The Dwyer Group, Inc. Reports 1998 Results.

WACO, Texas--(BUSINESS WIRE)--March 18, 1999--The Dwyer Group, Inc. (Nasdaq:DWYR) (the "Company") today reported a net profit of $53,000 or one cent per share for the year ended December 31, 1998, versus a net profit of $747,000 or 11 cents per share for the year ended December 31, 1997.

Revenues for 1998 decreased by $621,000 (4%) to $14,811,000 from $15,432,000 for 1997. The decrease in revenues is due to the sale of two of the Company's franchising concepts, General Business Services ("GBS") and E.K. Williams & Co. ("EKW"), in July of 1998, partially offset by the acquisition of Glass Doctor in that same month.

For the fourth quarter of 1998, the Company earned $201,000 or three cents per share, versus $254,000 or four cents per share in 1997.

Included in pre-tax income in 1998 was a gain on the sale of GBS and EKW of $1,445,000 and a gain on the sale of securities of $333,000, leaving a pre-tax operating loss of $1,660,000. This loss is attributable to the following factors:

-- A decline in franchise sales revenues

-- Prior to cost reduction efforts, general and administrative

expenses were too high for the Company's level of operations

after the disposal of GBS and EKW.

-- Severance pay and benefits to employees leaving the Company due

to both the sale of GBS and EKW and to a general reduction in the

number of corporate personnel.

-- Start-up expenses related to the acquisition of Glass Doctor.

-- Litigation accruals established to cover management's estimates

of exposure on certain lawsuits.

-- Increased reserves for bad debts based on recent collection

history on franchisee notes.

-- In past years, the Company guaranteed payment on franchisee notes

to unrelated third parties. Reserves to cover such payments were

increased.

During 1998, in order to combat declining franchise sales revenues, the Company realigned its franchise sales department in order to provide a more efficient and focused sales process and revamped the franchise sales system in order to increase the quality and quantity of new franchisees. The results of these efforts began to show in the fourth quarter of 1998, with franchise sales revenues exceeding $1 million.

During the third and fourth quarter of 1998, management reduced general and administrative expenses by over $1 million on an annualized basis, primarily by a reduction in the number of employees and related expenses. This reduction is over and above eliminated expenses which were related to GBS and EKW.

Management believes that the actions taken in 1998 to increase reserves for litigation, bad debts and guarantees were necessary to reflect the financial position of the Company and to avoid future charges to the Company's earnings for events that have already transpired.

Dina Dywer-Owens, President and CEO, said, "Although 1998 was a difficult year for us, we believe that the actions we took during the year position us well for the future. The acquisition of Glass Doctor and the sale of GBS and EKW have enhanced our position as a leading franchisor of 'consumer service' concepts. The changes in our franchise sales department have already improved results in the fourth quarter of 1998 and the first quarter of 1999. Our overhead is now at a level appropriate for our operations and we expect strong growth in our royalty revenues to continue. We appreciate the support shown to us by our stockholders, franchisees, employees and vendors. We are optimistic about our future and will strive to make it profitable for all of us."

The Dwyer Group, Inc., now supports over 750 franchisees in the United States and Canada, and approximately 200 franchisees in 15 other countries operating the following concepts: Mr. Rooter(R), Rainbow International(R), Glass Doctor(R), Mr. Electric(R), Mr. Appliance(R) and Aire Serv(R).

Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ from those projected. Such risks and uncertainties include, but are not limited to, general business conditions, competition, taxes, inflation and government regulations. -0-

                        The Dwyer Group, Inc.
                Summary Consolidated Operating Results
               (In Thousands, Except Per Share Amounts)

                                         1998             1997
                                         ----             ----
Royalty Revenues                      $ 8,483          $ 8,022
Franchise Fees                          2,475            3,415
Other Revenues                          3,853            3,995
                                        -----            -----
Total Revenues                       $ 14,811         $ 15,432
                                        -----            -----
                                        -----            -----
Operating Income (loss)              $ (1,660)        $  1,047
Gain on Sale of Assets                  1,445               --
Gain on Sale of Securities                333               78
                                        -----            -----
Pre-Tax Income                       $    118         $  1,125
                                        -----            -----
                                        -----            -----
Net Income                           $     53         $    747
                                        -----            -----
                                        -----            -----
Earnings Per Share                   $    .01         $    .11
                                        -----            -----
                                        -----            -----

For more information, contact Tom Buckley, Chief Financial Officer at 800/490-7501. For general information regarding The Dwyer Group or its frachise concepts, visit the Company's Web site at http://www.dwyergroup.com.