Bandag, Incorporated Declares Increase in Quarterly Dividend

MUSCATINE, Iowa, Nov. 8, 2005 -- The Board of Directors of Bandag, Incorporated, today declared an increase in the regular quarterly dividend from $.33 per share to $.335 per share on the Common Stock, Class A Common Stock and Class B Common Stock of the Company payable January 20, 2006 to shareholders of record at the close of business on December 20, 2005.

Bandag, Incorporated manufactures retreading materials and equipment for its worldwide network of approximately 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. TDS 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 and routine tire services to commercial truck owner-operators and fleets.