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The Andersons, Inc. Reports Record Income EPS of $3.39 for Year vs. $2.55 in 2004
Net Income of $26.1 Million Up 36%

The Andersons, Inc. , today announced fourth-quarter net income of $15.3 million, or $1.98 per diluted share and total revenues of $384 million. In the same three- month period of 2004, the company reported net income of $8.3 million, or $1.09 per diluted share, on $370 million of revenues. Full-year net income in 2005 was $26.1 million, or $3.39 per diluted share on $1.30 billion of revenues. In 2004, the company's net income was $19.1 million, or $2.55 per diluted share, and total revenues were $1.27 billion.

The Agriculture Group's fourth-quarter and full-year income both set new records. Operating income of $16.4 million for the quarter was $4.8 million higher than the $11.6 million the group generated a year earlier. Full-year operating income in 2005 was $23.0 million. This was $1.7 million above the $21.3 million achieved in 2004, the group's previous best performance. The Grain Division's total operating income in the fourth quarter was significantly higher than its 2004 result. For the full year, its operating income was down. In the fourth quarter, the group's Plant Nutrient Division exceeded its 2004 results and, in so doing, set a new income record for the full year.

The Rail Group's operating income of $9.5 million in the fourth quarter of 2005 more than tripled the $2.8 million it earned in the same three-month period a year ago. Revenues of $33.5 million for the quarter were $17.8 million higher than the $15.7 generated in the fourth quarter of 2004. Full- year income of $22.8 million and revenues of $92.0 million also exceeded 2004 results by a wide margin. In 2004, the group had earned $11.0 million on revenues of $59.3 million. The rail leasing business continued to achieve operating income growth during the most recent three-month period and the full year. The size of the group's fleet also continued to grow in 2005. From about 14,600 cars controlled by the group in December of 2004, the fleet was increased to more than 19,000 railcars by the end of 2005. The Rail Group's 2005 operating results also included gains on the sale of certain railcars. Income from the group's fabrication and railcar repair shops was higher in 2005 as a result of the fluid filtration product lines acquired earlier in the year which were immediately accretive.

The Turf and Specialty Group typically incurs a loss in the fourth quarter due to the seasonal nature of its business. This year the operating loss amounted to $1.5 million, on revenues of $22.0 million. During the same three- month period in 2004, the group's operating loss was $2.5 million, with revenues of $21.7 million. The $1.0 million improvement in the fourth-quarter operating loss was due to a change in the group's business model earlier this year which realigned staffing and assets in the turf and cob products businesses. For the full year, the group incurred an operating loss of $3.0 million. This was $2.9 million higher than its 2004 operating loss, and included $1.8 million of severance and other restructuring costs associated with the realignment and some property losses.

The Retail Group reported revenues of $52.8 million for the most recent quarter and $182.8 million for the full year. The group's fourth-quarter operating income of $2.0 million doubled its previous-year performance. In addition to continued favorable sales trends in food categories during the quarter, the group capitalized on high energy costs and frigid weather in December with strong sales of home insulation materials and outdoor workwear. Total customer counts and average gross margins were slightly lower in the fourth quarter this year, but the average amount each customer purchased increased. The group's operating income for the full year was $2.9 million, an increase of $0.8 million from 2004.

"The operating results our company achieved in the fourth quarter and full calendar year were impressive," said President and Chief Executive Officer Mike Anderson. "We've also set the stage for continued income growth. At the present time, construction is underway on an ethanol production facility in Michigan, in which we will be the largest equity investor and manager. We've recently announced plans for a plant in Indiana, in which The Andersons will also be the lead equity investor. These two plants will collectively have a planned production capacity of 165 million gallons of ethanol per year. In addition to managing these facilities, we will provide grain origination, ethanol marketing, risk management and other services. The company is also a minority investor in a third ethanol plant, currently under construction in Indiana, for which we will provide grain origination services. With our entry into ethanol, continued growth in rail, and the improvement we demonstrated in all of our other businesses during the most recent quarter, I believe that our company's future looks pretty bright."

The company will host a webcast on Thursday, February 9, 2006 at 11:00 A.M. EST, to discuss its fourth quarter and full-year performance. This can be accessed under the heading "Financial Information" on its website at

The Andersons, Inc. is a diversified company with interests in the grain, ethanol and plant nutrient sectors of U.S. agriculture, as well as in railcar marketing, industrial products formulation, turf products production, and general merchandise retailing. Founded in Maumee, Ohio, in 1947, the company now has operations in seven U.S. states plus rail equipment leasing interests in Canada and Mexico.

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. It also includes financial information, of which, as of the date of this press release, the Company's independent auditors have not completed their audit. Although the Company believes that the assumptions upon which the financial information and its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct.

  The Andersons, Inc. is located on the Internet at

                             The Andersons, Inc.

