Net Earnings Up 24.4% on 10.5% Sales Growth

             Company Again Raises Outlook for Full-Year Earnings

                             Live Conference Call

                            May 25, 10:00 a.m. CT

                     http://www.thetorocompany.com/invest

BLOOMINGTON, Minn., May 25 /PRNewswire-FirstCall/ -- The Toro Company (NYSE: TTC) today reported record net earnings of $52.2 million, or $2.00 per diluted share, on record net sales of $548.0 million for its fiscal 2004 second quarter ended April 30, 2004. In its fiscal 2003 second quarter, Toro reported net earnings of $42.0 million, or $1.61 per diluted share, on net sales of $495.8 million.

For the six months ended April 30, 2004, Toro reported net earnings of $61.5 million, or $2.36 per diluted share, on net sales of $861.6 million. In the comparable fiscal 2003 period, Toro reported net earnings of $49.0 million, or $1.89 per diluted share, on net sales of $791.8 million. The company's results for the 2003 period included a one-time gain of $0.08 per diluted share resulting from a legal settlement.

"We delivered the strongest quarter performance in our company's 90-year history," said Kendrick B. Melrose, The Toro Company Chairman and Chief Executive Officer. "Our financial results continue to be driven by strong sales growth, primarily from products introduced within the past two years, coupled with improved operating effectiveness and asset management."

Melrose said sharp growth in walk power mower shipments to the mass channel, increased shipments in nearly all professional segment product categories and strong growth in international shipments drove the 10.5% increase in second quarter net sales. "In our fiscal year to date, we have also benefited from generally favorable weather, including above-average winter snowfalls, a better spring than last year and a stronger economy," said Melrose. Improved margins, higher shipments during the quarter and favorable foreign currency effects all contributed to the strong second quarter profitability.

"Our performance in the first half of fiscal 2004 gives us a great start to our 6+8 three year growth and profitability improvement initiative," said Melrose. "We are confident we can continue to strengthen our operating margins, permitting more investment in innovation, new product development and building our brands to generate top-line growth."

SEGMENT RESULTS

Segment data is provided in the table following the "Condensed Consolidated Statements of Earnings."

PROFESSIONAL

For the second quarter, fiscal 2004 professional segment sales increased 7.8% to $338.5 million compared with the same period last year. Segment sales increased in most product categories compared with the prior year quarter.

International professional segment sales for the fiscal 2004 second quarter increased at double-digit rates compared with the corresponding 2003 period, even excluding favorable foreign currency effects.

Professional segment earnings for the fiscal 2004 second quarter totaled $71.7 million, up 13.1% from the fiscal 2003 second quarter. Professional segment profitability benefited from improved margins on most products, leveraging of expenses and favorable foreign currency effects.

RESIDENTIAL

Residential segment sales for the fiscal 2004 second quarter totaled $194.8 million, up 13.0% compared with fiscal 2003 second quarter. Shipments of Toro(R) brand walk power mowers fueled by strong retail demand was the strongest contributor of the increase. The timing of a retail promotion program benefited the current quarter compared to fiscal 2003 second quarter.

International residential segment sales for the fiscal 2004 second quarter increased 6.6% compared with the fiscal 2003 second quarter. Most of the increase was attributable to strong demand for Pope(R) brand irrigation products in Australia.

Residential segment earnings for the fiscal 2004 second quarter totaled $26.7 million, up 9.7% compared with the fiscal 2003 second quarter. Sales growth outpaced earnings growth primarily due to a change in the sales mix toward lower-margin products.

DISTRIBUTION

Worldwide distribution segment sales for the fiscal 2004 second quarter totaled $44.9 million, up 27.0% compared with fiscal 2003 second quarter. Strong demand and the previously announced acquisition of a distributor in March 2003 resulted in increased sales at Toro's company-owned distributors. Distribution segment earnings for the fiscal 2004 second quarter increased to $1.6 million from $0.6 million in the fiscal 2003 second quarter as a result of higher sales volume.

REVIEW OF OPERATIONS

Gross margin for the fiscal 2004 second quarter was 36.3% compared with 35.4% in the second quarter of fiscal 2003. The margin improvement in the quarter resulted primarily from the effects of our continued cost management disciplines, increased volumes and favorable foreign currency effects.

"Our lean manufacturing, 'no waste' and productivity improvement initiatives have enabled us to continue to improve our gross margin and offset rising costs for steel and aluminum so far in fiscal 2004," said Melrose. "We have yet to feel the full impact of some of these cost increases, and as an offensive strategy we are more aggressively implementing additional lean manufacturing programs."

Selling, general and administrative (SG&A) expenses for the fiscal 2004 second quarter were 21.4% as a percentage of net sales, compared with 22.4% in the fiscal 2003 second quarter. Engineering costs were up in most areas of the company due to increased spending on new product development and other growth initiatives. This increase was more than offset by lower spending in certain administrative expense areas and leveraging other expenses.

