Casey's General Stores (CASY) 8-K Casey’s Continues Strong Performance in the Second Quarter

Exhibit 99.1

NEWS RELEASEFor Immediate Release
Casey’s General Stores, Inc. One Convenience Blvd. Ankeny, IA 50021	Nasdaq Symbol CASY CONTACT Bill Walljasper (515) 965-6505

Casey’s Continues Strong Performance in the Second Quarter

Ankeny, Iowa, December 6, 2005—Casey’s General Stores, Inc. (Nasdaq symbol CASY) today reported $0.44 in earnings per share from continuing operations for the second quarter of fiscal 2006 ended October 31, 2005. The earnings were up 91.3% from $0.23 for the same quarter a year ago. Earnings from continuing operations year to date were $0.89 per share compared with $0.55 at the previous midyear. Chairman and CEO Ronald M. Lamb stated, “At the six-month mark all three of our business categories were exceeding annual goals for sales and margins, giving the Company a 27.9% increase in total sales and a substantial gross profit gain of 19.9%.”

Gasoline—Casey’s annual goal is to increase same-store gasoline gallons sold 2% with an average margin of 10.5 cents per gallon. On a same-store basis, gallons sold in the second quarter were up 4.3% with an average margin of 13.9 cents; for the year to date, they were up 6% with an average margin of 12.8 cents. Gross profit for the six months rose 30.1% to $72.1 million. Lamb explained that extraordinary market conditions existed during the second quarter: “Hurricane activity caused considerable volatility in wholesale gasoline costs. We adhered to our consistent policy of pricing with the competition and made gains in same-store sales and margin.”

Grocery & Other Merchandise—The annual goal is to increase same-store sales 3% with an average margin of 31.5%. The same-store sales increase was 4.5% for the quarter with an average margin of 33.2% and 6% for the year to date with an average margin of 32.6%. The six-month gross profit grew 14.7% to $135.1 million. “Our strategic focus on aligning product mix with customer demand served us well,” Lamb said, “and the lottery has become a destination item drawing additional customers to our stores.”

Prepared Food & Fountain—The annual goal is to increase same-store sales 5.5% with an average margin of 60.5%. For the quarter, same-store sales were up 4.5% with an average margin of 64.6%. For the six months, same-store sales were up 5.9% with an average margin of 64.3%. The year-to-date gross profit was $74.3 million, a 19% increase. Lamb gave this assessment: “We drove sales and margins by matching menu items to customer preferences, introducing new products, and controlling stales.”

Operating Expenses—It is the annual goal to hold the percentage increase in operating expenses to less than the percentage increase in gross profit. Operating expenses year to date were up 11.1% to $183 million. Lamb stated, “Thanks to our sound management strategies, the 19.9% increase in gross profit to $284.4 million far surpassed the percentage increase in expenses.”

Expansion—The Company is in the final stages of completing the Gas `N Shop purchase agreement. “We’re excited about the Gas ‘N Shop additions,” stated Lamb, “and we’ll begin re-branding the sites to Casey’s General Stores as soon as the transaction is closed. Our team has also targeted numerous individual competitor stores and other regional chains as potential future acquisitions.” The Company’s annual goal is to acquire 30 stores (in addition to the Gas ‘N Shop acquisition) and build 10 new stores. At October 31, 2005, Casey’s had built 7 stores, acquired 14 stores, and signed written agreements to acquire 5 more.

At its November 30, 2005 meeting, the Board of Directors declared a quarterly dividend of $0.045 per share. The dividend is payable February 15, 2006 to shareholders of record on February 1, 2006.

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Casey’s General Stores, Inc. Consolidated Statements of Earnings (Unaudited) (Dollars in thousands, except per share amounts)

	Three months ended October 31,					Six months ended October 31,
		2005		2004			2005			2004
Net sales	$	967,654	$	705,625		$	1,828,412		$	1,429,023
Franchise revenue		175		302			360			630
Total revenue		967,829		705,927			1,828,772			1,429,653
Cost of goods sold		823,307		590,710			1,544,034			1,191,840
Operating expenses		93,240		82,413			182,980			164,648
Depreciation and amortization		14,629		12,605			28,380			24,996
Interest, net		1,999		2,572			4,241			5,371
		933,175		688,300			1,759,635			1,386,855
Earnings from continuing operations before income taxes and cumulative effect of accounting change		34,654		17,627			69,137			42,798
Federal and state income taxes		12,292		6,277			24,660			15,237
Earnings from continuing operations before cumulative effect of accounting change		22,362		11,350			44,477			27,561
Loss on discontinued operations, net of tax benefit of $95, $191, $144, and $341		169		344			256			616
Cumulative effect of accounting change, net of tax benefit of $639		—		—			1,136			—
Net earnings	$	22,193	$	11,006		$	43,085		$	26,945
Basic
Earnings from continuing operations before cumulative effect of accounting change	$	.44	$	.23		$	.89		$	.55
Loss on discontinued operations		—		(.01	)		(.01	)		(.01	)
Cumulative effect of accounting change		—		—			(.02	)		—
Net earnings	$	.44	$	.22		$	.86		$	.54
Diluted
Earnings from continuing operations before cumulative effect of accounting change	$	.44	$	.23		$	.88		$	.55
Loss on discontinued operations		—		(.01	)		(.01	)		(.01	)
Cumulative effect of accounting change		—		—			(.02	)		—
Net earnings	$	.44	$	.22		$	.85		$	.54

Casey’s General Stores, Inc.

Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

	October 31, 2005		April 30, 2005
Assets
Current assets
Cash and cash equivalents	$	54,643	$	49,051
Receivables		8,896		7,481
Inventories		82,696		75,392
Prepaid expenses		6,144		4,579
Income taxes receivable		—		5,927
Total current assets		152,379		142,430
Other assets, net of amortization		7,256		5,567
Property and equipment, net of accumulated depreciation October 31, 2005 $465,948 April 30, 2005 $447,197		748,110		722,912
Total assets	$	907,745	$	870,909
Liabilities and Shareholders’ Equity
Current liabilities
Current maturities of long-term debt	$	28,999	$	27,636
Accounts payable		95,162		100,640
Accrued expenses		51,083		41,851
Income taxes payable		4,117		—
Total current liabilities		179,361		170,127
Long-term debt, net of current maturities		110,923		123,064
Deferred income taxes		101,280		102,039
Deferred compensation		6,889		6,542
Total liabilities		398,453		401,772
Total shareholders’ equity		509,292		469,137
Total liabilities and shareholders’ equity	$	907,745	$	870,909

Certain statements in this news release, including any discussion of management expectations for future periods, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from future results expressed or implied by those statements. Casey’s disclaims any intention or obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise.

Sales and Gross Profit by Product

(Amounts in thousands)

Six months ended 10/31/05	Gasoline		Grocery & Other Merchandise		Prepared Food & Fountain		Other		Total
Sales	$	1,291,192	$	414,291	$	115,631	$	7,298	$	1,828,412
Gross profit	$	72,134	$	135,076	$	74,319	$	2,849	$	284,378
Margin		5.6%		32.6%		64.3%		39.0%		15.6%
Gasoline gallons		564,733
Six months ended 10/31/04
Sales	$	935,707	$	377,507	$	104,709	$	11,100	$	1,429,023
Gross profit	$	55,459	$	117,736	$	62,447	$	1,541	$	237,183
Margin		5.9%		31.2%		59.6%		13.9%		16.6%
Gasoline gallons		502,380

Gasoline Gallons

Same-store Sales Growth

	Q1		Q2		Q3		Q4		Fiscal Year
F2006	7.7	%	4.3	%
F2005	-1.3		1.0		2.8	%	5.6	%	1.9	%
F2004	6.4		3.4		0.7		1.7		3.1
F2003	-5.5		-5.1		-4.4		4.1		-3.0
Gasoline Margin (Cents per gallon)
	Q1		Q2		Q3		Q4		Fiscal Year
F2006	11.7	¢	13.9	¢
F2005	11.9		9.7		10.2	¢	10.7	¢	10.7	¢
F2004	9.8		11.9		9.1		9.5		10.1
F2003	9.9		11.7		11.9		10.5		11.0
Grocery & Other Merchandise Same-store Sales Growth
	Q1		Q2		Q3		Q4		Fiscal Year
F2006	7.4	%	4.5	%
F2005	2.1		4.8		6.8	%	6.3	%	4.8	%
F2004	0.6		-0.5		-1.2		2.8		0.4
F2003	4.2		0.8		-3.1		-1.9		0.2
Grocery & Other Merchandise Margin
	Q1		Q2		Q3		Q4		Fiscal Year
F2006	32.0	%	33.2	%
F2005	31.4		31.0		31.7	%	30.0	%	30.9	%
F2004	31.7		32.5		31.1		29.3		31.2
F2003	31.3		33.1		30.8		31.5		31.7
Prepared Food & Fountain Same-store Sales Growth
	Q1		Q2		Q3		Q4		Fiscal Year
F2006	7.2	%	4.5	%
F2005	6.1		9.0		9.0	%	9.8	%	8.4	%
F2004	5.8		4.1		4.5		7.6		5.5
F2003	2.8		2.0		-2.9		2.4		1.1
Prepared Food & Fountain Margin
	Q1		Q2		Q3		Q4		Fiscal Year
F2006	64.0	%	64.6	%
F2005	58.8		60.5		61.4	%	61.0	%	60.3	%
F2004	60.9		62.9		60.4		58.6		60.7
F2003	59.2		60.2		60.4		58.2		59.9

Corporate information is available at this web site:http://www.caseys.com. Earnings will be reported during

a conference call on December 7, 2005. The call will be broadcast live over the Internet at 9:30 a.m. CST via the

Investor Relations section of our Web site and will be available in an archived format.