Casey's General Stores (CASY) 8-K Casey’s Reports Strong Inside Sales in a Challenging Gasoline Market

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 Reports Strong Inside Sales in a Challenging Gasoline Market

Ankeny, Iowa, December 6, 2006—Casey’s General Stores, Inc. (Nasdaq symbol CASY) today reported $0.34 in earnings per share from continuing operations for the second quarter of fiscal 2007 ended October 31, 2006. For the same quarter a year ago, earnings were $0.44 per share. This fiscal year to date, earnings came to $0.68 per share versus $0.89 for the first half of fiscal 2006. President and CEO Robert J. Myers gave this assessment: “Second-quarter total and same-store sales were up in all three of our business categories, but earnings were affected by tighter gasoline margins.”

Gasoline—The Company’s fiscal 2007 goal is to increase same-store gasoline gallons sold 2% with an average margin of 10.8 cents per gallon. Same-store gallons sold were up 2.7% in the second quarter. Total gallons sold were up 9.4% for the second quarter and up 5.6% for the year to date. “We benefited from increased demand as the retail price of gas came down,” said Myers, “but we couldn’t keep pace with the post-Katrina margin we reported a year ago.” The quarter’s average margin was 9.4 cents compared with a record 14.1 cents in the previous second quarter. Gasoline gross profit was down 26.8% to $28.6 million for the quarter and down 21.6% to $57.1 million at midyear.

Grocery & Other Merchandise—The annual goal is to increase same-store sales 3.9% with an average margin of 32.2%. Same-store sales were up 3.5% for the second quarter and up 2.7% for the year to date. “This is the eleventh straight quarter of positive same-store sales,” Myers stated. “We are encouraged by the steady progress we continue to make in this category.” Total sales for the quarter were up 9.4% with an average margin of 32.6% and up 8% at midyear with an average margin of 32.4%. The second-quarter gross profit was $70.9 million; for the year to date, it was $143.7 million.

Prepared Food & Fountain—The goal is to increase same-store sales 7.9% with an average margin of 63.4%. Same-store sales were up 13.7% for the quarter with an average margin of 61.6%. For the six months, same-store sales were up 11.6% with an average margin of 62.2%. Total sales rose 19.4% for the quarter and 16.9% year to date. “Despite difficult quarter-to-quarter comparisons, all areas of this category are performing exceptionally well,” Myers explained. Gross profit was up 13.8% to $42.6 million for the quarter and up 13.2% to $84 million for the year to date. Management expects continued benefits from an expanded fountain program, strategic price increases, and a favorable cheese price that is now locked in through the end of the next calendar year.

Operating Expenses—It is an ongoing corporate goal to hold the percentage increase in operating expenses to less than the percentage increase in gross profit. For the quarter, operating expenses increased 8.5% while gross profit increased 0.7%. Year to date, operating expenses rose 10.5% as gross profit increased 2.3%. “Being off target was primarily due to the margin shortfall in a gasoline market over which we had little control,” Myers stated. “We did a good job of building inside sales to drive gross profit.” Inside sales in the second quarter were up 11.9% while gross profit including commissions rose 10%. For the year to date, inside sales rose 10.3% and gross profit increased 9.9%.

Expansion—The Company’s goal is to acquire 50 stores and build 10 new stores in fiscal year 2007. In early October, Casey’s closed on the HandiMart acquisition, adding 33 stores. “These sites already are performing very well for us,” said Myers. By midyear, Casey’s had acquired 8 other stores and completed 6 new constructions. “The acquisition environment continues to be favorable,” Myers added, “and we have 7 written agreements, giving me confidence we will meet the annual goal.”

Dividend—At its November meeting, the Board of Directors declared a quarterly dividend of $0.05 per share. The dividend is payable February 15, 2007 to shareholders of record on February 1, 2007.

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

	Three months ended October 31,					Six months ended October 31,
	2006		2005			2006		2005
Net sales	$	1,009,879	$	963,739		$	2,109,849	$	1,821,189
Franchise revenue		173		175			362		360
Total revenue		1,010,052		963,914			2,110,211		1,821,549
Cost of goods sold		864,345		819,209			1,818,662		1,536,483
Operating expenses		100,863		92,970			201,674		182,434
Depreciation and amortization		15,538		14,577			31,063		28,284
Interest, net		2,687		1,999			5,082		4,241
		983,433		928,755			2,056,481		1,751,442
Earnings from continuing operations before income taxes, gain (loss) on discontinued operations, and cumulative effect of accounting change		26,619		35,159			53,730		70,107
Federal and state income taxes		9,545		12,763			19,694		25,622
Earnings from continuing operations before gain (loss) on discontinued operations and cumulative effect of accounting change		17,074		22,396			34,036		44,485
Gain (loss) on discontinued operations, net of taxes (tax benefit) of $63, ($130), $23, and ($203)		98		(203	)		37		(317	)
Cumulative effect of accounting change, net of tax benefit of $0, $0, $0, and $692		—		—			—		(1,083	)
Net earnings	$	17,172	$	22,193		$	34,073	$	43,085
Basic
Earnings from continuing operations before loss on discontinued operations and cumulative effect of accounting change	$	.34	$	.44		$	.68	$	.89
Loss on discontinued operations		—		—			—		(.01	)
Cumulative effect of accounting change		—		—			—		(.02	)
Net earnings per common share	$	.34	$	.44		$	.68	$	.86
Diluted
Earnings from continuing operations before loss on discontinued operations and cumulative effect of accounting change	$	.34	$	.44		$	.67	$	.88
Loss on discontinued operations		—		—			—		(.01	)
Cumulative effect of accounting change		—		—			—		(.02	)
Net earnings per common share	$	.34	$	.44		$	.67	$	.85

