Midas to Acquire 72 Additional Shops From Franchisees by End of Year

    ITASCA, Ill.--Oct. 2, 2001--Midas, Inc. has entered into agreements to acquire 72 franchised Midas Auto Service Experts locations in the United States during the fourth quarter of 2001.
    The 72 shops to be acquired include 52 locations in Florida that Midas has purchased from Automotive Service Centers, Inc. (ASCI), Midas' second-largest franchisee.
    ASCI, based in Clearwater, operates 24 Midas shops in the Tampa Bay area, with additional sites across Florida in Fort Lauderdale, Fort Myers, Jacksonville, Naples and West Palm Beach.
    Other shops to be acquired will be identified when the acquisitions are completed.
    Earlier this year, Midas announced that the company planned to expand its company-operated shops by acquiring sites from franchisees. From a base of 10 at the beginning of the year, Midas currently has 36 in operation and expects to acquire the additional 72 by year's end, bringing the total of company-operated shops to 108.
    "Company shops are producing strong results for Midas due to the strategic initiatives introduced in mid-2000 to expand Midas' services, which include climate control and maintenance," said Wendel H. Province, Midas' chairman and chief executive officer. "Furthermore, new programs for operations and merchandising implemented in company shops can be developed and enhanced to maximize their benefit throughout the Midas system.
    "The Midas system of franchised and company-operated shops is well positioned to benefit from an expected increase in inter-city highway travel by North American motorists," Province said.
    Midas currently has company-operated shops in California, Connecticut, Illinois, New York, Ohio and Pennsylvania.
    The company will fund the planned acquisitions through increased borrowing.
    Because of its increasing capital requirements, Midas will eliminate payment of a dividend to holders of Midas common shares beginning in 2002, conserving approximately $1.2 million in cash. Midas last paid an annual dividend of $.08 per common share on April 1, 2001.

    Midas is one of the world's largest providers of automotive service, offering exhaust, brake, steering and suspension services, as well as batteries, climate control and maintenance services at 2,700 franchised, company-owned and licensed Midas shops in 20 countries, including nearly 2,000 in the United States and Canada.