font></font>
<br><font face="Arial,
Helvetica"><font color="#000000"><font size=+0>December
9, 1999</font></font></font></center>
<hr SIZE=1 NOSHADE>
<center><a NAME="tx01"></a><b><font face="Arial,
Helvetica"><font color="#000000"><font size=+0>The
Meeting</font></font></font></b></center>
<hr SIZE=1 NOSHADE> <font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>
Our Annual Meeting will be held at the Orpheum Theater, 203 South Main
Street, Memphis, Tennessee, beginning at 10 a.m. on December 9, 1999.</font></font></font>
<p><a NAME="tx02"></a><b><i><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>About
this Proxy Statement</font></font></font></i></b>
<p><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>
Our Board of Directors has sent you this Proxy Statement to solicit your
vote at the Annual Meeting. We will pay all expenses incurred in this proxy
solicitation. In addition to mailing this Proxy Statement to you, we have
hired Beacon Hill Partners to be our proxy solicitation agent for a fee
of $4,500 plus expenses. We also may make additional solicitations in person,
by telephone, facsimile, e-mail, or other forms of communication. Brokers,
banks and others who hold our stock for the beneficial owners will be reimbursed
by us for their expenses related to forwarding our proxy materials to the
beneficial owners. This Proxy Statement is first being mailed on October
25, 1999.</font></font></font>
<p><a NAME="tx03"></a><b><i><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>Information
about Voting</font></font></font></i></b>
<p><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>
If you were a stockholder of record as of October 12, 1999, you may vote
your shares:</font></font></font>
<br>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="5%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0> •</font></font></font></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="95%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>By
Proxy You can vote via the Internet, by telephone, or by completing
and returning the enclosed proxy card to us by mail. <i>We encourage you
to vote by telephone or Internet, both of which are convenient, cost-effective
and reliable alternatives to returning your proxy card by mail</i>. The
instructions for voting are contained on the enclosed proxy card. The individuals
named on the card, your "proxies," will vote your shares as you indicate.
If you sign your card without indicating how you wish to vote, your shares
will be voted FOR our nominees for director, will be voted FOR the executive
incentive compensation plan, will be voted FOR Ernst & Young LLP as
independent auditors, and, in the proxies discretion, on any other matter
that may be properly brought before the meeting. You may revoke your proxy
at any time before it is voted at the meeting by sending a written notice
to our Secretary (at the address at the top of the page) that you have
revoked the proxy, by providing a later dated proxy, or by voting in person
at the Annual Meeting.</font></font></font></td>
</tr>
<br>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="5%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>•</font></font></font></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="95%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>In
Person You may attend the Annual Meeting and vote in person.</font></font></font></td>
</tr>
<p> <font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>
If you held your shares in an account with a bank, broker or other entity
on the record date, please follow the instructions given to you on your
ballot regarding casting your vote.</font></font></font>
<p><a NAME="tx04"></a><b><i><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>Voting
Securities</font></font></font></i></b>
<p><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>
At the close of business on October 12, 1999, we had 138,935,636 shares
of common stock outstanding. Each share of common stock is entitled to
one vote. Only stockholders of record at the close of business on Tuesday,
October 12, 1999, will be entitled to vote.</font></font></font>
<p><a NAME="tx05"></a><b><i><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>Quorum
and Required Votes</font></font></font></i></b>
<p><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>
Holders of a majority of the shares of common stock outstanding must be
present in person or by proxy in order for a quorum to be present. Votes
on the proposals will be tallied as follows:</font></font></font>
<br>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="3%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>•</font></font></font></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="97%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Election
of Directors - The ten persons nominated for director receiving the most
votes will be elected.</font></font></font></td>
</tr>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="3%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>•</font></font></font></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="97%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Approval
of executive incentive compensation plan - For approval, the plan must
receive an affirmative vote from a majority of the shares present and voting.
Abstentions will be counted as if they were votes against the plan. Broker
non-votes will not be counted as voting either for or against the plan. </font></font></font></td>
</tr>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="3%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>•</font></font></font></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="97%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Approval
of independent auditors - For approval, the auditors must receive an affirmative
vote from a majority of the shares present and voting. Abstentions will
be counted as if they were votes against the auditors. Broker non-votes
will not be counted as voting either for or against the auditors. However,
we are not bound by a vote either for or against the auditors. The Board
of Directors and the Audit Committee will consider a vote against the auditors
by the stockholders in selecting auditors in the future.</font></font></font></td>
</tr>
<p>
<hr SIZE=1 NOSHADE>
<center><a NAME="tx06"></a><b><font face="Arial,
Helvetica"><font color="#000000"><font size=+0>The
Proposals</font></font></font></b></center>
<hr SIZE=1 NOSHADE><a NAME="tx07"></a><b><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>PROPOSAL
1-ELECTION OF DIRECTORS</font></font></font></b>
<p><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>
Ten directors will be elected at the Annual Meeting to serve until the
Annual Meeting in 2000. Each of the nominees named below was elected a
director at the 1998 annual meeting, except for Mr. Lampert who is being
nominated to serve on the Board of Directors for the first time at this
meeting. These nominees have consented to serve if elected, but should
any nominee be unavailable to serve, your proxy will vote for the substitute
nominee recommended by the Board of Directors. The nominees are:</font></font></font>
<br>
<center><table BORDER CELLSPACING=2 CELLPADDING=7 WIDTH="590" BORDERCOLOR="#008000" >
<tr>
<td VALIGN=TOP WIDTH="35%">
<center><b><u>Nominee</u></b></center>
</td>
<td VALIGN=TOP WIDTH="7%">
<center><b><u>Age</u></b></center>
</td>
<td VALIGN=TOP WIDTH="58%">
<center><b><u>Positions Held</u></b></center>
</td>
</tr>
<tr>
<td VALIGN=TOP WIDTH="35%"><b><i>John C. Adams, Jr.</i></b>
<br><i>Chairman, Chief Executive</i>
<br><i>Officer & Director</i>
<br><i>Customer Satisfaction</i></td>
<td VALIGN=TOP WIDTH="7%">
<center>51</center>
</td>
<td VALIGN=TOP WIDTH="58%"><i>With AutoZone:</i>
<ul>
<li>
Director since 1996</li>
<li>
Chairman since 1997</li>
<li>
CEO since December 1996</li>
<li>
President from December 1996 to March 1997</li>
<li>
Vice Chairman and Chief Operating Officer from March 1996 to December 1996</li>
<li>
Executive Vice President - Distribution from January 1995 to March 1996</li>
<li>
President of Miami Division of Malone & Hyde, Inc. from 1983 to 1990</li>
</ul>
<i>With Others:</i>
<ul>
<li>
Part Owner of Nicotiana Enterprises, Inc., a food distribution company,
from 1990 to 1994</li>
<li>
Director of Keebler Foods Company</li>
</ul>
</td>
</tr>
<tr>
<td VALIGN=TOP WIDTH="35%"><b><i>Andrew M. Clarkson</i></b>
<br><i>Director</i>
<br><i>Chairman of Finance Committee</i>
<br><i>Customer Satisfaction</i></td>
<td VALIGN=TOP WIDTH="7%">
<center>62</center>
</td>
<td VALIGN=TOP WIDTH="58%"><i>With AutoZone:</i>
<ul>
<li>
Director since 1986</li>
<li>
Chairman of Finance Committee since 1995</li>
<li>
Treasurer from 1990 to 1995 and from 1986 to 1988</li>
<li>
Secretary from 1988 to 1993</li>
<li>
Chief Financial Officer of Malone & Hyde, Inc., from 1983 to 1988</li>
</ul>
<i>With Others:</i>
<ul>
<li>
Director of Amphenol Corporation</li>
</ul>
</td>
</tr>
<tr>
<td VALIGN=TOP WIDTH="35%"><b><i>N. Gerry House</i></b>
<br><i>Director</i>
<br><i>Customer Satisfaction</i></td>
<td VALIGN=TOP WIDTH="7%">
<center>52</center>
</td>
<td VALIGN=TOP WIDTH="58%"><i>With AutoZone:</i>
<ul>
<li>
Director since 1996</li>
</ul>
<i>With Others:</i>
<ul>
<li>
Superintendent of Memphis, Tennessee, City School System since 1992</li>
<li>
Trustee of Educational Testing Service (ETS)</li>
</ul>
</td>
</tr>
<tr>
<td VALIGN=TOP WIDTH="35%"><b><i>Robert J. Hunt</i></b>
<br><i>Executive Vice President, Chief Financial Officer & Director</i>
<br><i>Customer Satisfaction</i></td>
<td VALIGN=TOP WIDTH="7%">
<center>50</center>
</td>
<td VALIGN=TOP WIDTH="58%"><i>With AutoZone:</i>
<ul>
<li>
Director since 1997</li>
<li>
Executive Vice President and Chief Financial Officer since 1994</li>
<li>
Executive Vice President and Chief Financial Officer for Malone & Hyde,
Inc. from 1988 to 1991</li>
</ul>
<i>With Others:</i>
<ul>
<li>
Executive Vice President, Chief Financial Officer & Director for The
Price Company from 1991 to 1993</li>
</ul>
</td>
</tr>
<tr>
<td VALIGN=TOP WIDTH="35%"><b><i>J.R. Hyde, III</i></b>
<br><i>Director</i>
<br><i>Customer Satisfaction</i></td>
<td VALIGN=TOP WIDTH="7%">
<center>56</center>
</td>
<td VALIGN=TOP WIDTH="58%"><i>With AutoZone:</i>
<ul>
<li>
Director since 1986</li>
<li>
Chairman from 1986 to 1997</li>
<li>
Chief Executive Officer from 1986 to 1996</li>
<li>
Chairman and Chief Executive Officer of Malone & Hyde, Inc., until
1988</li>
</ul>
<i>With Others:</i>
<ul>
<li>
President of Pittco, Inc., an investment company, since 1989</li>
<li>
Director of FDX Corporation</li>
</ul>
</td>
</tr>
<tr>
<td VALIGN=TOP WIDTH="35%"><b><i>James F. Keegan</i></b>
<br><i>Director</i>
<br><i>Customer Satisfaction</i></td>
<td VALIGN=TOP WIDTH="7%">
<center>67</center>
</td>
<td VALIGN=TOP WIDTH="58%"><i>With AutoZone:</i>
<ul>
<li>
Director since 1991</li>
</ul>
<i>With Others:</i>
<ul>
<li>
Chairman of Adams Keegan, Inc., a professional employer organization, since
1997</li>
<li>
Managing Director of Weibel Huffman Keegan, Inc., an investment management
firm, until 1997</li>
</ul>
</td>
</tr>
<tr>
<td VALIGN=TOP WIDTH="35%"><b><i>Edward S. Lampert</i></b>
<br><i>Nominee for Director</i>
<br><i>Customer Satisfaction</i></td>
<td VALIGN=TOP WIDTH="7%">
<center>37</center>
</td>
<td VALIGN=TOP WIDTH="58%"><i>With Others:</i>
<ul>
<li>
Chief Executive Officer of ESL Investments, Inc., a private investment
firm, since 1988</li>
</ul>
</td>
</tr>
<tr>
<td VALIGN=TOP WIDTH="35%"><b><i>Michael W. Michelson</i></b>
<br><i>Director</i>
<br><i>Customer Satisfaction</i></td>
<td VALIGN=TOP WIDTH="7%">
<center>48</center>
</td>
<td VALIGN=TOP WIDTH="58%"><i>With AutoZone:</i>
<ul>
<li>
Director since 1986</li>
</ul>
<i>With Others:</i>
<ul>
<li>
Member of limited liability company which is general partner of Kohlberg
Kravis Roberts & Co., L.P. since 1996</li>
<li>
General Partner of Kohlberg Kravis Roberts & Co., L.P., prior to 1996</li>
<li>
General Partner of KKR Associates, L.P.</li>
<li>
Director of Amphenol Corporation, Owens-Illinois, Inc., Owens-Illinois
Group, Inc., and Promus Hotel Corporation</li>
</ul>
</td>
</tr>
<tr>
<td VALIGN=TOP WIDTH="35%"><b><i>Ronald A. Terry</i></b>
<br><i>Director</i>
<br><i>Customer Satisfaction</i></td>
<td VALIGN=TOP WIDTH="7%">
<center>68</center>
</td>
<td VALIGN=TOP WIDTH="58%"><i>With AutoZone:</i>
<ul>
<li>
Director since 1995</li>
</ul>
<i>With Others:</i>
<ul>
<li>
Chairman of First Tennessee National Corporation from 1973 to 1995</li>
<li>
Chief Executive Officer of First Tennessee National Corporation from 1973
to 1994</li>
<li>
Director of BellSouth Corporation and Promus Hotel Corporation</li>
</ul>
</td>
</tr>
<tr>
<td VALIGN=TOP WIDTH="35%"><b><i>Timothy D. Vargo</i></b>
<br><i>President, Chief Operating Officer & Director</i>
<br><i>Customer Satisfaction</i></td>
<td VALIGN=TOP WIDTH="7%">
<center>48</center>
</td>
<td VALIGN=TOP WIDTH="58%"><i>With AutoZone:</i>
<ul>
<li>
Director since 1996</li>
<li>
President since March 1997</li>
<li>
Chief Operating Officer since December 1996</li>
<li>
Vice Chairman from March 1996 to March 1997</li>
<li>
Executive Vice President - Merchandising and Systems Technology from June
1995 to March 1996</li>
<li>
Senior Vice President from March to June 1995</li>
<li>
Senior Vice President - Merchandising & Distribution from 1986 to 1992</li>
<li>
Director of Stores for Auto Shack, division of Malone & Hyde, Inc.,
from 1984 to 1986</li>
</ul>
</td>
</tr>
</center>
<font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Note:
Malone & Hyde, Inc., is the former parent company of AutoZone.</font></font></font>
<br>
<p><b><font face="'Times
New Roman', Times"><font color="#000000"><font size=+0>Board
Meetings and Committees</font></font></font></b>
<p><font face="'Times
New Roman', Times"><font color="#000000"><font size=+0>
The Board of Directors held five meetings in fiscal year 1999. Each incumbent
director attended at least 75% of the total of the Board of Directors and
committee meetings during the fiscal year, except for Dr. House.</font></font></font>
<p><font face="'Times
New Roman', Times"><font color="#000000"><font size=+0>
The Board of Directors has three committees: the Audit Committee, the Compensation
Committee, and the Finance Committee. The Board of Directors does not have
a nominating committee.</font></font></font>
<p><font face="'Times
New Roman', Times"><font color="#000000"><font size=+0>
The Audit Committee recommends the engagement of independent auditors,
confers with our internal and external auditors regarding the adequacy
of our financial controls and fiscal policy, and directs changes to financial
policies or procedures as suggested by the auditors. During fiscal year
1999, the Audit Committee met two times. For the 1999 fiscal year, the
Audit Committee consisted of Mr. Keegan (Chairman), and Mr. Terry.</font></font></font>
<p><font face="'Times
New Roman', Times"><font color="#000000"><font size=+0>
The Compensation Committee sets the compensation levels for all officers,
including salary and bonus levels. In addition, the Compensation Committee
administers AutoZone's stock option and stock purchase plans. The Compensation
Committee, consisting of Mr. Terry (Chairman), Mr. Keegan, and Dr. House,
held four meetings during fiscal year 1999.</font></font></font>
<p><font face="'Times
New Roman', Times"><font color="#000000"><font size=+0>
The Finance Committee reviews AutoZone's financing options and makes recommendations
to the full Board and management as to appropriate financing mechanisms.
