MUSCATINE, IOWA -- Bandag Inc. has reported consolidated net earnings of $20.1 million, or $1.02 per diluted share, for the third quarter of 2004, compared to third quarter 2003 consolidated net earnings of $20 million, or $1.03 per diluted share.

Consolidated net sales for the third quarter of 2004 were $236.8 million, an increase of 12 percent compared to third quarter 2003 consolidated net sales of $211.4 million. Of the sales increase, $17 million is attributable to Speedco, Bandag's on-highway quick-service truck lubrication subsidiary, which was acquired in the first quarter of 2004.

For the first nine months of 2004, Bandag reported consolidated net earnings of $36 million, or $1.83 per diluted share. This compares to consolidated net earnings of $31.1 million, or $1.61 per diluted share, for the first nine months of 2003. Consolidated net sales for the first nine months of 2004 were $621.4 million, an increase of 5 percent compared to consolidated net sales of $590.7 million for the first nine months of 2003.

Martin Carver, Bandag's chairman and CEO, said earnings improvement at Tire Distribution Systems, Inc. (TDS), Bandag's tire distribution subsidiary, and the International business unit, together with Speedco's strong performance, played a major role in offsetting lower earnings in the North American business unit.

Commenting on the outlook for the remainder of the year, Carver said, "Bandag has made significant progress in the first nine months, and we remain strategically focused on providing an expanding array of integrated services to keep trucks rolling. While we remain optimistic about the strength of the global economy, we are keeping a watchful eye on rising energy prices and their impact on Bandag's business worldwide."

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

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