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<SEC-DOCUMENT>0000897101-04-002308.txt : 20041105
<SEC-HEADER>0000897101-04-002308.hdr.sgml : 20041105
<ACCEPTANCE-DATETIME>20041105163617
ACCESSION NUMBER:		0000897101-04-002308
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20040930
FILED AS OF DATE:		20041105
DATE AS OF CHANGE:		20041105

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TENNANT CO
		CENTRAL INDEX KEY:			0000097134
		STANDARD INDUSTRIAL CLASSIFICATION:	REFRIGERATION & SERVICE INDUSTRY MACHINERY [3580]
		IRS NUMBER:				410572550
		STATE OF INCORPORATION:			MN
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-16191
		FILM NUMBER:		041123198

	BUSINESS ADDRESS:	
		STREET 1:		701 N LILAC DR
		STREET 2:		PO BOX 1452
		CITY:			MINNEAPOLIS
		STATE:			MN
		ZIP:			55440
		BUSINESS PHONE:		6125401200

	MAIL ADDRESS:	
		STREET 1:		701 N LILAC DR
		STREET 2:		PO BOX 1452
		CITY:			MINNEAPOLIS
		STATE:			MN
		ZIP:			55440

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	TENNANT G H CO
		DATE OF NAME CHANGE:	19700515
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>tennant045225_10q.htm
<TEXT>
<HTML>
<HEAD>
<title>Tennant Company Form 10-Q dated September 30, 2004</title>
</HEAD>
<BODY>
<BR><BR><BR>

<HR noshade color="black" size="4">
<HR style="margin-top:-6pt" noshade color="black" size="4">
<P style="font-weight:bold;text-align:center">
<FONT SIZE="5">
<BR>FORM 10-Q<BR>
<BR>SECURITIES AND EXCHANGE COMMISSION</FONT>
<BR>
<BR>
<FONT SIZE="2">Washington, D.C. 20549</FONT></P>
<H3 ALIGN="CENTER"></H3>
<P style="font-size:12pt;text-align:center;font-weight:bold">Quarterly Report Under Section 13 or 15 (d)<BR>of the Securities Exchange Act of 1934</P>
<P style="font-size:10pt;font-weight:bold;text-align:center">For Quarter Ended September&nbsp;30,&nbsp;2004<BR>Commission File No. 1-16191</P>
<P style="text-align:center">
<FONT SIZE="5"><B>TENNANT COMPANY</B></FONT>
<BR>
<FONT SIZE="2"></FONT></P>
<DIV ALIGN="CENTER">
<TABLE WIDTH="70%" BORDER="0" CELLPADDING="2" CELLSPACING="2">
<TR style="font-size:10pt" ALIGN="CENTER" VALIGN="TOP">
<TD WIDTH="50%"><B>Incorporated in Minnesota</B>
<BR>
</TD>
<TD WIDTH="50%"><B>IRS Emp ID No. 410572550</B>
<BR>
<BR>
</TD>
</TR>
</TABLE>
</DIV>
<P style="font-size:10pt;text-align:center">
<B>701 North Lilac Drive<BR>P.O. Box 1452</B>
<BR>
<B>Minneapolis, Minnesota 55440</B>
<BR>
</P>
<P style="font-size:10pt;text-align:center">
<P style="font-size:10pt;text-align:center">
<B>Telephone No. 763-540-1200</B>
</P>

<P style="font-size:10pt">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.&nbsp;&nbsp;&nbsp;Yes &nbsp;&nbsp;&nbsp;[X]&nbsp;&nbsp;&nbsp;No &nbsp;&nbsp;&nbsp;[&nbsp;&nbsp;]</P>
<P style="font-size:10pt">Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).&nbsp;&nbsp;&nbsp;Yes &nbsp;&nbsp;&nbsp;[X]&nbsp;&nbsp;&nbsp;No &nbsp;&nbsp;&nbsp;[&nbsp;&nbsp;]</P>
<P style="font-size:10pt">The number of shares outstanding of Registrant&#146;s common stock, par value $.375 on October 29,&nbsp;2004, was 8,999,054.</P>
<HR noshade color="black" size="4">
<HR style="margin-top:-6pt" noshade color="black" size="4">

<BR>
<BR>
<P style="font-size:10pt;text-align:center">&nbsp;</P>
<HR COLOR="GRAY" SIZE="2">
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<P style="font-size:10pt;font-weight:bold;text-align:center"></P>
<P style="font-size:10pt"><B>TENNANT COMPANY<BR>Quarterly Report &#150; Form 10-Q</B></P>
<P style="font-size:10pt"><B>ITEM 1 &#150; <U>Financial Statements
</U></B></P>
<P style="font-size:10pt"><B>
<U>CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
</U><BR>(In thousands, except per share data)</B></P>

<DIV align="center">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%">
<TR VALIGN="BOTTOM" style="font-size:8pt">
<TH colspan="3" align="left"></TH>
<TH>&nbsp;</TH>
<TH colspan="7">Three Months<BR>Ended September 30</TH>
<TH>&nbsp;</TH> <TH colspan="7">Nine Months<BR>Ended September 30</TH>
<TH>&nbsp;</TH>
</TR>
<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="7">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="7">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:8pt">
<TH colspan="3" align="left"></TH>
<TH>&nbsp;</TH>
<TH colspan="3">2004</TH>
<TH>&nbsp;</TH> <TH colspan="3">2003</TH>
<TH>&nbsp;</TH> <TH colspan="3">2004</TH>
<TH>&nbsp;</TH> <TH colspan="3">2003</TH>
</TR>
<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD width="58%">Net sales</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">$</TD>
<TD align="right" width="6%">120,457</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">$</TD>
<TD align="right" width="6%">110,058</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">$</TD>
<TD align="right" width="6%">368,349</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">$</TD>
<TD align="right" width="6%">333,967</TD>
<TD width="1%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Cost of sales</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">73,035</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">65,982</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">221,808</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">200,934</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD style="padding-left:10">Gross profit</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">47,422</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">44,076</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">146,541</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">133,033</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Operating expense:</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD style="padding-left:10">Research and development expenses</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">4,274</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">4,101</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">12,697</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">12,509</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD style="padding-left:10">Selling and administrative expenses</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">41,300</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">34,617</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">121,220</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">105,476</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD style="padding-left:20">Total operating expenses</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">45,574</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">38,718</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">133,917</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">117,985</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Profit from operations</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">1,848</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">5,358</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">12,624</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">15,048</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Interest income, net</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">111</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">228</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">210</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">542</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Other expense, net</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(460</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(363</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(864</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(689</TD>
<TD>)</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Profit before income taxes</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">1,499</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">5,223</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">11,970</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">14,901</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Income tax expense</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">475</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">1,934</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">4,664</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">5,830</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Net earnings</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">1,024</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">3,289</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">7,306</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">9,071</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Per share:</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Basic earnings</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">0.11</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">0.37</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">0.81</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">1.01</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Diluted earnings</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">0.11</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">0.36</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">0.80</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">1.00</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Dividends</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">0.22</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">0.21</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">0.64</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">0.63</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Weighted average number of shares:</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Basic</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">8,990</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">8,969</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">9,002</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">8,971</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Diluted</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">9,129</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">9,026</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">9,153</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">9,028</TD>
<TD>&nbsp;</TD>
</TR>
</TABLE>
</DIV>
<P style="font-size:10pt">See accompanying Notes to Condensed Consolidated Financial Statements.
</P>