During fiscal year 1999, the Finance Committee, consisting of Mr. Clarkson
(Chairman) and Mr. Michelson, held two meetings.</font></font></font>
<br>
<p><a NAME="tx08"></a><b><font face="Arial,
Helvetica"><font color="#000000"><font size=-1>PROPOSAL
2-APPROVAL OF EXECUTIVE INCENTIVE COMPENSATION PLAN</font></font></font></b>
<p><font face="'Times
New Roman', Times"><font color="#000000"><font size=+0>
The following is a summary of the AutoZone, Inc. 2000 Executive Incentive
Compensation Plan. For complete details please see the plan, which is reproduced
in its entirety as Exhibit A to this proxy statement.</font></font></font>
<p><b><i><font face="'Times
New Roman', Times"><font color="#000000"><font size=+0>What
is the executive incentive compensation plan?</font></font></font></i></b>
<p><font face="'Times
New Roman', Times"><font color="#000000"><font size=+0>
The federal tax code prohibits us from deducting compensation in excess
of $1 million for the chief executive officer and our other four most highly
paid officers unless the compensation in excess of $1 million is based
on an objective measure of performance. The AutoZone, Inc. 2000 Executive
Incentive Compensation Plan is intended to qualify as a performance-based
compensation plan under the federal tax code so that performance bonuses
paid to our executive officers are tax deductible to AutoZone. The plan
requires that the Compensation Committee establish objective performance
goals and that the performance goals be met before a participant may receive
a bonus.</font></font></font>
<p><b><i><font face="'Times
New Roman', Times"><font color="#000000"><font size=+0>Who
is eligible to participate in the plan?</font></font></font></i></b>
<p><font face="'Times
New Roman', Times"><font color="#000000"><font size=+0>
The executive officers, as determined by the Compensation Committee, are
eligible to participate in the plan.</font></font></font>
<p><b><i><font face="'Times
New Roman', Times"><font color="#000000"><font size=+0>How
are performance goals established?</font></font></font></i></b>
<p><font face="'Times
New Roman', Times"><font color="#000000"><font size=+0>
Under the plan, at the beginning of each fiscal year, the Compensation
Committee must establish a goal, which may be a range from a minimum to
a maximum attainable bonus. The goal may be based on one or more of the
following measures:</font></font></font>
<br>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="3%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>•</font></font></font></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="97%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Earnings</font></font></font></td>
</tr>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="3%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>•</font></font></font></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="97%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Earnings
per share</font></font></font></td>
</tr>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="3%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>•</font></font></font></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="97%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Common
stock price</font></font></font></td>
</tr>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="3%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>•</font></font></font></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="97%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Market
share</font></font></font></td>
</tr>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="3%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>•</font></font></font></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="97%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Sales</font></font></font></td>
</tr>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="3%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>•</font></font></font></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="97%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Revenue</font></font></font></td>
</tr>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="3%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>•</font></font></font></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="97%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Operating
or net cash flows </font></font></font></td>
</tr>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="3%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>•</font></font></font></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="97%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Pre-tax
profits</font></font></font></td>
</tr>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="3%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>•</font></font></font></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="97%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Earnings
before interest and taxes</font></font></font></td>
</tr>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="3%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>•</font></font></font></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="97%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Return
on capital</font></font></font></td>
</tr>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="3%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>•</font></font></font></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="97%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Economic
value added</font></font></font></td>
</tr>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="3%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>•</font></font></font></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="97%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Return
on inventory</font></font></font></td>
</tr>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="3%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>•</font></font></font></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="97%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Operating
margin</font></font></font></td>
</tr>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="3%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>•</font></font></font></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="97%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Gross
profit margin</font></font></font></td>
</tr>
<p> <font face="'Times
New Roman', Times"><font color="#000000"><font size=+0>
The goal may be different for different executives. No bonus may be paid
under the plan unless at least the minimum goal is attained. However, the
committee may disregard for goal purposes one-time charges and extraordinary
events such as asset write-downs, litigation judgments or settlements,
the effect of changes in tax laws, accounting principles or other laws
or provisions affecting reported results, accruals for reorganization or
restructuring, and any other extraordinary non-recurring items, acquisitions
or divestitures and any foreign exchange gains or losses.</font></font></font>
<p><b><i><font face="'Times
New Roman', Times"><font color="#000000"><font size=+0>What
is the maximum compensation that a participant may receive under the plan?</font></font></font></i></b>
<p><font face="'Times
New Roman', Times"><font color="#000000"><font size=+0>No
participant may receive more than the lesser of 150% of the executive's
annual salary or $2 million as a bonus under the plan.</font></font></font>
<p><b><i><font face="'Times
New Roman', Times"><font color="#000000"><font size=+0>How
is the bonus paid under the plan?</font></font></font></i></b>
<p><font face="'Times
New Roman', Times"><font color="#000000"><font size=+0>
After the end of each fiscal year, the Compensation Committee must certify
the attainment of goals, if any, under the plan and direct the amount to
be paid to each participant. The committee, in its discretion, may reduce
or eliminate any bonus to be paid to an executive, even if a goal was attained.
The bonus may only be paid after the attainment of the goals has been certified.
The bonus may be paid in cash or in whole or part in common stock, at the
option of the Compensation Committee.</font></font></font>
<p><b><i><font face="'Times
New Roman', Times"><font color="#000000"><font size=+0>Does
AutoZone currently have an executive incentive compensation plan?</font></font></font></i></b>
<p><font face="'Times
New Roman', Times"><font color="#000000"><font size=+0>
Currently, the AutoZone, Inc. Executive Incentive Compensation Plan is
in effect. The existing plan will expire in December 1999. Therefore, we
are proposing the new plan.</font></font></font>
<p><b><i><font face="'Times
New Roman', Times"><font color="#000000"><font size=+0>What
are the differences between the new plan and the existing plan?</font></font></font></i></b>
<p><font face="'Times
New Roman', Times"><font color="#000000"><font size=+0>
The two plans are essentially similar, except that the existing plan required
the target amount to be based upon pre-tax earnings and the new plan allows
the committee more flexibility in selecting the goal measure. In addition,
the old plan had a maximum of 100% of salary which could be paid as a bonus
and the new plan will allow up to 150% of salary to be paid as a bonus.</font></font></font>
<p><b><i><font face="'Times
New Roman', Times"><font color="#000000"><font size=+0>Who
participated in the existing plan last fiscal year?</font></font></font></i></b>
<p><font face="'Times
New Roman', Times"><font color="#000000"><font size=+0>
Last fiscal year, 11 AutoZone executives were granted bonuses under the
existing plan. This table shows bonuses for the named executive officers
and all executive officers as a group under the existing plan, in the last
fiscal year:</font></font></font>
<br>
<center><table CELLSPACING=0 CELLPADDING=0 WIDTH="56%" >
<tr>
<th ALIGN=LEFT VALIGN=BOTTOM NOWRAP><b><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Name
and Position</font></font></font></b></th>
<th><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM NOWRAP><b><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Dollar </font></font></font></b>
<br><b><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Value
($)</font></font></font></b></th>
</tr>
<tr>
<td COLSPAN="3">
<hr SIZE=1 NOSHADE></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>John
C. Adams, Jr.</font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>265,200 </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Chairman
& Chief Executive Officer</font></font></font></td>
<td><font size=-2> </font></td>
<td></td>
</tr>
<tr>
<td COLSPAN="3"><font size=-2> </font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Timothy
D. Vargo</font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>212,200 </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>President
& Chief Operating Officer</font></font></font></td>
<td><font size=-2> </font></td>
<td></td>
</tr>
<tr>
<td COLSPAN="3"><font size=-2> </font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Robert
J. Hunt</font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>114,750 </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Executive
Vice President & Chief Financial Officer</font></font></font></td>
<td><font size=-2> </font></td>
<td></td>
</tr>
<tr>
<td COLSPAN="3"><font size=-2> </font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Gerald
E. Colley</font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>76,250 </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Senior
Vice President</font></font></font></td>
<td><font size=-2> </font></td>
<td></td>
</tr>
<tr>
<td COLSPAN="3"><font size=-2> </font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>David
J. Wilhite</font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>75,000 </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Senior
Vice President</font></font></font></td>
<td><font size=-2> </font></td>
<td></td>
</tr>
<tr>
<td COLSPAN="3"><font size=-2> </font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=+0><a href="#foot01">Executive
Group<sup>1</sup></a></font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>1,031,900 </font></font></font></td>
</tr>
<tr>
<td COLSPAN="3"><font size=-2> </font></td>
</tr>
</center>
_______________
<br><a NAME="foot01"></a><font color="#000000"><sup><font face="'Times New
Roman', Times"><font size=-1>1</font></font></sup><font face="'Times New Roman', Times"><font size=+0>Eleven
persons, including all of the persons named above.</font></font></font>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
<b>The
Board of Directors recommends that you vote FOR approval of the AutoZone,
Inc. 2000 Executive Incentive Compensation Plan.</b></font></font></font>
<br>
<p><a NAME="tx09"></a><b><font face="Arial, Helvetica"><font color="#000000"><font size=-1>PROPOSAL
3 - APPROVAL OF INDEPENDENT AUDITORS</font></font></font></b>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
Ernst & Young LLP, which has been our independent auditor for the past
twelve fiscal years, has again been selected by the Audit Committee to
be AutoZone's independent auditors for fiscal year 2000. Members of Ernst
& Young LLP will be present at the Annual Meeting to make a statement
if they so desire and to answer any appropriate questions.</font></font></font>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
<b>The Board of Directors recommends that you vote FOR approval of Ernst
& Young</b> <b>LLP as independent auditors.</b></font></font></font>
<p><a NAME="tx10"></a><b><font face="Arial, Helvetica"><font color="#000000"><font size=-1>OTHER
MATTERS</font></font></font></b>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
We do not know of any matters to be presented at the Annual Meeting other
than those discussed in this proxy statement. If, however, other matters
are properly brought before the Annual Meeting, your proxy will be able
to vote those matters in their discretion.</font></font></font>
<br>
<p>
<hr SIZE=1 NOSHADE>
<center><a NAME="tx11"></a><b><font face="Arial, Helvetica"><font color="#000000"><font size=+0>Other
Information</font></font></font></b></center>
<hr SIZE=1 NOSHADE><a NAME="tx12"></a><b><font face="Arial, Helvetica"><font color="#000000"><font size=+0>SECURITY
OWNERSHIP OF MANAGEMENT</font></font></font></b>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
This table shows the beneficial ownership of common stock as of October
12, 1999, by each director, the Chief Executive Officer, the other four
most highly compensated executive officers, and all incumbent directors
and executive officers as a group. Unless stated otherwise in the notes
to the table, each person named below has sole authority to vote and invest
the shares shown.</font></font></font>
<br>
<center><table CELLSPACING=0 CELLPADDING=0 WIDTH="52%" >
<tr>
<th WIDTH="91%"><font face="'Times New Roman', Times"><font color="#000000"><font size=-2> </font></font></font></th>
<th WIDTH="1%"><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM COLSPAN="3" NOWRAP><b><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>Beneficial
Ownership </font></font></font></b>
<br><b><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>as
of </font></font></font></b>
<br><b><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>October
12, 1998</font></font></font></b>
<hr ALIGN="center"
WIDTH="100%" SIZE=1 NOSHADE></th>
</tr>
<tr>
<th ALIGN=LEFT VALIGN=BOTTOM NOWRAP WIDTH="91%"><b><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>Name
of Beneficial Owner</font></font></font></b></th>
<th WIDTH="1%"><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM NOWRAP WIDTH="5%"><b><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>Shares</font></font></font></b></th>
<th WIDTH="1%"><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM NOWRAP WIDTH="4%"><b><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>Percent</font></font></font></b></th>
</tr>
<tr>
<td COLSPAN="5">
<hr SIZE=1 NOSHADE></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP WIDTH="91%"><a href="#foot02">John
C. Adams, Jr. <sup><font face="'Times New Roman',
Times"><font color="#000000"><font size=-2>1</font></font></font></sup></a></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="5%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>110,407</font></font></font></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="4%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>*</font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP WIDTH="91%"><a href="#foot03">Andrew
M. Clarkson <sup><font face="'Times New Roman',
Times"><font color="#000000"><font size=-2>2</font></font></font></sup></a></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="5%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>480,820</font></font></font></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="4%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>*</font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP WIDTH="91%"><a href="#foot04">N. Gerry
House <sup><font face="'Times New Roman',
Times"><font color="#000000"><font size=-2>3</font></font></font></sup></a></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="5%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>748</font></font></font></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="4%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>*</font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP WIDTH="91%"><a href="#foot05">Robert
J. Hunt <sup><font face="'Times New Roman',
Times"><font color="#000000"><font size=-2>4</font></font></font></sup></a></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="5%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>190,287</font></font></font></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="4%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>*</font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP WIDTH="91%"><a href="#foot06">J.R.
