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Treadco, Inc. Announces 1998 Q1 Operating Results

21 April 1998

Treadco, Inc. Announces 1998 First Quarter Operating Results

    FORT SMITH, Ark., April 21 -- Treadco, Inc.
announced today sales of $37.5 million with a net loss of $627,466, or a
$0.12 loss per common share (basic and diluted), for the 1998 first quarter.
Treadco had a 101.5% operating ratio for the 1998 first quarter compared to
107.6% for the 1997 first quarter.  Treadco increased retread unit sales by
12.1% and new tire unit sales by 12.0% over the 1997 first quarter.
    "Treadco reported record first quarter sales, up 12.9% from last year,"
said John R. Meyers, President and Chief Executive Officer.  "We continued to
make significant improvements in operations by cutting our 1998 first quarter
operating loss to $576,000 from $2.5 million in the 1997 first quarter.
    "As expected, the low-volume winter months resulted in some production
inefficiencies, however, the increased year-over-year retread unit sales
resulted in improved operating results," said Meyers.  "We experienced
acceptable increases in new tire sales during the quarter while continuing to
be hampered by a shortage of new tire availability."
    For the 1998 first quarter, "same store" sales increased 12.7% and "new
store" sales accounted for 0.2% of the increase from the 1997 first quarter.
"Same store" sales include locations that have been in operation for the
entire periods compared.
    The foregoing release contains forward-looking statements that are based
on current expectations and are subject to a number of risks and
uncertainties.  Actual results could differ materially from current
expectations due to a number of factors, including general economic
conditions; competitive initiatives and pricing pressures; availability and
cost of capital; shifts in market demand; weather conditions; government
regulations; the performance and needs of industries served by Treadco; actual
future costs of operating expenses such as the price of oil; self-insurance
claims and employee wages and benefits; and the timing and amount of capital
expenditures.
    The following table provides a breakdown of sales by category:

                                                   Three Months Ended
                                                         March 31
                                            1998           1997     Increase

    SALES
     Retread                            $15,503,889    $13,684,827    13.3%
     New Tires                           18,289,075     16,443,687    11.2%
     Service                              3,711,984      3,082,960    20.4%
                                        $37,504,948    $33,211,474    12.9%


    TREADCO, INC.
    CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
                                                    Three Months Ended
                                                          March 31
                                                   1998              1997
                                                     1998             1997

    OPERATING ACTIVITIES
     Net cash provided by operating activities  $ 1,355,283       $   975,499

    INVESTING ACTIVITIES
     Purchases of property, plant and
      equipment, less capitalized leases           (569,435)         (404,987)
     Proceeds from asset sales                       22,725           426,754
     Net cash provided (used) in
      investing activities                         (546,710)           21,767

    FINANCING ACTIVITIES
     Borrowings under revolving credit facility  14,400,000        11,075,000
     Payments under revolving credit facilities (15,400,000)      (11,375,000)
     Payments on long-term debt                    (584,636)         (359,728)
     Dividends paid                                     ---          (202,890)
     Net increase in cash overdrafts                776,063               ---
     Net cash used in financing activities         (808,573)         (862,618)

    NET DECREASE IN CASH AND CASH EQUIVALENTS           ---           134,648
     Cash and cash equivalents at
      beginning of period                               ---            15,804
    CASH AND CASH EQUIVALENTS AT END OF PERIOD  $       ---       $   150,452

SOURCE  Treadco, Inc.