<BR>
<BR>
<P style="font-size:10pt;text-align:center">2</P>
<HR COLOR="GRAY" SIZE="2">
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<P style="font-size:10pt"></P>
<P style="font-size:10pt">TENNANT COMPANY<BR>Quarterly Report &#150; Form 10-Q </P>
<P style="font-size:10pt"><B>
<U>CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)</U><BR>(In thousands)</B></P>
<DIV align="center">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%">
<TR VALIGN="BOTTOM" style="font-size:8pt">
<TH colspan="3" align="left"></TH>
<TH>&nbsp;</TH>
<TH colspan="3">September 30,<BR>2004</TH>
<TH>&nbsp;</TH> <TH colspan="3">December 31,<BR>2003</TH>
</TR>
<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD width="74%">ASSETS</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD align="right" width="8%"></TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD align="right" width="8%"></TD>
<TD width="1%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Cash and cash equivalents</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">23,913</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">24,587</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Receivables, less allowances of $4,840 and $5,545 respectively</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">84,338</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">85,640</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Inventories</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">55,614</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">54,682</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Prepaid expenses</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">4,010</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">2,494</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Deferred income taxes, current portion</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">9,502</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">8,967</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD style="padding-left:10">Total current assets</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">177,377</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">176,370</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Property, plant and equipment, net</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">65,656</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">61,121</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Deferred income taxes, long-term portion</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">2,330</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">1,609</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Goodwill</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">23,488</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">17,812</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Other intangibles, net</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">1,426</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">&#151;</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Other assets</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">2,982</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">1,961</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD style="padding-left:10">Total assets</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">273,259</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">258,873</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>LIABILITIES &amp; SHAREHOLDERS&#146; EQUITY</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>LIABILITIES</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Current debt and collateralized borrowings</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">7,077</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">1,030</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Accounts payable, accrued expenses and deferred revenues</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">70,000</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">58,477</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD style="padding-left:10">Total current liabilities</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">77,077</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">59,507</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Long-term debt</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">1,693</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">6,295</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Long-term employee-related benefits</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">28,152</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">27,455</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD style="padding-left:10">Total liabilities</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">106,922</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">93,257</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>SHAREHOLDERS&#146; EQUITY</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Common stock</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">3,383</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">3,385</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Additional paid-in capital</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">&#151;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">355</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Unearned restricted shares</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(351</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(551</TD>
<TD>)</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Retained earnings</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">169,708</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">168,180</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Accumulated other comprehensive loss</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(785</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(338</TD>
<TD>)</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Receivable from ESOP</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(5,618</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(5,415</TD>
<TD>)</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD style="padding-left:10">Total shareholders&#146; equity</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">166,337</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">165,616</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD style="padding-left:10">Total liabilities and shareholders&#146; equity</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">273,259</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">258,873</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
</TR>
</TABLE>
</DIV>
<P style="font-size:10pt">See accompanying Notes to Condensed Consolidated Financial Statements.
</P>

<BR>
<BR>
<P style="font-size:10pt;text-align:center">3</P>
<HR COLOR="GRAY" SIZE="2">
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<P style="font-size:10pt"></P>
<P style="font-size:10pt">TENNANT COMPANY<BR>Quarterly Report &#150; Form 10-Q</P>
<P style="font-size:10pt"><B><U>CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)</U><BR>(In thousands)</B></P>

<DIV align="center">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%">
<TR VALIGN="BOTTOM" style="font-size:8pt">
<TH colspan="3" align="left"></TH>
<TH>&nbsp;</TH>
<TH colspan="7">Nine Months Ended September 30</TH>
<TH>&nbsp;</TH>
</TR>
<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="7">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:8pt">
<TH colspan="3" align="left"></TH>
<TH>&nbsp;</TH>
<TH colspan="3">2004</TH>
<TH>&nbsp;</TH> <TH colspan="3">2003</TH>
</TR>
<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD width="74%">CASH FLOWS RELATED TO OPERATING ACTIVITIES:</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD align="right" width="8%"></TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD align="right" width="8%"></TD>
<TD width="1%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD style="padding-left:10">Net earnings</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">7,306</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">9,071</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD style="padding-left:10">Adjustments to net earnings to arrive at operating cash flows:</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD style="padding-left:20">Depreciation and amortization</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">9,717</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">10,391</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD style="padding-left:20">Deferred tax expense</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(1,539</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">&#151;</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD style="padding-left:20">Changes in operating assets and liabilities:</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD style="padding-left:30">Accounts receivable</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">3,444</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(3,149</TD>
<TD>)</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD style="padding-left:30">Inventory</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">1,073</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">5,272</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD style="padding-left:30">Accounts payable, accrued expenses and deferred revenue</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">8,291</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">1,534</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD style="padding-left:30">Other current/noncurrent assets and liabilities</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">156</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">2,196</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD style="padding-left:20">Other, net</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">1,349</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(1,828</TD>
<TD>)</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD style="padding-left:30">Net cash flows related to operating activities</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">29,797</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">23,487</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD style="padding-left:30"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>CASH FLOWS RELATED TO INVESTING ACTIVITIES:</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD style="padding-left:10">Acquisition of property, plant and equipment</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(14,751</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(6,502</TD>
<TD>)</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD style="padding-left:10">Acquisition of Walter Broadley, net</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(6,491</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">&#151;</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD style="padding-left:10">Proceeds from disposals of property, plant and equipment</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">1,141</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">3,456</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD style="padding-left:30">Net cash flows related to investing activities</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(20,101</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(3,046</TD>
<TD>)</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD style="padding-left:10"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>CASH FLOWS RELATED TO FINANCING ACTIVITIES:</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD style="padding-left:10">Net changes in short-term borrowings</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(1,045</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(3,167</TD>
<TD>)</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD style="padding-left:10">Payments of long-term debt</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">&#151;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(5,000</TD>
<TD>)</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD style="padding-left:10">Payment of assumed Walter Broadley debt</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(2,516</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">&#151;</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD style="padding-left:10">Proceeds from issuance of common stock</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">779</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">672</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD style="padding-left:10">Purchases of common stock</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(1,967</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(2,395</TD>
<TD>)</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD style="padding-left:10">Dividends paid</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(5,756</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(5,645</TD>
<TD>)</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD style="padding-left:30">Net cash flows related to financing activities</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(10,505</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(15,535</TD>
<TD>)</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD style="padding-left:10"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Effect of exchange rate changes on cash and cash equivalents</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">135</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(112</TD>
<TD>)</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Net (decrease) increase in cash and cash equivalents</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(674</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">4,794</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Cash and cash equivalents at beginning of year</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">24,587</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">16,356</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Cash and cash equivalents at end of period</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">23,913</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">21,150</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt;padding-top:6pt" bgcolor="#CCEEFF">
<TD>SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Collateralized borrowings incurred for operating lease equipment</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">746</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">1,210</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
</TR>
</TABLE>
</DIV>
<P style="font-size:10pt">See accompanying Notes to Condensed Consolidated Financial Statements.
</P>

<BR>
<BR>
<P style="font-size:10pt;text-align:center">4</P>
<HR COLOR="GRAY" SIZE="2">
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<P style="font-size:10pt"></P>
<P style="font-size:10pt">TENNANT COMPANY<BR>Quarterly Report &#150; Form 10-Q</P>

<P style="font-size:10pt"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)<BR>(In thousands, except per share data)</B></P>


<TABLE WIDTH="100%" CELLPADDING="2" CELLSPACING="2">
<TR style="font-size:10pt" VALIGN="TOP">
<TD WIDTH="30"><B>(1)</B></TD>
<TD><B>Basis of Presentation</B></TD>
</TR>
</TABLE>

<P style="font-size:10pt;margin-left:30pt">Tennant Company is referred to as &#147;Tennant,&#148; &#147;us,&#148; &#147;we,&#148;
or &#147;our&#148; in these notes to the condensed consolidated financial statements.</P>

<P style="font-size:10pt;margin-left:30pt">In our opinion, the accompanying unaudited, condensed consolidated financial statements
contain all adjustments (consisting of only normal recurring adjustments, except as noted elsewhere in the notes to the condensed
consolidated financial statements) necessary to present fairly our financial position as of September&nbsp;30,&nbsp;2004, the
results of our operations for the three and nine months ended September&nbsp;30,&nbsp;2004 and 2003 and our cash flows for the
nine months ended September 30,&nbsp;2004 and 2003. These statements are condensed and, therefore, do not include all of the
information and note disclosures required by accounting principles generally accepted in the United States of America for complete
financial statements. The statements should be read in conjunction with the consolidated financial statements and notes included
in our Annual Report on Form 10-K for the year ended December&nbsp;31,&nbsp;2003. The results of operations for the three and nine
months ended September&nbsp;30,&nbsp;2004 are not necessarily indicative of the results to be expected for the full year.</P>

<P style="font-size:10pt;margin-left:30pt">Certain prior year amounts have been reclassified to conform with current year
presentation.</P>

<P style="font-size:10pt;margin-left:30pt">In January 2004, we acquired Walter Broadley Machines Limited, a cleaning equipment
company based in the United Kingdom, with annual sales of approximately $13,000. We paid $6,491 in the form of cash and debt,
subject to certain post-closing adjustments, for all of the stock of Walter Broadley and assumed $2,576 in outstanding debt, of
which $2,516 was immediately retired. The acquisition significantly increases our customer base and service coverage in the United
Kingdom. This acquisition is further described in Note 12 to the Condensed Consolidated Financial Statements.</P>