Hyde, III <sup><font face="'Times New Roman',
Times"><font color="#000000"><font size=-2>5</font></font></font></sup></a></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="5%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>2,256,498</font></font></font></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="4%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>1.6%</font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP WIDTH="91%"><a href="#foot07">James
F. Keegan <sup><font face="'Times New Roman',
Times"><font color="#000000"><font size=-2>6</font></font></font></sup></a></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="5%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>11,521</font></font></font></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="4%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>*</font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP WIDTH="91%"><a href="#foot08">Edward
S. Lampert <sup><font face="'Times New Roman',
Times"><font color="#000000"><font size=-2>7</font></font></font></sup></a></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="5%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>21,761,400</font></font></font></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="4%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>15.7%</font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP WIDTH="91%"><a href="#foot09">Michael
W. Michelson <sup><font face="'Times New Roman',
Times"><font color="#000000"><font size=-2>8</font></font></font></sup></a></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="5%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>513,483</font></font></font></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="4%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>*</font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP WIDTH="91%"><a href="#foot10">Ronald
A. Terry <sup><font face="'Times New Roman',
Times"><font color="#000000"><font size=-2>8</font></font></font></sup></a></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="5%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>6,728</font></font></font></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="4%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>*</font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP WIDTH="91%"><a href="#foot11">Timothy
D. Vargo <sup><font face="'Times New Roman',
Times"><font color="#000000"><font size=-2>9 </font></font></font></sup></a></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="5%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>66,730</font></font></font></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="4%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>*</font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP WIDTH="91%"><a href="#foot12">Gerald
E. Colley <sup><font face="'Times New Roman',
Times"><font color="#000000"><font size=-2>10</font></font></font></sup></a></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="5%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>5,683</font></font></font></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="4%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>*</font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP WIDTH="91%"><a href="#foot13">David
J. Wilhite <sup><font face="'Times New Roman',
Times"><font color="#000000"><font size=-2>11</font></font></font></sup></a></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="5%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>19,676</font></font></font></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="4%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>*</font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP WIDTH="91%"><a href="#foot14">All incumbent
directors and </a>
<br><a href="#foot14">executive officers as a </a>
<br><a href="#foot14">group (19 persons) <sup><font face="'Times New Roman',
Times"><font color="#000000"><font size=-2>12</font></font></font></sup></a></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="5%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>3,927,852</font></font></font></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="4%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>2.8%</font></font></font></td>
</tr>
</center>
<hr ALIGN=LEFT SIZE=1 NOSHADE WIDTH="10%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>*Less
than 1%</font></font></font>
<p><a NAME="foot02"></a><font color="#000000"><sup><font face="'Times New
Roman', Times"><font size=-2>1</font></font></sup><font face="'Times New Roman', Times"><font size=+0>Does
not include 1,572 shares held in trusts for the benefit of Mr. Adam's children.
Includes 100,000 shares issuable upon exercise of stock options either
immediately or within 60 days of October 12, 1999.</font></font></font>
<p><a NAME="foot03"></a><font color="#000000"><sup><font face="'Times New
Roman', Times"><font size=-2>2</font></font></sup><font face="'Times New Roman', Times"><font size=+0>Includes
119,400 shares held by a charitable trust for which Mr. Clarkson is a trustee
and shares investment and voting power, with respect to which Mr. Clarkson
disclaims beneficial ownership. Does not include 1,000 shares owned by
members of Mr. Clarkson's immediate family nor does it include 28,000 shares
held in trust for the benefit of a member of Mr. Clarkson's family, with
respect to which he disclaims beneficial ownership.</font></font></font>
<p><a NAME="foot04"></a><font color="#000000"><sup><font face="'Times New
Roman', Times"><font size=-2>3</font></font></sup><font face="'Times New Roman', Times"><font size=+0>Includes
748 shares which may be acquired immediately upon termination as a director
by conversion of stock appreciation rights.</font></font></font>
<p><a NAME="foot05"></a><font color="#000000"><sup><font face="'Times New
Roman', Times"><font size=-2>4</font></font></sup><font face="'Times New Roman', Times"><font size=+0>Includes
2,000 shares owned by Mr. Hunt's wife and 75,000 shares which may be acquired
upon exercise of stock options either immediately or within 60 days of
October 12, 1999.</font></font></font>
<p><a NAME="foot06"></a><a NAME="foot06"></a><font color="#000000"><sup><font face="'Times New
Roman', Times"><font size=-2>5</font></font></sup><font face="'Times New Roman', Times"><font size=+0>Includes
740,000 shares held by a charitable foundation for which Mr. Hyde is an
officer and a director and for which he shares investment and voting power,
and includes 1,559 shares which may be acquired immediately upon termination
as a director by conversion of stock appreciation rights. Does not include
2,000 shares owned by Mr. Hyde's wife.</font></font></font>
<p><a NAME="foot07"></a><font color="#000000"><sup><font face="'Times New
Roman', Times"><font size=-2>6</font></font></sup><font face="'Times New Roman', Times"><font size=+0>Does
not include 800 shares owned by a member of Mr. Keegan's family with respect
to which Mr. Keegan disclaims any beneficial ownership.</font></font></font>
<p><a NAME="foot08"></a><font color="#000000"><sup><font face="'Times New
Roman', Times"><font size=-2>7</font></font></sup><font face="'Times New Roman', Times"><font size=+0>Mr.
Lampert is the Chief Executive Officer and a director of ESL Investments,
Inc., a Delaware corporation. Mr. Lampert is also the managing member of
ESL Investment Management, LLC, a Delaware limited liability company, and
RBS Investment Management, LLC, a Delaware limited liability company. All
shares indicated are owned by ESL Partners, L.P., a Delaware limited partnership,
ESL Limited, a Bermuda corporation, ESL Institutional Partners, L.P., a
Delaware limited partnership, Acres Partners, L.P., a Delaware limited
partnership, and Marion Partners, L.P., a Delaware limited partnership.
Mr. Lampert may be deemed to have indirect beneficial ownership of the
shares owned by these entities. See also footnote 1 under Security Ownership
of Certain Beneficial Owners, below.</font></font></font>
<p><a NAME="foot09"></a><a NAME="foot10"></a><font color="#000000"><sup><font face="'Times New
Roman', Times"><font size=-2>8</font></font></sup><font face="'Times New Roman', Times"><font size=+0>Includes
1,600 shares which may be acquired immediately upon termination as a director
by conversion of stock appreciation rights.</font></font></font>
<p><a NAME="foot11"></a><font color="#000000"><sup><font face="'Times New
Roman', Times"><font size=-2>9</font></font></sup><font face="'Times New Roman', Times"><font size=+0>Includes
50,000 shares which may be acquired upon exercise of stock options either
immediately or within 60 days of October 12, 1999. Does not include 4,635
shares owned by members of Mr. Vargo's immediate family.</font></font></font>
<p><a NAME="foot12"></a><font color="#000000"><sup><font face="'Times New
Roman', Times"><font size=-2>10</font></font></sup><font face="'Times New Roman', Times"><font size=+0>Includes
5,167 shares which may be acquired upon exercise of stock options either
immediately or within 60 days of October 12, 1999. Does not include 5,000
shares owned by Mr. Colley's wife.</font></font></font>
<p><a NAME="foot13"></a><font color="#000000"><sup><font face="'Times New
Roman', Times"><font size=-2>11</font></font></sup><font face="'Times New Roman', Times"><font size=+0>Includes
18,666 shares which may be acquired upon exercise of stock options either
immediately or within 60 days of October 12, 1999.</font></font></font>
<p><a NAME="foot14"></a><font color="#000000"><sup><font face="'Times New
Roman', Times"><font size=-2>12</font></font></sup><font face="'Times New Roman', Times"><font size=+0>Includes
479,500 shares which may be acquired upon exercise of stock options either
immediately or within 60 days of October 12, 1999, and 5,507 shares which
may be acquired immediately upon termination as a director by conversion
of stock appreciation rights. Does not include shares deemed beneficially
owned by Mr. Lampert.</font></font></font>
<p><a NAME="tx13"></a><b><font face="Arial, Helvetica"><font color="#000000"><font size=-1>SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS</font></font></font></b>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
The following entities are known by us to own more than five percent of
the outstanding common stock:</font></font></font>
<br>
<center><table CELLSPACING=0 CELLPADDING=0 WIDTH="50%" >
<tr>
<th WIDTH="91%"><font face="'Times New Roman', Times"><font color="#000000"><font size=-2> </font></font></font></th>
<th WIDTH="1%"><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM COLSPAN="3" NOWRAP><b><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>Beneficial
Ownership</font></font></font></b>
<hr
ALIGN="center" WIDTH="100%" SIZE=1 NOSHADE></th>
</tr>
<tr>
<th ALIGN=LEFT VALIGN=BOTTOM NOWRAP WIDTH="91%"><b><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>Name
and Address </font></font></font></b>
<br><b><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>of
Beneficial Owner</font></font></font></b></th>
<th WIDTH="1%"><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM NOWRAP WIDTH="5%"><b><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>Shares</font></font></font></b></th>
<th WIDTH="1%"><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM NOWRAP WIDTH="4%"><b><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>Percent</font></font></font></b></th>
</tr>
<tr>
<td COLSPAN="5">
<hr SIZE=1 NOSHADE></td>
</tr>
<tr>
<td COLSPAN="5"><font size=-2> </font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP WIDTH="91%"><a href="#foot15">Capital
Research and </a>
<br><a href="#foot15">Management Company <sup><font face="'Times New Roman',
Times"><font color="#000000"><font size=-2>1</font></font></font></sup></a></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="5%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>7,840,000</font></font></font></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="4%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>5.6</font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP WIDTH="91%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>333
South Hope Street</font></font></font></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td WIDTH="5%"></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td WIDTH="4%"></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP WIDTH="91%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>Los
Angeles, CA 90071</font></font></font></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td WIDTH="5%"></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td WIDTH="4%"></td>
</tr>
<tr>
<td COLSPAN="5"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td COLSPAN="5"><font size=-2> </font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP WIDTH="91%"><a href="#foot16">ESL Investments,
Inc. <sup><font face="'Times New Roman',
Times"><font color="#000000"><font size=-2>2</font></font></font></sup></a></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="5%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>21,761,400</font></font></font></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="4%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>15.7</font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP WIDTH="91%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>One
Lafayette Place</font></font></font></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td WIDTH="5%"></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td WIDTH="4%"></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP WIDTH="91%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>Greenwich,
CT 06830</font></font></font></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td WIDTH="5%"></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td WIDTH="4%"></td>
</tr>
<tr>
<td COLSPAN="5"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td COLSPAN="5"><font size=-2> </font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP WIDTH="91%"><a href="#foot17">FMR Corp.
<sup><font face="'Times New Roman',
Times"><font color="#000000"><font size=-2>3</font></font></font></sup></a></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="5%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>11,772,304</font></font></font></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="4%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>8.5</font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP WIDTH="91%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>82
Devonshire St.</font></font></font></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td WIDTH="5%"></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td WIDTH="4%"></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP WIDTH="91%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>Boston,
MA 02109</font></font></font></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td WIDTH="5%"></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td WIDTH="4%"></td>
</tr>
<tr>
<td COLSPAN="5"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td COLSPAN="5"><font size=-2> </font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP WIDTH="91%"><a href="#foot18">W.P.
