Bandag, Incorporated Declares Quarterly Dividend

MUSCATINE, Iowa, May 11, 2004 -- The Board of Directors of Bandag, Incorporated today declared a regular quarterly dividend of $.325 per share on the Common Stock, Class A Common Stock and Class B Common Stock of the Company payable July 19, 2004 to shareholders of record at the close of business on June 18, 2004.

Bandag, Incorporated manufactures retreading materials and equipment for its worldwide network of more than 1,000 franchised dealers that produce and market retread tires and provide tire management services. Bandag's traditional business serves end-users through a wide variety of products offered by dealers, ranging from tire retreading and repairing to tire management systems outsourcing for commercial truck fleets. Tire Distribution Systems, Inc. (TDS), a wholly-owned subsidiary, sells and services new and retread tires. In addition, Bandag has an 87.5% interest in Speedco, Inc., a provider of on-highway truck lubrication services to commercial truck owner- operators and fleets.