<TABLE WIDTH="100%" CELLPADDING="2" CELLSPACING="2">
<TR style="font-size:10pt" VALIGN="TOP">
<TD WIDTH="30"><B>(2)</B></TD>
<TD><B>Unusual Items</B></TD>
</TR>
</TABLE>

<P style="font-size:10pt;margin-left:30pt">During the third quarter of 2004, management approved actions to reduce costs as part
of a continuing effort to improve profitability. These actions included the elimination of a net 64 management and administrative
positions company-wide on a base of approximately 2,500 employees and are expected to be substantially completed by the first
quarter of 2005. The workforce reductions resulted in the recognition of a pretax charge of $2,589 ($1,767 after-tax, or $0.20 per
diluted share) in our third quarter ended September 30, 2004. The charge consists primarily of severance and outplacement benefits
and is included within Selling and Administrative (S&amp;A) Expenses in the Consolidated Statement of Earnings. The severance and
outplacement benefits were accounted for under the Financial Accounting Standards Board Statement (SFAS) No. 112,
&#147;Employers&#146; Accounting for Postemployment Benefits.&#148;</P>

<P style="font-size:10pt;margin-left:30pt">During the first quarter of 2003, we amended the agreement with our U.S. third-party
lessor. Prior to this amendment, the agreement contained a retained ownership risk provision that precluded revenue recognition at
the time of shipment for equipment sales to the third-party lessor that were considered operating leases. The amendment eliminated
the retained ownership risk provision and was retroactive to the beginning of the agreement. This resulted in the recognition of
previously deferred revenue of $6,430 in first quarter of 2003, increasing net earnings by $1,796 or $0.20 per diluted share and
also resulted in revenue recognition at the time of shipment for U.S. equipment sales under the agreement.</P>

<BR>
<BR>
<P style="font-size:10pt;text-align:center">5</P>
<HR COLOR="GRAY" SIZE="2">
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<P style="font-size:10pt">TENNANT COMPANY<BR>Quarterly Report &#150; Form 10-Q</P>

<P style="font-size:10pt"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)<BR>(In thousands, except per share data)</B></P>

<TABLE WIDTH="100%" CELLPADDING="2" CELLSPACING="2">
<TR style="font-size:10pt" VALIGN="TOP">
<TD WIDTH="30"></TD>
<TD></TD>
</TR>
</TABLE>

<P style="font-size:10pt;margin-left:30pt">In March 2000, we entered into a joint venture with an unrelated third party to develop
and market a new product. During the first quarter of 2003, Tennant and our joint-venture partner agreed to dissolve the joint
venture and we decided to permanently discontinue manufacturing the product and to abandon the plan to utilize the related
purchased technology. As a result of the joint-venture dissolution, we recorded after-tax charges totaling $1,215 or $0.14 per
diluted share in the first quarter of 2003 related to the write-off of accounts receivable, inventory, intangible assets and the
establishment of accruals for certain contractual obligations.</P>

<TABLE WIDTH="100%" CELLPADDING="2" CELLSPACING="2">
<TR style="font-size:10pt" VALIGN="TOP">
<TD WIDTH="30"><B>(3)</B></TD>
<TD><B>Inventories</B></TD>
</TR>
</TABLE>

<P style="font-size:10pt;margin-left:30pt">Inventories are valued at the lower of cost (principally on a last-in, first-out basis)
or market. Inventories at September&nbsp;30,&nbsp;2004 and December&nbsp;31,&nbsp;2003 consisted of the following:</P>

<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="600" STYLE="MARGIN-LEFT:30pt">
<TR VALIGN="BOTTOM" style="font-size:8pt">
<TH colspan="3" align="left"></TH>
<TH>&nbsp;</TH>
<TH colspan="3">September&nbsp;30,<BR>2004</TH>
<TH>&nbsp;</TH> <TH colspan="3" nowrap>December 31,<BR>2003</TH>
</TR>
<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD width="74%">FIFO Inventories:</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD align="right" width="8%"></TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD align="right" width="8%"></TD>
<TD width="1%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD style="padding-left:10">Finished goods</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">39,309</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">38,639</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD style="padding-left:10">Raw materials, parts and work-in-process</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">37,100</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">37,179</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Total FIFO inventories</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">76,409</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">75,818</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>LIFO reserve</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(20,795</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(21,136</TD>
<TD>)</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD style="padding-left:10">LIFO inventories</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">55,614</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">54,682</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
</TR>
</TABLE>

<P style="font-size:10pt;margin-left:30pt">The LIFO reserve approximates the difference between LIFO carrying cost and replacement
cost.</P>

<TABLE WIDTH="100%" CELLPADDING="2" CELLSPACING="2">
<TR style="font-size:10pt" VALIGN="TOP">
<TD WIDTH="30"><B>(4)</B></TD>
<TD><B>Supplemental Cash Flow Information</B></TD>
</TR>
</TABLE>

<P style="font-size:10pt;margin-left:30pt">Income taxes paid during the nine months ended September&nbsp;30,&nbsp;2004 and 2003
were $3,326 and $611, respectively. Interest costs paid during the nine months ended September&nbsp;30,&nbsp;2004 and 2003 were
$742 and $384, respectively.</P>


<TABLE WIDTH="100%" CELLPADDING="2" CELLSPACING="2">
<TR style="font-size:10pt" VALIGN="TOP">
<TD WIDTH="30"><B>(5)</B></TD>
<TD><B>Comprehensive Income</B></TD>
</TR>
</TABLE>


<P style="font-size:10pt;margin-left:30pt">We report accumulated other comprehensive income as a separate item in the
shareholders&#146; equity section of the balance sheet. Comprehensive income is comprised of the net earnings and other
comprehensive income (loss). Other comprehensive income (loss) consists solely of foreign currency translation adjustments. The
reconciliations of net earnings to comprehensive income are as follows:</P>


<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="600" STYLE="MARGIN-LEFT:30pt">
<TR VALIGN="BOTTOM" style="font-size:8pt">
<TH colspan="3" align="left"></TH>
<TH>&nbsp;</TH>
<TH colspan="7">Three Months<BR>Ended September 30</TH>
<TH>&nbsp;</TH> <TH colspan="7">Nine Months<BR>Ended September 30</TH>
<TH>&nbsp;</TH>
</TR>
<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="7">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="7">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:8pt">
<TH colspan="3" align="left"></TH>
<TH>&nbsp;</TH>
<TH colspan="3">2004</TH>
<TH>&nbsp;</TH> <TH colspan="3">2003</TH>
<TH>&nbsp;</TH> <TH colspan="3">2004</TH>
<TH>&nbsp;</TH> <TH colspan="3">2003</TH>
</TR>
<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD width="50%">Net earnings</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">$</TD>
<TD align="right" width="8%">1,024</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">$</TD>
<TD align="right" width="8%">3,289</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">$</TD>
<TD align="right" width="8%">7,306</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">$</TD>
<TD align="right" width="8%">9,071</TD>
<TD width="1%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Foreign currency translation adjustments</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">147</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">166</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(447</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">1,639</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Comprehensive income</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">1,171</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">3,455</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">6,859</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">10,710</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
</TR>
</TABLE>

<BR>
<BR>
<P style="font-size:10pt;text-align:center">6</P>
<HR COLOR="GRAY" SIZE="2">
<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 0; page: 0" -->


<P style="font-size:10pt">TENNANT COMPANY<BR>Quarterly Report &#150; Form 10-Q</P>
<P style="font-size:10pt"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)<BR>(In thousands, except per share data)</B></P>


<TABLE WIDTH="100%" CELLPADDING="2" CELLSPACING="2">
<TR style="font-size:10pt" VALIGN="TOP">
<TD WIDTH="30"><B>(6)</B></TD>
<TD><B>Earnings Per Share Computation</B></TD>
</TR>
</TABLE>


