FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

  (X) QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended February 28, 2005

OR

  (   ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from _________ to __________

  Commission file number   0-11399

CINTAS CORPORATION
(Exact name of registrant as specified in its charter)


WASHINGTON 31-1188630
(State or other jurisdiction of
 incorporation or organization)
(I.R.S. Employer
Identification No.)


6800 CINTAS BOULEVARD
       P.O. BOX 625737
CINCINNATI, OHIO 45262-5737
(Address of principal executive offices)
(Zip Code)


(513) 459-1200
(Registrant's telephone number, including area code)

        Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes   [X]        No  [   ]

        Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12 b-2 of the Exchange Act).     Yes  [X]       No  [   ]

        Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

                    Class                    Outstanding March 31, 2005
Common Stock, no par value 172,089,720

-1-


CINTAS CORPORATION

INDEX

Part I.    Financial Information

        Item 1.    Financial Statements.

                       Consolidated Condensed Statements of Income -
                            Three Months and Nine Months Ended
                             February 28, 2005 and February 29, 2004

                       Consolidated Condensed Balance Sheets -
                            February 28, 2005 and February 29, 2004

                       Consolidated Condensed Statements of Cash Flows -
                            Six Months Ended February 28, 2005 and May 31, 2004

                       Notes to Consolidated Condensed Financial Statements

        Item 2.    Management's Discussion and Analysis of Financial
                            Condition and Results of Operations.

        Item 3.    Quantitative and Qualitative Disclosures About
                            Market Risk.

        Item 4.    Controls and Procedures.


Part II.   Other Information

        Item 1.    Legal Proceedings.

        Item 5.    Other Events.

        Item 6.    Exhibits.


Signatures

Certifications
Page No.





   3


   4


   5

   6


  24


  31

  31


  32

  32

  32

  33


  33

  34

2


CINTAS CORPORATION
ITEM 1. FINANCIAL STATEMENTS.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Unaudited)
(In thousands except per share data)

Three Months Ended
Nine Months Ended
February 28,
2005

February 29,
2004

February 28,
2005

February 29,
2004

Revenue:                    
   Rentals     $ 582,619   $ 547,474   $ 1,748,086   $ 1,634,334  
   Other services       172,622     149,466     509,951     441,571  




        755,241     696,940     2,258,037     2,075,905  
Costs and expenses (income):    
   Cost of rentals       320,724     303,471     961,767     906,951  
   Cost of other services       113,063     97,758     340,023     292,358  
   Selling and admin. expenses       203,912     185,019     597,152     538,103  
   Interest income       (2,149 )   (806 )   (4,785 )   (1,779 )
   Interest expense       6,499     5,958     18,550     19,306  
   Write-off of loan receivable       --     --     --     4,343  




        642,049     591,400     1,912,707     1,759,282  




Income before income taxes       113,192     105,540     345,330     316,623  
 
Income taxes       41,860     39,047     127,772     117,146  




Net income     $ 71,332   $ 66,493   $ 217,558   $ 199,477  




Basic earnings per share     $ .42   $ .39   $ 1.27   $ 1.17  




Diluted earnings per share     $ .41   $ .39   $ 1.26   $ 1.16  




See accompanying notes.

3


CINTAS CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
(In thousands except share data)

February 28,
2005

May 31,
2004

(Unaudited)
ASSETS            
Current assets:    
   Cash and cash equivalents     $ 71,860   $ 87,357  
   Marketable securities       295,929     166,964  
   Accounts receivable, net       300,819     285,592  
   Inventories, net       216,363     188,688  
   Uniforms and other rental items in service       298,499     298,247  
   Prepaid expenses       8,783     7,395  


     Total current assets       1,192,253     1,034,243  
 
Property and equipment, at cost, net       807,222     785,310  
 
Goodwill       871,094     805,441  
Service contracts, net       145,576     144,664  
Other assets, net       39,378     40,639  


      $ 3,055,523   $ 2,810,297  


LIABILITIES AND SHAREHOLDERS' EQUITY    
Current liabilities:    
   Accounts payable     $ 57,064   $ 53,451  
   Accrued compensation and related liabilities       31,619     31,804  
   Accrued liabilities       184,093     146,226  
   Income taxes:    
     Current       52,624     36,640  
     Deferred       49,796     47,042  
   Long-term debt due within one year       10,162     10,523  


     Total current liabilities       385,358     325,686  
 
Long-term debt due after one year       462,202     473,685  
 
Deferred income taxes       127,059     122,957  
 
Shareholders' equity:    
   Preferred stock, no par value:    
     100,000 shares authorized, none outstanding       --     --  
   Common stock, no par value:    
     425,000,000 shares authorized,    
     172,068,973 shares issued and outstanding    
     (171,377,679 at May 31, 2004)       113,357     94,569  
   Retained earnings       1,953,137     1,790,547  
   Other accumulated comprehensive income (loss):    
     Foreign currency translation       15,813     4,474  
     Unrealized loss on derivatives       (1,403 )   (1,621 )


     Total shareholders' equity       2,080,904     1,887,969  


      $ 3,055,523   $ 2,810,297  


See accompanying notes.

4


CINTAS CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)

Nine Months Ended
February 28,
2005

February 29,
2004

Cash flows from operating activities :            
   Net income     $ 217,558   $ 199,477  
   Adjustments to reconcile net income to net cash provided    
   by operating activities:    
     Depreciation       89,459     87,808  
     Amortization of deferred charges       20,726     19,387  
     Deferred income taxes       6,856     20,884  
     Change in current assets and liabilities, net of    
       acquisitions of businesses:    
          Accounts receivable       (12,119 )   4,151  
          Inventories       (27,143 )   25,965  
          Uniforms and other rental items in service       (252 )   10,533  
          Prepaid expenses       (1,319 )   (476 )
          Accounts payable       3,476     (5,556 )
          Accrued compensation and related liabilities       (185 )   844  
          Accrued liabilities       (24,816 )   (19,409 )
          Income taxes payable       15,984     16,828  


Net cash provided by operating activities       288,225     360,436  
 
Cash flows from investing activities :    
   Capital expenditures       (100,956 )   (85,019 )
   Proceeds from sale or redemption of marketable securities       35,099     32,174  
   Purchase of marketable securities       (164,065 )   (141,860 )
   Acquisitions of businesses, net of cash acquired       (82,186 )   (49,836 )
   Other       (1,877 )   9,695  


Net cash used in investing activities       (313,985 )   (234,846 )
 
Cash flows from financing activities :    
   Repayment of long-term debt       (7,264 )   (53,334 )
   Stock options exercised       3,844     6,360  
   Other       13,683     2,897  


Net cash provided by (used in) financing activities       10,263     (44,077 )


Net (decrease) increase in cash and cash equivalents       (15,497 )   81,513  
 
Cash and cash equivalents at beginning of period       87,357     32,239  


Cash and cash equivalents at end of period     $ 71,860   $ 113,752  


See accompanying notes.

5


CINTAS CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
(Amounts in thousands except per share data)

1.    Basis of Presentation

The consolidated condensed financial statements of Cintas Corporation included herein have been prepared by Cintas, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. While we believe that the disclosures are adequately presented, it is suggested that these consolidated condensed financial statements be read in conjunction with the financial statements and notes included in our most recent annual report for the fiscal year ended May 31, 2004. A summary of our significant accounting policies is presented on page 24 of our most recent annual report. There have been no material changes in the accounting policies followed by Cintas during the fiscal year.

Interim results are subject to variations and are not necessarily indicative of the results of operations for a full fiscal year. In the opinion of management, adjustments (which include only normal recurring adjustments) necessary for a fair statement of the results of the interim periods shown have been made.

Certain prior year amounts have been reclassified to conform to current year presentation.

2.    New Accounting Standard

On December 16, 2004, the Financial Accounting Standards Board (FASB) issued Statement No. 123 (revised 2004), Share-Based Payment , which is a revision of FASB Statement No. 123, Accounting for Stock-Based Compensation .  Generally, the approach in Statement 123(R) is similar to the approach described in Statement 123.  However, Statement 123(R) requires all share-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values. Pro forma disclosure is no longer an alternative. The new standard will be effective for public entities (excluding small business issuers) in the first interim or annual reporting period beginning after June 15, 2005. Cintas will adopt this Statement in the second quarter of fiscal 2006.

6


CINTAS CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
(In thousands except per share data)

3.    Earnings per Share

The following table represents a reconciliation of the shares used to calculate basic and diluted earnings per share for the respective years:

Three Months Ended
Nine Months Ended
February 28,
2005

February 29,
2004

February 28,
2005

February 29,
2004

Numerator:                    
Net income     $ 71,332   $ 66,493   $ 217,558   $ 199,477  




Denominator:    
Denominator for basic earnings per    
   share-weighted average shares       171,802     171,088     171,629     170,847  




Effect of dilutive securities-    
   employee stock options       988     1,596     1,071     1,368  




Denominator for diluted earnings per    
   share-adjusted weighted average    
   shares and assumed conversions       172,790     172,684     172,700     172,215  




Basic earnings per share     $ .42   $ .39   $ 1.27   $ 1.17  




Diluted earnings per share     $ .41   $ .39   $ 1.26   $ 1.16  




4.     Goodwill, Service Contracts and Other Assets

Changes in the carrying amount of goodwill for the nine months ended February 28, 2005, by operating segment, are as follows:

Rentals
Other
Services

Total
Balance as of June 1, 2004     $ 685,261   $ 120,180   $ 805,441  
Goodwill acquired during the period       12,841     51,401     64,242  
Foreign currency translation       1,330     81     1,411  



Balance as of February 28, 2005     $ 699,432   $ 171,662   $ 871,094  



7


CINTAS CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
(In thousands except per share data)

Information regarding Cintas’ service contracts and other assets follows:

As of February 28, 2005
Carrying
Amount

Accumulated
Amortization

Net
Service contracts     $ 230,219   $ 84,643   $ 145,576  



Noncompete and    
   consulting agreements     $ 35,733   $ 17,174   $ 18,559  
Other       23,316     2,497     20,819  



Total     $ 59,049   $ 19,671   $ 39,378  





As of May 31, 2004
Carrying
Amount

Accumulated
Amortization

Net
Service contracts     $ 216,997   $ 72,333   $ 144,664  



Noncompete and    
   consulting agreements     $ 33,720   $ 19,665   $ 14,055  
Other       29,100     2,516     26,584  



Total     $ 62,820   $ 22,181   $ 40,639  



Amortization expense was $20,726 and $19,387 for the nine months ended February 28, 2005 and February 29, 2004, respectively. Estimated amortization expense, excluding any future acquisitions, for each of the next five years is $28,016, $27,700, $25,800, $23,486 and $21,060, respectively.