Stewart & Co., Ltd. <sup><font face="'Times New Roman',
Times"><font color="#000000"><font size=-2>4</font></font></font></sup></a></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="5%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>19,501,000</font></font></font></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="4%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>14.0</font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP WIDTH="91%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>129
Front St.</font></font></font></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td WIDTH="5%"></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td WIDTH="4%"></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP WIDTH="91%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>Hamilton,
Bermuda</font></font></font></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td WIDTH="5%"></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td WIDTH="4%"></td>
</tr>
</center>
<hr ALIGN=LEFT SIZE=1 NOSHADE WIDTH="10%"><a NAME="foot15"></a><font color="#000000"><sup><font face="'Times New
Roman', Times"><font size=-2>1</font></font></sup><font face="'Times New Roman', Times"><font size=+0>All
information regarding Capital Research and Management Company is based
upon the Schedule 13F for the period ended June 30, 1999. Capital Research
and Management Company has the sole power to vote and dispose of the shares
deemed beneficially owned by it.</font></font></font>
<p><a NAME="foot16"></a><font face="'Times New Roman', Times"><font color="#000000"><font size=+0><sup>2</sup>
All information regarding ESL Investments, Inc., is based upon the Form
4 for the period ended September 30, 1999, filed on behalf of a group consisting
of ESL Investments, Inc., ESL Partners, L.P., ESL Limited, ESL Institutional
Partners, L.P., Acres Partners, L.P., Marion Partners, L.P., and Edward
S. Lampert. The general partner of ESL Partners, L.P., is RBS Partners,
L.P. The general partner of RBS Partners, L.P. is ESL Investments, Inc.
ESL Investment Management, LLC, is the investment manager of ESL Limited.
RBS Investment Management, LLC, is the general partner of ESL Institutional
Partners, L.P. ESL Investments, Inc., is the general partner of Acres Partners,
L.P. Mr. Lampert is the managing member of ESL Investment Management, LLC,
and RBS Investment Management, LLC. In their respective capacities, each
of the foregoing may be deemed to be the beneficial owner of the shares
of AutoZone common stock beneficially owned by other members of the group.
As of September 30, 1999, ESL Partners, Inc., was the record owner of 10,775,083
shares, ESL Limited was the record owner of 2,645,021 shares, ESL Institutional
Partners, L.P., was the record owner of 348,528 shares, Acres Partners,
L.P., was the record owner of 6,867,928 shares, and Marion Partners, L.P.,
was the record owner of 1,124,840 shares. Each entity has the sole power
to vote and dispose of the shares deemed beneficially owned by it. See
also footnote 7 under Security Ownership of Management, above.</font></font></font>
<p><a NAME="foot17"></a><font face="'Times New Roman', Times"><font color="#000000"><font size=+0><sup>3</sup>
All information regarding FMR Corp. is based upon the Schedule 13G dated
February 1, 1999, filed on behalf of FMR Corp., Edward C. Johnson 3d and
Abigail P. Johnson, and the Schedule 13F filed by FMR Corp. for the period
ending June 30, 1999. FMR Corp. states that various persons have the right
to receive, or the power to direct the proceeds from the sale of, the shares.
No one person's interest in the shares is more than five percent of the
total outstanding common stock. Fidelity Management & Research Company,
a wholly-owned subsidiary of FMR Corp. and a registered investment advisor,
is the beneficial owner of 11,590,000 shares as the result of acting as
investment adviser to various investment companies. Edward C. Johnson 3d,
FMR Corp. through its control of Fidelity, and the funds each has sole
power to dispose of the 11,590,000 shares owned by the funds. Neither FMR
Corp. nor Edward C. Johnson 3d, Chairman of FMR Corp. has the sole power
to vote or direct the voting of the shares owned directly by the Fidelity
Funds, which power resides with the funds' Boards of Trustees. Fidelity
carries out the voting of the shares under written guidelines established
by the funds' Boards of Trustees.</font></font></font>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
Fidelity Management Trust Company, a wholly-owned subsidiary of FMR Corp.
and a bank, is the beneficial owner of 182,304 shares as a result of its
serving as investment manager of the institutional accounts. Edward C.
Johnson 3d and FMR Corp., through its control of Fidelity Management Trust
Company, each has sole dispositive power over 182,304 shares and sole power
to vote or to direct the voting of 182,304 shares of common stock owned
by the institutional accounts.</font></font></font>
<p><a NAME="foot18"></a><font face="'Times New Roman', Times"><font color="#000000"><font size=+0><sup>4</sup>
All information regarding W.P. Stewart & Co., Ltd., is based upon the
Schedule 13G for the period ended December 31, 1998. W.P. Stewart &
Co., Ltd., has the sole power to vote and dispose of the shares deemed
beneficially owned by it.</font></font></font>
<p><a NAME="tx14"></a><b><font face="Arial, Helvetica"><font color="#000000"><font size=-1>COMPENSATION
OF DIRECTORS</font></font></font></b>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
Non-employee directors are paid an annual fee of $25,000 in quarterly installments,
plus $1,000 for each Board meeting attended. In 1998, the Board of Directors
adopted the Directors Compensation Plan. Under this plan, a non-employee
director may receive no more than one-half of the annual and meeting fees
immediately in cash, and the remainder of the fees must be taken in either
common stock or the fee may be deferred in units with value equivalent
to the value of shares of common stock as of the grant date (also known
as "stock appreciation rights").</font></font></font>
<p> <font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
Also in 1998, the Board of Directors adopted the 1998 Directors Stock Option
Plan. Under the stock option plan, on January 1 of each year, each non-employee
director receives an option to purchase 1,000 shares of common stock. On
December 31 of each year, each non-employee director that owns common stock
worth at least five times the annual fee paid to each non-employee director
on an annual basis will receive an additional option to purchase 1,000
shares of common stock. These stock option grants are made at the fair
market value as of the grant date.</font></font></font>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
Mr. Clarkson is an AutoZone employee, and for fiscal year 1999 was paid
a salary and bonus of $62,500 and received other benefits ordinarily granted
to all employees.</font></font></font>
<p><a NAME="tx15"></a><b><font face="Arial, Helvetica"><font color="#000000"><font size=-1>EXECUTIVE
COMPENSATION</font></font></font></b>
<p><a NAME="tx16"></a><b><font face="Arial, Helvetica"><font color="#000000"><font size=-1>
Summary Compensation Table</font></font></font></b>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
This table shows the compensation paid to the Chief Executive Officer and
the other four most highly paid executive officers for the past three fiscal
years.</font></font></font>
<br>
<table CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<th ALIGN=LEFT VALIGN=BOTTOM ROWSPAN="3" NOWRAP><b><font face="'Times New Roman',
Times"><font color="#000000"><font size=-2>Name
and </font></font></font></b>
<br><b><font face="'Times New Roman',
Times"><font color="#000000"><font size=-2>Principal
Position</font></font></font></b></th>
<th><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM COLSPAN="7" ROWSPAN="2" NOWRAP><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>Annual
Compensation Securities</font></font></font></b>
<hr ALIGN="center" WIDTH="100%"
SIZE=1 NOSHADE></th>
<th><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM NOWRAP><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>Long
Term </font></font></font></b>
<br><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>Compensation</font></font></font></b>
<hr ALIGN="center" WIDTH="76"
SIZE=1 NOSHADE></th>
</tr>
<tr>
<th></th>
<th><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM NOWRAP><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>Awards</font></font></font></b>
<hr ALIGN="center" WIDTH="76" SIZE=1
NOSHADE></th>
</tr>
<tr>
<th><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM NOWRAP><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>Year </font></font></font></b></th>
<th><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM NOWRAP><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>Salary</font></font></font></b></th>
<th><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM NOWRAP><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2><a href="#foot19">Bonus<sup>1</sup></a></font></font></font></b></th>
<th><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM NOWRAP><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2><a href="#foot20">Other
Annual </a></font></font></font></b>
<br><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2><a href="#foot20">Compensation<sup>2</sup></a></font></font></font></b></th>
<th><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM NOWRAP><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2><a href="#foot21">Securities </a></font></font></font></b>
<br><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2><a href="#foot21">Underlying </a></font></font></font></b>
<br><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2><a href="#foot21">Options/SARs<sup>3</sup></a></font></font></font></b></th>
<th><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM NOWRAP><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2><a href="#foot22">All
Other </a></font></font></font></b>
<br><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2><a href="#foot22">Compensation<sup>4</sup></a></font></font></font></b></th>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM COLSPAN="13" NOWRAP>
<hr NOSHADE SIZE="1" WIDTH="100%"></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1><a href="#foot23">John
C. Adams, Jr.<sup>5</sup></a></font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>1999 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>530,400 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>265,200 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>2,400 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>0 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>3,916 </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>
Chairman &</font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>1998 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>520,000 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>253,500 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>0 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>3,048 </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>
Chief Executive Officer</font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>1997 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>413,952 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>199,268 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>350,000 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>2,032 </font></font></font></td>
</tr>
<tr>
<td COLSPAN="11"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td COLSPAN="11"><font size=-2> </font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1><a href="#foot24">Timothy
D. Vargo<sup>6</sup></a></font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>1999 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>424,400 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>212,200 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>2,400 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>0 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>2,384 </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>
President &</font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>1998 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>416,000 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>202,800 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>0 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>3,048 </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>
Chief Operating Officer</font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>1997 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>356,859 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>170,973 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>250,000 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>2,032 </font></font></font></td>
</tr>
<tr>
<td COLSPAN="11"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td COLSPAN="11"><font size=-2> </font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>Robert
J. Hunt</font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>1999 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>306,000 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>114,750 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>2,400 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>25,000 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>3,311 </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>
Executive Vice President</font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>1998 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>300,000 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>117,000 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>0 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>3,048 </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>
& Chief Financial Officer </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>1997 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>261,769 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>96,223 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>50,000 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>2,032 </font></font></font></td>
</tr>
<tr>
<td COLSPAN="11"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td COLSPAN="11"><font size=-2> </font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1><a href="#foot25">Gerald
E. Colley<sup>7</sup></a></font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>1999 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>305,000 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>76,250 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>0 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>2,194 </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>
Senior Vice President</font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>1998 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>230,000 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>74,750 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>42,003 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>40,000 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>2,213 </font></font></font></td>
</tr>
<tr>
<td><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0> </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>1997 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>110,676 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>30,989 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>18,448 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>50,000 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>2,122 </font></font></font></td>
</tr>
<tr>
<td COLSPAN="11"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td COLSPAN="11"><font size=-2> </font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1><a href="#foot26">David
J. Wilhite<sup>8</sup></a></font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>1999 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>300,000 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>75,000 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>0 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>832 </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>
Senior Vice President</font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>1998 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>192,400 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>62,588 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>50,000 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>466 </font></font></font></td>
</tr>
<tr>
<td><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0> </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>1997 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>130,769 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>36,615 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>30,000 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>1,046 </font></font></font></td>
</tr>
<hr WIDTH="10%" SIZE="1" NOSHADE><a NAME="foot19"></a><font face="'Times New Roman', Times"><font color="#000000"><font size=+0><sup>1</sup>
Bonuses are shown for the fiscal year earned, but paid in the following
fiscal year.</font></font></font>
<p><a NAME="foot20"></a><font face="'Times New Roman', Times"><font color="#000000"><font size=+0><sup>2</sup>
Amounts shown for 1999 are 401(k) plan matching contributions. Amounts
shown for Mr. Colley for 1997 and 1998 are relocation allowances.</font></font></font>
<p><a NAME="foot21"></a><font face="'Times New Roman', Times"><font color="#000000"><font size=+0><sup>3</sup>
All amounts shown are stock options; AutoZone did not grant SARs to executive
officers in the 1997, 1998 or 1999 fiscal years. All options were granted
in accordance with the 1996 Stock Option Plan, as amended and restated
in 1997 and 1998.</font></font></font>
<p><a NAME="foot22"></a><font face="'Times New Roman', Times"><font color="#000000"><font size=+0><sup>4</sup>
All Other Compensation consists of term life insurance provided for the
benefit of the named officer's beneficiary</font></font></font>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>.<a NAME="foot23"></a><sup>5</sup>
Mr. Adams was first elected CEO in December 1996 and Chairman in March
1997.</font></font></font>
<p><a NAME="foot24"></a><font face="'Times New Roman', Times"><font color="#000000"><font size=+0><sup>6</sup>
Mr. Vargo was first elected Chief Operating Officer in December 1996, and
was elected President in March 1997.</font></font></font>
<p><a NAME="foot25"></a><font face="'Times New Roman', Times"><font color="#000000"><font size=+0><sup>7</sup>
Mr. Colley was a Vice President from June 1997 to October 1997, when he
was elected Senior Vice President.</font></font></font>
<p><a NAME="foot26"></a><font face="'Times New Roman', Times"><font color="#000000"><font size=+0><sup>8</sup>
Mr. Wilhite was a Vice President until October 1997 when he was elected
Senior Vice President.</font></font></font>
<p><a NAME="tx17"></a><b><font face="Arial, Helvetica"><font color="#000000"><font size=-1>
Option/SAR Grants in Last Fiscal Year</font></font></font></b>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
This table shows the number of stock options granted to certain executive
officers during the most recent fiscal year. Executive officers were not
granted SARs during the 1999 fiscal year.</font></font></font>
<br>
<table CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<th><font face="'Times New
Roman', Times"><font color="#000000"><font size=-2> </font></font></font></th>
<th><font size=-2> </font></th>
<th COLSPAN="7"><font face="'Times New Roman', Times"><font color="#000000"><font size=-2> </font></font></font></th>
<th><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM COLSPAN="3" ROWSPAN="2" NOWRAP><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2><a href="#foot27">Potential </a></font></font></font></b>
<br><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2><a href="#foot27">Realizable
Value at </a></font></font></font></b>
<br><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2><a href="#foot27">Assumed
Annual </a></font></font></font></b>
<br><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2><a href="#foot27">Rates
of Stock Price </a></font></font></font></b>
<br><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2><a href="#foot27">Appreciation </a></font></font></font></b>
<br><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2><a href="#foot27">for
Option Term<sup>1</sup></a></font></font></font></b>
<hr ALIGN="center" WIDTH="100%" SIZE=1
NOSHADE></th>
</tr>
<tr>
<th><font face="'Times New
Roman', Times"><font color="#000000"><font size=-2> </font></font></font></th>
<th><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM NOWRAP><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>Number
of </font></font></font></b>
<br><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>Securities </font></font></font></b>
<br><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>Underlying </font></font></font></b>
<br><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>Options/SARs </font></font></font></b>
<br><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>Granted</font></font></font></b></th>
<th><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM NOWRAP><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>%
of </font></font></font></b>
<br><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>Total </font></font></font></b>
<br><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>Options/SARs </font></font></font></b>
<br><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>Granted
to </font></font></font></b>
<br><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>Employees </font></font></font></b>
<br><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>in
