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Corporate Governance

                   AutoZone outperforms 91.5% of companies within retail
                   ranked by Institutional Shareholder Services in their
                   “Corporate Governance Quotient”
                   Early adoption of Corporate Governance Principles
                   Instituted Code of Conduct
                   Repealed Poison Pill
                   Rollup certification
                   No Analyst Earnings Guidance


                                                                           1
Copyright 2006, All Rights Reserved
Corporate Governance –
                                       Board of Directors

                   Board is comprised of the CEO, the founder of AZO, and
                   seven independent directors
                   Directors elected annually
                   All committees comprised of independent directors
                   Created the Nominating & Corporate Governance
                   Committee chaired by Mr. Charles Elson, the Edgar S.
                   Woolard, Jr. Professor of Corporate Governance,
                   University of Delaware
                   Limitation on number of Boards on which Directors may
                   serve
                   Term limits
                                                                            2
Copyright 2006, All Rights Reserved
Corporate Governance –
                                       Audit Committee

                   Comprised solely of independent directors
                   Meets quarterly with external and internal auditors without
                   management present
                   External auditors are Ernst & Young
                            Mandatory rotation of audit partner
                   Internal audit outsourced to Deloitte
                   Designated financial experts (Sue E. Gove, W. Andrew
                   McKenna and George R. Mrkonic, Jr.)
                   Audit Committee meets to approve all 10-Qs and Ks and
                   to review earnings releases

                                                                                 3
Copyright 2006, All Rights Reserved
Corporate Governance –
                                       Officers

                   All AZO Officers and functional controllers certify in writing
                   to 10-K/Q. Process supervised by Disclosure Compliance
                   Committee
                   No loans to officers or directors
                   For past 10 years, trading window closes 2 weeks before
                   end of quarter and re-opens 2 days after earnings release
                   All officers option exercises must be approved in advance
                   by General Counsel
                   Monthly review with all Vice Presidents to discuss
                   progress against tactics and financial variances for areas
                   for which they are accountable

                                                                                    4
Copyright 2006, All Rights Reserved

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autozone CorpGovernanceOverview020507

  • 1. Corporate Governance AutoZone outperforms 91.5% of companies within retail ranked by Institutional Shareholder Services in their “Corporate Governance Quotient” Early adoption of Corporate Governance Principles Instituted Code of Conduct Repealed Poison Pill Rollup certification No Analyst Earnings Guidance 1 Copyright 2006, All Rights Reserved
  • 2. Corporate Governance – Board of Directors Board is comprised of the CEO, the founder of AZO, and seven independent directors Directors elected annually All committees comprised of independent directors Created the Nominating & Corporate Governance Committee chaired by Mr. Charles Elson, the Edgar S. Woolard, Jr. Professor of Corporate Governance, University of Delaware Limitation on number of Boards on which Directors may serve Term limits 2 Copyright 2006, All Rights Reserved
  • 3. Corporate Governance – Audit Committee Comprised solely of independent directors Meets quarterly with external and internal auditors without management present External auditors are Ernst & Young Mandatory rotation of audit partner Internal audit outsourced to Deloitte Designated financial experts (Sue E. Gove, W. Andrew McKenna and George R. Mrkonic, Jr.) Audit Committee meets to approve all 10-Qs and Ks and to review earnings releases 3 Copyright 2006, All Rights Reserved
  • 4. Corporate Governance – Officers All AZO Officers and functional controllers certify in writing to 10-K/Q. Process supervised by Disclosure Compliance Committee No loans to officers or directors For past 10 years, trading window closes 2 weeks before end of quarter and re-opens 2 days after earnings release All officers option exercises must be approved in advance by General Counsel Monthly review with all Vice Presidents to discuss progress against tactics and financial variances for areas for which they are accountable 4 Copyright 2006, All Rights Reserved