5.    Debt, Derivatives and Hedging Activities

Cintas formally documents all relationships between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking various hedge transactions. Cintas’ hedging activities are transacted only with highly-rated institutions, reducing the exposure to credit risk in the event of nonperformance.

Cintas uses derivatives for both cash flow hedging and fair value hedging purposes. For derivative instruments that hedge the exposure of variability in short-term interest rates, designated as cash flow hedges, the effective portion of the net gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. For the ineffective portion of the hedge, gains or losses are charged to earnings in the current period. For derivative instruments that hedge the exposure to changes in the fair value of certain fixed rate debt, designated as fair value hedges, the effective portion of the net gain or loss on the derivative instrument, as well as the offsetting gain or loss on the fixed rate debt attributable to the hedged risk, are recorded in current period earnings.

8


CINTAS CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
(In thousands except per share data)

From time to time, Cintas uses interest rate swap and lock agreements as hedges against variability in short-term interest rates. These agreements effectively convert a portion of the floating rate debt to a fixed rate basis, thus reducing the impact of interest rate changes on future interest expense. Cintas uses the Hypothetical Derivative Method for assessing the effectiveness of these swaps. There are no interest rate swap agreements outstanding as of February 28, 2005. When outstanding, the effectiveness of these swaps is reviewed at least every fiscal quarter. Cintas also uses reverse interest rate swap agreements to convert a portion of fixed rate debt to a floating rate basis, thus hedging for changes in the fair value of the fixed rate debt being hedged. Cintas has determined that the current interest rate swap agreements, designated as fair value hedges, qualify for treatment under the short-cut method of measuring effectiveness. Under the provisions of SFAS 133, these hedges are determined to be perfectly effective and there is no requirement to periodically evaluate effectiveness.

The amortization of the cash flow hedge, pertaining to interest rate swap and lock agreements, resulted in a credit to other comprehensive income of $73 for the three months ended February 28, 2005, and $218 for the nine months ended February 28, 2005. The reverse interest rate swap agreements are fair value hedges that convert $225 million of fixed rate debt to a floating rate. These agreements expire in 2007 and allow Cintas to receive an effective interest rate of 5.13% and pay an interest rate based on LIBOR. Because these fair value hedges are 100% effective, the $2 million unfavorable change in the fair value of these hedges for the three months ended February 28, 2005, and the net $5 million unfavorable change for the nine months ended February 28, 2005, were directly offset by a decrease in the fair value of the debt.

Cintas has certain significant covenants related to debt agreements. These covenants limit Cintas’ ability to incur certain liens, to engage in sale-leaseback transactions and to merge, consolidate or sell all or substantially all of Cintas’ assets. These covenants also require Cintas to maintain certain debt to capitalization and interest coverage ratios. Cross default provisions exist between certain debt instruments. Cintas is in compliance with all of the significant debt covenants for all periods presented. Were a default of a significant covenant to occur, the default could result in an acceleration of indebtedness, impair liquidity and limit the ability to raise future capital. However, Cintas’ debt, net of cash and marketable securities, is only $105 million. For the nine months ended February 28, 2005, alone, net cash provided by operating activities was $288 million. Capital expenditures were approximately $101 million for the same period.

9


CINTAS CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
(In thousands except per share data)

6.    Stock-Based Compensation

During the third quarter of fiscal 2003, Cintas adopted the disclosure requirements of FASB Statement No. 148, Accounting for Stock-Based Compensation — Transition and Disclosure , but will continue to apply Accounting Principles Board Opinion No. 25 as the method used to account for stock-based employee compensation arrangements. The following table illustrates the effect on net income and earnings per share as if the fair value based method had been applied to all outstanding and unvested awards in each period.

Three Months Ended
Nine Months Ended
February 28,
2005

February 29,
2004

February 28,
2005

February 29,
2004

Net income, as reported     $ 71,332   $ 66,493   $ 217,558   $ 199,477  
 
Deduct: Total stock-based employee    
compensation expense determined    
under fair value based method for all    
awards, net of related tax effects       2,170     1,637     6,450     4,906  




Pro forma net income     $ 69,162   $ 64,856   $ 211,108   $ 194,571  




Earnings per share:    
   Basic - as reported     $ .42   $ .39   $ 1.27   $ 1.17  




   Basic - pro forma     $ .40   $ .38   $ 1.23   $ 1.14  




   Diluted - as reported     $ .41   $ .39   $ 1.26   $ 1.16  




   Diluted - pro forma     $ .40   $ .38   $ 1.22   $ 1.13  




During the third quarter of fiscal 2005, Cintas vested certain employee stock options whose exercise price was greater than current market value.

10


CINTAS CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
(In thousands except per share data)

7.    Comprehensive Income

Total comprehensive income represents the net change in shareholders’ equity during a period from sources other than transactions with shareholders and, as such, includes net earnings. For Cintas, the only components of total comprehensive income are the change in cumulative foreign currency translation adjustments and the change in the fair value of the forecasted cash flows associated with a derivative accounted for as a cash flow hedge. The components of comprehensive income for the three and nine month periods ended February 28, 2005 and February 29, 2004 are as follows:

Three Months Ended
Nine Months Ended
February 28,
2005

February 29,
2004

February 28,
2005

February 29,
2004

Net income     $ 71,332   $ 66,493   $ 217,558   $ 199,477  
 
Other comprehensive income (loss)    
   Foreign currency translation    
     adjustment       (5,158 )   (3,223 )   11,339     2,301  
   Net unrealized income on    
     cash flow hedges       73     72     218     596  




Comprehensive income     $ 66,247   $ 63,342   $ 229,115   $ 202,374  




11


CINTAS CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
(In thousands except per share data)

8.    Segment Information

Cintas classifies its businesses into two operating segments: Rentals and Other Services. The Rentals operating segment designs and manufactures corporate identity uniforms which it rents, along with entrance mats, shop towels, restroom supplies and other items, to its customers. The Other Services operating segment involves the design, manufacture and direct sale of uniforms to its customers, and the sale of ancillary products and services, including first aid and safety and fire protection products and services, document management services and cleanroom supplies. All of these services are provided throughout the United States and Canada to businesses of all types — from small service and manufacturing companies to major corporations that employ thousands of people.

The $4,343 write-off of the loan receivable in the first quarter of fiscal 2004 has been included in the Corporate segment.

Information as to the operations of Cintas’ different business segments is set forth below based on the distribution of products and services offered. Cintas evaluates performances based on several factors of which the primary financial measures are business segment revenue and income before income taxes.

Rentals
Other
Services

Corporate
Total
For the three months                      
   ended February 28, 2005    
Revenue     $ 582,619   $ 172,622   $ --   $ 755,241  




Income before income taxes     $ 102,277   $ 15,265   $ (4,350 ) $ 113,192  




For the three months       --  
   ended February 29, 2004    
Revenue     $ 547,474   $ 149,466   $ --   $ 696,940  




Income before income taxes     $ 95,822   $ 14,870   $ (5,152 ) $ 105,540  




As of and for the nine months    
   ended February 28, 2005    
Revenue     $ 1,748,086   $ 509,951   $ --   $ 2,258,037  




Income before income taxes     $ 316,013   $ 43,082   $ (13,765 ) $ 345,330  




Total assets     $ 2,228,303   $ 459,431   $ 367,789   $ 3,055,523  




As of and for the nine months    
   ended February 29, 2004    
Revenue     $ 1,634,334   $ 441,571   $ --   $ 2,075,905  




Income before income taxes     $ 295,791   $ 42,702   $ (21,870 ) $ 316,623  




Total assets     $ 2,197,979   $ 308,167   $ 248,858   $ 2,755,004  




12


CINTAS CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
(In thousands except per share data)


9.    Litigation and Other Contingencies

Cintas is subject to legal proceedings and claims arising from the ordinary course of its business, including personal injury, customer contract, environmental and employment claims. In the opinion of management, the aggregate liability, if any, with respect to such ordinary course of business actions, will not have a material adverse effect on the financial position or results of operations of Cintas. Cintas is party to additional litigation not considered in the ordinary course of business, including the litigation discussed below.

Cintas is a defendant in a purported class action lawsuit, Paul Veliz, et al., v. Cintas Corporation , filed on March 19, 2003, in the United States District Court, Northern District of California, Oakland Division, alleging that Cintas violated certain federal and state wage and hour laws applicable to its service sales representatives, whom Cintas considers exempt employees, and asserting additional related ERISA claims. The plaintiffs are seeking unspecified monetary damages, injunctive relief, or both. Cintas denies these claims and is defending the plaintiffs’ allegations. The court ordered arbitration for all potential plaintiffs except for those that fall into one of four narrowly defined exceptions. As a result, Cintas believes that a majority of the potential plaintiffs will be required to arbitrate their claims. No determination has been made by the court or an arbitrator regarding class certification. There can be no assurance as to whether a class will be certified or, if a class is certified, as to the geographic or other scope of such class. If a court or arbitrator certifies a class in this action and there is an adverse verdict on the merits, or in the event of a negotiated settlement of the action, the resulting liability and/or any increased costs of operations on an ongoing basis could be material to Cintas. Any estimated liability relating to this lawsuit is not determinable at this time.

