Midas Expects First Quarter U.S. Comparable Shop Sales Increase of 4 Percent

ITASCA, Ill.--April 20, 2005--Midas, Inc. expects to report first quarter increases in comparable shop retail sales at Midas shops in the United States of 4 percent--with an increase of approximately 3.5 percent in North American shops.

Midas will report its first quarter results in early May.

"The company has now achieved eight consecutive quarters of increases in comparable shop sales in the U. S., fueled by brake sales and the addition of tires and maintenance services in our shops. The momentum of our retail focus, which returned the company to profitability last year, has continued into 2005," said Alan D. Feldman, Midas' president and chief executive officer.

During the quarter, the company sold the assets of Huth, Inc., a manufacturer of exhaust pipe bending equipment located in Hartford, Wisc., and a warehouse in Chicago used to distribute exhaust products. Those sales generated proceeds of $7.4 million. As a result, the company reduced its bank debt level by $9.5 million to $59.5 million during the quarter ended April 1.

Midas continues in discussions to secure an alternate supplier of exhaust products for the 1,800 Midas shops in North America. The company expects to complete an agreement in the second quarter, allowing Midas to phase-out production of exhaust products at Hartford and eventually close that plant. Midas is leasing back the warehouse space in Chicago until its exit from exhaust manufacturing and distribution is complete. The company will sell the Hartford real estate and equipment after production ends.

Feldman said the company expects that first quarter results will be on target with previous guidance of 2005 full-year revenues of approximately $200 million, gross margin of 56 to 58 percent and capital spending of $2.5 to $3.5 million. The full-year $200 million estimate includes approximately $32 million related to the company's exhaust manufacturing and distribution businesses. Excluding losses related to manufacturing and the special charge that will result from the exit, the company expects operating income of between $24 and $26 million in 2005.

During the quarter, Midas purchased 58,367 shares of the company's common stock as part of a $25 million share repurchase program announced last November. The company expects share repurchases will continue over the next several years.