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Midas Directors Approve Strategic Initiatives

20 November 1998

Midas Directors Approve Strategic Initiatives to Position Company for Continued Earnings Growth; Company Declares Dividend of $0.02 Per Share

    CHICAGO--Nov. 19, 1998--At its regular meeting here today, the board of directors of Midas, Inc., approved a series of strategic initiatives to position the company to restore sales growth and reduce costs in North America, where there are nearly 2,150 Midas automotive service shops.
    "Although complete details of the program will not be final for about 30 days, the Midas board has approved the overall plan, which will result in a $55-$60 million pre-tax charge to fourth quarter earnings," said Wendel H. Province, Midas chairman and chief executive officer.
    Major elements in the program are:

-- Midas will undertake an upgrade in the image of all North
    American Midas shops in 1999. The company will contribute funds
    to assist Midas franchisees in the United States and Canada in
    updating the exteriors and interiors of the facilities and
    installing new signs, as well as improving their in-store
    computer systems.

-- Midas previously had said it would focus attention on its
    international operations in the second half of 1998. As a first
    step in that plan, Midas in October signed an alliance with
    Magneti Marelli, a part of the Fiat Group, which acquired Midas'
    European interests. The company now will determine the best
    structure for operating its other International shops, which will
    result in a charge.

-- Midas and a consulting firm have completed a thorough evaluation
    of services provided through the company's 18 current warehouses
    in the United States and Canada. Final recommendations will
    result in major changes in the North American distribution system
    in 1999.

-- Midas will relocate its corporate headquarters from downtown
    Chicago to a Chicago suburb early in the second quarter of 1999.


    "These changes will enable Midas to focus on the high potential of its North American operations," Province said.
    Midas directors today also declared a regular dividend of $0.02 per share, payable Jan. 1, 1999, to shareholders of record on Dec. 15, 1998.


    Midas is one of the world's largest providers of automotive service, including exhaust, brakes, steering and suspension, as well as batteries and maintenance services. There are more than 2,700 Midas locations in 19 countries.