NEWS RELEASE

For Immediate Release

Casey’s Sustains Inside Sales Momentum

Ankeny, Iowa, December 5, 2007—Casey’s General Stores, Inc. (Nasdaq symbol CASY) today reported $0.55 in earnings per share from continuing operations for the second quarter of fiscal 2008 ended October 31, 2007. For the same quarter a year ago, earnings were $0.34 per share. Midyear earnings came to $1.13 per share versus $0.68 per share for the first half of fiscal 2007. President and CEO Robert J. Myers stated, "We had exceptional performance inside our stores from grocery & other merchandise and prepared food & fountain. Year to date, gross profit on inside sales rose 17.9% to $272.4 million."

Gasoline—Casey’s fiscal 2008 goal is to increase same-store gasoline gallons sold 2% with an average margin of 10.7 cents per gallon. Actual same-store gallons sold were down 1.6% for the second quarter and down 0.8% as of midyear. Total gallons sold were up 3.9% for the quarter and up 5.8% to 626.8 million for the year to date. Theaverage margin was 13.6 cents per gallon for the quarter and 14.7 cents for the year to date. Midyear gasoline gross profit was up 61.4% to $92 million. "Throughout the first six months, a favorable market environment kept our average margin unusually high," said Myers. "Same-store gallons were slowed by prices at the pump and measured against difficult comparisons from a year ago; nevertheless, our same-store customer count continued tobe positive."

Grocery & Other Merchandise—The annual goal is to increase same-store sales 4.3% with an average margin of 32.2%. Same-store sales were up 11.2% for the second quarter compared with a 3.5% increase for the second quarter last year and up 9.9% for the year to date compared with a 2.7% increase for the first half of fiscal 2007.m "We are very pleased with the gains we’ve achieved in this category," Myers said, "especially in light of the higher retail gasoline prices." For the year to date, the average margin was up 109 basis points to 33.5% on total sales of $509.9 million. Myers continued, "Growth came from increased sales of higher-margin beverages and the improved match between product mix and customer demand." Gross profit increased 19.4% to $171 million for the six months.

Prepared Food & Fountain—The annual goal is to increase same-store sales 8.4% with an average margin of 62%. Same-store sales were up 10.6% for the quarter and up 10% as of midyear. For the six months, the average margin was 62.4% on total sales of $154.6 million. Midyear gross profit was up 15% to $96.4 million. Myers stated, "Gross profit increased due to strong fountain sales, strategic price increases, and the continued utilization of point-of-sale information."

Operating Expenses—It is the Company’s ongoing goal to hold the percentage increase in operating expenses to less than the percentage increase in gross profit. As of midyear, operating expenses were up 18.1% while total gross profit was up 26.4%. Myers elaborated on the positive results: "We are encouraged by our performance in the first half of the year, especially inside our stores, because it demonstrates our management of gross profit and expenses to maximize earnings."

Expansion—Casey’s goal is to acquire 50 stores and build 10 new stores by April 30, 2008. At midyear, the Company had not built any new stores and had acquired 5 stores. "Acquisition activity tends to come in waves," explained Myers. "We are seeing seller expectations higher than what we believe are acceptable purchase values. As always, our focus is on making the right purchase decisions and driving return on invested capital. We currently have written agreements for 8 stores, and we remain optimistic about long-term opportunities." Dividend—At its December meeting, the Board of Directors declared a quarterly dividend of $0.065 per share. The dividend is payable February 15, 2008 to shareholders of record on February 1, 2008. Also at the meeting, Ronald M. Lamb announced his retirement as an executive officer of the Company effective April 30, 2008. He has been employed by the Company for over 37 years, most recently as Chairman of the Executive Committee. He will continue to serve as Chairman of the Board of Directors.

Casey's General Stores, Inc.
Consolidated Statements of Earnings
(Dollars in thousands, except per share amounts)