<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="600" STYLE="MARGIN-LEFT:30pt">
<TR VALIGN="BOTTOM" style="font-size:8pt">
<TH colspan="3" align="left"></TH>
<TH>&nbsp;</TH>
<TH colspan="7">Three Months<BR>Ended September 30</TH>
<TH>&nbsp;</TH> <TH colspan="7">Nine Months<BR>Ended September 30</TH>
<TH>&nbsp;</TH>
</TR>
<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="7">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="7">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:8pt">
<TH colspan="3" align="left"></TH>
<TH>&nbsp;</TH>
<TH colspan="3">2004</TH>
<TH>&nbsp;</TH> <TH colspan="3">2003</TH>
<TH>&nbsp;</TH> <TH colspan="3">2004</TH>
<TH>&nbsp;</TH> <TH colspan="3">2003</TH>
</TR>
<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD width="50%">Weighted average shares outstanding &#150; Basic</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD align="right" width="8%">8,990</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD align="right" width="8%">8,969</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD align="right" width="8%">9,002</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD align="right" width="8%">8,971</TD>
<TD width="1%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Dilutive share equivalents</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">139</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">57</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">151</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">57</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Weighted average shares outstanding &#150; Diluted</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">9,129</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">9,026</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">9,153</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">9,028</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Net earnings</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">1,024</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">3,289</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">7,306</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">9,071</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Earnings per share &#150; Basic</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">0.11</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">0.37</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">0.81</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">1.01</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Earnings per share &#150; Diluted</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">0.11</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">0.36</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">0.80</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">1.00</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
</TR>
</TABLE>


<TABLE WIDTH="100%" CELLPADDING="2" CELLSPACING="2">
<TR style="font-size:10pt" VALIGN="TOP">
<TD WIDTH="30"><B>(7)</B></TD>
<TD><B>Segment Reporting</B></TD>
</TR>
</TABLE>

<P style="font-size:10pt;margin-left:30pt">We operate in one industry segment that consists of the design, manufacture and sale of
products used primarily in the maintenance of nonresidential surfaces. The following table sets forth net sales by geographic area
(net of intercompany sales):</P>


<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="600" STYLE="MARGIN-LEFT:30pt">
<TR VALIGN="BOTTOM" style="font-size:8pt">
<TH colspan="3" align="left"></TH>
<TH>&nbsp;</TH>
<TH colspan="7">Three Months<BR>Ended September 30</TH>
<TH>&nbsp;</TH> <TH colspan="7">Nine Months<BR>Ended September 30</TH>
<TH>&nbsp;</TH>
</TR>
<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="7">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="7">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:8pt">
<TH colspan="3" align="left"></TH>
<TH>&nbsp;</TH>
<TH colspan="3">2004</TH>
<TH>&nbsp;</TH> <TH colspan="3">2003</TH>
<TH>&nbsp;</TH> <TH colspan="3">2004</TH>
<TH>&nbsp;</TH> <TH colspan="3">2003</TH>
</TR>
<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD width="50%">North America</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">$</TD>
<TD align="right" width="8%">83,675</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">$</TD>
<TD align="right" width="8%">78,287</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">$</TD>
<TD align="right" width="8%">250,312</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">$</TD>
<TD align="right" width="8%">237,552</TD>
<TD width="1%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Europe</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">24,772</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">20,682</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">82,041</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">63,437</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Other International</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">12,010</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">11,089</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">35,996</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">32,978</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD style="padding-left:20">Total</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">120,457</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">110,058</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">368,349</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">333,967</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
</TR>
</TABLE>

<BR>
<BR>
<P style="font-size:10pt;text-align:center">7</P>
<HR COLOR="GRAY" SIZE="2">
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<P style="font-size:10pt">TENNANT COMPANY<BR>Quarterly Report &#150; Form 10-Q</P>

<P style="font-size:10pt"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)<BR>(In thousands, except per share data)</B></P>

<TABLE WIDTH="100%" CELLPADDING="2" CELLSPACING="2">
<TR style="font-size:10pt" VALIGN="TOP">
<TD WIDTH="30"><B>(8)</B></TD>
<TD><B>Goodwill and Intangible Assets</B></TD>
</TR>
</TABLE>

<P style="font-size:10pt;margin-left:30pt">The components of goodwill and other intangible assets are as follows:</P>


<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="600" STYLE="MARGIN-LEFT:30pt">
<TR VALIGN="BOTTOM" style="font-size:8pt">
<TH colspan="3" align="left"></TH>
<TH>&nbsp;</TH>
<TH colspan="3">Goodwill</TH>
<TH>&nbsp;</TH> <TH colspan="3">Other<BR>Intangibles</TH>
</TR>
<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD width="74%">Balance, December&nbsp;31,&nbsp;2003</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">$</TD>
<TD align="right" width="8%">17,812</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">$</TD>
<TD align="right" width="8%">&#151;</TD>
<TD width="1%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD style="padding-left:10">Additions</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">5,828</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">1,522</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD style="padding-left:10">Amortization expense</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">&#151;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(96</TD>
<TD>)</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD style="padding-left:10">Foreign currency fluctuations</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(152</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">&#151;</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Balance, September&nbsp;30,&nbsp;2004</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">23,488</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">1,426</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
</TR>
</TABLE>

<P style="font-size:10pt;margin-left:30pt">The additions to goodwill and other intangible assets during the first nine months of
2004 were based on the purchase price allocation of the Walter Broadley acquisition in January 2004, as discussed in Note 12 to
the Condensed Consolidated Financial Statements. These other intangible assets, consisting of customer lists and the trade name,
will be amortized over useful lives ranging from 4 to 20 years, based on the provisions of SFAS No. 142, &#147;Goodwill and Other
Intangible Assets.&#148;</P>

<TABLE WIDTH="100%" CELLPADDING="2" CELLSPACING="2">
<TR style="font-size:10pt" VALIGN="TOP">
<TD WIDTH="30"><B>(9)</B></TD>
<TD><B>Stock-Based Compensation</B></TD>
</TR>
</TABLE>

<P style="font-size:10pt;margin-left:30pt">We account for stock-based compensation for employees under Accounting Principles Board
(&#147;APB&#148;) Opinion No. 25, &#147;Accounting for Stock Issued to Employees.&#148; APB No. 25 requires compensation cost to
be recorded on the date of the grant only if the current market price of the underlying stock exceeds the exercise price.
Accordingly, no compensation cost has been recognized for stock option plans. At September&nbsp;30,&nbsp;2004, we had six
stock-based employee compensation plans, which are described in Note 13 of the 2003 Annual Report on Form 10-K.</P>

<P style="font-size:10pt;margin-left:30pt">We have adopted the disclosure-only provisions of SFAS No. 148, &#147;Accounting for
Stock-Based Compensation &#150; Transition and Disclosure&#148; (&#147;SFAS 148&#148;). SFAS 148 amends the disclosure
requirements of SFAS No. 123, &#147;Accounting for Stock-Based Compensation&#148; (&#147;SFAS 123&#148;). In accordance with SFAS
123, the fair value of options at the date of grant is estimated using the Black-Scholes option pricing model with the following
assumptions:</P>


<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="600" STYLE="MARGIN-LEFT:30pt">
<TR VALIGN="BOTTOM" style="font-size:8pt">
<TH colspan="3" align="left"></TH>
<TH>&nbsp;</TH>
<TH colspan="3">2004</TH>
<TH>&nbsp;</TH> <TH colspan="3">2003</TH>
</TR>
<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD width="74%">Expected life in years</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD align="right" width="8%">7</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD align="right" width="8%">7</TD>
<TD width="1%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Risk-free interest rate</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">3.5</TD>
<TD>%</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">3.6</TD>
<TD>%</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Expected volatility</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">32.0</TD>
<TD>%</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">25.0</TD>
<TD>%</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Expected dividend yield</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">2.3</TD>
<TD>%</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">2.3</TD>
<TD>%</TD>
</TR>
</TABLE>

<BR>
<BR>
<P style="font-size:10pt;text-align:center">8</P>
<HR COLOR="GRAY" SIZE="2">
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<P style="font-size:10pt">TENNANT COMPANY<BR>Quarterly Report &#150; Form 10-Q</P>

<P style="font-size:10pt"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)<BR>(In thousands, except per share data)</B></P>

<TABLE WIDTH="100%" CELLPADDING="2" CELLSPACING="2">
<TR style="font-size:10pt" VALIGN="TOP">
<TD WIDTH="30"></TD>
<TD></TD>
</TR>
</TABLE>

<P style="font-size:10pt;margin-left:30pt">Had stock-based compensation cost been determined using the fair value-based method of
accounting under SFAS 123, net earnings would have been reduced to the pro forma amounts indicated below:</P>

