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The Andersons, Inc. Reports Strong 1st Qtr. Performance
EPS of $0.14 for Period Up $0.17 From 2004
Net Income Improves By $1.2 Million

The Andersons, Inc. , today announced first-quarter 2005 net income of $1.0 million, or $0.14 per diluted share. This was an improvement of $1.2 million, or $0.17 per diluted share, from the first quarter of 2004 when the company lost $0.2 million, or $0.03 per diluted share. Total revenues were $259 million for the first quarter this year compared to $275 million a year ago. The reduction in revenues was attributed to lower average grain prices, as noted below. Included in the company's first-quarter 2005 results is an after-tax charge of $0.4 million, or $0.05 per diluted share, to correct pension and post- retirement benefit valuation errors over the past four years. The entire correction was made in the first quarter of 2005 on the basis that it is not material to the current or prior periods.

The Agriculture Group's first-quarter performance exceeded the two previous years. Operating income was $1.0 million for the quarter, $2.5 million higher than the $1.5 million loss the group incurred a year ago. Revenues of $165 million for the first quarter this year were $19 million below last year primarily due to lower average corn and soybean prices. Noting the less than perfect correlation between revenues and income in the grain business, the company indicated that grain sales margins and space income were both higher during the most recent quarter. The group also continued to benefit from its investment in Lansing Grain, a grain trading company. Gross margin improvement also boosted operating results for the group's plant nutrient business in the first three months of 2005 in spite of significantly higher fertilizer ingredient prices. During the quarter, the Agriculture Group continued to evaluate the possibility of investing in new ethanol production facilities in its eastern corn belt region.

The Rail Group's operating income of $3.6 million in the first quarter this year was $2.3 million above the $1.3 million it earned in the year- earlier three-month period. Revenues of $17.7 million for the quarter were almost 60 percent higher than the $11.1 generated in the comparable period of 2004. Car values and lease rates continued to be strong in this most recent quarter, and the utilization rate of the group's railcar fleet was again higher than year-earlier levels. Also contributing to the group's operating performance growth were the rail assets and attached leases acquired in a large acquisition that was completed midway through the first quarter of 2004. In early April, the group began operating a railcar repair business in Mississippi in addition to those it was already operating in Ohio and South Carolina.

The Processing Group's operating income of $1.1 million in the first three month period of 2005 was $2.1 million lower than a year ago. Revenues of $40.9 million for the quarter were $4.3 million below the $45.2 million it registered in the first quarter of last year. Turf-care product volumes were lower this year. Average margins were also down as a result of product cost increases that could not be fully recouped through higher prices.

The Retail Group reported revenues of $35.1 million for the first quarter of 2005, a 1.5 percent increase in same-store sales compared to the same three-month period in 2004. The average sale per transaction and average gross margin also improved somewhat. As a result, the group's operating loss of $2.1 million for the period was $0.2 million better than its 2004 performance.

"The first quarter is typically a loss period for our seasonal businesses, so earning net income of $1.0 million for the period this year shows that we're off to a good start," said President and Chief Executive Officer Mike Anderson. "Agriculture and Rail both posted terrific results during the first three months of 2005. In total, the Company's earnings improved by seventeen cents a share, and total cash provided by our operating activities also continued to grow."

Anderson also stated, "Looking forward, we're hoping for big corn and soybean crops again this year, and so far spring planting in much of our region is at, or ahead of, last year's pace. We still have a long way to go until the fall harvest, however, so prudence would suggest that we should reasonably expect our grain business to achieve full-year results more in line with the most recent three to five year averages rather than the exceptional results it achieved last year. All considered, I believe that our 2005 full- year EPS could be in the $2.20 to $2.50 range."

The company will host a webcast on Thursday, May 5, 2005 at 11:00 A.M. EDT, to discuss its first quarter performance and full-year outlook. 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 and plant nutrient sectors of U.S. agriculture, as well as in railcar marketing, industrial materials formulation, turf products production, and general merchandise retailing. Founded in Maumee, Ohio, in 1947, the company presently 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. Although the Company believes that the assumptions upon which 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

                       FINANCIAL TABLES FOLLOW ...

                           The Andersons, Inc.

                  Consolidated Statements of Operations

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

  Sales and merchandising revenues              $258,980          $275,050
  Cost of sales and merchandising
   revenues                                      219,021           238,988
  Gross profit                                    39,959            36,062

  Operating, administrative and general
   expenses                                       36,901            34,744
  Interest expense                                 2,950             2,666

  Other income, net                                1,079               791
  Equity in earnings of affiliates                   446               162
  Income (loss) before income taxes                1,633              (395)
  Income taxes                                       599              (149)
  Net Income (loss)                               $1,034             $(246)

  Per common share:
        Basic earnings (loss)                      $0.14            $(0.03)
        Diluted earnings (loss)                    $0.14            $(0.03)
        Dividends paid                            $0.080            $0.075

  Weighted average shares outstanding-
   basic                                           7,373             7,218
  Weighted average shares outstanding-
   diluted                                         7,643             7,218

                           The Andersons, Inc.

                       Consolidated Balance Sheets

                                          March 31   December 31  March 31
             (in thousands)                 2005        2004        2004

  Current assets:
    Cash and cash equivalents               $6,138      $8,439      $3,624
    Restricted cash                          1,482       1,532       1,993
    Accounts receivable (net) and
     margin deposits                        90,778      66,235     118,534
    Inventories                            270,650     251,428     280,326
    Other current assets                    31,114      30,659      33,525
  Total current assets                     400,162     358,293     438,002

  Other assets                              20,949      21,437      23,094
  Railcar assets leased to others (net)    113,318     101,358     101,062
  Property, plant and equipment (net)       91,401      92,510      94,828
                                          $625,830    $573,598    $656,986

  Liabilities and shareholders' equity
  Current liabilities:
    Short-term borrowings                 $114,400     $12,100    $174,000
    Other current liabilities              193,237     240,447     181,209
  Total current liabilities                307,637     252,547     355,209

  Deferred items and other long-term
   liabilities                              32,822      33,029      28,001
  Long-term debt non-recourse               61,465      64,343      77,036
  Long-term debt                            89,151      89,803      81,248
  Shareholders' equity                     134,755     133,876     115,492
                                          $625,830    $573,598    $656,986

                                 Segment Data

                                         Agriculture     Rail     Processing
      Quarter ended March 31, 2005
  Revenues from external customers         $165,332     $17,705     $40,891

  Gross Profit                               15,781       8,515       5,858

  Other income / Equity in earnings of
   affiliates                                   908         185         168

  Operating income (loss)                       951       3,640       1,077

      Quarter ended March 31, 2004
  Revenues from external customers         $184,193     $11,080     $45,226

  Gross Profit                               13,718       5,069       7,859

  Other income / Equity in earnings of
   affiliates                                   530          97          51

  Operating income (loss)                    (1,529)      1,291       3,212

                                 Segment Data

                                            Retail      Other       Total
      Quarter ended March 31, 2005
  Revenues from external customers          $35,052        $-      $258,980

  Gross Profit                                9,805         -        39,959

  Other income / Equity in earnings of
   affiliates                                   132         132       1,525

  Operating income (loss)                    (2,098)     (1,937)      1,633

      Quarter ended March 31, 2004
  Revenues from external customers          $34,551        $-      $275,050

  Gross Profit                                9,416         -        36,062

  Other income / Equity in earnings of
   affiliates                                   156         119         953

  Operating income (loss)                    (2,317)     (1,052)       (395)

SOURCE: The Andersons, Inc.

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