MUSCATINE, IOWA -- Bandag is restating its financial statements for the quarter ending March 31. The restatement is to correct an error that occurred during the first quarter, resulting in an understatement of inventories and an overstatement of cost of products sold in its North American business unit.

Restated consolidated earnings from continuing operations were $5.7 million, or 29 cents per diluted share, for first quarter 2006, compared to previously reported earnings from continuing operations of $3.8 million, or 19 cents per diluted share, and compared to first quarter 2005 consolidated net earnings of $6 million, or 30 cents per diluted share. The restatement will have no effect on cash flows.

The company said the information in its previously filed financial statements and other financial information for the quarter ending March 31 should no longer be relied upon.

For more information about Bandag, go to: www.bandag.com .

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