<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="600" STYLE="MARGIN-LEFT:30pt">
<TR VALIGN="BOTTOM" style="font-size:8pt">
<TH colspan="3" align="left"></TH>
<TH>&nbsp;</TH>
<TH colspan="7">Three Months<BR>Ended September 30</TH>
<TH>&nbsp;</TH> <TH colspan="7">Nine Months<BR>Ended September 30</TH>
<TH>&nbsp;</TH>
</TR>
<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="7">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="7">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:8pt">
<TH colspan="3" align="left"></TH>
<TH>&nbsp;</TH>
<TH colspan="3">2004</TH>
<TH>&nbsp;</TH> <TH colspan="3">2003</TH>
<TH>&nbsp;</TH> <TH colspan="3">2004</TH>
<TH>&nbsp;</TH> <TH colspan="3">2003</TH>
</TR>
<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD width="50%">Net earnings &#150; as reported</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">$</TD>
<TD align="right" width="8%">1,024</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">$</TD>
<TD align="right" width="8%">3,289</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">$</TD>
<TD align="right" width="8%">7,306</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">$</TD>
<TD align="right" width="8%">9,071</TD>
<TD width="1%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Deduct: Total stock-based employee compensation expense determined under fair value-based method for all awards, net of related tax effects</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(375</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(242</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(1,028</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(693</TD>
<TD>)</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Net earnings &#150; pro forma</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">649</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">3,047</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">6,278</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">8,378</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Earnings per share:</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD style="padding-left:10">Basic &#150; as reported</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">0.11</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">0.37</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">0.81</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">1.01</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD style="padding-left:10">Basic &#150; pro forma</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">0.07</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">0.34</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">0.70</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">0.93</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD style="padding-left:10">Diluted &#150; as reported</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">0.11</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">0.36</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">0.80</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">1.00</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD style="padding-left:10">Diluted &#150; pro forma</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">0.07</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">0.34</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">0.69</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">0.93</TD>
<TD>&nbsp;</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="2" CELLSPACING="2">
<TR style="font-size:10pt" VALIGN="TOP">
<TD WIDTH="30"><B>(10)</B></TD>
<TD><B>Warranty Reserves</B></TD>
</TR>
</TABLE>


<P style="font-size:10pt;margin-left:30pt">We record a liability for warranty claims at the time of sale. The amount of the
liability is based on the trend in the historical ratio of claims to sales, the historical length of time between the sale and
resulting warranty claim, anticipated releases of new products and other factors. Warranty periods on machines range from one to
four years. The changes in warranty reserve balances for the nine months ended September&nbsp;30,&nbsp;2004 and 2003 were as
follows:</P>


<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="600" STYLE="MARGIN-LEFT:30pt">
<TR VALIGN="BOTTOM" style="font-size:8pt">
<TH colspan="3" align="left"></TH>
<TH>&nbsp;</TH>
<TH colspan="3">September&nbsp;30, 2004</TH>
<TH>&nbsp;</TH> <TH colspan="3">September&nbsp;30, 2003</TH>
</TR>
<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD width="74%">Beginning balance</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">$</TD>
<TD align="right" width="8%">6,018</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">$</TD>
<TD align="right" width="8%">4,519</TD>
<TD width="1%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Additions charged to expense</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">5,602</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">5,712</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Change in estimate</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">194</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">700</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Claims paid</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(5,477</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(5,550</TD>
<TD>)</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD style="padding-left:10">Ending balance</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">6,337</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">5,381</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
</TR>
</TABLE>

<BR>
<BR>
<P style="font-size:10pt;text-align:center">9</P>
<HR COLOR="GRAY" SIZE="2">
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<P style="font-size:10pt">TENNANT COMPANY<BR>Quarterly Report &#150; Form 10-Q</P>

<P style="font-size:10pt"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)<BR>(In thousands, except per share data)</B></P>


<TABLE WIDTH="100%" CELLPADDING="2" CELLSPACING="2">
<TR style="font-size:10pt" VALIGN="TOP">
<TD WIDTH="30"><B>(11)</B></TD>
<TD><B>Retirement Benefit Plans</B></TD>
</TR>
</TABLE>


<P style="font-size:10pt;margin-left:30pt">Tennant Company has contributed $311 during the third quarter and $707 for the first
nine months of 2004 to the postretirement medical benefit plan. We have contributed $27 during the third quarter and $83 for the
first nine months of 2004 to our supplemental benefit plan. We expect to contribute approximately $1,000 to the postretirement
medical benefit plan and approximately $100 to the supplemental benefit plan during 2004. No contributions to the pension plan are
expected to be required during 2004.</P>

<P style="font-size:10pt;margin-left:30pt">We amended our postretirement medical plan during the third quarter of 2004, which
reduces our net period cost associated with this plan by approximately $170 in the third quarter of 2004 and will reduce our
expense by approximately $600 in 2005.</P>

<P style="font-size:10pt;margin-left:30pt">The components of the net periodic cost (benefit) for the three and nine months ended
September&nbsp;30,&nbsp;2004 and 2003 were as follows:</P>


<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="600" STYLE="MARGIN-LEFT:30pt">
<TR VALIGN="BOTTOM" style="font-size:8pt">
<TH colspan="3" align="left"></TH>
<TH>&nbsp;</TH>
<TH colspan="7">Three Months<BR>Ended September 30</TH>
<TH>&nbsp;</TH> <TH colspan="7">Nine Months<BR>Ended September 30</TH>
<TH>&nbsp;</TH>
</TR>
<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="7">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="7">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:8pt">
<TH colspan="3" align="left"></TH>
<TH>&nbsp;</TH>
<TH colspan="3">2004</TH>
<TH>&nbsp;</TH> <TH colspan="3">2003</TH>
<TH>&nbsp;</TH> <TH colspan="3">2004</TH>
<TH>&nbsp;</TH> <TH colspan="3">2003</TH>
</TR>
<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD width="50%">Pension Benefits:</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD align="right" width="8%"></TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD align="right" width="8%"></TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD align="right" width="8%"></TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD align="right" width="8%"></TD>
<TD width="1%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD style="padding-left:10">Service cost</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">213</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">214</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">655</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">641</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD style="padding-left:10">Interest cost</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">422</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">390</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">1,258</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">1,169</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD style="padding-left:10">Expected return on plan assets</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(651</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(623</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(1,951</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(1,868</TD>
<TD>)</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD style="padding-left:10">Recognized actuarial gain</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(177</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(195</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(474</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(584</TD>
<TD>)</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD style="padding-left:10">Amortization of transition obligation</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(6</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(6</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(16</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(17</TD>
<TD>)</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD style="padding-left:10">Amortization of prior service cost</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">143</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">143</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">428</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">428</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD style="padding-left:10">Net periodic benefit</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">(56</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">(77</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">(100</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">(231</TD>
<TD>)</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Postretirement Medical Benefits:</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD style="padding-left:10">Service cost</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">70</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">99</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">306</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">297</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD style="padding-left:10">Interest cost</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">180</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">252</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">786</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">757</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD style="padding-left:10">Recognized actuarial loss</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">&#151;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">3</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">&#151;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">8</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD style="padding-left:10">Net periodic cost</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">250</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">354</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">1,092</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">1,062</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
</TR>
</TABLE>

<BR>
<BR>
<P style="font-size:10pt;text-align:center">10</P>
<HR COLOR="GRAY" SIZE="2">
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<P style="font-size:10pt">TENNANT COMPANY<BR>Quarterly Report &#150; Form 10-Q</P>

<P style="font-size:10pt"><B>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)<BR>(In thousands, except per share data)</B></P>


<TABLE WIDTH="100%" CELLPADDING="2" CELLSPACING="2">
<TR style="font-size:10pt" VALIGN="TOP">
<TD WIDTH="30"><B>(12)</B></TD>
<TD><B>Walter Broadley Acquisition</B></TD>
</TR>
</TABLE>


<P style="font-size:10pt;margin-left:30pt">In January 2004, we acquired Walter Broadley Machines Limited, a cleaning equipment
company based in the United Kingdom, with annual sales of approximately $13,000. We paid $6,491 in the form of cash and debt,
subject to certain post-closing adjustments, for all of the stock of Walter Broadley and assumed $2,576 in outstanding debt, of
which $2,516 was immediately retired. The acquisition significantly increases our customer base and service coverage in the United
Kingdom. The acquisition is not material to our operations or financial position. The operations of Walter Broadley have been
included in our results of operations since the date of the acquisition. A preliminary allocation of the purchase price to assets
acquired and liabilities assumed has been recorded as of September&nbsp;30,&nbsp;2004. The purchase price allocation may change
for up to one-year subsequent to the acquisition date. The purchase price allocation may be adjusted based on the final
determination of the fair value of assets acquired and liabilities assumed and post closing adjustments. These adjustments are not
expected to be material. The components of the purchase price based upon our preliminary purchase price allocation are as
follows:</P>


