The Andersons Announces Restructuring of the Processing Group

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The Andersons Announces Restructuring of the Processing Group
               Cash Dividend of 8-1/2 Cents Per Share Declared

    MAUMEE, Ohio, Aug. 18 /PRNewswire-FirstCall/ -- The Andersons, Inc.
(Nasdaq: ANDE) announced today the restructuring of its Processing Group.  The
Group's Lawn business unit will focus on the professional market and on areas
where it can add value in the consumer and industrial markets.  Mike Anderson,
Chief Executive Officer, said, "We will serve all sectors of the industry;
however, we will concentrate on customers and products where we can add value.
The lawn/turf fertilizer business has become an increasingly high volume,
commodity-oriented market.  We will direct our energies in markets where our
innovative and differentiated products can create market growth and margin
opportunity for us and our customers.  As in the past, we will continue to
produce high-quality lawn fertilizers and other lawn care products under our
own brand, Andersons Golf Products, and exclusive labels for certain retailers
and third-party manufacturers. I feel good about the new direction of this
business unit and I am committed to return this unit to profitability."
    Gary Smith, Vice President Finance and Treasurer, said, "In 2004, the
Processing Group produced revenues of $126 million. As a result of the
business restructuring, we expect to reduce working capital, labor and benefit
costs because of the new product mix. We anticipate that the Processing Group
will incur severance costs of approximately $1 million in 2005. It is not
anticipated that this cost will have a significant impact on the current
$2.20-$2.50 per share earnings guidance for 2005."
    This change affects only the Processing Group. The Plant Nutrient
Division, focused on plant nutrients for the agricultural markets, anti-icers,
nitrogen reagents and other industrial products, is completely unaffected by
this change.
    Tom Waggoner, formerly Vice President of Sales and Marketing for the
Group, will assume the President's role. Rick Anderson, President of the
Processing Group, will leave the company to pursue other opportunities.
    In addition, the Company announced a cash dividend of 8-1/2 cents per
share, payable October 24, 2005, to shareholders of record on October 3, 2005.
This is The Andersons' 36th consecutive quarterly cash dividend since its
listing on Nasdaq on February 20, 1996. There are approximately 7.5 million
common shares outstanding.
    The Andersons, Inc. is a diversified company with interests in the grain
and plant nutrient sectors of U.S. agriculture, as well as in railcar
marketing, industrial materials formulation, turf products production, and
general merchandise retailing. Founded in Maumee, Ohio, in 1947, the company
presently has operations in seven U.S. states plus rail equipment leasing
interests in Canada and Mexico. Total revenues in 2004 were $1.3 billion.
Visit The Andersons online at http://www.andersonsinc.com.

    This release contains forward-looking statements. These statements involve
risks and uncertainties that could cause actual results to differ materially.
Without limitation, these risks include economic, weather and regulatory
conditions, competition, and the risk factors set forth from time to time in
the company's filings with the Securities and Exchange Commission. Although
the Company believes that the assumptions upon which its forward-looking
statements are based are reasonable, it can give no assurance that these
assumptions will prove to be correct.
SOURCE The Andersons, Inc.
http://www.andersonsinc.com
CONTACT:
Gary Smith, VP Finance & Treasurer of The
Andersons, Inc., +1-419-891-6417