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Roadway Signs Tire Management Contract With Bandag's TMS, Inc.

5 February 1999

Roadway Signs Tire Management Contract With Bandag's TMS, Inc.

    MUSCATINE, Iowa, Feb. 5 -- Tire Management Solutions, Inc.
(TMS), a wholly owned subsidiary of Bandag, Incorporated , today
announced it has inked its first tire management outsourcing contract.
    Roadway Express has signed a deal to totally outsource the fleet's tire
management program in an effort to maximize up-time, reduce fleet operating
costs and focus on its core business of expedient movement of
less-than-truckload freight.
    Terms of the contract were not disclosed. However, Bandag officials
reported that it will not have a material impact on the company's 1999
earnings.
    According to Bandag officials, outsourcing tire management is not a
totally new concept.  A number of Bandag dealers across North America have
been handling tire management in varied forms for local fleets for the past
several years.
    What is unique about the Roadway-TMS contract is that it involves some
70+ dealers who are part of the Bandag Strategic Alliance who will be
providing outsourced tire service to Roadway terminals across the country.
Other details about the contract were not released because of their
proprietary nature.
    The structure of tire management contracts can vary depending upon the
needs of the fleet and the segment in which it is involved.  Essentially, they
are designed to "take the fleet out of the tire business" and allow the
fleet's management team to concentrate on its core business, be that moving
freight, product, or people.
    By outsourcing their total tire systems management, the fleet can rely on
TMS specialists who have the expertise, information, products, and programs to
maximize the fleet's return on investment and minimize downtime resulting from
enroute failures.
    The features of such a comprehensive contract can include but are not
limited to the following:  tire selection by wheel position and application,
disposal of scrap tires, tire repairs, emergency road side service, management
reporting and billing/payable administration, wheel reconditioning,
mounting/dismounting, inventory management, and the pick-up & delivery of tire
products. These contracts require a tremendous logistical base and supply
chain efficiencies from the outsourcing provider.
    Mike Tirona, V.P. of Tire Management Solutions, Inc., predicts many more
of these national tire management contracts will be signed in the future.
Tirona said, "Many fleets today are asking for help in easing the pain of
dealing with tires and tire programs.  They truly desire to 'exit the tire
business' and focus on their core trucking operations."  "Our Strategic Dealer
Alliance with over 1,600 sales and service locations in North America is in a
unique position to deliver the consistent quality in products, programs,
information, and services, regardless of where the fleet travels."
    Tirona continued, "There is also a second reason I see fleets looking to
TMS and the Strategic Dealer Alliance when they are ready to outsource their
tire management programs.  During the past 40 years we at Bandag have built
our business by helping fleets reduce their operating costs, reduce downtime,
and solve tire related problems.  During this process we have gathered a
wealth of information about how tire products run in various applications and
industry segments.  Now, TMS is taking that one step further with our
extensive development of the tire management systems sub-processes of
acquisition, maintenance, and recycling along with the new information
technology available to enhance product performance, implement proactive
maintenance procedures, and streamline tire running costs."
    Tirona concluded, "We have learned that when a fleet executive is ready to
outsource tire management, he will select a tire management vendor who can
assure that all products the vendor provides for the fleet's equipment meet or
exceed D.O.T. specs. That fleet executive also wants to be sure that all of
his vehicles operate at maximum uptime. The customer is demanding this and TMS
stands ready to provide."
    Bandag, Incorporated manufactures retreading materials and equipment for
its worldwide network of franchised dealerships who produce and market retread
tires and provide tire management services.  TMS, Inc. is a wholly owned
subsidiary of Bandag, specializing in tire management services.