<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="600" STYLE="MARGIN-LEFT:30pt">
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD width="86%">Net tangible assets acquired</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">$</TD>
<TD align="right" width="8%">1,717</TD>
<TD width="1%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Debt assumed</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(2,576</TD>
<TD>)</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Identifiable intangible assets</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">1,522</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Goodwill</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">5,828</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD style="padding-left:10"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">6,491</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
</TR>
</TABLE>

<BR>
<BR>
<P style="font-size:10pt;text-align:center">11</P>
<HR COLOR="GRAY" SIZE="2">
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<P style="font-size:10pt">TENNANT COMPANY<BR>Quarterly Report &#150; Form 10-Q</P>

<P style="font-size:10pt"><B>ITEM 2 - Management&#146;s Discussion and Analysis of Financial Condition and Results of
Operations</B></P>

<P style="font-size:10pt;font-weight:bold"><U>Financial Overview</U></P>

<P style="font-size:10pt">During the third quarter of 2004, net earnings declined 68.9% to $1.0 million or $0.11 per diluted share
compared to the same period in 2003. Net earnings were impacted by:</P>


<TABLE WIDTH="100%" CELLPADDING="2" CELLSPACING="2">
<TR style="font-size:10pt" VALIGN="TOP">
<TD WIDTH="30">&nbsp;</TD>
<TD WIDTH="30">&#149;</TD>
<TD>
<P style="font-size:10pt">Growth in net sales of 9.4% to $120.5 million partially due to the acquisition of Walter Broadley which
contributed about 2% to net sales and a foreign exchange impact of approximately 3%. The balance of the increase was related to
volume growth in North America and price increases.</P>
</TD>
</TR>
<TR style="font-size:10pt" VALIGN="TOP">
<TD>&nbsp;</TD>
<TD>&#149;</TD>
<TD>
<P style="font-size:10pt">A decline in gross profit margins of 0.6% to 39.4% primarily due to increases in the cost of steel and
petroleum-related products.</P>
</TD>
</TR>
<TR style="font-size:10pt" VALIGN="TOP">
<TD>&nbsp;</TD>
<TD>&#149;</TD>
<TD>
<P style="font-size:10pt">A workforce reduction charge of $1.8 million after-tax ($2.6 million pretax), or $0.20 per diluted
share, related to actions to reduce costs as part of a continuing effort to improve profitability. The charge consists primarily
of severance and outplacement benefits and is included within Selling and Administrative (S&amp;A) Expenses in the Consolidated
Statement of Earnings.</P>
</TD>
</TR>
<TR style="font-size:10pt" VALIGN="TOP">
<TD>&nbsp;</TD>
<TD>&#149;</TD>
<TD>
<P style="font-size:10pt">An increase in other S&amp;A expenses of $4.1 million primarily resulting from an increase in
performance-based incentive compensation expense, increases in corporate governance costs including costs to comply with
Sarbanes-Oxley, higher marketing expenses to support new product introductions and the inclusion of expenses associated with the
acquired operations of Walter Broadley, partially offset by decreases in warranty and bad debt expense due to decreases in claims
paid and collections risks between periods. Foreign currency effects added $0.9 million to S&amp;A expenses in the quarter.</P>
</TD>
</TR>
</TABLE>

<P style="font-size:10pt">For the nine months ended September&nbsp;30,&nbsp;2004, net earnings declined 19.5% to $7.3 million or
$0.80 per diluted share compared to the same period in 2003. Net earnings were impacted by:</P>


<TABLE WIDTH="100%" CELLPADDING="2" CELLSPACING="2">
<TR style="font-size:10pt" VALIGN="TOP">
<TD WIDTH="30">&nbsp;</TD>
<TD WIDTH="30">&#149;</TD>
<TD>
<P style="font-size:10pt">Growth in net sales of 10.3% to $368.3 million partially resulting from the acquisition of Walter
Broadley which contributed about 2% to net sales and a foreign exchange impact of approximately 3%. The balance of the increase
was primarily related to sales volume growth in all three geographic areas, as well as price increases.</P>
</TD>
</TR>
<TR style="font-size:10pt" VALIGN="TOP">
<TD>&nbsp;</TD>
<TD>&#149;</TD>
<TD>
<P style="font-size:10pt">Increases in steel and petroleum-based materials costs, and to a lesser extent, write-downs of slow
moving and excess inventory resulting from an ongoing comprehensive analysis of inventory levels, which had a negative impact on
gross profit margins for the first nine months of 2004.</P>
</TD>
</TR>
<TR style="font-size:10pt" VALIGN="TOP">
<TD>&nbsp;</TD>
<TD>&#149;</TD>
<TD>
<P style="font-size:10pt">The workforce reduction charge of $1.8 million after-tax ($2.6 million pretax), or $0.19 per diluted
share, as discussed previously.</P>
</TD>
</TR>
<TR style="font-size:10pt" VALIGN="TOP">
<TD>&nbsp;</TD>
<TD>&#149;</TD>
<TD>
<P style="font-size:10pt">An increase in other S&amp;A expenses of $13.2 million, partially resulting from foreign currency
exchange effects of $3.4 million. The remaining increase is primarily due to an increase in performance-based incentive
compensation expense, additional marketing and Sarbanes-Oxley compliance costs and the inclusion of expenses associated with the
acquired operations of Walter Broadley.</P>
</TD>
</TR>
<TR style="font-size:10pt" VALIGN="TOP">
<TD>&nbsp;</TD>
<TD>&#149;</TD>
<TD>
<P style="font-size:10pt">The direct favorable foreign currency exchange impact on net earnings of $0.19 per diluted share,
primarily in the first half of 2004.</P>
</TD>
</TR>
</TABLE>

<BR>
<BR>
<P style="font-size:10pt;text-align:center">12</P>
<HR COLOR="GRAY" SIZE="2">
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<P style="font-size:10pt">TENNANT COMPANY<BR>Quarterly Report &#150; Form 10-Q</P>

<P style="font-size:10pt">The nine-month period ended September&nbsp;30,&nbsp;2003 included two unusual items, which contributed
net earnings of $0.06 per diluted share. The recognition of previously deferred revenue of $6.4 million in the first quarter of
2003 increased net earnings by $1.8 million after-tax ($2.9 million pretax) or $0.20 per diluted share. In addition, a charge
totaling $1.2 million after-tax ($2.0 million pretax) or $0.14 per diluted share was recognized during the first quarter of 2003
resulting from the decision to dissolve a joint venture with an unrelated third party.</P>

<P style="font-size:10pt">During the third quarter and first nine months of 2004, our results were favorably impacted by weakness
of the U.S. dollar against the Euro, the Australian and Canadian dollars, the British pound and the Japanese yen. We can estimate
the direct financial impact of foreign currency exchange on net sales and earnings; however, it is difficult to estimate the
indirect financial impact.</P>

<P style="font-size:10pt">The indirect financial impact would include such factors as the effect on sales volumes within local
economies and the impact of pricing actions taken as a result of foreign exchange rate fluctuations. We expect that our sales and
earnings will continue to be impacted by the effects of foreign currency exchange rate fluctuations in the future. If the
applicable exchange rates continue to remain strong relative to the 2003 value of the U.S. dollar, the related effect on our
results would continue to be favorable in 2004.</P>

<P style="font-size:10pt">In January 2004, we acquired Walter Broadley Machines Limited, a cleaning equipment company based in the
United Kingdom, with annual sales of approximately $13 million, as discussed in Note 12 to the Condensed Consolidated Financial
Statements. We paid $6.5 million in the form cash and debt, subject to certain post-closing adjustments, for all of the stock of
Walter Broadley and assumed $2.6 million in outstanding debt, of which $2.5 million was immediately retired. The acquisition
significantly increases our customer base and service coverage in the United Kingdom. The acquisition had a dilutive impact of
approximately $0.08 through the first six months of 2004 resulting from certain integration costs and a short-term impact on gross
profit margins related to purchase accounting. Beginning with our third quarter of 2004, operations of Walter Broadley have been
fully integrated into our European operations.</P>

<P style="font-size:10pt;font-weight:bold">Historical Results</P>

<P style="font-size:10pt">The following compares the historical results of operations for the three- and nine-month periods ended
September 30, 2004 and 2003 in dollars and as a percentage of net sales (dollars in thousands, except earnings per diluted
share):</P>