	Three months ended October 31,		Six months ended October 31,
	2007	2006	2007	2006
Net Sales	$1,189,178	$1,005,777	$2,468,354	2,101,371
Franchise revenue	160	173	325	362
Total revenue	1,189,338	1,005,950	2,468,679	2,101,733
Cost of goods sold	1,010,213	860,599	2,101,205	1,810,840
Operating expenses	115,405	100,437	237,119	200,813
Depreciation and amortization	17,431	15,465	33,627	30,918
Interest, net	2,350	2,687	4,695	5,082
	1,145,399	979,188	2,376,646	2,047,653
Earnings from continuing operations before income taxes, gain (loss) on discontinued operations, and cumulative effect of accounting change	43,939	26,762	92,033	54,080
Federal and state income taxes	16,247	9,601	34,390	19,830
Earnings from continuing operations before gain (loss) on discontinued operations and cumulative effect of accounting change	27,692	17,161	57,643	34,250
Gain (loss) on discontinued operations, net of taxes (tax benefit) of ($10), $7, ($122), and ($113)	(16)	11	(191)	(177)
Net earnings	$27,676	$17,172	$57,452	$34,073
Basic Earnings from continuing operations before loss on discontinued operations and cumulative effect of accounting change	$.55	$.44	$.68	$.89
Loss on discontinued operations	------	------	------	(.01)
Cumulative effect of accounting change	------	------	------	(.02)
Net earnings per common share	$.34	$.34	$.68	$.86
Diluted Earnings from continuing operations before loss on discontinued operations and cumulative effect of accounting change	$.54	$.34	$1.13	$.67
Net earnings per common share	$.34	$.44	$.67	$.85

Casey's General Stores, Inc.
Consolidated Balance Sheets
(Dollars in thousands)

	October 31,	April 30,
Assets	2007	2007
Current Assets
Cash and cash equivalents	$145,969	$107,067
Receivables	13,884	13,432
Inventories	114,086	109,702
Prepaid expenses	8,859	7,891
Income taxes receivable		2,733
Total current assets	282,798	240,825
Other assets, net of amortization	9,109	8,550
Goodwill	47,233	46,588
Property and equipment, net of
accumulated depreciation
$566,010 at October 31, 2007, and of
$538,121 at April 30, 2007	844,644	833,308
Total assets	$1,183,784	$1,129,271
Liabilities and Shareholders' Equity
Current liabilities
Note Payable	$------	$ ------
Current maturities of long-term debt	47,226	51,628
Accounts payable	134,890	146,121
Accrued expenses	46,754	45,947
Income Taxes Payable	4,095
Total current liabilities	245,538	234,267
Long-term debt, net of current maturities	187,071	199,504
Deferred income taxes	103,309	105,724
Deferred compensation	9,624	9,016
Other long-term liabilities	13,600	8,496
Total liabilities	559,142	557,007
Total shareholders' equity	624,642	572,264
Total liabilities and shareholders' equity	$1,183,784	$1,129,271

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.

Sales and Gross Profit by Product
(Amounts in thousands)

Six months ended 10/31/07	Gasoline	Grocery & Other Merchandise	Prepared Food & Fountain	Other	Total
Sales	$1,792,053	$509,941	$154,583	$11,777	$2,468,354
Gross profit	$92,040	$171,028	$96,422	$7,659	$367,149
Margin	5.1%	33.5%	62.4%	65.0%	14.9%
Gasoline gallons	626,755
Six months ended 10/31/06
Sales	$1,514,289	$441,543	$134,745	$10,794	$2,101,371
Gross profit	$57,037	$143,268	$83,844	$6,382	$290,531
Margin	3.8%	32.4%	62.2%	59.1%	13.8%
Gasoline gallons	592,172

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Gasoline Gallons Same-store Sales Growth

Gasoline Margins (Cents per gallon)

Q1

Q2

Q3

Q4

Fiscal Year

Q1

Q2

Q3

Q4

Fiscal Year

F2008

0.3%

-1.6%

F2008

15.8¢

13.6¢

F2007

-2.9

2.7

4.0%

2.8%

1.4%

F2007

9.8¢

9.4¢

10.5¢

11.8¢

10.4¢

F2005

7.7

4.3

4.2

0.5

4.4

F2006

11.8¢

14.1¢

9.2¢

10.6¢

11.5¢

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Grocery & Other Merchandise Same-store Sales Growth							Grocery & Other Merchandise Margin
	Q1	Q2	Q3	Q4	Fiscal Year			Q1	Q2	Q3	Q4	Fiscal Year
F2008	9.1%	11.2%					F2008	34.0%	33.1%
F2007	2.3%	3.5%	6.7%	7.3%	4.6%		F2007	32.2	32.6	30.8%	35.0%	32.7%
F2006	7.4	4.5	5.3%	4.2%	5.7%		F2006	32.1	33.4	31.0%	31.3%	31.9%

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Prepared Food & Fountain Same-store Sales Growth							Prepared Food & Fountain Margin
	Q1	Q2	Q3	Q4	Fiscal Year			Q1	Q2	Q3	Q4	Fiscal Year
F2008	9.5%	10.6%					F2008	61.7%	63.0%
F2007	9.5%	13.7%	11.9%	8.5%	11.0%		F2007	62.9%	61.6%	62.1%	61.6%	62.0%
F2006	7.2%	4.5%	9.9%	7.4%	7.4%		F2006	64.0%	64.6%	62.5%	60.9%	63.0%