Dwyer Group Reports 32% Icrease in Third Quarter Pre-Tax Earnings

The Dwyer Group, Inc. (Nasdaq: DWYR) today reported net income of $2,148,000, or $.29 per share on a diluted basis, for the nine months ended September 30, 2002, compared to $1,854,000, or $.26 per share, for the comparable period last year. Pre-tax income for the nine months increased by 31% t $3,375,000 from $2,583,000 for the first nine months of 2001. Net income for the third quarter of 2002 was $849,000, or $.11 per share on a diluted basis, compared to $714,000, or $.10 per share, for the third quarter of 2001. Pre-tax income increased by 32% fr the quarter to $1,334,000 from $1,012,000 last year.

Revenues for the first nine months of 2002 increased 18% t $19.1 million from $16.2 million for the comparable 2001 period. Approximately $1.2 million of the nine month increase was attributable to an increase in royalty revenues.

Revenues for the quarter increased 14% t $6.5 million from $5.7 million for the second quarter of 2001. Franchise fee revenues for the third quarter reached a record $1.7 million. Included in 2001 revenues was a gain on sale of securities of $112,000.

"We are pleased to report another growth quarter during a period of continued economic uncertainty," said Dina Dwyer-Owens, president and chief executive officer. "The record quarter for franchise fee revenues reflects the overall appeal of our franchise concepts."

The Dwyer Group, Inc. now supports over 800 Franchises in the United States and Canada, and through its master licensees, approximately 250 franchises in 14 other countries. The company operates the following franchise concepts: Mr. Rooter®, Rainbow International®, Glass Doctor®, Mr. Electric®, Mr. Appliance® and Aire Serv®.