<DIV align="center">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%">
<TR VALIGN="BOTTOM" style="font-size:8pt">
<TH colspan="3" align="left"></TH>
<TH>&nbsp;</TH>
<TH colspan="15">Three Months Ended September 30</TH>
<TH>&nbsp;</TH> <TH colspan="15">Nine Months Ended September 30</TH>
<TH>&nbsp;</TH>
</TR>
<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="15">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="15">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:8pt">
<TH colspan="3" align="left"></TH>
<TH>&nbsp;</TH>
<TH colspan="3">2004</TH>
<TH>&nbsp;</TH> <TH colspan="3">%</TH>
<TH>&nbsp;</TH> <TH colspan="3">2003</TH>
<TH>&nbsp;</TH> <TH colspan="3">%</TH>
<TH>&nbsp;</TH> <TH colspan="3">2004</TH>
<TH>&nbsp;</TH> <TH colspan="3">%</TH>
<TH>&nbsp;</TH> <TH colspan="3">2003</TH>
<TH>&nbsp;</TH> <TH colspan="3">%</TH>
</TR>
<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD width="26%">Net sales</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">$</TD>
<TD align="right" width="6%">120,457</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD align="right" width="4%">100.0</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">$</TD>
<TD align="right" width="6%">110,058</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD align="right" width="4%">100.0</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">$</TD>
<TD align="right" width="6%">368,349</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD align="right" width="4%">100.0</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">$</TD>
<TD align="right" width="6%">333,967</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD align="right" width="4%">100.0</TD>
<TD width="1%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Cost of sales</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">73,035</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">60.6</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">65,982</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">60.0</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">221,808</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">60.2</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">200,934</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">60.2</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Gross profit</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">47,422</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">39.4</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">44,076</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">40.0</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">146,541</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">39.8</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">133,033</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">39.8</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Research and development expenses</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">4,274</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">3.5</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">4,101</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">3.7</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">12,697</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">3.4</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">12,509</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">3.7</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Selling and administrative expenses</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">41,300</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">34.3</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">34,617</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">31.5</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">121,220</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">32.9</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">105,476</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">31.6</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Profit from operations</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">1,848</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">1.5</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">5,358</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">4.9</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">12,624</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">3.4</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">15,048</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">4.5</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Interest income, net</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">111</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">0.1</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">228</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">0.2</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">210</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">0.1</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">542</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">0.2</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Other expense, net</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(460</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">0.4</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(363</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">0.3</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(864</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">0.2</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">(689</TD>
<TD>)</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">0.2</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Profit before income taxes</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">1,499</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">1.2</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">5,223</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">4.7</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">11,970</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">3.2</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">14,901</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">4.5</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Income tax expense</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">475</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">0.4</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">1,934</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">1.8</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">4,664</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">1.3</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">5,830</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">1.7</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Net earnings</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">1,024</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">0.9</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">3,289</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">3.0</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">7,306</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">2.0</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">9,071</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">2.7</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Earnings per diluted share</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">0.11</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">0.36</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">0.80</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">1.00</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right"></TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2"></TD>
<TD></TD>
</TR>
</TABLE>
</DIV>

<BR>
<BR>
<P style="font-size:10pt;text-align:center">13</P>
<HR COLOR="GRAY" SIZE="2">
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<P style="font-size:10pt">TENNANT COMPANY<BR>Quarterly Report &#150; Form 10-Q</P>

<P style="font-size:10pt;font-weight:bold">Net Sales</P>

<P style="font-size:10pt">Consolidated net sales of $120.5 million for the third quarter of 2004 increased 9.4% compared to third
quarter 2003 sales of $110.1 million. Positive direct foreign currency exchange fluctuations, resulting primarily from a weakened
U.S. dollar compared to the Euro, Japanese yen, British pound sterling and Canadian and Australian dollars increased net sales by
approximately 3% in the 2004 third quarter. The acquisition of Walter Broadley in January 2004 increased net sales in the third
quarter by approximately 2%. The balance of increase in net sales for the quarter was driven by volume growth in North America and
price increases.</P>

<P style="font-size:10pt">Consolidated net sales of $368.3 million for the nine months ended September&nbsp;30,&nbsp;2004
increased 10.3% compared to $334.0 million in 2003. Positive direct foreign currency exchange fluctuations increased net sales by
approximately 3% for the nine months ended September&nbsp;30,&nbsp;2004. The acquisition of Walter Broadley increased net sales by
approximately 2%. The remaining increase was a result of sales growth in all three geographic areas. Net sales for the first nine
months of 2003 included the one-time recognition of $6.4 million in previously deferred revenue in the first quarter of 2003, as
discussed in Note 2 to the Condensed Consolidated Financial Statements.</P>

<P style="font-size:10pt">The following table sets forth the net sales by geographic area for the three- and nine-month periods
ended September 30, 2004 and 2003 and the percentage change from the prior year (dollars in thousands):</P>


<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="750">
<TR VALIGN="BOTTOM" style="font-size:8pt">
<TH colspan="3" align="left"></TH>
<TH>&nbsp;</TH>
<TH colspan="11">Three Months Ended September 30</TH>
<TH>&nbsp;</TH> <TH colspan="11">Nine Months Ended September 30</TH>
<TH>&nbsp;</TH>
</TR>
<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="11">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="11">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:8pt">
<TH colspan="3" align="left"></TH>
<TH>&nbsp;</TH>
<TH colspan="3">2004</TH>
<TH>&nbsp;</TH> <TH colspan="3">2003</TH>
<TH>&nbsp;</TH> <TH colspan="3">%</TH>
<TH>&nbsp;</TH> <TH colspan="3">2004</TH>
<TH>&nbsp;</TH> <TH colspan="3">2003</TH>
<TH>&nbsp;</TH> <TH colspan="3">%</TH>
</TR>
<TR>
<TD colspan="3"></TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD width="26%">North America</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">$</TD>
<TD align="right" width="8%">83,675</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">$</TD>
<TD align="right" width="8%">78,287</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD align="right" width="8%">6.9</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">$</TD>
<TD align="right" width="8%">250,312</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">$</TD>
<TD align="right" width="8%">237,552</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD align="right" width="8%">5.4</TD>
<TD width="1%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Europe</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">24,772</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">20,682</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">19.8</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">82,041</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">63,437</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">29.3</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>Other International</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">12,010</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">11,089</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">8.3</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">35,996</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">32,978</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">9.2</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD style="padding-left:10">Total net sales</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">120,457</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">110,058</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">9.4</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">368,349</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">333,967</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">10.3</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
</TR>
</TABLE>

<P style="font-size:10pt"><B>NORTH AMERICA</B> &#151; North American sales for the third quarter of 2004 increased 6.9% to $83.7
million compared with $78.3 million in 2003. Growth in third quarter sales was driven by price increases, including a surcharge on
certain products to help offset higher steel costs, volume increases due to new product introductions, as well as growth in
aftermarket parts and service compared to the same period last year.</P>

<P style="font-size:10pt">North American sales for the nine months ended September&nbsp;30,&nbsp;2004 increased 5.4% to $250.3
million compared with $237.6 million in 2003. Growth in year-to-date sales was driven by volume increases in equipment sales
resulting from a stronger North American economy, primarily in the first half of 2004, and new product introductions along with
price increases including a surcharge on certain products to help offset higher steel costs. In addition, growth in aftermarket
parts and service contributed to the increase in North American net sales when compared to the same period last year. Positive
direct foreign currency translation effects contributed approximately 1% to North American sales growth in the first nine months
of 2004. In addition, the first nine months of 2003 included the one-time recognition of $6.4 million of previously deferred
revenue discussed in Note 2 to the Condensed Consolidated Financial Statements.</P>

<BR>
<BR>
<P style="font-size:10pt;text-align:center">14</P>
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<P style="font-size:10pt">TENNANT COMPANY<BR>Quarterly Report &#150; Form 10-Q</P>

<P style="font-size:10pt"><B>EUROPE</B> &#151; In Europe, net sales for the third quarter of 2004 increased 19.8% to $24.8 million
versus the comparable 2003 period. The acquisition of Walter Broadley in January 2004 added about 10% to Europe&#146;s third
quarter sales growth. Positive direct foreign currency translation effects increased European net sales by approximately 10% in
the 2004 third quarter.</P>