Fiscal</font></font></font></b></th>
<th><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM NOWRAP><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>Exercise </font></font></font></b>
<br><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>or
Base </font></font></font></b>
<br><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>Price</font></font></font></b></th>
<th><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM NOWRAP><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>Expiration</font></font></font></b></th>
</tr>
<tr>
<th><font face="'Times New
Roman', Times"><font color="#000000"><font size=-2> </font></font></font></th>
<th><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM NOWRAP><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>(#) </font></font></font></b></th>
<th><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM NOWRAP><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>Year </font></font></font></b></th>
<th><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM NOWRAP><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>($/Sh)</font></font></font></b></th>
<th><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM NOWRAP><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>Date </font></font></font></b></th>
<th><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM NOWRAP><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>5%
($)</font></font></font></b></th>
<th><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM NOWRAP><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>10%
($)</font></font></font></b></th>
</tr>
<tr>
<td COLSPAN="14">
<hr SIZE=1 NOSHADE></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>John
C. Adams, Jr.</font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>0 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=CENTER VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=CENTER VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=CENTER VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=CENTER VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>Timothy
D. Vargo</font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>0 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=CENTER VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=CENTER VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=CENTER VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=CENTER VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1><a href="#foot28">Robert
J. Hunt<sup>2</sup></a></font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>25,000 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>1.2 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>26.6875 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>10/24/2008</font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>419,591 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>1,063,325</font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>Gerald
E. Colley</font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>0 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=CENTER VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=CENTER VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=CENTER VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=CENTER VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>David
J. Wilhite</font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>0 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=CENTER VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=CENTER VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=CENTER VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=CENTER VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
</tr>
<hr WIDTH="10%" SIZE="1" NOSHADE><a NAME="foot27"></a><font face="'Times New Roman', Times"><font color="#000000"><font size=+0><sup>1</sup>
The 5% and 10% appreciation rates have been arbitrarily set by the Securities
and Exchange Commission and do not forecast actual stock price appreciation.</font></font></font>
<p><a NAME="foot28"></a><font face="'Times New Roman', Times"><font color="#000000"><font size=+0><sup>2</sup>
Options shown vest in one-third increments on each of the third, fourth
and fifth anniversaries after the grant date.</font></font></font>
<p><a NAME="tx18"></a><b><font face="Arial, Helvetica"><font color="#000000"><font size=-1>
Aggregated Option/SAR Exercises in Last Fiscal Year and FY-End Option/SAR
Values</font></font></font></b>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
This table shows stock option exercises by certain executive officers during
the most recent fiscal year, and their exercisable and unexercisable stock
options as of August 28, 1999. The fiscal year-end value of "in-the-money"
stock options is the difference between the exercise price of the option
and the market value of the common stock (not including options with an
exercise price greater than the fair market value) on August 27, 1999 (the
last trading day before the fiscal year end) which was $24 per share. Executive
officers do not have SARs.</font></font></font>
<br>
<table CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<th ROWSPAN="2"><font face="'Times New Roman', Times"><font color="#000000"><font size=-2> </font></font></font></th>
<th><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM ROWSPAN="2" NOWRAP><b><font face="'Times New
Roman', Times"><font color="#000000"><font size=-2>Shares
Acquired </font></font></font></b>
<br><b><font face="'Times New
Roman', Times"><font color="#000000"><font size=-2>on
Exercise (#)</font></font></font></b></th>
<th><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM ROWSPAN="2" NOWRAP><b><font face="'Times New
Roman', Times"><font color="#000000"><font size=-2>Value </font></font></font></b>
<br><b><font face="'Times New
Roman', Times"><font color="#000000"><font size=-2>Realized
($)</font></font></font></b></th>
<th><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM COLSPAN="3" NOWRAP><b><font face="'Times New
Roman', Times"><font color="#000000"><font size=-2>Number
of Securities </font></font></font></b>
<br><b><font face="'Times New
Roman', Times"><font color="#000000"><font size=-2>Underlying
Unexercised </font></font></font></b>
<br><b><font face="'Times New
Roman', Times"><font color="#000000"><font size=-2>Options/SARs </font></font></font></b>
<br><b><font face="'Times New
Roman', Times"><font color="#000000"><font size=-2>at
FY-End (#)</font></font></font></b>
<hr ALIGN="center"
WIDTH="100%" SIZE=1 NOSHADE></th>
<th><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM COLSPAN="3" NOWRAP><b><font face="'Times New
Roman', Times"><font color="#000000"><font size=-2>Value
of Unexercised </font></font></font></b>
<br><b><font face="'Times New
Roman', Times"><font color="#000000"><font size=-2>In-the-Money
Options/SARs </font></font></font></b>
<br><b><font face="'Times New
Roman', Times"><font color="#000000"><font size=-2>at
FY-End ($)</font></font></font></b>
<hr ALIGN="center"
WIDTH="100%" SIZE=1 NOSHADE></th>
</tr>
<tr>
<th></th>
<th></th>
<th><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM NOWRAP><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>Exercisable</font></font></font></b></th>
<th><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM NOWRAP><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>Unexercisable</font></font></font></b></th>
<th><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM NOWRAP><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>Exercisable</font></font></font></b></th>
<th><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM NOWRAP><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>Unexercisable</font></font></font></b></th>
</tr>
<tr>
<td COLSPAN="14">
<hr SIZE=1 NOSHADE></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>John
C. Adams, Jr.</font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>0 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=CENTER VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>50,000 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>700,000 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>0 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>937,500 </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>Timothy
D. Vargo</font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>0 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=CENTER VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>50,000 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>550,000 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>0 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>690,625 </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>Robert
J. Hunt</font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>0 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=CENTER VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>37,500 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>187,500 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>0 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>193,750 </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>Gerald
E. Colley</font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>4,834 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=CENTER VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>128,101 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>5,167 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>90,000 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>115,612 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>0 </font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>David
J. Wilhite</font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>0 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=CENTER VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>11,333 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>115,667 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>0 </font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>38,750 </font></font></font></td>
</tr>
<br>
<p><a NAME="tx19"></a><b><font face="Arial, Helvetica"><font color="#000000"><font size=-1>
Pension Plan Table</font></font></font></b>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
This table shows the estimated annual benefits payable upon retirement
at age 65 in 1999 under our pension plan. Sixty monthly payments are guaranteed
after retirement.</font></font></font>
<br>
<center><table CELLSPACING=0 CELLPADDING=0 WIDTH="76%" >
<tr>
<th WIDTH="22%"></th>
<th WIDTH="1%"><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM COLSPAN="9" NOWRAP><b><font face="'Times New
Roman', Times"><font color="#000000"><font size=-2>Years
of Service</font></font></font></b>
<hr
ALIGN="center" WIDTH="98%" SIZE=1 NOSHADE></th>
</tr>
<tr>
<th ALIGN=LEFT VALIGN=BOTTOM NOWRAP WIDTH="22%"><b><font face="'Times New
Roman', Times"><font color="#000000"><font size=-2>Remuneration</font></font></font></b>
<hr
ALIGN="left" WIDTH="60%" SIZE=1 NOSHADE></th>
<th WIDTH="1%"><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM NOWRAP WIDTH="10%">
<center><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>15</font></font></font></b></center>
<hr ALIGN="center" WIDTH="60%" SIZE=1 NOSHADE></th>
<th WIDTH="7%"><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM NOWRAP WIDTH="9%"><b><font face="'Times New
Roman', Times"><font color="#000000"><font size=-2>20</font></font></font></b>
<hr ALIGN="center"
WIDTH="60%" SIZE=1 NOSHADE></th>
<th WIDTH="6%"><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM NOWRAP WIDTH="9%"><b><font face="'Times New
Roman', Times"><font color="#000000"><font size=-2>25</font></font></font></b>
<hr ALIGN="center"
WIDTH="60%" SIZE=1 NOSHADE></th>
<th WIDTH="9%"><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM NOWRAP WIDTH="9%"><b><font face="'Times New
Roman', Times"><font color="#000000"><font size=-2>30</font></font></font></b>
<hr ALIGN="center"
WIDTH="60%" SIZE=1 NOSHADE></th>
<th WIDTH="8%"><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM NOWRAP WIDTH="10%"><b><font face="'Times New
Roman', Times"><font color="#000000"><font size=-2>35</font></font></font></b>
<hr ALIGN="center"
WIDTH="60%" SIZE=1 NOSHADE></th>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP WIDTH="22%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=-1> $100,000</font></font></font></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="10%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=-1>$21,992</font></font></font></td>
<td WIDTH="7%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="9%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=-1>$30,450</font></font></font></td>
<td WIDTH="6%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="9%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=-1>$38,909</font></font></font></td>
<td WIDTH="9%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="9%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=-1>$42,292</font></font></font></td>
<td WIDTH="8%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="10%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=-1>$42,292</font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP WIDTH="22%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=-1>
120,000</font></font></font></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="10%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=-1>26,932</font></font></font></td>
<td WIDTH="7%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="9%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=-1>37,290</font></font></font></td>
<td WIDTH="6%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="9%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=-1>47,649</font></font></font></td>
<td WIDTH="9%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="9%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=-1>51,792</font></font></font></td>
<td WIDTH="8%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="10%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=-1>51,792</font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP WIDTH="22%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=-1>
140,000</font></font></font></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="10%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=-1>31,872</font></font></font></td>
<td WIDTH="7%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="9%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=-1>44,130</font></font></font></td>
<td WIDTH="6%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="9%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=-1>56,389</font></font></font></td>
<td WIDTH="9%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="9%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=-1>61,292</font></font></font></td>
<td WIDTH="8%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="10%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=-1>61,292</font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP WIDTH="22%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=-1>
160,000</font></font></font></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="10%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=-1>34,836</font></font></font></td>
<td WIDTH="7%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="9%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=-1>48,234</font></font></font></td>
<td WIDTH="6%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="9%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=-1>61,633</font></font></font></td>
<td WIDTH="9%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="9%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=-1>66,992</font></font></font></td>
<td WIDTH="8%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="10%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=-1>66,992</font></font></font></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP WIDTH="22%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=-1>
180,000</font></font></font></td>
<td WIDTH="1%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="10%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=-1>34,836</font></font></font></td>
<td WIDTH="7%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="9%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=-1>48,234</font></font></font></td>
<td WIDTH="6%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="9%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=-1>61,633</font></font></font></td>
<td WIDTH="9%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="9%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=-1>66,992</font></font></font></td>
<td WIDTH="8%"><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP WIDTH="10%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=-1>66,992</font></font></font></td>
</tr>
</center>
<p> <font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
Remuneration includes salary and bonus. The benefit is based on the average
monthly earnings for the consecutive five year period during which a participant
had his or her highest level of earnings. The benefits stated in the table
will not be reduced by Social Security or other amounts received by a participant.
Remuneration shown is assumed to be the participant's five year average
earnings.</font></font></font>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
Neither remuneration greater than $160,000 nor years of service in excess
of 25 years is credited for benefit calculation purposes. The pension plan
was amended on January 1, 1998. The difference in the table between 25
and 30 years of service is due to the calculation of the prior plan minimum
benefit which was fixed effective December 31, 1997. A participant with
25 years of service today would have had only 23 years under the prior
plan minimum, whereas the participant with 30 years of service today would
have the full 25 years of service credit under the prior plan minimum.</font></font></font>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
The number of years of credited service certain executive officers have
accrued under the pension plan as of the most recent fiscal year end are:</font></font></font>
<br>
<center><table CELLSPACING=0 CELLPADDING=0 WIDTH="40%" >
<tr>
<th ALIGN=LEFT VALIGN=BOTTOM NOWRAP><b><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Name </font></font></font></b>
<hr ALIGN="left" WIDTH="35" SIZE=1 NOSHADE></th>
<th><font size=-2> </font></th>
<th ALIGN=CENTER VALIGN=BOTTOM NOWRAP><b><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Years
of </font></font></font></b>
<br><b><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Service</font></font></font></b>
<hr ALIGN="center" WIDTH="70" SIZE=1
NOSHADE></th>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>John
C. Adams, Jr.</font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP>
<center><font face="'Times New Roman', Times"><font color="#000000"><font size=+0> 4</font></font></font></center>
</td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Timothy
D. Vargo</font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP>
<center><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>13</font></font></font></center>
</td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Robert
J. Hunt</font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP>
<center><font face="'Times New Roman', Times"><font color="#000000"><font size=+0> 4</font></font></font></center>
</td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Gerald
E. Colley</font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP>
<center><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>10</font></font></font></center>
</td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>David
J. Wilhite</font></font></font></td>
<td><font size=-2> </font></td>
<td ALIGN=RIGHT VALIGN=BOTTOM NOWRAP>
<center><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>13</font></font></font></center>
</td>
</tr>
</center>
<br>
<p><a NAME="tx20"></a><b><font face="Arial, Helvetica"><font color="#000000"><font size=+0>
Compensation Committee Report on Executive Compensation</font></font></font></b>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
The executive compensation program is designed to attract and retain executives
who are key to our long-term success. In this process, we want to align
an executive's compensation with AutoZone's attainment of business goals
and the increase in share value. The Compensation Committee reviews executive
compensation annually and makes appropriate adjustments based on company
performance, achievement of predetermined and individual goals, and changes
in an executive's duties and responsibilities. The compensation of other
AutoZone employees is based on a similar philosophy.</font></font></font>
<p><b><i><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Compensation
Philosophy</font></font></font></i></b>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
Executive compensation consists of salary, bonus, and stock options.</font></font></font>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
<b><i>Salary.</i></b> The Committee desires that overall compensation
reflect each executive's performance over time. Base salaries are set at
levels subjectively determined by the Compensation Committee to adequately
reward and retain capable executives, including the Chief Executive Officer.</font></font></font>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
At the beginning of each fiscal year, the Compensation Committee reviews
and establishes the annual salary of each officer, including the Chief
Executive Officer. The Committee makes an independent, subjective determination
of the appropriate level of each officer's salary. The Compensation Committee
employs a compensation consultant to assist the Committee in comparing
AutoZone's compensation for its executives to that of other retailers.
