NEWS RELEASE

For Immediate Release

Casey’s Ends Year with Strong Fourth Quarter

Ankeny, Iowa, June 13, 2007—Casey’s General Stores, Inc. (Nasdaq symbol CASY) today reported earnings for the fourth quarter and the fiscal year ended April 30, 2007. For the quarter, earnings per share from continuing operations were $0.36; for the year, they totaled $1.26. President and CEO Robert J. Myers stated, “We had four excellent quarters inside our stores, but the gasoline environment was difficult for much of the year. The closing quarter’s earnings were well above the $0.22 we reported for the same period a year ago because of solid gains in all three of our business categories and a one-time benefit within grocery & other merchandise.” Without the one-time benefit, fourth-quarter earnings from continuing operations would have been $0.30.

Gasoline—Casey’s annual goal was to increase same-store gasoline gallons sold 2% with an average margin of 10.8 cents per gallon. By year-end, Casey’s had increased same-store gallons sold 1.4% and averaged a margin of 10.4 cents per gallon. “We were encouraged that retail prices were more responsive to rising wholesale costs in the fourth quarter,” said Myers. “Our margin improved significantly, and gallons sold were up as well.”

Grocery & Other Merchandise—The Company’s annual goal was to increase same-store sales 3.9% with an average margin of 32.2%. For the fiscal year, same-store sales rose 4.6% with a margin of 32.7%. Management attributed the year’s sales gains to heavier store traffic and improved product mix. The average margin was positively affected by a one-time benefit related to cigarettes. Without the one-time benefit, the average margin would have been 32.1%. “This category’s performance has improved significantly over the past three years,” added Myers, “and we are confident there are more benefits to be derived from point of sale and analysis of the data it provides.”

Prepared Food & Fountain—The annual goal was to increase same-store sales 7.9% with an average margin of 63.4%. Annual same-store sales were up 11%, well above goal. The average margin was 62%. The margin shortfall was due primarily to the higher cost of goods sold that resulted from switching to a dual cola program. “The additional fountain choices contributed to this category’s excellent performance in fiscal 2007, but the real star was our proprietary prepared food program,” said Myers. “We kept the warmers full of the right product at the right time of day and were rewarded with another year of impressive gross profit improvement.”

Operating Expenses—The annual goal was to hold the percentage increase in operating expenses to less than the percentage increase in gross profit. “Gasoline performance slowed the increase in total gross profit to 10.9%,” Myers explained. “Expenses rose 13.4% primarily due to a 31.1% increase in bank fees for customers’ credit card charges plus higher wages and utilities."

Expansion—Casey’s annual goal was to acquire 50 stores and build 10 new stores. “We actually acquired 52 and built 8,” said Myers. “We were particularly pleased with the HandiMart stores we purchased in October.” At April 30, 2007, the Company had 7 signed agreements for acquisitions, giving a head start on fiscal 2008’s expansion goal.

Fiscal 2008 Goals—Myers shared these goals for the new fiscal year:

• Increase same-store gasoline gallons sold 2% with an average margin of 10.7 cents per gallon.
• Increase same-store grocery & other merchandise sales 4.3% with an average margin of 32.2%.
• Increase same-store prepared food & fountain sales 8.4% with an average margin of 62%.
• Hold the percentage increase in operating expenses to less than the percentage increase in gross profit.
• Acquire 50 stores and build 10 stores.

Dividend—At its June meeting, the Board of Directors increased the quarterly dividend to $0.065 per share. The dividend is payable August 15, 2007 to shareholders of record on August 1, 2007.

Certain statements in the news release, including any discussion of management expectations for future periods, constitute "forward-looking statements" within the meaning of Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from future results expressed or implied by those statements. Casey's disclaims any intention or obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise.