Tennant Declares Regular Quarterly Cash Dividend


Adopts Replacement Share Rights Plan

MINNEAPOLIS-- Directors of Tennant Company (NYSE:TNC) today declared a regular quarterly cash dividend of 12 cents per share payable December 15, 2006, to shareholders of record November 30, 2006.

The Board of Directors of the Company also adopted a share rights plan that will replace the existing plan when it expires on December 26, 2006. The new plan is substantially similar to the expiring plan. The company continues to believe that a rights plan is a valuable means of protecting the long-term interests of the company and its shareholders in the event of an unsolicited takeover attempt. The new plan was not adopted in response to any present effort to acquire the company.

The new plan grants to Tennant shareholders a preferred share purchase right for each outstanding common share held of record at the close of business on December 26, 2006. Under both the expiring plan and the new plan, generally this right becomes exercisable only in the event a third party accumulates 20 percent or more of the company's common shares. In that event, each right (except for rights held by the 20 percent shareholder, which become void) allows its holder to purchase $200 of Tennant Company common stock for $100, subject to adjustment. If the company is acquired in certain mergers or similar transactions in certain circumstances, each right that has not become void generally can be exercised for common stock of the acquiring company, or its affiliate, having a market value of twice the right's exercise price. The new rights will expire on December 26, 2016.

In certain circumstances, the company may redeem the rights for $.001 per right (subject to adjustment), exchange them for shares of the company's common stock, delay or temporarily suspend the exercisability of the rights or reduce the 20 percent stock ownership threshold to not less than 10 percent.

Tennant Company

Minneapolis-based Tennant Company (NYSE:TNC) is a world leader in designing, manufacturing and marketing solutions that help create a cleaner, safer world. Its products include equipment for maintaining surfaces in industrial, commercial and outdoor environments; and coatings for protecting, repairing and upgrading concrete floors. Tennant's global field service network is the most extensive in the industry. Tennant has manufacturing operations in Minneapolis, Minn., Holland, Mich., Uden, The Netherlands, Northampton, United Kingdom, and Shanghai, China and sells products directly in 15 countries and through distributors in more than 80 countries. For more information, visit www.tennantco.com

Contacts

Tennant Company

Investor Contact:

Tom Paulson,
Vice President and Chief Financial Officer,

763-540-1204

Media Contact:

Kathryn Lovik,
Director, Communications,

763-540-1212

All Topics