Interest expense for the fiscal 2004 second quarter was down $0.6 million, or 14.3% compared with the fiscal 2003 second quarter as a result of lower average borrowing levels and the use of earnings to pay down debt.

Asset management continued to impact the balance sheet favorably, as net inventories at the end of the fiscal 2004 second quarter totaled $238.5 million, down 8.3% from $260.0 million at the end of the fiscal 2003 second quarter.

BUSINESS OUTLOOK

"Our results through the first half of our fiscal year have put us ahead of our initial expectations for fiscal 2004 and our momentum for the rest of the year is strong," said Melrose. "We continue to face rising supplier prices for steel and other commodities, so we have accelerated our profitability improvement efforts to help balance these unexpected cost increases. At the same time, we continue to invest in key growth initiatives to help ensure our sales growth outperforms the market. As always, there are still several months ahead in the season, and therefore, the usual weather uncertainties. Nonetheless, we are raising our estimates to an 8% to 10% increase for fiscal 2004 net sales and an 18% to 23% increase in net earnings per share, up from the 14% to 18% earnings increase we were expecting at the end of our first quarter."

The Toro Company is a leading worldwide provider of outdoor maintenance and beautification products for home, recreation and commercial landscapes.

The Toro Company will conduct a conference call and webcast for investors beginning at 10:00 a.m. Central Time (CDT) on May 25, 2004. The webcast will be available at http://www.streetevents.com or at http://www.thetorocompany.com/invest . Webcast participants will need to complete a brief registration form and should allocate extra time before the webcast begins to register and, if necessary, download and install audio software.

Safe Harbor

Statements made in this news release, which are forward-looking, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties. These uncertainties include factors that affect all businesses operating in a global market as well as matters specific to Toro. Particular risks and uncertainties facing the company's overall financial position at the present include the threat of further terrorist acts and war, which may result in contraction of the U.S. and worldwide economies; slow growth rate in global and domestic economies, resulting in rising unemployment and weakened consumer confidence; our ability to achieve the goals for the "6+8" growth and profit improvement program which is intended to improve our revenue growth and after-tax return on sales; the company's ability to implement lean manufacturing; our ability to manage assets, such as reducing inventories and receivables; the company's ability to achieve sales growth and low double-digit diluted earnings per share growth in fiscal 2004; unforeseen product quality problems in the development and production of new and existing products; potential issues with moving production between facilities; continued slow growth in the rate of new golf course construction or existing golf course renovations; increased dependence on The Home Depot as a customer for the residential segment; reduced government spending for grounds maintenance equipment due to reduced tax revenue and tighter government budgets; elimination of shelf space for our products at retailers; changes in raw material costs, including higher oil, steel and aluminum prices; financial viability of distributors and dealers; governmental restriction on water usage and water availability; market acceptance of existing and new products; and increased and adverse changes in currency exchange rates or raw material commodity prices and the costs we incur in providing price support to international customers and suppliers. In addition to the factors set forth in this paragraph, market, economic, financial, competitive, weather, production and other factors identified in Toro's quarterly and annual reports filed with the Securities and Exchange Commission, could affect the forward-looking statements in this press release. Toro undertakes no obligation to update forward-looking statements made in this release to reflect events or circumstances after the date of this statement.

                          (Financial tables follow)


                      THE TORO COMPANY AND SUBSIDIARIES
          Condensed Consolidated Statements of Earnings (Unaudited)
           (Dollars and shares in thousands, except per-share data)

                           Three Months Ended         Six Months Ended
                          April 30,     May 2,      April 30,     May 2,
                            2004         2003         2004         2003
    Net sales             $548,027     $495,840     $861,600     $791,802
    Gross profit           198,879      175,632      311,489      281,213
      Gross profit
       percent                36.3%        35.4%        36.2%        35.5%
    Selling, general,
     and administrative
     expense               117,211      111,259      213,248      207,610
    Restructuring and
     other income              (64)        (179)         (86)        (179)
      Earnings from
       operations           81,732       64,552       98,327       73,782
    Interest expense        (3,702)      (4,320)      (7,584)      (8,412)
    Other income, net          465        2,410        1,774        7,692
      Earnings before
       income taxes         78,495       62,642       92,517       73,062
    Provision for
     income taxes           26,296       20,671       30,993       24,110
      Net earnings         $52,199      $41,971      $61,524      $48,952


    Basic net earnings
     per share               $2.10        $1.68        $2.47        $1.96


    Diluted net earnings
     per share               $2.00        $1.61        $2.36        $1.89

    Weighted average
     number of shares
     of common stock
     outstanding - Basic    24,800       25,006       24,863       24,964

    Weighted average
     number of shares
     of common stock
     outstanding - Dilutive 26,089       26,021       26,115       25,910


                       Net Sales by Segment (Unaudited)
                            (Dollars in thousands)