Cintas is also a defendant in a purported class action lawsuit, Robert Ramirez, et al., v. Cintas Corporation , filed on January 20, 2004, and pending in the United States District Court, Northern District of California, San Francisco Division. The case was brought on behalf of all past and present female, African-American and Hispanic employees of Cintas and its subsidiaries. The complaint alleges that Cintas has engaged in a pattern and practice of discriminating against women and minorities in recruitment, hiring, promotions, transfers, job assignments and pay. The complaint seeks injunctive relief, compensatory damages, punitive damages and attorney’s fees, among other things. Cintas denies these claims and is defending the plaintiffs’ allegations. The court ordered arbitration as to three of the ten named plaintiffs. The United States Equal Employment Opportunity Commission (EEOC) has filed a motion to intervene in order to participate in this lawsuit. No filings or determination has been made in regard to the lawsuit as to class certification. There can be no assurance as to whether a class will be certified or, if a class is certified, as to the geographic or other scope of such class. Several related proceedings with similar allegations are pending, including an EEOC charge filed on April 17, 2000, by Mirna Serrano with the EEOC Detroit District office on behalf of female service sales representative applicants at all Cintas locations in Michigan, a class action lawsuit, Mirna E. Serrano, et al., v. Cintas Corporation , filed on May 10, 2004, in the United States District Court for the Eastern District of Michigan, Southern Division on behalf of the same female service sales representative applicants in the EEOC charge, and an administrative action filed on December 15, 2004, by James Morgan with the EEOC Washington, D.C. office and the California Department of Fair Employment and Housing alleging racial discrimination in compensation and training opportunities. If there is an adverse verdict or a negotiated

13


CINTAS CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
(In thousands except per share data)

settlement of these actions, the resulting liability and/or any increased costs of operations on an ongoing basis could be material to Cintas. Any estimated liability relating to these proceedings is not determinable at this time.

Several other administrative proceedings are pending including: (i) two charges filed on November 30, 2004, by an EEOC Commissioner with the EEOC Systemic Litigation Unit alleging failure to hire and assign females to production job positions, and, failing to hire females, African Americans and Hispanics into the Management Trainee program, (ii) a charge filed on January 24, 2005, by Jennifer Fargo on behalf of herself and a similarly situated class with the Augusta Human Relations Commission and the EEOC Detroit District office alleging gender and equal pay discrimination against female Sales Representative and Sales Associates, and (iii) a charge filed on March 23, 2005, by Clifton Cooper on behalf of himself and a similarly situated class with the EEOC Systemic Litigation Unit alleging discriminatory pay and treatment due to race. The investigations of these allegations are pending and no determinations have been made.

Cintas is also a defendant in a lawsuit, J. Lester Alexander, III vs. Cintas Corp., et al. , which was originally filed on October 25, 2004, and is currently pending in the United States Bankruptcy Court for the Middle District of Alabama, Eastern Division.  The case was brought by J. Lester Alexander, III, the Chapter 7 Trustee (the “Trustee”) of Terry Manufacturing Company, Inc. (“TMC”) and Terry Uniform Company, LLC (“TUC”), against Cintas in Randolph County, Alabama.  The Trustee seeks damages against Cintas for allegedly breaching fiduciary duties to TMC and TUC and for allegedly aiding and abetting breaches of fiduciary duties by others to those entities.  The complaint also includes allegations that Cintas breached certain limited liability company agreements, or alternatively, misrepresented their intention to perform their obligations in those agreements and acted as alter egos of the bankrupt TMC and are therefore liable for all of TMC’s debts.  The Trustee is seeking $50 million in compensatory damages and $100 million in punitive damages.  Cintas denies these claims and is vigorously defending itself against all claims in the complaint.   If there is an adverse verdict on the merits or in the event of a negotiated settlement of this lawsuit, the resulting liability could be material to Cintas.  Any estimated liability relating to this lawsuit is not determinable at this time.

The litigation discussed above, if decided adversely to or settled by Cintas, may, individually or in the aggregate, result in liability material to Cintas’ financial condition or results of operations. Cintas may enter into discussions regarding settlement of these and other lawsuits, and may enter into settlement agreements if it believes such settlement is in the best interests of Cintas’ shareholders.

14


CINTAS CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
(In thousands except per share data)

10.    Supplemental Guarantor Information

Effective June 1, 2000, Cintas reorganized its legal structure and created Cintas Corporation No. 2 (Corp. 2) as its indirectly, wholly-owned principal operating subsidiary. Cintas and its wholly-owned, direct and indirect domestic subsidiaries, other than Corp. 2, unconditionally guaranteed, jointly and severally, debt of Corp. 2.

On May 13, 2002, Cintas completed the acquisition of Omni Services, Inc. (Omni). A portion of the purchase price for Omni was funded with $450,000 in long-term notes. Corp. 2 was the issuer of the long-term notes, which are unconditionally guaranteed, jointly and severally, by Cintas Corporation and the subsidiary guarantors.

As allowed by SEC rules, the following condensed consolidating financial statements are provided as an alternative to filing separate financial statements of the guarantors. Each of the subsidiaries presented in the condensed financial statements has been fully consolidated in Cintas’ financial statements. The condensed consolidating financial statements should be read in conjunction with the financial statements of Cintas and notes thereto of which this note is an integral part.

Condensed consolidating financial statements for Cintas, Corp. 2, the subsidiary guarantors and non-guarantors are presented below:

15


CONDENSED CONSOLIDATED INCOME STATEMENT
THREE MONTHS ENDED FEBRUARY 28, 2005

Cintas
Corporation

Corp. 2
Subsidiary
Guarantors

Non-Guarantors
Eliminations
Cintas
Corporation
Consolidated

Revenue:                            
   Rentals     $ --   $ 429,797   $ 118,689   $ 34,220   $ (87 ) $ 582,619  
   Other services       --     172,531     81,942     11,604     (93,455 )   172,622  
   Equity in net income of affiliates       71,332     --     --     --     (71,332 )   --  






        71,332     602,328     200,631     45,824     (164,874 )   755,241  
Costs and expenses (income):    
   Cost of rentals       --     263,438     68,427     20,870     (32,011 )   320,724  
   Cost of other services       --     87,682     86,708     7,546     (68,873 )   113,063  
   Selling and administrative expenses       --     194,028     (10,292 )   12,876     7,300     203,912  
   Interest income       --     (1,787 )   (3 )   (359 )   --     (2,149 )
   Interest expense       --     6,466     (906 )   939     --     6,499  






        --     549,827     143,934     41,872     (93,584 )   642,049  






Income before income taxes       71,332     52,501     56,697     3,952     (71,290 )   113,192  
Income taxes       --     5,635     34,546     1,679     --     41,860  






Net income     $ 71,332   $ 46,866   $ 22,151   $ 2,273   $ (71,290 ) $ 71,332  






16


CONDENSED CONSOLIDATED INCOME STATEMENT
THREE MONTHS ENDED FEBRUARY 29, 2004

Cintas
Corporation

Corp. 2
Subsidiary
Guarantors

Non-Guarantors
Eliminations
Cintas
Corporation
Consolidated

Revenue:                            
   Rentals     $ --   $ 407,260   $ 110,433   $ 29,854   $ (73 ) $ 547,474  
   Other services       --     249,619     59,262     7,473     (166,888 )   149,466  
   Equity in net income of affiliates       66,493     --     --     --     (66,493 )   --  






      $ 66,493   $ 656,879   $ 169,695   $ 37,327   $ (233,454 ) $ 696,940  
Costs and expenses (income):    
   Cost of rentals       --     253,441     65,587     18,277     (33,834 )   303,471  
   Cost of other services       --     192,562     40,633     4,138     (139,575 )   97,758  
   Selling and administrative expenses       --     180,573     (4,490 )   8,282     654     185,019  
   Interest income       --     (642 )   (33 )   (131 )   --     (806 )
   Interest expense       --     5,908     (1,020 )   1,070     --     5,958  






        --     631,842     100,677     31,636     (172,755 )   591,400  






Income before income taxes       66,493     25,037     69,018     5,691     (60,699 )   105,540  
Income taxes       --     5,485     31,948     1,614     --     39,047  






Net income     $ 66,493   $ 19,552   $ 37,070   $ 4,077   $ (60,699 ) $ 66,493  






17


CONDENSED CONSOLIDATED INCOME STATEMENT
NINE MONTHS ENDED FEBRUARY 28, 2005

Cintas
Corporation

Corp. 2
Subsidiary
Guarantors

Non-Guarantors
Eliminations
Cintas
Corporation
Consolidated

Revenue:                            
   Rentals     $ --   $ 1,295,310   $ 354,544   $ 98,471   $ (239 ) $ 1,748,086  
   Other services       --     537,885     239,427     29,081     (296,442 )   509,951  
   Equity in net income of affiliates       217,558     --     --     --     (217,558 )   --  






        217,558     1,833,195     593,971     127,552     (514,239 )   2,258,037  
Costs and expenses (income):    
   Cost of rentals       --     792,017     210,097     58,542     (98,889 )   961,767  
   Cost of other services       --     366,660     168,260     18,505     (213,402 )   340,023  
   Selling and administrative expenses       --     565,350     (23,079 )   29,774     25,107     597,152  
   Interest income       --     (3,976 )   (9 )   (800 )   --     (4,785 )
   Interest expense       --     18,276     (2,556 )   2,830     --     18,550  






        --     1,738,327     352,713     108,851     (287,184 )   1,912,707  






Income before income taxes       217,558     94,868     241,258     18,701     (227,055 )   345,330  
Income taxes       --     17,056     104,413     6,303     --     127,772  






Net income     $ 217,558   $ 77,812   $ 136,845   $ 12,398   $ (227,055 ) $ 217,558  






18


CONDENSED CONSOLIDATED INCOME STATEMENT
NINE MONTHS ENDED FEBRUARY 29, 2004

Cintas
Corporation

Corp. 2
Subsidiary
Guarantors

Non-Guarantors
Eliminations
Cintas
Corporation
Consolidated

Revenue:                            
   Rentals     $ --   $ 1,219,331   $ 329,870   $ 85,301   $ (168 ) $ 1,634,334  
   Other services       --     775,213     169,981     23,002     (526,625 )   441,571  
   Equity in net income of affiliates       199,477     --     --     --     (199,477 )   --  






        199,477     1,994,544     499,851     108,303     (726,270 )   2,075,905  
Costs and expenses (income):    
   Cost of rentals       --     769,985     194,142     52,752     (109,928 )   906,951  
   Cost of other services       --     581,608     119,129     13,568     (421,947 )   292,358  
   Selling and administrative expenses       --     533,703     (20,112 )   23,931     581     538,103  
   Interest income       --     (1,360 )   (90 )   (329 )   --     (1,779 )
   Interest expense       --     19,139     (2,983 )   3,150     --     19,306  
   Write-off of loan receivable       --     --     4,343     --     --     4,343  