                      Consolidated Statements of Income

                                  Three Months ended         Year ended
                                      December 31            December 31
  (in thousands, except for per
   share amounts)                    2005      2004        2005        2004

  Sales and merchandising
   revenues                      $384,171  $369,962  $1,296,652  $1,266,932
  Cost of sales and
   merchandising revenues         315,548   313,733   1,098,506   1,077,833
  Gross profit                     68,623    56,229     198,146     189,099

  Operating, administrative and
   general expenses                44,349    43,215     153,759     154,895
  Interest expense                  3,108     2,671      12,079      10,545

  Other income, net                 1,118     1,814       4,683       4,973
  Equity in earnings of
   affiliates                         984       508       2,321       1,471
  Income before income taxes       23,268    12,665      39,312      30,103
  Income taxes                      7,932     4,385      13,225      10,959
  Net Income                      $15,336    $8,280     $26,087     $19,144

  Per common share:
        Basic earnings              $2.05     $1.14       $3.52       $2.64
        Diluted earnings            $1.98     $1.09       $3.39       $2.55
        Dividends paid             $0.085    $0.080      $0.330      $0.305

  Weighted average shares
   outstanding-basic                7,465     7,292       7,421       7,246
  Weighted average shares
   outstanding-diluted              7,745     7,568       7,705       7,498

                            The Andersons, Inc.

                         Consolidated Balance Sheets

                                             December 31       December 31
                          (in thousands)            2005              2004

  Current assets:
    Cash and cash equivalents                    $13,876            $8,439
    Restricted cash                                3,936             1,532
    Accounts receivable (net) and
     margin deposits                              83,291            66,235
    Inventories                                  240,806           251,428
    Other current assets                          30,632            30,659
  Total current assets                           372,541           358,293

  Other assets                                    39,008            21,437
  Railcar assets leased to others (net)          131,097           101,358
  Property, plant and equipment (net)             91,498            92,510
                                                $634,144          $573,598

  Liabilities and shareholders' equity
  Current liabilities:
    Short-term borrowings                        $12,400           $12,100
    Other current liabilities                    263,922           244,024
  Total current liabilities                      276,322           256,124

  Deferred items and other long-term
   liabilities                                    30,896            29,452
  Long-term debt non-recourse                     88,714            64,343
  Long-term debt                                  79,329            89,803
  Shareholders' equity                           158,883           133,876
                                                $634,144          $573,598

                                 Segment Data

                                          Agriculture    Rail      Specialty

     Quarter ended December 31, 2005
  Revenues from external customers         $275,945     $33,455     $21,979

  Gross Profit                               33,556      14,945       4,809

  Other income/Equity in earnings of
   affiliates                                 1,607         106          44

  Operating income (loss)                    16,421       9,542      (1,486)

     Quarter ended December 31, 2004
  Revenues from external customers          284,004      15,685      21,738

  Gross Profit                               31,017       7,395       3,976

  Other income/Equity in earnings of
   affiliates                                 1,133         626         143

  Operating income (loss)                    11,622       2,779      (2,515)

     Year ended December 31, 2005
  Revenues from external customers          899,329      92,009     122,561

  Gross Profit                               82,933      43,281      18,888

  Other income/Equity in earnings of
   affiliates                                 4,283         642         589

  Operating income (loss)                    22,974      22,822      (3,044)

     Year ended December 31, 2004
  Revenues from external customers          901,139      59,283     127,814

  Gross Profit                               87,372      28,793      21,503

  Other income/Equity in earnings of
   affiliates                                 3,544         962         596

  Operating income (loss)                    21,302      10,986        (144)

                                 Segment Data

                                            Retail      Other        Total
     Quarter ended December 31, 2005
  Revenues from external customers         $52,792       $-        $384,171

  Gross Profit                              15,313        -          68,623

  Other income/Equity in earnings of
   affiliates                                  129        216         2,102

  Operating income (loss)                    2,003     (3,212)       23,268

     Quarter ended December 31, 2004
  Revenues from external customers          48,535        -         369,962

  Gross Profit                              13,841        -          56,229

  Other income/Equity in earnings of
   affiliates                                  215        205         2,322

  Operating income (loss)                      951       (172)       12,665

     Year ended December 31, 2005
  Revenues from external customers         182,753        -       1,296,652

  Gross Profit                              53,044        -         198,146

  Other income/Equity in earnings of
   affiliates                                  646        844         7,004

  Operating income (loss)                    2,921     (6,361)       39,312

     Year ended December 31, 2004
  Revenues from external customers         178,696        -       1,266,932

  Gross Profit                              51,431        -         189,099

  Other income/Equity in earnings of
   affiliates                                  756        586         6,444

  Operating income (loss)                    2,108     (4,149)       30,103

SOURCE: The Andersons, Inc.

CONTACT: Gary Smith of The Andersons, Inc., +1-419-891-6417