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CINTAS CORPORATION ANNOUNCES IMPACT OF NEW TAX LAW

 CINCINNATI, Sept. 1 /PRNewswire/ -- On Aug. 10, 1993, President Clinton signed the Omnibus Budget Reconciliation Act of 1993. This new tax law will have an impact on all corporations. Cintas Corporation (NASDAQ: CTAS) has completed its initial analysis of the impact of the newly enacted federal tax law on its financial results for fiscal year ending May 31, 1994. Most of the impact of the new tax law must be recorded immediately and will be reflected in the results for the first fiscal quarter which ended Aug. 31, 1993.
 Specifically, the tax law affects Cintas in three key areas:
 a) Earnings for fiscal year 1994 will be taxed at a marginal rate of 35 percent, up from 34 percent.
 b) The increase in the marginal tax rate must be retroactively applied to Jan. 1, 1993. Therefore, in the first fiscal quarter, Cintas must report the higher tax rate on earnings generated during the eight months ended Aug. 31, 1993.
 c) On June 1, 1991, Cintas adopted SFAS No. 96, Accounting for Income Taxes, which resulted in an extraordinary credit. With the recently announced increase in the tax rate, part of this credit must be reversed. This one-time expense is not a cash outlay for the company, but rather a restatement of deferred taxes on the balance sheet.
 The increase in the tax rate referred to above will cause a reduction in earnings per share of approximately $.03 per share in the first quarter ended Aug. 31, 1993, and approximately $.04 to $.05 per share for the full fiscal year.
 In spite of the increase in these uncontrollable costs, Cintas looks forward to its 25th consecutive year of uninterrupted growth in sales and earnings.
 -0- 9/1/93
 /CONTACT: David T. Jeanmougin, senior vice president - finance, 513-573-4089, or Karen L. Carnahan, treasurer, 513-573-4013, both of Cintas Corporation/
 (CTAS)


CO: Cintas Corporation ST: Ohio IN: SU: ERP

AR -- CL015 -- 8026 09/01/93 14:38 EDT
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Publication:PR Newswire
Date:Sep 1, 1993
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