        --     1,903,075     294,429     93,072     (531,294 )   1,759,282  






Income before income taxes       199,477     91,469     205,422     15,231     (194,976 )   316,623  
Income taxes       --     16,796     95,620     4,730     --     117,146  






Net income     $ 199,477   $ 74,673   $ 109,802   $ 10,501   $ (194,976 ) $ 199,477  






19


CONDENSED CONSOLIDATED BALANCE SHEET
AS OF FEBRUARY 28, 2005

Cintas
Corporation

Corp. 2
Subsidiary
Guarantors

Non-Guarantors
Eliminations
Cintas
Corporation
Consolidated

Assets                            
Current assets:    
   Cash and cash equivalents     $ --   $ 45,725   $ 7,515   $ 18,620   $ --   $ 71,860  
   Marketable securities       --     247,621     --     48,308     --     295,929  
   Accounts receivable, net       --     215,592     87,406     9,294     (11,473 )   300,819  
   Inventories, net       --     201,016     21,239     8,687     (14,579 )   216,363  
   Uniforms and other rental items in service       --     244,095     73,050     16,324     (34,970 )   298,499  
   Prepaid expenses       --     5,653     2,255     875     --     8,783  






Total current assets       --     959,702     191,465     102,108     (61,022 )   1,192,253  
 
Property and equipment, at cost, net       --     599,615     165,720     41,887     --     807,222  
 
Goodwill       --     137,043     718,761     15,290     --     871,094  
Service contracts, net       --     99,027     38,567     7,982     --     145,576  
Other assets, net       1,656,215     24,646     713,138     164,544     (2,519,165 )   39,378  






      $ 1,656,215   $ 1,820,033   $ 1,827,651   $ 331,811   $ (2,580,187 ) $ 3,055,523  






Liabilities and Shareholders' Equity    
Current liabilities:    
   Accounts payable     $ (465,247 )   212,529     248,489   $ 23,280   $ 38,013   $ 57,064  
   Accrued compensation and related liabilities       --     22,932     6,831     1,856     --     31,619  
   Accrued liabilities       54,968     172,617     (47,479 )   4,032     (45 )   184,093  
   Income taxes:    
     Current       --     (22,179 )   74,525     307     (29 )   52,624  
     Deferred       --     --     47,795     2,001     --     49,796  
   Long-term debt due within one year       --     9,635     686     --     (159 )   10,162  






Total current liabilities       (410,279 )   395,534     330,847     31,476     37,780     385,358  
 
Long-term debt due after one year       --     471,241     (56,001 )   80,164     (33,202 )   462,202  
Deferred income taxes       --     10,222     111,118     5,719     --     127,059  
Total shareholders' equity       2,066,494     943,036     1,441,687     214,452     (2,584,765 )   2,080,904  






      $ 1,656,215   $ 1,820,033   $ 1,827,651   $ 331,811   $ (2,580,187 ) $ 3,055,523  






20


CONDENSED CONSOLIDATED BALANCE SHEET
AS OF MAY 31, 2004

Cintas
Corporation

Corp. 2
Subsidiary
Guarantors

Non-Guarantors
Eliminations
Cintas
Corporation
Consolidated

Assets                            
Current assets:    
   Cash and cash equivalents     $ --   $ 56,455   $ 8,057   $ 22,845   $ --   $ 87,357  
   Marketable securities       --     150,652     --     16,312     --     166,964  
   Accounts receivable, net       --     210,026     79,425     8,703     (12,562 )   285,592  
   Inventories, net       --     172,586     20,249     6,624     (10,771 )   188,688  
   Uniforms and other rental items in service       --     240,833     70,741     15,954     (29,281 )   298,247  
   Prepaid expenses       --     6,006     1,011     378     --     7,395  






Total current assets       --     836,558     179,483     70,816     (52,614 ) $ 1,034,243  
 
Property and equipment, at cost, net       --     596,037     149,461     39,812     --     785,310  
 
Goodwill       --     124,845     667,128     13,468     --     805,441  
Service contracts, net       --     106,348     29,653     8,663     --     144,664  
Other assets, net       1,419,869     29,861     769,746     141,897     (2,320,734 )   40,639  






      $ 1,419,869   $ 1,693,649   $ 1,795,471   $ 274,656   $ (2,373,348 ) $ 2,810,297  






Liabilities and Shareholders' Equity    
Current liabilities:    
   Accounts payable     $ (465,247 )   168,429   $ 298,501     13,755   $ 38,013   $ 53,451  
   Accrued compensation and related liabilities       --     23,863     6,307     1,634     --     31,804  
   Accrued liabilities       --     179,525     (36,472 )   4,148     (975 )   146,226  
   Income taxes:    
     Current       --     (33,638 )   69,796     511     (29 )   36,640  
     Deferred       --     601     44,630     1,811     --     47,042  
   Long-term debt due within one year       --     9,655     655     372     (159 )   10,523  






Total current liabilities       (465,247 )   348,435     383,417     22,231     36,850     325,686  
 
Long-term debt due after one year       --     482,360     (49,928 )   72,529     (31,276 )   473,685  
Deferred income taxes       --     9,621     108,143     5,193     --     122,957  
Total shareholders' equity       1,885,116     853,233     1,353,839     174,703     (2,378,922 )   1,887,969  






      $ 1,419,869   $ 1,693,649   $ 1,795,471   $ 274,656   $ (2,373,348 ) $ 2,810,297  






21


CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
NINE MONTHS ENDED FEBRUARY 28, 2005

Cintas
Corporation

Corp. 2
Subsidiary
Guarantors

Non-
Guarantors

Eliminations
Cintas
Corporation
Consolidated

Cash flows from operating activities :                            
   Net income     $ 217,558   $ 77,812   $ 136,845   $ 12,398   $ (227,055 ) $ 217,558  
   Adjustments to reconcile net income to net    
   cash provided by (used in) operating activities:    
     Depreciation       --     56,443     28,641     4,375     --     89,459  
     Amortization of deferred charges       --     13,265     5,712     1,749     --     20,726  
     Deferred income taxes       --     --     6,140     716     --     6,856  
     Changes in current assets and liabilities,    
       net of acquisitions of businesses:    
          Accounts receivable       --     (5,294 )   (5,145 )   (591 )   (1,089 )   (12,119 )
          Inventories       --     (31,484 )   2,645     (2,112 )   3,808     (27,143 )
          Uniforms and other rental items in service       --     (208 )   (5,412 )   (321 )   5,689     (252 )
          Prepaid expenses       --     353     (1,175 )   (497 )   --     (1,319 )
          Accounts payable       --     44,100     (50,149 )   9,525     --     3,476  
          Accrued compensation and related liabilities       --     (931 )   524     222     --     (185 )
          Accrued liabilities       --     (7,087 )   (18,543 )   (116 )   930     (24,816 )
          Income taxes payable       --     11,459     4,729     (204 )   --     15,984  






Net cash provided by (used in) operating activities       217,558     158,428     104,812     25,144     (217,717 )   288,225  
 
Cash flows from investing activities :    
   Capital expenditures       --     (60,672 )   (33,756 )   (6,528 )   --     (100,956 )
   Proceeds from sale or redemption of marketable securities       --     33,287     --     1,812     --     35,099  
   Purchase of marketable securities       --     (130,256 )   --     (33,809 )   --     (164,065 )
   Acquisitions of businesses, net of cash acquired       --     (4,565 )   (77,206 )   (415 )   --     (82,186 )
   Other       (223,528 )   (611 )   11,649     (9,030 )   219,643     (1,877 )






Net cash (used in) provided by investing activities       (223,528 )   (162,817 )   (99,313 )   (47,970 )   219,643     (313,985 )
 
Cash flows from financing activities :    
   Repayment of long-term debt       --     (6,559 )   (6,041 )   7,262     (1,926 )   (7,264 )
   Stock options exercised       3,844     --     --     --     --     3,844  
   Other       2,126     218     --     11,339     --     13,683  






Net cash provided by (used in) financing activities       5,970     (6,341 )   (6,041 )   18,601     (1,926 )   10,263  






Net decrease in cash and cash equivalents       --     (10,730 )   (542 )   (4,225 )   --     (15,497 )
Cash and cash equivalents at beginning of period       --     56,455     8,057     22,845     --     87,357  






Cash and cash equivalents at end of period     $ --   $ 45,725   $ 7,515   $ 18,620   $ --   $ 71,860  






22


CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
NINE MONTHS ENDED FEBRUARY 29, 2004

Cintas
Corporation

Corp. 2
Subsidiary
Guarantors

Non-
Guarantors

Eliminations
Cintas
Corporation
Consolidated

Cash flows from operating activities :                            
   Net income     $ 199,477   $ 74,673   $ 109,802   $ 10,501   $ (194,976 ) $ 199,477  
   Adjustments to reconcile net income to net    
   cash provided by (used in) operating activities:    
     Depreciation       --     56,172     27,304     4,332     --     87,808  
     Amortization of deferred charges       --     6,180     11,545     1,662     --     19,387  
     Deferred income taxes       --     (426 )   20,817     493     --     20,884  
     Changes in current assets and liabilities,    
       net of acquisitions of businesses:    
          Accounts receivable       --     (897 )   8,243     (891 )   (2,304 )   4,151  
          Inventories       --     29,307     (296 )   274     (3,320 )   25,965  
          Uniforms and other rental items in service       --     10,019     1,421     274     (1,181 )   10,533  
          Prepaid expenses       --     (1,016 )   156     384     --     (476 )
          Accounts payable       --     114,422     (124,057 )   4,079     --     (5,556 )
          Accrued compensation and related liabilities       --     314     439     91     --     844  
          Accrued liabilities       --     (8,837 )   (10,535 )   (984 )   947     (19,409 )
          Income taxes payable       --     3,246     13,407     175     --     16,828  






Net cash provided by (used in) operating activities       199,477     283,157     58,246     20,390     (200,834 )   360,436  
 
Cash flows from investing activities :    
   Capital expenditures       --     (52,175 )   (29,342 )   (3,502 )   --     (85,019 )
   Proceeds from sale or redemption of marketable securities       --     31,979     --     195     --     32,174  
   Purchase of marketable securities       --     (134,361 )   (1,186 )   (6,313 )   --     (141,860 )
   Acquisitions of businesses, net of cash acquired       --     (1,215 )   (48,621 )   --     --     (49,836 )
   Other       (205,837 )   (5,675 )   22,887     (1,642 )   199,962     9,695  






Net cash (used in) provided by investing activities       (205,837 )   (161,447 )   (56,262 )   (11,262 )   199,962     (234,846 )
 
Cash flows from financing activities :    
   Repayment of long-term debt       --     (53,060 )   (1,738 )   1,744     (280 )   (53,334 )
   Stock options exercised       6,360     --     --     --     --     6,360  
   Other       --     596     --     2,301     --     2,897  






Net cash provided by (used in) financing activities       6,360     (52,464 )   (1,738 )   4,045     (280 )   (44,077 )






Net increase (decrease) in cash and cash equivalents       --     69,246     246     13,173     (1,152 )   81,513  
Cash and cash equivalents at beginning of period       --     16,592     5,166     9,329     1,152     32,239  






Cash and cash equivalents at end of period     $ --   $ 85,838   $ 5,412   $ 22,502   $ --   $ 113,752  






23


CINTAS CORPORATION
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

BUSINESS STRATEGY

We are North America’s leading provider of corporate identity uniforms through rental and sales programs, as well as related business services, including entrance mats, restroom products, first aid and safety and fire protection products and services, document management services and cleanroom services. Our services are designed to enhance our customers’ images and to provide additional safety and protection in the workplace.

