Midas, Inc. Welcomes New Owners of Midas Europe Operations

ITASCA, Ill.--July 29, 2004--Midas, Inc. confirms the pending sale of its licensed operations in Europe and Latin America by current owner Magneti Marelli., a member of the Fiat Group, to France's Norauto Group. A similar announcement was made today by Norauto and Magneti Marelli.

"We are extremely confident in the ability of Norauto to protect and grow the Midas brand in Europe and Latin America. We welcome the company as a new alliance partner," said Alan D. Feldman, Midas' president and chief executive officer. "Midas' licensed operations in Europe fit well into Norauto's current retail business and its strategic direction."

Midas sold its interests in Europe and Brazil to Magneti Marelli in October 1998, when the companies entered into a long-term license agreement for which Midas received $100 million in cash and on-going royalties throughout the term of the license agreement.

Norauto, a privately held company based in Lille, France, currently operates 351 stores in France, Spain, Italy, Belgium, Poland, Portugal and Argentina under the Norauto, Auto5, MaxAuto and CarterCash brands. The stores sell over-the-counter parts and accessories in a retail format and most have service bays to provide maintenance and repairs.

Under terms of the sale, Norauto will continue to be obligated by the original strategic alliance and license agreements between Midas, Inc., and Magneti Marelli.

"Importantly, we will enter into an agreement with Norauto that contains financial guarantees for continuing royalties to Midas, Inc.," Feldman said. "We are confident that the Midas program will continue to expand and prosper under the ownership of Norauto."

There currently are 607 Midas shops in the countries covered by the agreement. At the time of the initial sale in 1998, Midas had 438 shops in Europe, of which 187 were owned by the company and 251 were owned by franchisees. The shops were in France, Belgium, Austria, Italy, Poland, Spain, Switzerland and Brazil. Since then, Midas Europe has also entered Morocco and Portugal.

Midas Europe will continue to be based in Monoco, and it is anticipated that Peter Schalburg will continue as its managing director.

Midas is one of the world's largest providers of automotive service, offering exhaust, brake, steering and suspension services, as well as maintenance services, tires and batteries at more than 2,600 franchised, licensed and company-owned Midas shops in 19 countries, including nearly 1,900 in the United States and Canada.