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Midas Announces Decision to Review Strategic Alternatives

These strategic and financial alternatives could include a possible sale, merger or other business combination.

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ITASCA, Ill. — Midas Inc. has announced that its board of directors will explore and evaluate a range of strategic and financial alternatives to enhance value for stockholders. The company has retained J.P. Morgan Securities LLC to assist in this process.

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These strategic and financial alternatives could include a possible sale, merger or other business combination. As part of its strategic review, the company will conduct an appraisal of its real estate portfolio of 208 properties, which are occupied by company-operated Midas shops or leased to Midas franchisees. The properties were last appraised in late 2002.

“Following its meeting earlier this week, our board concluded that this process will better enable it to determine the best path to enhance value for Midas stakeholders and the brand,” said Alan Feldman, Midas’ chairman and CEO. “As we announced in our second quarter earnings release on Aug. 4, the company continues to make solid progress in increasing sales at franchised and company-operated shops, in co-branding of Midas and SpeeDee locations and in improving profitability. Despite the company’s improving performance, the board feels that the current market valuation of Midas does not reflect the underlying value of its assets and prospects for future growth.”

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Midas says it does not expect to make any further comments unless its board of directors has approved a specific course of action.

In addition, the company clarified that the earnings per share guidance that it issued on Aug. 4 is prior to any potential impact and expenses associated with the board’s decision to explore strategic alternatives.

Kirkland & Ellis LLP serves as legal advisor to Midas, and Sard Verbinnen & Co is serving as investor relations counsel.

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