However, the Committee uses this information to verify the reasonableness
of the compensation, but does not have a predetermined compensation objective.
The Committee does not use any mechanical formulations or weighting of
any of the factors considered.</font></font></font>
<p><b><i><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
Bonus.</font></font></font></i></b><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
Each fiscal year executive officers are paid a bonus based on AutoZone's
attainment of increases in earnings over the prior year and the attainment
of other goals as set by the Compensation Committee. A target is set at
the beginning of each fiscal year and bonuses are paid as a percentage
of the attainment of the objectives. A maximum bonus is established for
each executive officer. As a general matter, as an executive's level of
management responsibility in the Company increases, the greater the portion
of his or her potential total compensation depends on the Company's performance
as measured by increases in earnings over the previous year. No bonus is
payable under the bonus plan unless a predetermined minimum target is achieved.
A significant portion of each officer's compensation is directly related
to the performance of the Company. Please see Proposal 2 of this Proxy
Statement for a more complete discussion of the AutoZone, Inc. 2000 Executive
Incentive Compensation Plan under which bonuses will be paid to executive
officers in future years.</font></font></font>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
<b><i>Stock Options. </i></b>To align the long-term interests
of management and our stockholders, the Compensation Committee awards non-qualified
stock options to all levels of management, including individual store managers.
Stock option grants are made by a subjective determination by the Committee,
upon recommendation by the Chief Executive Officer (for grants other than
those to the Chief Executive Officer), who considers the recipient's past
performance and current responsibilities, and the number of shares previously
granted to that person.</font></font></font>
<p><b><i><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Stock
Ownership</font></font></font></i></b>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
Beginning with fiscal year 2000, the Compensation Committee has implemented
the AutoZone, Inc. Management Stock Ownership Plan to encourage and facilitate
the ownership of AutoZone stock by senior management and members of the
Board of Directors. The plan provides guidelines for stock ownership levels
by senior management and directors. AutoZone will loan one-half of the
necessary funds to the executive officers and new directors. The borrower
is at risk and signs a promissory note for the full amount borrowed. As
a condition to obtaining the loan, beginning as of the bonus paid for the
2000 fiscal year, each senior executive must commit to use a set percentage
of any bonus received to acquire AutoZone stock and must fully participate
in AutoZone's employee stock purchase plan.</font></font></font>
<p><b><i><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>CEO
Compensation</font></font></font></i></b>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
In the last fiscal year, John C. Adams, Jr., Chairman and Chief Executive
Officer was paid $530,400 in salary and $265,200 in bonus. Mr. Adams has
an employment agreement which is described under the section entitled "Employment
Agreements" in this Proxy Statement. Mr. Adams did not receive any stock
options during the last fiscal year.</font></font></font>
<p><b><i><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Tax
Deductions for Compensation</font></font></font></i></b>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
The federal tax code limits the amount of compensation that we may deduct
in any year for the Chief Executive Officer and our other four most highly
paid officers to $1 million. However, this deduction limitation does not
apply to performance-based compensation as defined in the tax code. In
order for AutoZone to continue to be able to deduct any compensation which
may exceed $1 million, the Committee recommends that the stockholders adopt
the AutoZone, Inc. 2000 Executive Incentive Compensation Plan, which is
Proposal 2 in this Proxy Statement. Our compensation plans are generally
designed and implemented so that they qualify for full deductibility. However,
we may from time to time pay compensation to our executive officers that
may not be fully deductible.</font></font></font>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
This report was unanimously adopted by the Compensation Committee and approved
by the Board of Directors.</font></font></font>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Ronald
A. Terry, Chairman</font></font></font>
<br><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>N.
Gerry House</font></font></font>
<br><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>James
F. Keegan</font></font></font>
<br>
<p><a NAME="tx21"></a><b><font face="Arial, Helvetica"><font color="#000000"><font size=+0>
Stock Performance Graph</font></font></font></b>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
This graph shows, from the end of fiscal year 1994 to the end of fiscal
year 1999, changes in the value of $100 invested in each of AutoZone's
common stock, Standard & Poor's Retail Store Composite Index, Standard
& Poor's 500 Composite Index, and a peer group consisting of other
automotive aftermarket retailers.</font></font></font>
<br>
<br>
<br>
<br>
<center>
<p><font size=-1> [PERFORMANCE GRAPH]</font></center>
<p><br>
<table BORDER=0 WIDTH="100%" >
<tr>
<td> </td>
<th>Aug. 94
<hr NOSHADE SIZE="1"></th>
<th>Aug. 95
<hr NOSHADE SIZE="1"></th>
<th>Aug. 96
<hr NOSHADE SIZE="1"></th>
<th>Aug. 97
<hr NOSHADE SIZE="1"></th>
<th>Aug. 98
<hr NOSHADE SIZE="1"></th>
<th>Aug. 99
<hr NOSHADE SIZE="1"></th>
</tr>
<tr>
<td>AutoZone, Inc.</td>
<td>$100.00</td>
<td>$108.04</td>
<td>$109.55</td>
<td>$113.57</td>
<td>$104.27</td>
<td>$ 95.73</td>
</tr>
<tr>
<td>S&P 500 Index</td>
<td>$100.00</td>
<td>$121.45</td>
<td>$144.19</td>
<td>$202.81</td>
<td>$219.22</td>
<td>$306.52</td>
</tr>
<tr>
<td>S&P Retail Store Composite Index</td>
<td>$100.00</td>
<td>$101.71</td>
<td>$122.63</td>
<td>$157.84</td>
<td>$206.85</td>
<td>$270.83</td>
</tr>
<tr>
<td HEIGHT="23">Peer Group</td>
<td HEIGHT="23">$100.00</td>
<td HEIGHT="23">$103.37</td>
<td HEIGHT="23">$116.33</td>
<td HEIGHT="23">$119.35</td>
<td HEIGHT="23">$114.71</td>
<td HEIGHT="23">$114.02</td>
</tr>
<p> <font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
In past proxy statements, we had used the Standard & Poor's Retail
Store Composite Index as a comparison index, principally because the specific
industry of other automotive aftermarket retailers had few public companies
against which to compare. We now believe that the group of public automotive
aftermarket retailers is large enough to present a valid comparison to
the value of our common stock, and will be using this peer group index
in the future. The peer group consists of CSK Auto Corporation, Discount
Auto Parts, Inc., Genuine Parts Company, O'Reilly Automotive, Inc., and
The Pep Boys-Manny, Moe & Jack.</font></font></font>
<br>
<p><a NAME="tx22"></a><b><font face="Arial, Helvetica"><font color="#000000"><font size=+0>EMPLOYMENT
AGREEMENTS</font></font></font></b>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
Mr. Adams, Mr. Vargo, Mr. Hunt, Mr. Colley, and Mr. Wilhite have each entered
into employment agreements. Mr. Adams's agreement states that he is employed
as Chairman and Chief Executive Officer, with a minimum annual salary of
$530,400, and a bonus potential of 100% of annual salary. Mr. Vargo's agreement
states that he is employed as President and Chief Operating Officer, with
a minimum annual salary of $424,400 and a bonus potential of 100% of annual
salary. Mr. Hunt's agreement states that he is employed as Executive Vice
President and Chief Financial Officer, with a minimum annual salary of
$306,000 and a bonus potential of 75% of annual salary. Mr. Colley's agreement
states that he is employed as Senior Vice President with a minimum annual
salary of $305,000, and a bonus potential of 50% of annual salary. Mr.
Wilhite's agreement states that he is employed as Senior Vice President,
with a minimum annual salary of $300,000 and a bonus potential of 50% of
annual salary.</font></font></font>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
All minimum salaries and bonus are subject to increase by the Compensation
Committee. These agreements continue until terminated by either the executive
or by us. If an agreement is terminated by us for cause, or by the executive
for any reason, the executive will cease to be an employee, and will cease
to receive salary, bonus and other benefits. If an agreement is terminated
by us without cause, the executive will remain an employee for three years
after the termination date and will continue to receive his then-current
salary and other benefits of an employee, and will receive a prorated bonus
for the fiscal year in which he was terminated, but no bonuses thereafter.
If an agreement is terminated by us or by the executive for reasons other
than a change in control, then the executive will be prohibited from competing
against AutoZone for three years after the termination date.</font></font></font>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
"Cause" is defined in each agreement as the willful engagement by the executive
in conduct which is demonstrably or materially injurious to AutoZone, monetarily
or otherwise. "Change in control" in each agreement generally means (although
more specifically defined in each agreement) either the acquisition of
a majority of our voting securities by or the sale of all or substantially
all of our assets to a non-affiliate of the company.</font></font></font>
<br>
<p><a NAME="tx23"></a><b><font face="Arial, Helvetica"><font color="#000000"><font size=+0>CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS</font></font></font></b>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
Mr. Hyde is the sole stockholder of a corporation that owns an aircraft
that was leased to us for our business at times during the 1999 fiscal
year. For fiscal year 1999, we paid the corporation that owned the aircraft
lease fees and expenses totaling $207,418. In addition, we employ pilots
that operated the aircraft for Mr. Hyde's personal benefit at times during
the 1999 fiscal year. For the use of the pilots' services, Mr. Hyde paid
us $98,000. We believe that the charges for our use of the plane and the
amount that we charge Mr. Hyde for the use of the pilots are reasonable
and equivalent to the fees charged by others for the use of similar aircraft
and pilots.</font></font></font>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
Upon his retirement as Chairman in 1997, Mr. Hyde entered into an agreement
not to compete against the Company until March 2002. In fiscal year 1999,
under the terms of that agreement, we paid Mr. Hyde $301,377, and provided
him personal security services valued at approximately $48,351.</font></font></font>
<br>
<p><a NAME="tx24"></a><b><font face="Arial, Helvetica"><font color="#000000"><font size=+0>INDEBTEDNESS
OF MANAGEMENT</font></font></font></b>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
Effective as of the beginning of the 2000 fiscal year, the Board of Directors
has adopted the AutoZone, Inc. Management Stock Ownership Plan. Under this
plan, each executive officer is encouraged to purchase and maintain ownership
of AutoZone stock in an amount which is a set multiple of his annual salary.
As a part of the program, we have agreed to loan each executive officer
up to one-half of the funds required to purchase the stock. The notes are
demand notes which mature in five years or upon termination of the officer's
employment. Interest accrues at a 6% annually compounded rate, which approximates
the applicable federal rate as set by the Internal Revenue Service. As
of the date of this Proxy Statement, Mr. Adams has a principal balance
of $402,941, Mr. Vargo has a principal balance of $848,800, Mr. Hunt has
a principal balance of $408,063, and Mr. Colley has a principal balance
of $300,000.</font></font></font>
<br>
<p><a NAME="tx25"></a><b><font face="Arial, Helvetica"><font color="#000000"><font size=+0>SECTION
16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE</font></font></font></b>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
Securities laws require our executive officers, directors, and owners of
more than ten percent of our common stock to file reports (Forms 3, 4,
and 5) with the Securities and Exchange Commission and the New York Stock
Exchange relating to the number of shares of common stock that they own,
and any changes in their ownership. To our knowledge, all persons required
to file such forms have done so in a timely manner.</font></font></font>
<br>
<p><a NAME="tx26"></a><b><font face="Arial, Helvetica"><font color="#000000"><font size=+0>STOCKHOLDER
PROPOSALS FOR 2000 ANNUAL MEETING</font></font></font></b>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
Stockholder proposals for inclusion in the Proxy Statement for the Annual
Meeting in the year 2000 must be received by June 22, 2000. Stockholders
proposals received after June 22, 2000, but by September 8, 2000, may be
presented at the meeting, but will not be included in the 2000 Proxy Statement.
