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Bandag, Incorporated Declares Quarterly Dividend

2 May 2000

Bandag, Incorporated Declares Quarterly Dividend

    MUSCATINE, Iowa, May 2 The Board of Directors of
Bandag, Incorporated (NYSE: BDG and BDGA) declared a regular quarterly
dividend of $.295 per share on the Common Stock, Class A Common Stock and
Class B Common Stock of the Company payable July 21, 2000 to shareholders of
record at the close of business on June 19, 2000.
    Also, the Board of Directors approved a new stock purchase program which
authorizes Bandag to purchase up to 2,000,000 shares of its outstanding Common
Stock and/or Class A Common Stock from time to time in the open market or in
private transactions.  Most recently, in September 1998, the Board of
Directors approved a stock purchase program of up to 2,000,000 shares of its
outstanding Common Stock and/or Class A Common Stock.  Bandag currently has
835,066 shares yet to be purchased under such prior authorizations resulting
in a total current authorization of 2,835,066 shares.  Bandag has a total of
20,771,125 outstanding shares of its Common (9,088,726), Class A Common
(9,637,324) and Class B Common (2,045,075).
    Bandag, Incorporated manufactures retreading materials and equipment for
its worldwide network of over 1,300 independent franchised dealers that
produce and market retread tires and provide tire management services.
Bandag's pilot operation, Tire Management Solutions, Inc. (TMS) provides tire
management systems outsourcing for commercial truck fleets.  Tire Distribution
Systems, Inc. (TDS), a wholly owned subsidiary, sells and services new and
retread tires.