                           Three Months Ended         Six Months Ended
                          April 30,      May 2,     April 30,      May 2,
                            2004         2003         2004         2003
    Professional          $338,524     $314,116     $546,202     $507,560
    Residential            194,838      172,469      292,725      267,134
    Distribution            44,880       35,348       64,533       53,948
    Other                  (30,215)     (26,093)     (41,860)     (36,840)
      Total *             $548,027     $495,840     $861,600     $791,802

    * Includes
      international
      sales of            $111,773      $93,555     $187,151     $161,011


                      THE TORO COMPANY AND SUBSIDIARIES

          Earnings (Loss) Before Income Taxes by Segment (Unaudited)
                            (Dollars in thousands)

                            Three Months Ended        Six Months Ended
                           April 30,     May 2,     April 30,      May 2,
                             2004         2003        2004          2003
    Professional(1)        $71,704      $63,424     $100,153      $91,180
    Residential(2)          26,719       24,349       35,056       33,010
    Distribution             1,603          608         (570)      (2,750)
    Other                  (21,531)     (25,739)     (42,122)     (48,378)
      Total                $78,495      $62,642      $92,517      $73,062

     (1) Includes restructuring and other income of $52 thousand for the
         three-month and six-month periods in fiscal 2004, respectively.
         Includes restructuring and other income of $72 thousand for the
         three-month and six-month periods in fiscal 2003, respectively.
     (2) Includes restructuring and other income of $12 thousand for the
         three-month period and $34 thousand for the six-month period in
         fiscal 2004, respectively.  Includes restructuring and other income
         of $107 thousand for the three-month and six-month periods in fiscal
         2003, respectively.


              Condensed Consolidated Balance Sheets (Unaudited)
                            (Dollars in thousands)

                                                     April 30,       May 2,
                                                       2004           2003
    ASSETS
    Cash and cash equivalents                        $31,825            $26
    Receivables, net                                 484,763        483,615
    Inventories, net                                 238,472        259,979
    Prepaid expenses and other current assets         13,422         12,003
    Deferred income taxes                             44,256         39,653
      Total current assets                           812,738        795,276

    Property, plant, and equipment, net              163,097        162,180
    Deferred income taxes                              1,181          4,196
    Goodwill and other assets                         99,647         92,567
      Total assets                                $1,076,663     $1,054,219

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current portion of long-term debt                   $225            $64
    Short-term debt                                   29,991         99,299
    Accounts payable                                  96,636        104,319
    Accrued liabilities                              274,934        244,463
      Total current liabilities                      401,786        448,145

    Long-term debt, less current portion             175,069        178,713
    Deferred revenue and other long-term
     liabilities                                      12,228          8,508
    Stockholders' equity                             487,580        418,853
      Total liabilities and stockholders' equity  $1,076,663     $1,054,219


                      THE TORO COMPANY AND SUBSIDIARIES

         Condensed Consolidated Statements of Cash Flows (Unaudited)
                            (Dollars in thousands)

                                                        Six Months Ended
                                                     April 30,       May 2,
                                                       2004           2003
    Cash flows from operating activities:
    Net earnings                                     $61,524        $48,952
      Adjustments to reconcile net earnings
       to net cash used in operating activities:
      Non-cash asset recovery                            (52)             -
      Non-cash loss from investment                      374              -
      Provision for depreciation and amortization     17,052         15,707
      Gain on disposal of property,
       plant, and equipment                             (219)           (26)
      Increase in deferred income tax asset           (2,098)          (673)
      Tax benefits related to employee
       stock option transactions                       2,927            160
      Changes in operating assets and liabilities:
        Receivables, net                            (211,449)      (230,456)
        Inventories, net                              (8,937)       (30,475)
        Prepaid expenses and other current assets        554         (1,426)
        Accounts payable, accrued expenses,
         and deferred revenue                         80,129         72,643
          Net cash used in operating activities      (60,195)      (125,594)

    Cash flows from investing activities:
      Purchases of property, plant, and equipment    (21,356)       (21,927)
      Proceeds from disposal of property,
       plant, and equipment                            1,425          1,189
      (Increase) decrease in investment
       in affiliates                                  (1,065)         1,000
      Increase in other assets                           (54)          (883)
      Proceeds from sale of business                       -          1,016
        Net cash used in investing activities        (21,050)       (19,605)

    Cash flows from financing activities:
      Increase in short-term debt                     27,815         97,890
      Repayments of long-term debt                    (3,627)       (15,804)
      Increase (decrease) in other
       long-term liabilities                              75             (2)
      Proceeds from exercise of stock options          5,709          4,039
      Purchases of common stock                      (23,872)          (722)
      Dividends on common stock                       (2,991)        (2,997)
        Net cash provided by financing activities      3,109         82,404

    Effect of exchange rates on cash                    (326)             5

    Net decrease in cash and cash equivalents        (78,462)       (62,790)
    Cash and cash equivalents as of
     the beginning of the period                     110,287         62,816

    Cash and cash equivalents as of
     the end of the period                           $31,825            $26