Any stockholder proposal received after September 8, 2000, will not be
eligible to be presented for a vote to the stockholders in accordance with
AutoZone's bylaws. Any proposals must be mailed to AutoZone, Inc., Attention:
Secretary, Post Office Box 2198, Dept. 8074, Memphis, Tennessee 38101-9842.</font></font></font>
<br>
<p><a NAME="tx27"></a><b><font face="Arial, Helvetica"><font color="#000000"><font size=+0>ANNUAL
REPORT</font></font></font></b>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
A copy of our Annual Report is being mailed with this Proxy Statement to
all stockholders of record.</font></font></font>
<br>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="53%"></td>
<td ALIGN=LEFT VALIGN=TOP><font face="'Times New Roman',
Times"><font color="#000000">By
the order of the Board of Directors,</font></font></td>
</tr>
<br>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="53%"></td>
<td ALIGN=LEFT VALIGN=TOP><font face="'Times New Roman',
Times"><font color="#000000">HARRY
L. GOLDSMITH</font></font>
<br><font face="'Times New Roman',
Times"><font color="#000000">Secretary</font></font></td>
</tr>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="53%"></td>
<td ALIGN=LEFT VALIGN=TOP></td>
</tr>
<font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Memphis,
Tennessee</font></font></font>
<br><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>October
25, 1999</font></font></font>
<hr WIDTH="100%">
<center>
<p><b><font face="Arial, Helvetica"><font color="#000000"><font size=+0>EXHIBIT
A</font></font></font></b>
<p><a NAME="exa01"></a><b><font face="Arial, Helvetica"><font color="#000000"><font size=+0>AUTOZONE,
INC.</font></font></font></b>
<br><b><font face="Arial, Helvetica"><font color="#000000"><font size=+0>2000
EXECUTIVE INCENTIVE COMPENSATION PLAN</font></font></font></b></center>
<p> <b><font face="Arial, Helvetica"><font color="#000000"><font size=-1>1.
PURPOSE.</font></font></font></b>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
The AutoZone, Inc. 2000 Executive Incentive Compensation Plan ("Plan")
is designed to provide incentives and rewards to eligible employees of
AutoZone, Inc. (the "Company") and its affiliates who have significant
responsibility for the success and growth of the Company and assist the
Company in attracting, motivating, and retaining key employees on a competitive
basis. The Plan is designed to ensure that the annual bonus paid pursuant
to this Plan to eligible employees of the Company is deductible under Section
162(m) of the Internal Revenue Code of 1986, as amended (the "Code"). This
Plan shall be ratified by the Company's stockholders pursuant to 26 C.F.R.
§ 1.162-27(e)(4)(vi) at the annual meeting to be held on December
9, 1999, and shall be effective for the entire 2000 fiscal year. If the
stockholders do not ratify the Plan, the Plan shall not become effective.</font></font></font>
<p><b><font face="Arial, Helvetica"><font color="#000000"><font size=-1>2.
ADMINISTRATION OF THE PLAN.</font></font></font></b>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
The Plan shall be administered by the Compensation Committee of the Board
of Directors of the Company ("Committee"). The Committee shall be appointed
by the Board of Directors of the Company and shall consist of at least
two outside directors of the Company that satisfy the requirements of Code
Section 162(m). The Committee shall have the sole discretion and authority
to administer and interpret the Plan in accordance with Code Section 162(m).
The Committee's interpretations of the Plan, and all actions taken and
determinations made by the Committee pursuant to the powers vested in it
hereunder, shall be conclusive and binding on all parties concerned, including
the Company, its stockholders and any person receiving an award under the
Plan.</font></font></font>
<p><b><font face="Arial, Helvetica"><font color="#000000"><font size=-1>3.
ELIGIBILITY.</font></font></font></b>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
The individuals entitled to participate in the Plan shall be the executive
officers of the Company, as determined by the Committee.</font></font></font>
<p><b><font face="Arial, Helvetica"><font color="#000000"><font size=-1>4.
AWARDS.</font></font></font></b>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
Executive officers as determined by the Committee may be granted annual
incentive awards under this Plan at such times of each year as will satisfy
the requirements of Code Section 162(m), provided, however, that if an
individual becomes an executive officer during a year, an incentive goal
for that individual shall be made for that fiscal year at the time she
or he becomes an executive officer. The Committee may, in its discretion,
grant annual incentive awards to non-executive officers and managers of
the Company outside of this Plan.</font></font></font>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
The annual incentive award to each executive officer shall be based on
the Company, a subsidiary or division, attaining one or more of the following
objective goals as established by the Committee for the fiscal year:</font></font></font>
<br>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="7%"></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="92%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>(a)
earnings,</font></font></font></td>
</tr>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="7%"></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="92%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>(b)
earnings per share, </font></font></font></td>
</tr>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="7%"></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="92%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>(c)
common stock price, </font></font></font></td>
</tr>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="7%"></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="4%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>(d) </font></font></font></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="89%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>market
share,</font></font></font></td>
</tr>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="7%"></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="4%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>(e) </font></font></font></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="89%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>revenue,</font></font></font></td>
</tr>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="7%" HEIGHT="18"></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="4%" HEIGHT="18"><font face="'Times New
Roman', Times"><font color="#000000"><font size=+0>(f)</font></font></font></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="89%" HEIGHT="18"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>Operating
or net cash flows,</font></font></font></td>
</tr>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="7%"></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="4%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>(g) </font></font></font></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="89%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>pre-tax
profits, </font></font></font></td>
</tr>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="7%"></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="4%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>(h) </font></font></font></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="89%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>earnings
before interest and taxes,</font></font></font></td>
</tr>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="7%"></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="4%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>(i) </font></font></font></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="89%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>return
on capital </font></font></font></td>
</tr>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="7%"></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="4%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>(j) </font></font></font></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="89%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>economic
value added, </font></font></font></td>
</tr>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="7%"></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="4%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>(k) </font></font></font></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="89%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>return
on inventory </font></font></font></td>
</tr>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="7%"></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="4%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>(l) </font></font></font></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="89%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>operating
margin </font></font></font></td>
</tr>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="7%"></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="4%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>(m) </font></font></font></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="89%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>revenue</font></font></font></td>
</tr>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="7%"></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="4%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>(n) </font></font></font></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="89%"><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>gross
profit margin </font></font></font></td>
</tr>
<p> <font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
Different measures of goal attainment may be set for different plan participants.
The performance goal may be a single goal or a range with a minimum goal
up to a maximum goal, with corresponding increases in the incentive award
up to the maximum award set by the Committee and as may be limited by this
Plan. Such performance goals may disregard, at the Committee's discretion,
the effect of one-time charges and extraordinary events such as asset write-downs,
litigation judgments or settlements, changes in tax laws, accounting principles
or other laws or provisions affecting reported results, accruals for reorganization
or restructuring, and any other extraordinary non-recurring items, acquisitions
or divestitures and any foreign exchange gains or losses. These goals shall
be established by the Committee either by written consent or as evidenced
by the minutes of a meeting at such times as to qualify amounts paid under
this Plan for tax deductible treatment under Code Section 162(m).</font></font></font>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
Payment of an earned award will be made in cash, or at the option of the
Committee, in whole or in part in Company common stock. Upon completion
of each fiscal year, the Committee shall review performance verses the
established goal, and shall certify (either by written consent or as evidenced
by the minutes of a meeting) the specified performance goals achieved for
the fiscal year (if any), and direct which award payments are payable under
the Plan, if any. No payment will be made if the minimum pre-established
goals are not met. The Committee may, in its discretion, reduce or eliminate
an individual's award that would have been otherwise paid. No individual
may receive in any one fiscal year an award under the Plan of an amount
greater than the lesser of (i) 150% of such individual's base salary for
that year or (ii) $2 million.</font></font></font>
<p><b><font face="Arial, Helvetica"><font color="#000000"><font size=-1>5.
MISCELLANEOUS PROVISIONS.</font></font></font></b>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
(a) The Company shall have the right to deduct all federal, state,
or local taxes required by law or Company policy from any award paid.</font></font></font>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
(b) Nothing contained in this Plan grants to any person any claim
or right to any payments under the Plan. Such payments shall be made at
the sole discretion of the Compensation Committee.</font></font></font>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
(c) Nothing contained in this Plan or any action taken by the Committee
pursuant to this Plan shall be construed as giving an individual any right
to be retained in the employ of the Company.</font></font></font>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
(d) The Plan shall be unfunded. The Company shall not be required
to establish any special or separate fund or to make any other segregation
of assets to assure the payment of any award under the Plan.</font></font></font>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
(e) The Plan may be amended, subject to the limits of Code Section
162(m), or terminated by the Committee at any time. However, no amendment
to the Plan shall be effective without prior approval of the Company's
stockholders which would (i) increase the maximum amount that may be paid
under the Plan to any person or (ii) modify the business criteria on which
performance targets are to be based under the Plan.</font></font></font>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>
(f) This Plan shall terminate on the fifth anniversary after the
date of ratification by the Company's stockholders.</font></font></font>
<p>
<hr WIDTH="100%">
<br>
<br>
<br>
<br>
<center>
<p><b><font face="'Times New Roman', Times"><font color="#000000"><font size=+0>AUTOZONE,
INC.</font></font></font></b>
<p><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>Proxy
Solicited on Behalf of the Board of Directors of</font></font></font></b>
<br><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>the
Company for Annual Meeting of Stockholders</font></font></font></b></center>
<p><br>
<br>
<br>
<br>
<br>
<br>
<table CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="10%"><b><font face="Arial, Helvetica"><font color="#000000"><font size=+2>P </font></font></font></b>
<br><b><font face="Arial, Helvetica"><font color="#000000"><font size=+2>R</font></font></font></b>
<br><b><font face="Arial, Helvetica"><font color="#000000"><font size=+2>O </font></font></font></b>
<br><b><font face="Arial, Helvetica"><font color="#000000"><font size=+2>X </font></font></font></b>
<br><b><font face="Arial, Helvetica"><font color="#000000"><font size=+2>Y</font></font></font></b></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="10%"> </td>
<td ALIGN=LEFT VALIGN=TOP COLSPAN="4"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>I
hereby appoint Harry L. Goldsmith and Donald R. Rawlins, and each of them,
as proxies, with full power of substitution, to vote all shares of common
stock of AutoZone, Inc., which I would be entitled to vote at the Annual
Meeting of AutoZone, Inc., to be held at the Orpheum Theatre, 203 South
Main Street, Memphis, Tennessee, on Thursday, December 9, 1999, at 10 a.m.,
and at any adjournments, on items 1, 2 and 3, as I have specified and such
other matters as may come before the meeting.</font></font></font></td>
<td WIDTH="14%"></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="10%"> </td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="10%"> </td>
<td ALIGN=LEFT VALIGN=TOP COLSPAN="3"><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>Election
of Directors, Nominees:</font></font></font></td>
<td ALIGN=CENTER VALIGN=TOP WIDTH="38%"><font face="'Times New Roman',
Times"><font color="#000000"><font size=-1>(change
of address)</font></font></font></td>
<td WIDTH="14%"></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="10%"> </td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="10%"> </td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="8%"> </td>
<td COLSPAN="2"></td>
<td ALIGN=CENTER VALIGN=TOP WIDTH="38%"> </td>
<td WIDTH="14%"></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="10%"> </td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="10%"> </td>
<td ALIGN=LEFT VALIGN=TOP COLSPAN="3" WIDTH="8%"><font color="#000000"><font size=-1><font face="'Times New
Roman', Times">(01) </font><font face="'Times New Roman', Times">
John C. Adams, Jr., (02) Andrew M. Clarkson,</font></font></font></td>
<td ALIGN=CENTER VALIGN=TOP COLSPAN="2">
<hr SIZE=1
NOSHADE></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="10%"> </td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="10%"> </td>
<td ALIGN=LEFT VALIGN=TOP COLSPAN="3" WIDTH="8%"><font color="#000000"><font size=-1><font face="'Times New