Our business strategy is to increase our market share of the uniform rental and sales business in North America through the sale of new uniform programs and to provide our customers with all of the products and services we offer. We will also continue to identify additional product and service opportunities to provide to our current and future customers. Our long-term goal is to provide a product or service to every business in North America.

To pursue this strategy, we focus on the development of a highly talented and diverse team of employees (who we call partners) – a team that is properly trained and motivated to service our customers. We support our partners’ service efforts by providing superior products with distinct competitive advantages and we embrace technological advances.

We continue to leverage our size and core competencies to become a more valued business service provider to our current and future customers. We will also continue to supplement our internal growth with strategic acquisitions and the cultivation of new businesses.

RESULTS OF OPERATIONS

Cintas classifies its businesses into two operating segments: Rentals and Other Services. The Rentals operating segment designs and manufactures corporate identity uniforms which it rents, along with mats, shop towels, restroom supplies and other items, to its customers. The Other Services operating segment involves the design, manufacture and direct sale of uniforms to customers as well as the sale of ancillary products and services. These ancillary products and services include first aid and safety and fire protection products and services, document management services and cleanroom supplies. Our products and services are provided throughout the United States and Canada to businesses of all types — from small service and manufacturing companies to major corporations that employ thousands of people.

Three Months Ended February 2005 Compared to Three Months Ended February 2004

Revenue, Expenses and Income

Revenue Comparison

Total revenue increased 8.4% for the three months ended February 28, 2005, over the same period in fiscal 2004. Internal growth for this period was 5.4%. (When adjusted for one less workday for the three months ended February 28, 2005, as compared to the prior year, total revenue internal growth was 7.1%.) The remaining 3.0% represents external growth derived mainly through the acquisitions of first aid and safety, fire protection and document management businesses within our Other Services segment.

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Net Rentals revenue increased 6.4% for the three months ended February 28, 2005, over the same period in the prior fiscal year. Rentals operating segment internal growth for the third quarter of fiscal 2005 was 5.8% as compared to the three months ended February 29, 2004. (When adjusted for one less workday for the three months ended February 28, 2005, as compared to the prior year, total Rentals internal growth was 7.5%.) This increase is primarily due to the sale of new rental programs to customers, offset by lost business.

Other Services revenue increased 15.5% for the three months ended February 28, 2005, over the same period in the prior year. This increase was mainly due to a combination of acquisitions of first aid and safety, fire protection and document management businesses. Other Services operating segment internal growth for the third quarter of fiscal 2005 was 4.1% as compared to the three months ended February 29, 2004. (When adjusted for one less workday for the three months ended February 28, 2005, as compared to the prior year, total Other Services internal growth was 5.7%.) This internal growth was generated primarily through increased sales of first aid and safety products and services to customers.

Expense Comparison

Cost of rentals consists primarily of production expenses, delivery expenses and amortization of in service uniforms and other rental items. Cost of rentals increased 5.7% for the three months ended February 28, 2005, as compared to the three months ended February 29, 2004, which corresponds to the growth in Rentals revenue. Energy costs were approximately $20 million for the three months ended February 28, 2005, versus approximately $17 million for the same period in the prior year, an 18 percent increase. However, various other operational efficiencies offset this increase.

Cost of other services consists primarily of cost of goods sold (predominantly uniforms and first aid products), delivery expenses and distribution expenses. Cost of other services increased 15.7% for the three months ended February 28, 2005, as compared to the three months ended February 29, 2004. This increase was mainly due to increased sales in this segment. Gross margin within this segment will fluctuate depending on the type of product or service sold, as products which require additional services generate higher gross margins. Generally, the gross margin for Other Services is in the 30% to 35% range. The current quarter’s gross margin is 34.5%, which is at the upper end of that general range.

Selling and administrative expenses increased 10.2% for the three months ended February 28, 2005, as compared to the three months ended February 29, 2004. Selling and administrative expenses increased mainly due to higher selling expenses. In order to accelerate revenue growth, we have increased our sales force by approximately 11% over the last year and also increased marketing and sales promotions. These measures combined to increase our selling costs by approximately $8 million over the prior year. The cost of providing medical benefits to our employees also increased $4 million.

We anticipate a continued rise in energy and labor-related costs. Recent increases in fuel costs will continue to negatively impact our operating results in coming quarters, except to the extent we are able to offset such costs with price increases and increased operating efficiencies.

25


Net interest expense (interest expense less interest income) was $4.4 million for the three months ended February 28, 2005, compared to $5.2 million for the same period in the prior fiscal year. This decrease was driven primarily from increased interest income due to higher levels of cash and marketable securities. This additional interest income was partially offset by higher interest expense due to higher interest rates on our variable rate outstanding debt.

Cintas’ effective tax rate was 37.0% for both the three months ended February 28, 2005 and February 29, 2004.

Income Comparison

Net income increased 7.3% for the three months ended February 28, 2005, over the same period in fiscal 2004, primarily due to revenue growth. Diluted earnings per share increased 5.1% for the three months ended February 28, 2005, over the same period in the prior fiscal year.

Nine Months Ended February 2005 Compared to Nine Months Ended February 2004

Revenue, Expenses and Income

Revenue Comparison

Total revenue increased 8.8% for the nine months ended February 28, 2005, over the same period in fiscal 2004. Internal growth for this period was 5.8%. The 3.0% of external growth was derived mainly through the acquisitions of first aid and safety, fire protection and document management businesses within our Other Services segment.

Net Rentals revenue increased 7.0% for the nine months ended February 28, 2005, over the same period in the prior fiscal year. Rentals operating segment internal growth was 6.4%. This increase is primarily due to the sale of new rental programs to customers, offset by lost business.

Other Services revenue increased 15.5% for the nine months ended February 28, 2005, over the same period in the prior year. This increase was mainly due to a combination of acquisitions of first aid and safety, fire protection and document management businesses. Other Services operating segment internal growth through the third quarter of fiscal 2005 was 3.9% as compared to the nine months ended February 29, 2004. This internal growth was generated primarily through increased sales of first aid and safety products and services to customers.

Expense Comparison

Cost of rentals consists primarily of production expenses, delivery expenses and amortization of in service uniforms and other rental items. Cost of rentals increased 6.0% for the nine months ended February 28, 2005, as compared to the nine months ended February 29, 2004, which corresponds to the growth in Rentals revenue. Energy costs were approximately $56 million for the nine months ended February 28, 2005, versus approximately $47 million for the same period in the prior year, a 19 percent increase. However, various other operational efficiencies offset this increase.

Cost of other services consists primarily of cost of goods sold (predominantly uniforms and first aid products), delivery expenses and distribution expenses. Cost of other services increased 16.3% for the nine months ended February 28, 2005, as compared to the nine months ended February 29, 2004. This increase was mainly due to the increased sales in this segment. The cost of other services increased greater than the growth in segment sales due to customer sales mix.

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Gross margin within this segment will fluctuate depending on the type of product or service sold, as products which require additional services generate higher gross margins. Generally, the gross margin for Other Services is in the 30% to 35% range. This period’s gross margin was 33.3%, which is within that range.

Selling and administrative expenses increased 11.0% for the nine months ended February 28, 2005, as compared to the nine months ended February 29, 2004. Selling and administrative expenses increased mainly due to selling expenses. In order to accelerate revenue growth, we have increased our sales force by approximately 11% over the last year and also increased marketing and sales promotions. These measures combined to increase our selling costs by approximately $28 million over the prior year. The cost of providing medical benefits to our employees also increased approximately $11 million.

We anticipate a continued rise in energy and labor-related costs. Recent increases in fuel costs will continue to negatively impact our operating results in coming quarters, except to the extent we are able to offset such costs with price increases and increased operating efficiencies.

Net interest expense (interest expense less interest income) was $13.8 million for the nine months ended February 28, 2005, compared to $17.5 million for the same period in the prior fiscal year. This decrease was driven primarily from increased interest income due to increased levels of cash and marketable securities. Reduced levels of outstanding debt also contributed to this decrease.

Cintas’ effective tax rate was 37.0% for both the nine months ended February 28, 2005 and February 29, 2004.

Included in net income for the first quarter of fiscal 2004 was a pre-tax charge of $4.3 million from a write-off of a receivable from a garment manufacturer. Based on concerns on the supplier’s viability to remain as a going concern, the receivable was completely written off.

Income Comparison

Net income increased 9.1% for the nine months ended February 28, 2005, over the same period in fiscal 2004, primarily due to increased revenues. Diluted earnings per share increased 8.6% for the nine months ended February 28, 2005, over the same period in the prior fiscal year.

