Bandag, Inc. is engaged in the manufacture and sale of precured tread rubber, equipment and supplies for retreading tires (the Traditional Business); and the sale and maintenance of new and retread tires principally to commercial and industrial customers through its wholly owned subsidiary Tire Distribution Systems, Inc. (TDS). The Traditional Business is engaged primarily in the production and sale of precured tread rubber and equipment used by its franchisees for the retreading of tires for trucks, buses, light commercial trucks, industrial equipment, off- road equipment and passenger cars. TDS, which provides new and retread tire products and tire management services to national, regional and local fleet transportation companies, operates 40 Bandag franchise and manufacturing locations and 105 commercial and retail outlets in 16 states.