Cintas (CTAS) 8-K Results of Operations and Financial Condition

FOR IMMEDIATE RELEASE
September 20, 2006

Cintas Corporation Reports First Quarter Fiscal 2007
Revenue and Earnings
Revenue increases 11%
Earnings Per Diluted Share increases 15.2%

CINCINNATI,September20,2006—CintasCorporation (Nasdaq:CTAS) today reported revenue for the first quarter of fiscal 2007 of $914.2 million, an 11.0% increase from the previous year’s first quarter revenue of $823.5 million. Net income of $85.0 million increased 8.3% from $78.4 million last year and earnings per diluted share of $0.53 increased 15.2% from $0.46 per diluted share last year.

Scott D. Farmer, President and Chief Executive Officer, stated, “On behalf of our Cintas employee partners, I am proud to report our first quarter results. We have again achieved double-digit revenue growth and delivered strong operating margins, despite increases in energy costs. Our earnings before interest and taxes improved a healthy 11.8% over the first quarter of fiscal 2006.”

Mr. Farmer continued, “The implementation of our new sales structure, which we announced a few months ago, continues to be on schedule. This new structure is designed to develop additional cross-selling opportunities and improve sales productivity. The new sales organization, in conjunction with our vast product and service offerings, is expected to drive improvements in future internal growth.”

Strong Balance Sheet

The Company’s balance sheet continues to be strong. Despite increased debt levels related to acquisitions made in late fiscal 2006 and the Company’s share repurchase program, debt to total capitalization as of August 31, 2006 was only 29%. Cash and marketable securities were $175 million as of August 31, 2006. Total shareholders’ equity was $2.05 billion.

Adoption of FAS Statement No. 123(R)

During the first quarter of fiscal 2007, the Company adopted FAS Statement No. 123(R),Share-BasedPayment. This statement requires all share based payments to employees, including grants of employee stock options, to be recognized as an expense in the statement of income based on their fair values. The Company adopted this statement using the modified retrospective method, which included the restatement of prior periods. This adoption lowered earnings per diluted share for the first quarter of fiscal 2006 from $0.47 per diluted share to $0.46 per diluted share.

Outlook

Mr. Farmer commented, “Based on our sales results through the first quarter, a leveling off of energy costs as compared to the fourth quarter of fiscal 2006 and a less active hurricane season to date, we reiterate our fiscal 2007 guidance which calls for fiscal 2007 revenue of $3.77 to $3.85 billion and diluted earnings per share of $2.10 to $2.20. We expect fiscal 2007 to be another record year at Cintas, which would result in our 38th consecutive year of growth in sales and earnings.”

About Cintas

Headquartered in Cincinnati, Cintas Corporation provides highly specialized services to businesses of all types throughout North America. Cintas designs, manufactures and implements corporate identity uniform programs, and provides entrance mats, restroom supplies, promotional products, first aid and safety products, fire protection services and document management services for approximately 700,000 businesses. Cintas is a publicly held company traded over the Nasdaq Global Select Market under the symbol CTAS, and is a Nasdaq-100 company and component of the Standard & Poor’s 500 Index. The Company has achieved 37 consecutive years of growth in sales and earnings, to date.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

ThePrivateSecuritiesLitigationReformActof1995providesasafeharborfrom civillitigationforforward-lookingstatements. Forward-lookingstatementsmay beidentifiedbywordssuchas“estimates,”“anticipates,”“projects,”“plans,” “expects,”“intends,”“believes,”“seeks,”“could,”“should,”“may”and“will” orthenegativeversionsthereofandsimilarexpressionsandbythecontextin whichtheyareused. Suchstatementsarebaseduponcurrentexpectationsof Cintasandspeakonlyasofthedatemade. Thesestatementsaresubjectto variousrisks,uncertaintiesandotherfactorsthatcouldcauseactualresults todifferfromthosesetforthinorimpliedbythisnewsrelease. Factorsthat mightcausesuchadifferenceinclude,butarenotlimitedto,thepossibility ofgreaterthananticipatedoperatingcostsincludingenergycosts,lowersales volumes,theperformanceandcostsofintegrationofacquisitions,fluctuations incostsofmaterialsandlaborincludingincreasedmedicalcosts,costsand possibleeffectsofunionorganizingactivities,uncertaintiesregardingany existingornewly-discoveredexpensesandliabilitiesrelatedtoenvironmental complianceandremediation,thecost,resultsandongoingassessmentofinternal controlsforfinancialreportingrequiredbytheSarbanes-OxleyActof2002,the initiationoroutcomeoflitigation,higherassumedsourcingordistribution costsofproducts,thedisruptionofoperationsfromcatastrophicevents, changesinfederalandstatetaxlawsandthereactionsofcompetitorsinterms ofpriceandservice. Cintasundertakesnoobligationtoupdateany forward-lookingstatementstoreflecteventsorcircumstancesarisingafterthe dateonwhichtheyaremade.