Casey’s General Stores, Inc.

Consolidated Balance Sheets

(Dollars in thousands)

	October 31, 2006		April 30, 2006
Assets
Current assets
Cash and cash equivalents	$	32,279	$	75,369
Receivables		8,636		9,672
Inventories		100,950		96,255
Prepaid expenses		7,898		7,063
Income taxes receivable		4,070		3,047
Total current assets		153,833		191,406
Other assets, net of amortization		8,315		6,894
Goodwill		43,394		14,414
Property and equipment, net of accumulated depreciation October 31, 2006, $516,388 April 30, 2006, $490,288		833,053		774,825
Total assets	$	1,038,595	$	987,539
Liabilities and Shareholders’ Equity
Current liabilities
Note payable	$	7,800	$	—
Current maturities of long-term debt		48,320		51,628
Accounts payable		112,385		146,121
Accrued expenses		46,754		45,947
Total current liabilities		215,259		243,696
Long-term debt, net of current maturities		152,807		106,512
Deferred income taxes		100,290		99,929
Deferred compensation		7,736		7,236
Other long-term liabilities		8,479		6,976
Total liabilities		484,571		464,349
Total shareholders’ equity		554,024		523,190
Total liabilities and shareholders’ equity	$	1,038,595	$	987,539

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)

	Gasoline			Grocery & Other Merchandise			Prepared Food & Fountain			Other			Total
Six months ended 10/31/06
Sales	$	1,520,799		$	443,282		$	134,966		$	10,802		$	2,109,849
Gross profit	$	57,110		$	143,723		$	83,965		$	6,389		$	291,187
Margin		3.8	%		32.4	%		62.2	%		59.1	%		13.8	%
Gasoline gallons		594,742
Six months ended 10/31/05
Sales	$	1,287,837		$	410,505		$	115,410		$	7,437		$	1,821,189
Gross profit	$	72,869		$	134,463		$	74,193		$	3,181		$	284,706
Margin		5.7	%		32.8	%		64.3	%		42.8	%		15.6	%
Gasoline gallons		563,247

Gasoline Gallons

Same-store Sales Growth

	Q1		Q2		Q3		Q4		Fiscal Year
F2007	-2.9	%	2.7	%
F2006	7.7		4.3		4.2	%	0.5	%	4.4	%
F2005	-1.3		1.0		2.8		5.6		1.9

Gasoline Margin

(Cents per gallon)

	Q1		Q2		Q3		Q4		Fiscal Year
F2007	9.8	¢	9.4	¢
F2006	11.8		14.1		9.2	¢	10.6	¢	11.5	¢
F2005	12.0		9.8		10.4		11.0		10.8

Grocery & Other Merchandise

Same-store Sales Growth

	Q1		Q2		Q3		Q4		Fiscal Year
F2007	2.3	%	3.5	%
F2006	7.4		4.5		5.3	%	4.2	%	5.7	%
F2005	2.1		4.8		6.8		6.3		4.8

Grocery & Other Merchandise

Margin

	Q1		Q2		Q3		Q4		Fiscal Year
F2007	32.2	%	32.6	%
F2006	32.1		33.4		31.0	%	31.3	%	31.9	%
F2005	31.4		31.0		31.4		30.0		30.9

Prepared Food & Fountain

Same-store Sales Growth

	Q1		Q2		Q3		Q4		Fiscal Year
F2007	9.5	%	13.7	%
F2006	7.2		4.5		9.9	%	7.4	%	7.4	%
F2005	6.1		9.0		9.0		9.8		8.4

Prepared Food & Fountain

Margin

	Q1		Q2		Q3		Q4		Fiscal Year
F2007	62.9	%	61.6	%
F2006	64.0		64.6		62.5	%	60.9	%	63.0	%
F2005	58.8		60.8		60.9		61.0		60.4

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

a conference call on December 7, 2006. The call will be broadcast live over the Internet at 9:30 a.m. CT via the

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