MUSCATINE, IA -- Bandag, Incorporated reported consolidated net earnings of $12.7 million, or $0.65 per diluted share, for second quarter 2005. This compares to second quarter 2004 consolidated net earnings of $11.9 million, or $0.60 per diluted share. Consolidated net earnings for second quarter 2004 included favorable tax adjustments of $1.0 million, or $0.05 per diluted share, resulting primarily from the reassessment of certain tax matters. Consolidated net sales for second quarter 2005 were $227.3 million, an increase of seven percent, compared to consolidated net sales of $213.2 million in second quarter 2004. Net sales were positively impacted by approximately $4.9 million due to the effect of translating foreign currency denominated net sales into U.S. dollars.

For the first six months of 2005, Bandag reported consolidated net earnings of $18.7 million, or $0.95 per diluted share, compared to consolidated net earnings of $15.9 million, or $0.81 per diluted share, in the same period of 2004. Consolidated net sales for the first six months of 2005 were $417.0 million, an increase of seven percent from consolidated net sales of $389.9 million in the first six months of 2004.

In announcing second quarter 2005 results, Martin G. Carver, chairman of the board and chief executive officer of Bandag, said, "Reflecting the benefits of increased transportation activity, North American net sales and unit volume were up over the 2004 period. These favorable transportation business conditions also were evident in the quarter's strong performance at Speedco and Tire Distribution Systems, Inc. (TDS)."

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