For additional information, contact:

William C. Gale, Senior Vice President-Finance and Chief Financial Officer — 513-573-4211

Michael L. Thompson, Vice President and Treasurer – 513-573-4133

Cintas Corporation
Consolidated Condensed Statements of Income
(Unaudited)
(In thousands except per share data)

	Three Months Ended
	Aug. 31, 2006			Aug. 31, 2005 (Restated)*			% Chng.
Revenue:
Rentals	$	687,658		$	628,008			9.5
Other services		226,503			195,467			15.9
Total revenue	$	914,161		$	823,475			11.0
Costs and expenses (income):
Cost of rentals	$	378,300		$	339,425			11.5
Cost of other services		145,380			128,562			13.1
Selling and administrative expenses		244,128			224,550			8.7
Interest income		(1,526	)		(1,702	)		-10.3
Interest expense		12,432			7,336			69.5
Total costs and expenses	$	778,714		$	698,171			11.5
Income before income taxes	$	135,447		$	125,304			8.1
Income taxes		50,485			46,882			7.7
Net income	$	84,962		$	78,422			8.3
Per share data:
Basic earnings per share	$	0.53		$	0.46			15.2
Diluted earnings per share	$	0.53		$	0.46			15.2
Basic shares outstanding		160,770			168,939
Diluted shares outstanding		161,147			169,564

CINTAS CORPORATION SUPPLEMENTAL DATA

	Three Months Ended
	Aug. 31, 2006		Aug. 31, 2005 (Restated)*		% Chng.
Rentals gross margin		45.0%		46.0%
Other services gross margin		35.8%		34.2%
Total gross margin		42.7%		43.2%
Net margin		9.3%		9.5%
Depreciation and amortization	$	42,768	$	38,353		11.5
Capital expenditures	$	36,496	$	36,144		1.0
Debt to total capitalization		29.5%		19.8%

*Restated to reflect the adoption of FAS 123R, using the modifed-retrospective method.

Cintas Corporation
Consolidated Condensed Balance Sheets
(In thousands except share data)

	Aug. 31, 2006 (Unaudited)			May 31, 2006 (Restated)*
ASSETS
Current assets:
Cash and cash equivalents	$	34,965		$	38,914
Marketable securities		139,929			202,539
Accounts receivable, net		391,411			389,905
Inventories, net		210,381			198,000
Uniforms and other rental items in service		339,798			337,487
Prepaid expenses		10,529			11,163
Total current assets		1,127,013			1,178,008
Property and equipment, at cost, net		867,631			863,783
Goodwill		1,153,867			1,136,175
Service contracts, net		175,020			179,965
Other assets, net		60,690			67,306
	$	3,384,221		$	3,425,237
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	59,865		$	71,635
Accrued compensation & related liabilities		47,357			50,134
Accrued liabilities		129,863			188,927
Income taxes:
Current		50,218			43,694
Deferred		66,174			51,669
Long-term debt due within one year		229,526			4,288
Total current liabilities		583,003			410,347
Long-term debt due after one year		627,393			794,454
Deferred income taxes		122,766			130,244
Shareholders' equity:
Preferred stock, no par value: 100,000 shares
authorized, none outstanding		--			--
Common stock, no par value: 425,000,000 shares
authorized
FY 2007: 172,683,005 shares issued and
160,548,869 shares outstanding
FY 2006: 172,571,083 shares issued and
163,181,738 shares outstanding		124,263			120,860
Paid in capital		45,177			47,644
Retained earnings		2,345,879			2,260,917
Treasury stock
FY 2007: 12,134,136 shares; FY 2006:
9,389,345 shares		(496,031	)		(381,613	)
Other accumulated comprehensive income		31,771			42,384
Total shareholders' equity		2,051,059			2,090,192
	$	3,384,221		$	3,425,237

*Restated to reflect the adoption of FAS 123R, using the modifed-retrospective method.

Cintas Corporation
Consolidated Condensed Statements of Cash Flows
(Unaudited)
(In thousands)

	Three Months Ended
	Aug. 2006			(Restated)* Aug. 2005
Cash flows from operating activities:
Net income	$	84,962		$	78,422
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		33,078			30,579
Amortization of deferred charges		9,690			7,774
Stock-based compensation		(598	)		1,613
Deferred income taxes		10,772			17,230
Change in current assets and liabilities, net of acquisitions of businesses:
Accounts receivable		(1,202	)		(11,258	)
Inventories		(12,381	)		(5,610	)
Uniforms and other rental items in service		(2,311	)		(3,318	)
Prepaid expenses		634			(1,664	)
Accounts payable		(11,792	)		(3,529	)
Accrued compensation and related liabilities		(2,777	)		(1,769	)
Accrued liabilities		(58,777	)		(66,996	)
Tax benefit on exercise of stock options		--			(189	)
Income taxes payable		6,524			5,590
Net cash provided by operating activities		55,822			46,875
Cash flows from investing activities:
Capital expenditures		(36,496	)		(36,144	)
Proceeds from sale or redemption of marketable securities		66,214			54,047
Purchase of marketable securities		(3,044	)		(2,125	)
Acquisitions of businesses, net of cash acquired		(25,101	)		(20,968	)
Other		(2,437	)		3,487
Net cash used in investing activities		(864	)		(1,703	)
Cash flows from financing activities:
Proceeds from issuance of debt		252,460			46,000
Repayment of debt		(194,283	)		(237	)
Stock options exercised		3,403			5,498
Tax benefit on exercise of stock options		--			189
Repurchase of common stock		(114,418	)		(102,257	)
Other		(6,091	)		5,876
Net cash used in financing activities		(58,929	)		(44,931	)
Net (decrease)/increase in cash and cash equivalents		(3,971	)		241
Cash and cash equivalents at beginning of period		38,914			43,196
Cash and cash equivalents at end of period	$	34,943		$	43,437

*Restated to reflect the adoption of FAS 123R, using the modifed-retrospective method.