Bandag Provides 1st Quarter 2001 Guidance

    MUSCATINE, Iowa, March 2 Bandag, Incorporated announced that it expects
first quarter 2001 results will be lower than expected, reflecting a
continuation of the sales softening experienced in the fourth quarter of last
year.  The Company estimates that this sales trend, combined with higher raw
material and energy costs, will result in first quarter earnings in the range
of $.13 to $.18 per diluted share, compared to $.48 per diluted share in the
first quarter 2000.  The Company also anticipates that first quarter sales
will be down approximately 6%.

    In North America, the Company's largest market, the glut of new tires
caused by an influx of imported tires and a decline in new medium-duty and
heavy-duty truck demand, has adversely impacted the demand for retreads.  The
Company is also experiencing a softening of demand on a global basis. The
Company expects these challenging market conditions to continue for much of
2001.