Bandag and Tire Centers, Inc. Mutually Agree to End Relationship Over Next 15 Months

1 April 1998
Bandag and Tire Centers, Inc. Mutually Agree to End Relationship Over Next 15 Months

    MUSCATINE, Iowa, April 1 -- Bandag, Incorporated
today announced that it has signed an agreement with Tire Centers,
Inc. (TCI) to end their franchise relationship through an orderly transition
process to be completed by mid-1999. TCI, with 16 franchise locations,
represented approximately 3.26 percent of Bandag's consolidated net sales in
1997.  Bandag expects minimal disruption to fleet customers because it
believes alternative Bandag dealer capability already exists in most markets
covered by the agreement.
    In announcing the agreement, Bandag Chairman Martin G. Carver said,
"Bandag and TCI have differing views of the evolving marketplace.  For this
reason, we have mutually agreed that it is in each company's best interests to
pursue our futures independently.  We have jointly developed an orderly
transition process to minimize the impact of the separation on Bandag
customers." While the specific terms of the transition were not announced,
Bandag said the first three markets covered by the agreement will be Atlanta,
Kansas City, and San Antonio.
    Bandag, Incorporated manufactures retreading materials and equipment for
its worldwide network of approximately 1,300 franchised dealerships that
produce and market retread tires and provide tire management services.
Bandag's wholly owned subsidiary, Tire Distribution Systems, Inc., sells and
services new and retread tires.
    This press release contains a "forward-looking" statement that is made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995.  Forward-looking statements involve known and unknown
risks, which may cause the actual results in the future to differ materially
from expected results. The statement is found in the last sentence of the
first paragraph.  Such statement involves the risks that dealer capabilities
in the affected markets may not prove sufficient for adequate fleet coverage.

SOURCE  Bandag, Incorporated