Roman', Times">(03)</font><font face="'Times New Roman', Times">
N. Gerry House, (04) Robert J. Hunt, (05) J.R.
Hyde, III, </font></font></font></td>
<td ALIGN=CENTER VALIGN=TOP COLSPAN="2">
<hr SIZE=1
NOSHADE></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="10%"> </td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="10%"> </td>
<td ALIGN=LEFT VALIGN=TOP COLSPAN="3" WIDTH="8%"><font color="#000000"><font size=-1><font face="'Times New
Roman', Times">(06) </font><font face="'Times New Roman', Times">
James F. Keegan, (07) Edward S. Lampert,</font></font></font></td>
<td ALIGN=CENTER VALIGN=TOP COLSPAN="2">
<hr SIZE=1
NOSHADE></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="10%"> </td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="10%"> </td>
<td ALIGN=LEFT VALIGN=TOP COLSPAN="3" NOWRAP WIDTH="8%"><font color="#000000"><font size=-1><font face="'Times New
Roman', Times">(08) </font><font face="'Times New Roman', Times">
Michael W. Michelson, (09) Ronald A. Terry, and </font></font></font></td>
<td ALIGN=CENTER VALIGN=TOP COLSPAN="2">
<hr SIZE=1
NOSHADE></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="10%"> </td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="10%"> </td>
<td ALIGN=LEFT VALIGN=TOP COLSPAN="3" WIDTH="8%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=-1>(10)
Timothy D. Vargo.</font></font></font></td>
<td ALIGN=CENTER VALIGN=TOP WIDTH="38%"> </td>
<td WIDTH="14%"></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="10%"> </td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="10%"> </td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="8%"> </td>
<td COLSPAN="2"></td>
<td ALIGN=CENTER VALIGN=TOP WIDTH="38%"> </td>
<td WIDTH="14%"></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=TOP WIDTH="10%"> </td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="10%"> </td>
<td ALIGN=LEFT VALIGN=TOP COLSPAN="4"><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>You
are encouraged to specify your choices by marking the appropriate boxes,
SEE REVERSE SIDE, but you need not mark any boxes if you wish to vote in
accordance with the Board of Director's recommendations.</font></font></font></b></td>
<td WIDTH="14%"></td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=TOP COLSPAN="4" HEIGHT="29"></td>
<td VALIGN=TOP COLSPAN="2" HEIGHT="29"></td>
<td WIDTH="14%" HEIGHT="29"></td>
</tr>
[Map to Orpheum Theatre appears here]
<center><b><i><font face="Arial, Helvetica"><font color="#000000"><font size=+0>You
are invited</font></font></font></i></b>
<br><b><i><font face="Arial, Helvetica"><font color="#000000"><font size=+0>to
attend the</font></font></font></i></b>
<br><b><i><font face="Arial, Helvetica"><font color="#000000"><font size=+0>ANNUAL
MEETING</font></font></font></i></b>
<br><b><i><font face="Arial, Helvetica"><font color="#000000"><font size=+0>OF
STOCKHOLDERS</font></font></font></i></b>
<p><b><i><font face="Arial, Helvetica"><font color="#000000"><font size=+0>December
9, 1999</font></font></font></i></b>
<br><b><i><font face="Arial, Helvetica"><font color="#000000"><font size=+0>10:00
a.m.</font></font></font></i></b>
<p><b><i><font face="Arial, Helvetica"><font color="#000000"><font size=+0>Orpheum
Theatre</font></font></font></i></b>
<br><b><i><font face="Arial, Helvetica"><font color="#000000"><font size=+0>203
South Main Street</font></font></font></i></b>
<br><b><i><font face="Arial, Helvetica"><font color="#000000"><font size=+0>Memphis,
Tennessee</font></font></font></i></b></center>
<p>
<hr NOSHADE>
<br>
<table WIDTH="97%" >
<tr>
<td VALIGN=TOP WIDTH="5%"><b><font face="'Times New Roman', Times"><font color="#000000"><font size=+1>[X] </font></font></font></b></td>
<td WIDTH="70%"><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>Please
mark your</font></font></font>
<br><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>votes
as in this </font></font></font>
<br><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>example.</font></font></font></td>
<td ALIGN=RIGHT VALIGN=TOP WIDTH="25%"><b><font face="'Times New Roman',
Times"><font color="#000000"><font size=-1>4631</font></font></font></b></td>
</tr>
<p><font size=-1>This proxy when properly executed will be voted in the
manner directed below. If no direction is made, this proxy will be voted
FOR the election of directors and FOR proposals 2 and 3.</font>
<table WIDTH="75%" >
<tr>
<td ALIGN=CENTER COLSPAN="12" HEIGHT="13">
<hr NOSHADE></td>
</tr>
<tr>
<td ALIGN=CENTER COLSPAN="12" HEIGHT="13"><b><font face="'Times New Roman',
Times"><font color="#333333"><font size=-2>The
Board of Directors recommends a vote FOR proposals 2 and 3.</font></font></font></b></td>
</tr>
<tr>
<td COLSPAN="12" WIDTH="100%" BGCOLOR="#FFFFFF">
<hr
NOSHADE></td>
</tr>
<tr>
<td WIDTH="1%" BGCOLOR="#FFFFFF"> </td>
<td WIDTH="12%" BGCOLOR="#FFFFFF"> </td>
<td WIDTH="4%" BGCOLOR="#FFFFFF"><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>FOR </font></font></font></td>
<td WIDTH="7%" BGCOLOR="#FFFFFF"> </td>
<td ALIGN=CENTER VALIGN=TOP WIDTH="15%" BGCOLOR="#FFFFFF"><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>WITHHELD</font></font></font></td>
<td WIDTH="3%" BGCOLOR="#FFFFFF"> </td>
<td WIDTH="15%" BGCOLOR="#FFFFFF"> </td>
<td WIDTH="4%" BGCOLOR="#FFFFFF"><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>FOR </font></font></font></td>
<td WIDTH="10%" BGCOLOR="#FFFFFF"><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>AGAINST </font></font></font></td>
<td WIDTH="6%" BGCOLOR="#FFFFFF"><font size=-2><font face="'Times New Roman', Times"><font color="#000000">AB
</font>S
</font><font face="'Times New
Roman', Times"><font color="#000000">TAIN</font></font></font></td>
<td WIDTH="1%" BGCOLOR="#FFFFFF"> </td>
<td WIDTH="22%"> </td>
</tr>
<tr>
<td ALIGN=RIGHT VALIGN=TOP WIDTH="1%" BGCOLOR="#FFFFFF"><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>1.</font></font></font></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="12%" BGCOLOR="#FFFFFF"><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>Election
of </font></font></font>
<br><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>Directors </font></font></font>
<br><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>(see
reverse)</font></font></font></td>
<td ALIGN=CENTER VALIGN=TOP WIDTH="4%" BGCOLOR="#FFFFFF">[_]</td>
<td ALIGN=CENTER VALIGN=TOP WIDTH="7%" BGCOLOR="#FFFFFF"> </td>
<td ALIGN=CENTER VALIGN=TOP WIDTH="15%" BGCOLOR="#FFFFFF">[_]</td>
<td ALIGN=RIGHT VALIGN=TOP WIDTH="3%" BGCOLOR="#FFFFFF"><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>2.</font></font></font></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="15%" BGCOLOR="#FFFFFF"><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>Approval
of </font></font></font>
<br><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>executive
compensation </font></font></font>
<br><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>plan.</font></font></font></td>
<td ALIGN=CENTER VALIGN=TOP WIDTH="4%" BGCOLOR="#FFFFFF">[_]</td>
<td ALIGN=CENTER VALIGN=TOP WIDTH="10%" BGCOLOR="#FFFFFF">[_]</td>
<td ALIGN=CENTER VALIGN=TOP WIDTH="6%" BGCOLOR="#FFFFFF">[_]</td>
<td ALIGN=RIGHT VALIGN=TOP WIDTH="1%" BGCOLOR="#FFFFFF"><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>4.</font></font></font></td>
<td ALIGN=LEFT VALIGN=TOP ROWSPAN="2" WIDTH="22%"><font face="'Times New
Roman', Times"><font color="#000000"><font size=-2>In
the discretion </font></font></font>
<br><font face="'Times New
Roman', Times"><font color="#000000"><font size=-2>of
the proxies </font></font></font>
<br><font face="'Times New
Roman', Times"><font color="#000000"><font size=-2>named
herein, </font></font></font>
<br><font face="'Times New
Roman', Times"><font color="#000000"><font size=-2>upon
such other matters as may properly come </font></font></font>
<br><font face="'Times New
Roman', Times"><font color="#000000"><font size=-2>before
the </font></font></font>
<br><font face="'Times New
Roman', Times"><font color="#000000"><font size=-2>meeting.</font></font></font></td>
</tr>
<tr>
<td COLSPAN="5" NOWRAP WIDTH="39%" HEIGHT="94" BGCOLOR="#FFFFFF"><font face="'Times New Roman', Times"><font color="#000000"><font size=-2> For,
except vote withheld from the following nominee(s):</font></font></font></td>
<td ALIGN=RIGHT VALIGN=TOP WIDTH="3%" HEIGHT="94" BGCOLOR="#FFFFFF"><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>3.</font></font></font></td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="15%" HEIGHT="94" BGCOLOR="#FFFFFF"><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>Approval
of </font></font></font>
<br><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>Independent
Auditors.</font></font></font></td>
<td ALIGN=CENTER VALIGN=TOP WIDTH="4%" HEIGHT="94" BGCOLOR="#FFFFFF">[_]</td>
<td ALIGN=CENTER VALIGN=TOP WIDTH="10%" HEIGHT="94" BGCOLOR="#FFFFFF">[_]</td>
<td ALIGN=CENTER VALIGN=TOP WIDTH="6%" HEIGHT="94" BGCOLOR="#FFFFFF">[_]</td>
<td WIDTH="1%" HEIGHT="94" BGCOLOR="#FFFFFF"> </td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=TOP COLSPAN="6" HEIGHT="24" BGCOLOR="#FFFFFF">
<hr NOSHADE WIDTH="80%"
SIZE="1" ALIGN="left"></td>
<td WIDTH="15%" HEIGHT="24" BGCOLOR="#FFFFFF"> </td>
<td WIDTH="4%" HEIGHT="24" BGCOLOR="#FFFFFF"> </td>
<td WIDTH="10%" HEIGHT="24" BGCOLOR="#FFFFFF"> </td>
<td WIDTH="6%" HEIGHT="24" BGCOLOR="#FFFFFF"> </td>
<td WIDTH="1%" HEIGHT="24" BGCOLOR="#FFFFFF"> </td>
<td WIDTH="22%" HEIGHT="24" BGCOLOR="#FFFFFF"> </td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=TOP COLSPAN="6" BGCOLOR="#FFFFFF"> </td>
<td WIDTH="15%" BGCOLOR="#FFFFFF"> </td>
<td WIDTH="4%" BGCOLOR="#FFFFFF"> </td>
<td WIDTH="10%" BGCOLOR="#FFFFFF"> </td>
<td WIDTH="6%" BGCOLOR="#FFFFFF"> </td>
<td WIDTH="1%" BGCOLOR="#FFFFFF"> </td>
<td WIDTH="22%" BGCOLOR="#FFFFFF"> </td>
</tr>
<table WIDTH="75%" >
<tr>
<td ALIGN=RIGHT VALIGN=TOP WIDTH="85%" HEIGHT="58">[_] </td>
<td ALIGN=LEFT VALIGN=TOP WIDTH="15%" HEIGHT="58"><font face="'Times New Roman', Times"><font color="#000000"><font size=-2>Change
of Address Phone:
Please write new address on reverse side.</font></font></font></td>
</tr>
<table WIDTH="75%" HEIGHT="83" >
<tr>
<td ALIGN=LEFT VALIGN=BOTTOM NOWRAP WIDTH="14%" HEIGHT="20"><font face="Arial,
Helvetica"><font color="#000000"><font size=-2>SIGNATURE(S)</font></font></font></td>
<td ALIGN=LEFT VALIGN=BOTTOM WIDTH="40%" HEIGHT="20"><font face="Arial, Helvetica"><font color="#000000"><font size=-2>
_____________________________________________________</font></font></font></td>
<td ALIGN=LEFT VALIGN=BOTTOM WIDTH="17%" HEIGHT="20"><font face="Arial, Helvetica"><font color="#000000"><font size=-2>DATE
____________________</font></font></font></td>
<td WIDTH="1%" HEIGHT="20"> </td>
<td ROWSPAN="3" WIDTH="29%"><font face="Arial, Helvetica"><font color="#000000"><font size=-2>The
signer hereby revokes all proxies heretofore given by the signer to vote
at the meeting or any adjournments thereof.</font></font></font></td>
</tr>
<tr>
<td COLSPAN="2" HEIGHT="19"></td>
<td WIDTH="17%" HEIGHT="19"></td>
<td WIDTH="1%" HEIGHT="19"> </td>
</tr>
<tr>
<td ALIGN=LEFT VALIGN=TOP COLSPAN="3" HEIGHT="34"><b><font color="#000000"><font size=-2><font face="'Times New
Roman', Times">NOTE:</font><font face="'Times New Roman', Times">
Please sign exactly as name appears hereon. Joint owners should each sign.
When signing as attorney, executor,
administrator, trustee or guardian, please give full title.</font></font></font></b></td>
<td WIDTH="1%" HEIGHT="34"> </td>
</tr>
<center>
<p><b><font color="#000000"><font size=-2><font face="Wingdings">l </font><font face="Arial, Helvetica">
FOLD AND DETACH HERE IF YOU ARE RETURNING YOUR VOTED PROXY CARD BY MAIL
</font><font face="Wingdings">l</font></font></font></b>
<br>
<p><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>Internet
and Telephone Voting</font></font></font></b></center>
<p><br>
<br>
<br>
<br>
<p> <font face="'Times New Roman', Times"><font color="#000000"><font size=-1>
We encourage you to take advantage of these convenient new ways by which
you can vote your shares. You can vote your shares through the Internet
or the telephone. This eliminates the need to return the proxy card.</font></font></font>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>
To vote your shares through the Internet or the telephone you must use
the control number printed in the box above just below the perforation.
The series of numbers that appear in the box above must be used to access
the system.</font></font></font>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>
1. To vote over the Internet:</font></font></font>
<br><font face="'Times New Roman', Times"><font color="#000000"><font size=-1> </font></font></font> <font color="#000000"><font face="'Times New Roman',
Times"><font size=-1>
</font></font><font face="'Times New Roman', Times"><font size=+0>•
</font></font><font face="'Times New Roman',
Times"><font size=-1>Log
on the Internet and go to the Web site http://www.eproxyvote.com/azo</font></font></font>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>
2. To vote over the telephone:</font></font></font>
<br><font color="#000000"><font face="'Times New Roman', Times"><font size=-1>
</font><font size=+0>• </font></font><font face="'Times
New Roman', Times"><font size=-1>
On a touch-tone telephone call toll free 1-877-PRX-VOTE (1-877-779-8683)</font></font></font>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>
Your Internet or telephone vote authorizes the named proxies in the same
manner as if you marked, signed, dated and returned the proxy card.</font></font></font>
<p><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>
If you choose to vote your shares through the Internet or the telephone,
you should not mail back your proxy card.</font></font></font>
<center>
<p><b><font face="'Times New Roman', Times"><font color="#000000"><font size=-1>Your
vote is important. Thank you for voting.</font></font></font></b></center>
</body>