Bandag Increase In Quarterly Dividend

The Board of Directors of Bandag, Incorporated, (NYSE: BDG and BDGA) today declared an increase in the regular quarterly dividend from $.32 per share to $.325 per share on the Common Stock, Class A Common Stock and Class B Common Stock of the Company payable January 16, 2004 to shareholders of record at the close of business on December 19, 2003.