Midas' Files Second Quarter 10Q; Adjusts Cash Flows Related to Acquisitions

ITASCA, Ill.--Aug. 10, 2006--In its 10Q filing today with the Securities and Exchange Commission, Midas, Inc. reported that changes in assets and liabilities provided $2.1 million of net cash during the first six months of 2006 and used $13.1 million in 2005, changes of $1.8 million and $0.5 million, respectively, from previously reported amounts.

In its second quarter earnings press release on Aug. 3, 2006, Midas had indicated that changes in assets and liabilities provided net cash of $3.9 million for the first half of 2006 and had used $12.6 million during the same period last year.

This change was due to the company previously treating as cash activities the settlement of outstanding receivables from franchisees in connection with the acquisition of company-operated shops from these franchisees. These settlements are now treated as non-cash transactions because the company generally deducts any outstanding receivables to determine the net amount paid for these acquisitions.

"These changes have no effect whatsoever on our reported operating results," said Alan D. Feldman, Midas chairman and chief executive officer. "We remain confident that the company is on track to meet our full-year guidance of cash flow from operating activities of $27 to $30 million."

Midas reported second quarter net income of $2.6 million--or $0.17 per diluted share.

Midas is one of the world's largest providers of automotive service, offering brake, exhaust, maintenance, tires, steering and suspension services at more than 2,600 franchised, licensed and company-owned Midas shops in 19 countries, including nearly 1,800 in the United States and Canada.

FORWARD LOOKING STATEMENTS AND RISK FACTORS

This news release contains certain forward-looking statements that are based on management's beliefs as well as assumptions made by and information currently available to management. Such statements are subject to risks and uncertainties, both known and unknown, that could cause actual results, performance or achievement to vary materially from those expressed or implied in the forward-looking statements. The company may experience significant fluctuations in future results, performance or achievements due to a number of economic, competitive, governmental, technological or other factors.

Additional information with respect to these and other factors, which could materially affect the company and its operations, is included in the company's filings with the Securities and Exchange Commission, including the company's 2005 annual report of Form 10-K and subsequent reports.