Financial Condition

At February 28, 2005, there was $368 million in cash, cash equivalents and marketable securities, an increase of $113 million from May 31, 2004, primarily due to additional cash generation from increased operating income. Capital expenditures were approximately $101 million for the nine months ended February 28, 2005. We expect capital expenditures for the year to be between $130 and $140 million. Cash, cash equivalents and marketable securities will be used to finance future growth, capital expenditures, repayment of debt and dividends. Cintas also has additional borrowing capacity for use in future acquisitions. We believe that our current cash position, funds generated from operations and the strength of our banking relationships are sufficient to meet our anticipated operational and capital requirements.

Net property and equipment increased by $22 million from May 31, 2004 to February 28, 2005, due to continued investment in rental facilities and equipment. At the end of the third quarter of fiscal 2005, Cintas had four uniform rental facilities in various stages of construction.

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Following is information regarding Cintas’ long-term contractual obligations and other commitments outstanding as of February 28, 2005:

(In thousands)
Payments Due by Period
Long-term contractual obligations
Total
One year
or less

Two to
three
years

Four to
five years

After five
years

Long-term debt (1)     $ 469,332   $ 9,598   $ 231,018   $ 373   $ 228,343  
Capital lease obligations (2)       3,032     564     1,200     788     480  
Operating leases (3)       46,856     13,743     18,722     9,108     5,283  
Interest payments (4)       127,023     25,986     42,368     27,347     31,322  
Interest swap agreements (5)       (2,099 )   (1,711 )   (388 )   --     --  
Unconditional purchase obligations       --     --     --     --     --  





Total contractual cash obligations     $ 644,144   $ 48,180   $ 292,920   $ 37,616   $ 265,428  





Cintas also makes payments to defined contribution plans. The amounts of contributions made to the plans are made at the discretion of Cintas. Future contributions are assumed to increase 15% annually. Assuming this 15% increase, payments due in one year or less would be $26,697, two to three years would be $66,009 and four to five years would be $87,297. Payments for years thereafter are assumed to continue increasing by 15% each year.

(1) Long-term debt primarily consists of $450,000 in long-term notes related to the Omni acquisition.
(2) Capital lease obligations are classified as long-term debt on the balance sheet.
(3) Operating leases consist primarily of building leases and synthetic leases on the two corporate jets.
(4) Interest payments include interest on both fixed and variable rate debt. Rates have been assumed to increase 50 basis points for the remainder of fiscal 2005, an additional 50 basis points in fiscal 2006 and an additional 50 basis points in fiscal 2007.
(5) Reference Note 5 entitled Debt, Derivatives and Hedging Activities for a detailed discussion of interest swap agreements.

(In thousands)
Amount of Commitment Expiration Per Period
Other commercial commitments
Total
One year
or less

Two to
three
years

Four to
five years

After five
years

Lines of credit (1)     $ 300,000   $ --   $ --   $ 300,000   $ --  
Standby letter of credit (2)       57,669     57,669     --     --     --  
Guarantees       --     --     --     --     --  
Standby repurchase obligations       --     --     --     --     --  
Other commercial commitments       --     --     --     --     --  





Total commercial commitments     $ 357,669   $ 57,669   $ --   $ 300,000   $ --  





(1) Back-up facility for the commercial paper program.
(2) Support certain outstanding debt and self-insured workers’ compensation and general liability insurance programs.

Cintas has no off-balance sheet arrangements other than the synthetic leases on the two corporate jets. The synthetic leases on the aircraft do not currently have, and are not reasonably likely to have, a current or future material effect on Cintas’ financial condition, changes in Cintas’ financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

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Litigation and Other Contingencies

Cintas is subject to legal proceedings and claims arising from the ordinary course of its business, including personal injury, customer contract, environmental and employment claims. In the opinion of management, the aggregate liability, if any, with respect to such ordinary course of business actions, will not have a material adverse effect on the financial position or results of operations of Cintas. Cintas is party to additional litigation not considered in the ordinary course of business, including the litigation discussed below.

Cintas is a defendant in a purported class action lawsuit, Paul Veliz, et al., v. Cintas Corporation , filed on March 19, 2003, in the United States District Court, Northern District of California, Oakland Division, alleging that Cintas violated certain federal and state wage and hour laws applicable to its service sales representatives, whom Cintas considers exempt employees, and asserting additional related ERISA claims. The plaintiffs are seeking unspecified monetary damages, injunctive relief, or both. Cintas denies these claims and is defending the plaintiffs’ allegations. The court ordered arbitration for all potential plaintiffs except for those that fall into one of four narrowly defined exceptions. As a result, Cintas believes that a majority of the potential plaintiffs will be required to arbitrate their claims. No determination has been made by the court or an arbitrator regarding class certification. There can be no assurance as to whether a class will be certified or, if a class is certified, as to the geographic or other scope of such class. If a court or arbitrator certifies a class in this action and there is an adverse verdict on the merits, or in the event of a negotiated settlement of the action, the resulting liability and/or any increased costs of operations on an ongoing basis could be material to Cintas. Any estimated liability relating to this lawsuit is not determinable at this time.

Cintas is also a defendant in a purported class action lawsuit, Robert Ramirez, et al., v. Cintas Corporation , filed on January 20, 2004, and pending in the United States District Court, Northern District of California, San Francisco Division. The case was brought on behalf of all past and present female, African-American and Hispanic employees of Cintas and its subsidiaries. The complaint alleges that Cintas has engaged in a pattern and practice of discriminating against women and minorities in recruitment, hiring, promotions, transfers, job assignments and pay. The complaint seeks injunctive relief, compensatory damages, punitive damages and attorney’s fees, among other things. Cintas denies these claims and is defending the plaintiffs’ allegations. The court ordered arbitration as to three of the ten named plaintiffs. The United States Equal Employment Opportunity Commission (EEOC) has filed a motion to intervene in order to participate in this lawsuit. No filings or determination has been made in regard to the lawsuit as to class certification. There can be no assurance as to whether a class will be certified or, if a class is certified, as to the geographic or other scope of such class. Several related proceedings with similar allegations are pending, including an EEOC charge filed on April 17, 2000, by Mirna Serrano with the EEOC Detroit District office on behalf of female service sales representative applicants at all Cintas locations in Michigan, a class action lawsuit, Mirna E. Serrano, et al., v. Cintas Corporation , filed on May 10, 2004, in the United States District Court for the Eastern District of Michigan, Southern Division on behalf of the same female service sales representative applicants in the EEOC charge, and an administrative action filed on December 15, 2004, by James Morgan with the EEOC Washington, D.C. office and the California Department of Fair Employment and Housing alleging racial discrimination in compensation and training opportunities. If there is an adverse verdict or a negotiated settlement of these actions, the resulting liability and/or any increased costs of operations on an ongoing basis could be material to Cintas. Any estimated liability relating to these proceedings is not determinable at this time.

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Several other administrative proceedings are pending including: (i) two charges filed on November 30, 2004, by an EEOC Commissioner with the EEOC Systemic Litigation Unit alleging failure to hire and assign females to production job positions, and, failing to hire females, African Americans and Hispanics into the Management Trainee program, (ii) a charge filed on January 24, 2005, by Jennifer Fargo on behalf of herself and a similarly situated class with the Augusta Human Relations Commission and the EEOC Detroit District office alleging gender and equal pay discrimination against female Sales Representative and Sales Associates, and (iii) a charge filed on March 23, 2005, by Clifton Cooper on behalf of himself and a similarly situated class with the EEOC Systemic Litigation Unit alleging discriminatory pay and treatment due to race. The investigations of these allegations are pending and no determinations have been made.

Cintas is also a defendant in a lawsuit, J. Lester Alexander, III vs. Cintas Corp., et al. , which was originally filed on October 25, 2004, and is currently pending in the United States Bankruptcy Court for the Middle District of Alabama, Eastern Division.  The case was brought by J. Lester Alexander, III, the Chapter 7 Trustee (the “Trustee”) of Terry Manufacturing Company, Inc. (“TMC”) and Terry Uniform Company, LLC (“TUC”), against Cintas in Randolph County, Alabama.  The Trustee seeks damages against Cintas for allegedly breaching fiduciary duties to TMC and TUC and for allegedly aiding and abetting breaches of fiduciary duties by others to those entities.  The complaint also includes allegations that Cintas breached certain limited liability company agreements, or alternatively, misrepresented their intention to perform their obligations in those agreements and acted as alter egos of the bankrupt TMC and are therefore liable for all of TMC’s debts.  The Trustee is seeking $50 million in compensatory damages and $100 million in punitive damages.  Cintas denies these claims and is vigorously defending itself against all claims in the complaint.   If there is an adverse verdict on the merits or in the event of a negotiated settlement of this lawsuit, the resulting liability could be material to Cintas.  Any estimated liability relating to this lawsuit is not determinable at this time.

The litigation discussed above, if decided adversely to or settled by Cintas, may, individually or in the aggregate, result in liability material to Cintas’ financial condition or results of operations. Cintas may enter into discussions regarding settlement of these and other lawsuits, and may enter into settlement agreements if it believes such settlement is in the best interests of Cintas’ shareholders.

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ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

In our normal operations, Cintas has market risk exposure to interest rates. There has been no significant change in our exposure to these risks, which has been previously disclosed on page 47 of our most recent annual report.

ITEM 4.

CONTROLS AND PROCEDURES.

An evaluation was completed under the supervision and with the participation of Cintas’ management, including Cintas’ President and Chief Executive Officer, Chief Financial Officer, General Counsel and Controllers, of the effectiveness of the design and operation of Cintas’ disclosure controls and procedures as of February 28, 2005. Based on these evaluations, Cintas’ management, including the President and Chief Executive Officer, Chief Financial Officer, General Counsel and Controllers, concluded that Cintas’ disclosure controls and procedures were effective as of February 28, 2005. There has been no change to Cintas’ internal control over financial reporting that occurred during the third quarter of fiscal 2005 that has materially affected, or is reasonably likely to materially affect, Cintas’ internal control over financial reporting.

Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a safe harbor from civil litigation for forward-looking statements. Forward-looking statements may be identified by words such as estimates, anticipates, projects, plans, expects, intends, believes, should and similar expressions and by the context in which they are used. Such statements are based upon current expectations of Cintas and speak only as of the date made. These statements are subject to various risks, uncertainties and other factors that could cause actual results to differ from those set forth in this report. Factors that might cause such a difference include the possibility of greater than anticipated operating costs, lower sales volumes, the performance and costs of integration of acquisitions, fluctuations in costs of materials and labor, costs and possible effects of union organizing activities, outcome of pending environmental matters, the cost, results and timely completion of assessment and remediation of internal controls for financial reporting required by the Sarbanes-Oxley Act of 2002, the initiation or outcome of litigation, higher assumed sourcing or distribution costs of products and the reactions of competitors in terms of price and service. Cintas undertakes no obligation to update any forward-looking statements to reflect the events or circumstances arising after the date on which they are made.

