Midas' U.s. System Agrees To National Fleet Program; Will Begin To Support Certain Comdata Fleet Customers

By: Midas | 2 Shares 159 Reads

(Tuesday, October 17, 2006) - Midas, Inc., (NYSE:MDS) has been designated as an approved vendor partner of Comdata Corporation to begin providing automotive repair and maintenance services to certain Comdata fleet fuel card customers.

Comdata, a leading business-to-business issuer of fleet fuel and other payment card systems, is a partner in Midas' fleet program, providing credit for Midas fleet customers and payment processing support for Midas shops. Comdata and Midas have been working together to establish joint relationships in which Comdata fleet fuel card customers can have their vehicles serviced at Midas shops.

"Supporting Comdata's relationships with some of its accounts such as the State of Florida is an important venture for Midas, because it enables us to leverage our vendor partnerships," said Alan D. Feldman, Midas chairman and chief executive officer. "We have been working with Comdata since 2003, first on our local fleet program and now we're taking our relationship to the regional and national level."

Midas has nearly 1,600 automotive service shops in the United States, providing a full range of automotive services, including brakes, maintenance, exhaust, tires, steering and suspension.

Midas introduced the company's national fleet service program to its franchisees at their 50th anniversary convention last April. Franchisees were asked to sign fleet agreements committing the franchisee's Midas shops to national fleet service standards, service offerings and pricing. Franchisees operating more than 90 percent of the U.S. shops have now signed their agreements enabling Midas to launch a consistent nationwide fleet program.

"I am very pleased that the U.S. franchisees have endorsed the fleet program and we appreciate the efforts of the International Midas Dealers Association in helping achieve this agreement so quickly," Feldman said.

"We believe that fleet services provide an excellent potential opportunity for Midas, on the local and national levels," Feldman said. "Our fleet sales team is establishing relationships with the leading national fleet service providers, and we expect to begin seeing meaningful fleet business in 2007. Meanwhile, we will also continue to work with our partners such as Comdata to take full advantage of synergies in our relationships."

Midas is establishing a similar fleet program for launch at the approximately 200 Midas shops in Canada in the first quarter of 2007.

Midas is one of the world's largest providers of automotive service, with more than 2,600 franchised, licensed and company-owned Midas shops in 19 countries, including nearly 1,800 in the United States and Canada.

Comdata Corporation, based in Brentwood, Tenn., is a leading business-to-business processor of payment cards, primarily in the retail and transportation industries. Comdata is a wholly owned subsidiary of Minneapolis-based information services company Ceridian Corporation (NYSE:CEN).

FORWARD LOOKING STATEMENTS AND RISK FACTORS

This news release contains certain forward-looking statements that are based on management's beliefs as well as assumptions made by and information currently available to management. Such statements are subject to risks and uncertainties, both known and unknown, that could cause actual results, performance or achievement to vary materially from those expressed or implied in the forward-looking statements. The company may experience significant fluctuations in future results, performance or achievements due to a number of economic, competitive, governmental, technological or other factors.

Additional information with respect to these and other factors, which could materially affect the company and its operations, is included in the company's filings with the Securities and Exchange Commission, including the company's 2005 annual report on Form 10-K and subsequent filings.