MUSCATINE, IOWA -- Bandag has reported consolidated net sales of $247.3 million for the second quarter of 2006, compared to consolidated net sales of $227.3 million in the second quarter 2005, an increase of 9 percent. Consolidated net sales were positively impacted by approximately $4.1 million due to the effect of translating foreign currency denominated net sales into U.S. dollars. Consolidated net earnings were $10.5 million, or 54 cents per diluted share for the second quarter, compared to second quarter 2005 consolidated net earnings of $12.7 million, or 65 cents per diluted share.

Consolidated net sales for the first six months of 2006 were $459.7 million, an increase of 10 percent from consolidated net sales of $417 million in the first six months of 2005. For the first six months of 2006, Bandag reported consolidated earnings from continuing operations of $16.2 million, or 83 cents per diluted share, compared to consolidated net earnings of $18.7 million, or 95 cents per diluted share, in the same period of 2005.

During the first quarter of 2006, Bandag recorded the previously announced deferred loss on the sale of its business in South Africa. As a result, for the first six months of 2006, Bandag recorded a net loss on discontinued operations of $16.4 million, or 84 cents per diluted share, resulting in a consolidated net loss of $0.2 million, or 1 cent per diluted share.

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