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Bandag Announces Completion of Acquisition of Five Dealerships

25 November 1997

Bandag Announces Completion of Acquisition of Five Dealerships

    MUSCATINE, Iowa, Nov. 25 -- Bandag, Incorporated
today announced that it has completed the previously announced acquisition of
five Bandag dealerships through Tire Distribution Systems, Inc., a wholly-
owned subsidiary.  The aggregate cash purchase price of the transaction was
approximately $159 million, plus 10,000 shares of Bandag's Class A Common
Stock.
    In 1996, these dealerships had aggregate pre-tax earnings of $16 million,
net sales of approximately $366 million and represented approximately six
percent of Bandag worldwide consolidated sales.  These figures are historical
and do not take into account adjustments that may be made in connection with
the acquisitions.  The five dealerships are: Universal Tire, Inc., (Nashville,
Tenn.), Southern Tire Mart, Inc. (Columbia, Miss.), J.W. Brewer Tire Co., Inc.
(Wheat Ridge, Colo.), Joe Esco Tire Co. (Oklahoma City, Okla.), and Sound
Tire, Inc., (Auburn, Wash.).
    The five dealerships together, which provide new and retread tire products
and tire management services to national, regional and local fleet
transportation companies, operate 47 Bandag franchised manufacturing locations
and 113 commercial, retail and wholesale outlets in 21 states.  They have
approximately 2,000 employees.
    Bandag, Incorporated manufactures retreading materials and equipment for
its worldwide network of approximately 1,300 franchised dealerships which
produce and market retread tires, and provide tire management services.

SOURCE  Bandag, Incorporated