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CINTAS CORPORATION

Part II.    Other Information

               Item 1.    Legal Proceedings

I.     Supplemental Information: We discuss certain legal proceedings pending against us in Part I of this quarterly report on Form 10-Q under the caption “Item 1. Financial Statements,” in Note 9 to our financial statements, which is captioned “Litigation and Other Contingencies,” and refer you to that discussion for important information concerning those legal proceedings, including the basis for such actions and, where known, the relief sought. We provide the following additional information concerning those legal proceedings which sets forth the name of the lawsuit, the court in which the lawsuit is pending and the date on which the petition commencing the lawsuit was filed.

  Wage and Hour Litigation: Paul Veliz, et al., v. Cintas Corporation , United States District Court, Northern District of California, Oakland Division, March 19, 2003.

  Race and Gender Litigation and Related Charges: Robert Ramirez, et al., v. Cintas Corporation , United States District Court, Northern District of California, San Francisco Division, January 20, 2004; Mirna E. Serrano, et al., v. Cintas Corporation , United States District Court for the Eastern District of Michigan, Southern Division, May 10, 2004; EEOC complaint filed by Mirna Serrano on April 17, 2000 with the EEOC Detroit District; EEOC complaint filed by James Morgan on December 15, 2004 with the EEOC Washington, D.C. office and the California Department of Fair Employment and Housing; EEOC complaint filed by an EEOC Commissioner on November 30, 2004 with the EEOC Systemic Litigation Unit; EEOC complaint filed by Jennifer Fargo on January 24, 2005 with the Augusta Human Relations Commission and the EEOC Detroit District and EEOC complaint filed by Clifton Cooper on March 23, 2005 with the EEOC Systemic Litigation Unit.

  Breach of Fiduciary Duties: J. Lester Alexander, III vs. Cintas Corp., et al. , United States Bankruptcy Court for the Middle District of Alabama, Eastern Division, October 25, 2004.

II.     Environmental Matters: Item 103 of SEC Regulation S-K requires disclosure of certain environmental matters. The following matters are disclosed in accordance with that requirement:

During fiscal 2001, the State of Connecticut filed suit against Cintas in the Superior Court District of Hartford alleging various violations of state environmental laws and alleging that Cintas violated certain wastewater discharge and hazardous waste violations. While this proceeding is not considered material to the business or financial condition of the registrant, management reasonably believes that the proceedings will result in monetary sanctions in excess of $100,000. A reserve has been established for the estimated liability related to these allegations.

               Item 5.    Other Events

  On January 28, 2005, Cintas declared an annual cash dividend of $.32 per share on outstanding common stock, a 10 percent increase over the dividends paid in the prior year. The dividend was paid on March 15, 2005, to shareholders of record as of February 8, 2005.

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               Item 6.    Exhibits

  10 Form of Agreement signed by Officers, General/Branch Managers, Professionals
and Key Managers, including Executive Officers

  31.1 Certification of Principal Executive Officer required by Rule 13a-14(a)

  31.2 Certification of Principal Financial Officer required by Rule 13a-14(a)

  32.1 Section 1350 Certification of Chief Executive Officer

  32.2 Section 1350 Certification of Chief Financial Officer

Signatures

        Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.




Date:   April 11, 2005
CINTAS CORPORATION
(Registrant)


/s/William C. Gale
——————————————
William C. Gale
Senior Vice President and
Chief Financial Officer
(Chief Accounting Officer)

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(Corp Use Only)
Loc #: ____________ File #: ____________
Last Name: _____________ First Name: _________
Date of Hire: ____________ SSN#: _____________
Corporate Policy #C-105
Exhibit A - OH
Agreement #1
Revised January 3, 2005

EXHIBIT 10

CINTAS CORPORATION

OHIO EMPLOYMENT AGREEMENT
FOR OFFICERS, EXECUTIVES, GENERAL/BRANCHMANAGERS,
PROFESSIONALS, AND KEY MANAGERS

        THIS EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into this ____ day of __________, 200___, by and between _____________________ (“Employee”) and Cintas Corporation, a Washington corporation headquartered in Ohio, including all of its agents, business units, wholly-owned subsidiaries and affiliated companies (collectively “Employer” or “Cintas”).

    1.        PARTIES.

        Employee either is employed by or desires to be employed with Employer as an Officer, Executive, General Branch Manager, Professional, or Key Manager in one of the Cintas Business Units described in the next paragraph. In such position, Employee has or will have access to Employer’s Confidential Material and Information concerning each of Employer’s Business Units. Employee’s office will be in Ohio or Employee will conduct business in periodic and regular meetings in Ohio, where Employer has its headquarters.

        Through its business units (“Business Units”), which currently include but are not limited to the Rental Division, the National Account Sales Division, the Safety Products Business, and Document Management Business (collectively “Industries,” which term means the Business Units continuously operated, and those acquired or developed, by Employer during Employee’s employment with Employer under this Agreement), Employer strives to become and remain a leader in the highly-competitive Industries. By expending considerable time, effort and resources in developing, acquiring, refining and protecting them, Employer has implemented and is utilizing constantly confidential information, strategies and programs, which include expansion and acquisition plans, market research, sales systems, marketing programs, product development strategies, budgets, pricing strategies, identity and preferences of customers and prospects and customer contact persons, methods of operating, service systems, computer passwords, other trade secrets and confidential information regarding customers and employees of Employer or of its customers and other information not known to the public (collectively “Confidential Material and Information”), giving Employer an advantage over competitors not aware of such Confidential Material and Information.


    2.        CONSIDERATION.

     As consideration for this Agreement, Employer [CHECK THE APPROPRIATE LINE(S) OF ALL APPLICABLE REASONS]

    (___)        hires Employee

    (___)        is continuing to employ Employee;

    (___)        is promoting Employee or is promising Employee better and higher priority job assignments;

    (___)        is increasing Employee’s rate of compensation;

    (___)        is granting Employee additional or improved fringe benefit of _______________ (please specify improved benefit).

        In addition, Employer agrees to arbitrate certain claims against Employee under this Agreement as set forth in Section 8. Employee agrees that there is sufficient consideration for Employee’s obligations, acknowledgments, and covenants, contained herein.

    3.        EMPLOYMENT RELATIONSHIP.

        Employee agrees to abide by Employer’s published policies, copies of which have been made available to Employee. Employee further agrees to devote all of Employee’s business time, attention and energies to the business interests of the Employer, which precludes Employee from service as an employee, contractor, consultant, advisor, officer, or director for any other profit business entity that would interfere with Employee’s ability to competently perform Employee’s job duties for the Employer. In addition, Employee agrees that he or she will not engage in any outside job that is in direct conflict with the essential business of the Employer, and that could result in the material and substantial disruption of the Employer’s business.

        Employee also agrees that all business ideas, concepts, inventions, improvements and developments made or conceived by Employee, either solely or in collaboration with others, during Employee’s employment with Employer and relating in any way to Cintas, will become and remain the exclusive property of Employer; and Employee promptly will disclose in writing to Employer all such ideas, concepts, inventions, improvements and developments and will cooperate fully with Employer in confirming, safeguarding and obtaining legal protection of Employer’s ownership rights and interests.

        Employer and Employee agree that this Agreement supersedes and cancels all prior agreements between them concerning the same subject matter, except for any prior arrangements concerning Employee’s compensation and Employee’s participation in Employer’s benefit programs. Employer agrees to pay to Employee such compensation and to provide Employee with such benefits as agreed upon by the parties.


        Employee’s employment by Employer may be terminated for any reason at any time by either Employee or Employer, but if Employer elects to terminate Employee’s employment Employer will give four (4) weeks’ written notice to Employee or pay Employee four (4) weeks of Employee’s base salary instead of notice. Employer, however, may end the employment relationship without either notice or salary continuation instead of notice if Employer terminates Employee for Major Infractions as defined under Cintas Policy. These include, but are not limited to, gross misconduct, theft of or intentional damage to Employer’s property, abuse of alcohol on working time or Employer premises, use of illegal drugs, commission of a criminal act (other than a misdemeanor traffic offense), insubordination, dishonesty, or willful violation of Employer’s policy prohibiting employees from disposing of shares of Employer stock for personal gain based on knowledge of Employer’s activities or results when such information is not available to the general public.

    4.        EMPLOYEE’S ACKNOWLEDGMENTS AND COVENANTS.

    a.        Confidential Material and Information. In performing duties for Employer, Employee regularly will be exposed to and work with Employer’s Confidential Material and Information concerning the Business Unit(s) to which Employee devotes Employee’s business time, attention and energies for Employer. Employee acknowledges that such Confidential Material and Information are critical to Employer’s success and that Employer has invested substantial time and money in developing Employer’s Confidential Material and Information. While Employee is employed by Employer, and after such employment ends for any reason, Employee will not reproduce, publish, disclose, use, reveal, show, or otherwise communicate to any person or entity any Confidential Material and Information of Employer unless specifically assigned or directed by Employer to do so. The covenant in this Subparagraph (a) applies for as long as the Confidential Material and Information is not generally known to the public or others who are not restricted from using or disclosing it.


    b.        Non-Solicitation of Employees. While Employee is employed by Employer, and for twenty-four (24) months after such employment ends for any reason, Employee, acting either directly or indirectly, or through any other person, firm, or corporation, will not induce or attempt to induce or influence any employee of Employer to terminate employment with Employer.


    c.        Restrictive Covenant. Employee recognizes that unauthorized use or disclosure of Confidential Material and Information by Employee would harm Employer. Employee further recognizes that Employer has a legitimate interest in preventing its employees from exploiting the customer relationships developed at Employer’s expense and in its name. Thus, while Employee is employed by Employer, and for twenty-four (24) months after such employment ends for any reason, Employee agrees and promises not to perform directly or indirectly any managerial or professional function for any person, company or business entity in competition with Employer’s Business Unit(s) in which Employee either worked for Employer at any time during Employee’s last twenty-four (24) months of employment with Employer or regularly received Confidential Material and Information at any time during Employee’s last twelve (12) months of employment with Employer.



          In addition, while Employee is employed by Employer and for twenty-four (24) months after such employment ends for any reason, Employee will not, directly or indirectly: (i) have an ownership interest greater than two percent (2%) of the outstanding stock in any company or entity in competition with Employer in Industries; or (ii) call on, solicit or communicate with any of Employer’s customers or prospects for the purpose of obtaining any Industries business, other than for the benefit of Employer. As used in this Agreement, “customer” means a business entity (including representatives of such business entity) to which Employer provided Industries goods or services at any time in the prior twenty-four (24) months, and “prospect” means a business entity (including representatives of such business entity) to which, at any time in the previous twenty-four (24) months, Employer made a proposal, or was actively considering making a proposal, for providing Industries goods or services.

    d.        Return of Confidential Material and Information. Employee agrees that whenever Employee’s employment with Employer ends for any reason, all documents and other items containing or referring to Employer’s Confidential Material and Information in Employee’s possession or under Employee’s control will be delivered by Employee to Employer immediately, with no request being required.


    e.        Irreparable Harm. Employee acknowledges and agrees that a breach of any covenant in this Section 4 will cause Employer irreparable injury and damage for which Employer may have no adequate remedy.


    f.        Employer may apply to any court of competent jurisdiction for a temporary restraining order, preliminary injunction or other injunctive relief to enforce Employee’s compliance with the obligations, acknowledgments and covenants in this Section 4. Employer may also include as part of such injunction action any claims for injunctive relief under any applicable law arising from the same facts or circumstances as any threatened or actual violation of Employee’s obligations, acknowledgments and covenants in this Section 4.


    g.        Costs. Employer shall recover from Employee, and Employee shall pay, the reasonable costs and attorneys fees Employer incurs in enforcing compliance with Employee’s obligations, acknowledgments and covenants in this Section 4 or in remedying Employee’s violation of those obligations, acknowledgments and covenants.


    h.        Additional Acknowledgments. Employee, having carefully considered the nature and extent of the restrictions upon Employee and the rights and remedies conferred upon Employer by this Section 4, hereby acknowledges and agrees that the terms of this Section 4 are a material inducement for Employer to enter into this Agreement, are reasonable in time and scope to prevent only unfair competition and to protect Employer’s Confidential Material and Information, do not prevent Employee’s fair use of Employee’s general skill and experience, and are appropriate and reasonably necessary to protect Employer’s legitimate business interests.



    5.        RETURN OF EMPLOYER PROPERTY.

        Employee further agrees that whenever Employee’s employment with Employer ends for any reason, Employee shall deliver to Employer immediately without request all property belonging to Employer, including, but not limited to, computer equipment, software, credit cards, keys, and access cards.

    6.        PAY DEDUCTION.

        Employee hereby authorizes Employer to withhold from any check(s) or other amounts payable to Employee after Employee’s active employment with Employer ends the amount(s) of any relocation expenses owed by Employee and the balance of every outstanding loan, advance or promissory note made by Employer to Employee.

    7.        APPLICABLE LAW.

         THIS AGREEMENT WILL BE INTERPRETED, GOVERNED AND ENFORCED ACCORDING TO THE FEDERAL ARBITRATION ACT AND THE SUBSTANTIVE LAW (NOT INCLUDING CHOICE OF LAW PRINCIPLES OR RULES) OF THE STATE OF OHIO.

    8.        EXCLUSIVE METHOD OF RESOLVING DISPUTES OR DIFFERENCES.

        Should any dispute or difference arise between Employee and Employer concerning whether either party at any time violated any duty, right, law, regulation, public policy, or provision of this Agreement, the parties will confer and attempt in good faith to resolve promptly such dispute or difference. The rights and claims of Employer covered by this Section 8, including the arbitration provisions below, include Employer’s claims for damages, as well as reasonable costs and attorneys’ fees, caused by Employee’s violation of any provision of this Agreement or any law, regulation or public policy. The rights and claims of Employee covered by this Section 8, including the arbitration provisions below, include Employee’s rights or claims for damages as well as reasonable costs and attorneys’ fees, caused by Employer’s violation of any provision of this Agreement or any law, regulation or public policy. The rights and claims of Employee covered by this Section 8, including the arbitration provisions below, specifically include but are not limited to all of Employee’s rights or claims arising out of or in any way related to Employee’s employment with Employer, such as rights or claims arising under the Age Discrimination in Employment Act, as amended, Title VII of the Civil Rights Act of 1964, as amended (including amendments contained in the Civil Rights Act of 1991), the Americans With Disabilities Act, 42 U.S.C. § 1981, the Fair Labor Standards Act, the Employee Retirement Income Security Act, state anti-discrimination statutes, other state or local laws regarding employment, common law theories such as breach of express or implied contract, wrongful discharge defamation, and negligent or intentional infliction of emotional distress. Excluded from the arbitration provisions below in this Section 8 are all unemployment benefits claims, workers’ compensation claims, claims for a declaratory judgment or injunctive relief concerning any provision of Section 4 of this Agreement, and claims not lawfully subject to arbitration, including charges or complaints filed with an administrative agency (but not litigation connected with any such charge or complaint).


        If any dispute or difference remains unresolved after the parties have conferred in good faith, either party desiring to pursue a claim against the other party will submit to the other party a written request to have such claim, dispute or difference resolved through impartial and confidential arbitration to be held in the county and state where Employee currently works for Employer or most recently worked for Employer. Any such request for arbitration must be submitted within one year of the date when the dispute or difference first arose or within one year of when the Employee’s employment ends, whichever occurs first, unless a party claims a violation of a specific statute having its own specific statute of limitations, in which event that statutory time limit will apply. Employee’s initial share of the arbitration filing fee will not exceed one day’s pay or $100, whichever is less, and will be payable to the arbitrator or AAA. Arbitration under this Agreement will be conducted in accordance with the AAA’s National Rules for Resolution of Employment Disputes, except if such AAA rules are contrary to applicable state or federal law, applicable law shall govern.

        In any arbitration proceeding, the arbitrator will apply the terms of this Agreement as written, the Federal Arbitration Act, and other relevant federal and state laws, including time limits on claims. If Employer loses the arbitration, Employer will bear all fees, expenses, and charges of the AAA and the arbitrator, including the entire arbitration filing fee. The arbitrator also will have the authority to award either party appropriate relief, including damages, costs and attorney’s fees, as available under relevant laws. In no event, however, will the Arbitrator direct Employee to pay more than a total of $200 or two days of Employee’s pay, whichever is less, toward the fees of the arbitrator and the AAA. Notwithstanding the above, upon Employee’s showing of indigence, as determined by the arbitrator under applicable law, any arbitration fee or cost that otherwise would be paid by Employee (including any applicable arbitration filing fee) will be paid by Employer.

        Except for workers’ compensation claims, unemployment benefits claims, claims for a declaratory judgment or injunctive relief concerning any provision of Section 4 and claims not lawfully subject to arbitration, the impartial arbitration proceeding, as provided above in this Section 8, will be the exclusive, final and binding method of resolving any and all disputes between Employer and Employee. The arbitrator, however, will have authority to entertain and decide a motion for reconsideration of the arbitration award.

    9.        MODIFICATION AND SEPARABILITY.

        If any portion of this Agreement is held to be invalid or unenforceable in any respect, Employee and Employer agree that such invalid or unenforceable part may be severed or modified to permit the Agreement to be enforced to the maximum extent permitted under law, with the remaining portions unaffected by the invalidity or unenforceability of any part of this Agreement.


    10.        COMPLETE AGREEMENT.

        ASIDE FROM THE AMOUNTS OF EMPLOYEE’S COMPENSATION AND EMPLOYEE’S ENTITLEMENT TO BENEFITS, THIS AGREEMENT CONTAINS THE ENTIRE AGREEMENT BETWEEN EMPLOYER AND EMPLOYEE REGARDING SUBJECTS ADDRESSED HEREIN, AND THE PARTIES CAN AMEND OR MODIFY THIS AGREEMENT ONLY BY A SUBSEQUENTLY-EXECUTED WRITTEN AGREEMENT SIGNED BY BOTH PARTIES.

EMPLOYEE WITNESSES:

______________________________________

______________________________________








EMPLOYEE:


______________________________________
NAME PRINTED: ______________________
TITLE: _______________________________
LOC.#: _______________________________

EMPLOYER WITNESSES:

______________________________________

______________________________________
CINTAS CORPORATION—EMPLOYER


______________________________________
NAME PRINTED: ______________________
TITLE: _______________________________
LOC.#: _______________________________

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
PURSUANT TO RULE 13a – 14(a)

I, Scott D. Farmer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Cintas Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

  a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

  b. Omitted per Release Nos. 34-47986 and 34-49313;

  c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

  d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

  a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

  b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.




Date:    April 11, 2005



/s/Scott D. Farmer
——————————————
Scott D. Farmer
Chief Executive Officer
(Principal Executive Officer)

34

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER
PURSUANT TO RULE 13a – 14(a)

I, William C. Gale, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Cintas Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

  a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

  b. Omitted per Release Nos. 34-47986 and 34-49313;

  c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

  d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

  a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

  b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.




Date:    April 11, 2005



/s/William C. Gale
——————————————
William C. Gale
Senior Vice-President and
Chief Financial Officer
(Principal Financial Officer)

35

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

  Pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002

In connection with the filing with the Securities and Exchange Commission of the Report of Cintas Corporation (the “Company”) on Form 10-Q for the period ending February 28, 2005 (the “Report”), I, Scott D. Farmer, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

  (1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

  (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Scott D. Farmer                      
Scott D. Farmer
Principal Executive Officer

April 11, 2005

36

CERTIFICATION OF CHIEF FINANCIAL OFFICER

  Pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002

In connection with the filing with the Securities and Exchange Commission of the Report of Cintas Corporation (the “Company”) on Form 10-Q for the period ending February 28, 2005 (the “Report”), I, William C. Gale, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

  (1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

  (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ William C. Gale                     
William C. Gale
Principal Financial Officer

April 11, 2005

37