<P style="font-size:10pt">Europe&#146;s net sales for the nine months ended September&nbsp;30,&nbsp;2004 increased 29.3% to $82.0
million versus the comparable 2003 period. The acquisition of Walter Broadley in January 2004 added 12% to Europe&#146;s
year-to-date sales growth. Positive direct foreign currency translation effects increased European net sales by approximately 12%
during the first nine months of 2004. The shipment of a large order to a new European customer, primarily in the first quarter of
2004, contributed approximately 7% to Europe&#146;s year-to-date sales growth.</P>

<P style="font-size:10pt"><B>OTHER INTERNATIONAL</B> &#151; In other international markets, sales for the third quarter of 2004
totaled $12.0 million, up 8.3% from the third quarter of 2003. Positive direct foreign currency translation effects increased
sales in other international markets by approximately 5% in the 2004 third quarter. The remaining increase resulted from sales
growth primarily in Japan and Latin America.</P>

<P style="font-size:10pt">Sales in other international markets for the nine months ended September&nbsp;30,&nbsp;2004 totaled
$36.0 million, up 9.2% from the same period in 2003. Positive direct foreign currency translation effects increased sales in other
international markets by approximately 7% in the first nine months of 2004. The remaining increase resulted from stronger sales in
several international markets including Latin America, Japan and Australia.</P>

<P style="font-size:10pt;font-weight:bold">Gross Profit</P>

<P style="font-size:10pt">Gross profit margin was 39.4% for the third quarter of 2004 compared with 40.0% reported in 2003. The
decline in gross margin was primarily attributable to increases in the cost of steel and petroleum-related materials during the
quarter. A selling price surcharge on certain products was implemented during the second quarter, which partially offset the
impact of the increased steel costs.</P>

<P style="font-size:10pt">Gross profit margin for the first nine months of 2004 was 39.8%, consistent with the same period in
2003. Gross profit margins in 2004 were impacted by the increases in steel and petroleum-based materials costs, and to a lesser
extent, write-downs of slow moving and excess inventory resulting from an ongoing comprehensive analysis of inventory levels.
Gross profit margins in 2003 were affected by the write-off of inventory due to the dissolution of a joint venture as described in
Note 2 to the Condensed Consolidated Financial Statements.</P>

<P style="font-size:10pt">An additional selling price surcharge on certain products in North America has been implemented in the
fourth quarter of 2004 as part of our continued effort to mitigate the impact of the increasing cost of steel and
petroleum-related materials on gross profit margins.</P>

<P style="font-size:10pt;font-weight:bold">Operating Expenses</P>

<P style="font-size:10pt">S&amp;A expenses in the third quarter of 2004 increased 19.3% to $41.3 million from $34.6 million in
2003. During the third quarter of 2004, we recognized a workforce reduction charge of $2.6 million pretax related to actions to
reduce costs as part of a continuing effort to improve profitability as described in Note 2 to the Condensed Consolidated
Financial Statements. Approximately $0.9 million of the increase in S&amp;A expenses is due to foreign currency exchange effects.
The remaining increase in S&amp;A expenses is primarily attributable to increases in performance-based incentive compensation
expense, corporate governance expenses including Sarbanes-Oxley compliance costs and marketing expenses to support new product
introductions as well as the inclusion of expenses associated with the acquired operations of Walter Broadley. Partially
offsetting these increases was a decrease in warranty and bad debt expense due to decreases in claims paid and collections risks
between periods.</P>

<BR>
<BR>
<P style="font-size:10pt;text-align:center">15</P>
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<P style="font-size:10pt">TENNANT COMPANY<BR>Quarterly Report &#150; Form 10-Q</P>

<P style="font-size:10pt">S&amp;A expense as a percentage of sales was 34.3% for the third quarter of 2004, up from 31.5% in the
comparable quarter last year. The increase as a percentage of sales is primarily attributable to the $2.6 million severance charge
as well as increased corporate governance costs including Sarbanes-Oxley compliance.</P>

<P style="font-size:10pt">S&amp;A expenses for the nine months ended September&nbsp;30,&nbsp;2004 increased 14.9% to $121.2
million from $105.5 million in 2003. S&amp;A expenses increased partly due to the pretax workforce reduction charge of $2.6
million discussed previously and in Note 2 to the Condensed Consolidated Financial Statements. Approximately $3.4 million of the
increase in S&amp;A expenses is due to foreign currency exchange effects. The remaining increase in S&amp;A expenses primarily
reflect an increase in performance-based incentive compensation expense as well as an increase in marketing expenses to support
product launches scheduled for the second half of 2004, Sarbanes-Oxley compliance costs and the inclusion of expenses associated
with the acquired operations of Walter Broadley.</P>

<P style="font-size:10pt">S&amp;A expense as a percentage of sales was 32.9% for the nine months ended September 30, 2004, up from
31.6% in the comparable period last year. This increase is primarily the result of the $2.6 million severance charge as well the
additional marketing and Sarbanes-Oxley compliance costs. In addition, the 2003 percentage benefited from the $6.4 million of
deferred revenue that was recognized as a result of the amendment of the agreement with our third-party lessor, for which there
was no related S&amp;A expense in the first quarter of 2003.</P>

<P style="font-size:10pt;font-weight:bold">Income Taxes</P>

<P style="font-size:10pt">The effective tax rates for the third quarter were 31.7% for 2004 and 37% for 2003. The decrease in the
effective tax rate between quarters is primary related to the resolution of certain outstanding state and federal tax matters.</P>

<P style="font-size:10pt">The year-to-date effective tax rates were 39% for 2004 and 39.1% for 2003. We expect the effective tax
rate to be 40% to 41% for the full year 2004. Our estimated effective tax rate for 2004 is based on the current forecasts of
full-year taxable earnings in domestic and foreign jurisdictions. The effective tax rate for the full year may be subject to
change to the extent the forecasts change in total, or by taxing jurisdiction or to changes in the laws and regulations.</P>

<P style="font-size:10pt">On October 22, 2004, the American Jobs Creation Act of 2004 was signed into law. This Act contains
several tax law changes. These tax law changes, including the phase-out of the foreign export deduction and the phase-in of the
manufacturing deduction, could have a negative impact on our effective tax rate in 2005 and beyond.</P>

<P style="font-size:10pt;font-weight:bold">Liquidity and Capital Resources</P>

<P style="font-size:10pt">The debt-to-total-capitalization ratio was 5.0% at September&nbsp;30,&nbsp;2004 versus 4.2% at
December&nbsp;31,&nbsp;2003. Cash and cash equivalents totaled $23.9 million at September&nbsp;30,&nbsp;2004, compared to $24.6
million at December 31, 2003. We believe that the combination of cash, internally generated funds and available financing sources
are more than sufficient to meet our cash requirements for the next year.</P>

<P style="font-size:10pt"><B>OPERATING ACTIVITIES</B> &#151; Operating activities provided $29.8 million of cash during the nine
months ended September&nbsp;30,&nbsp;2004. In the comparable 2003 period, operating activities provided cash of $23.5 million. The
cash provided from operating activities for the nine months ended September&nbsp;30,&nbsp;2004 was driven by an increase in
accrued expenses and a decrease in receivables. The increase in accrued expenses is primarily related to the workforce reduction
charge accrued during the third quarter and timing of payroll funding and other payments between periods while the decrease in
receivables in driven by improved cash collections. Days Sales Outstanding (DSO) decreased five days to 63 days as of September
30, 2004 compared to the same period last year.</P>

<P style="font-size:10pt">For the nine months ended September&nbsp;30,&nbsp;2003, cash provided by operations was impacted by a
decrease in inventory levels due to reduction initiatives in North America and Europe as well as a decrease in cash collections
with DSOs increasing three days between periods.</P>

<BR>
<BR>
<P style="font-size:10pt;text-align:center">16</P>
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<P style="font-size:10pt">TENNANT COMPANY<BR>Quarterly Report &#150; Form 10-Q</P>

<P style="font-size:10pt"><B>INVESTING ACTIVITIES</B> &#151; In January 2004, we acquired all of the stock of Walter Broadley for
$6.5 million in the form of cash and debt, subject to certain post-closing adjustments as well as assuming $2.6 million in
outstanding debt, of which $2.5 million was immediately retired. The cost of acquisition was paid for through cash and cash
equivalents and funds provided by operations. Capital expenditures were $14.8 million during the first nine months of 2004
compared to $6.5 million in the same period of 2003. The increase is primarily attributable to a significant capital project to
install a new powder paint system, which is scheduled to be in service by the end of 2004, as well as the purchase of additional
system components to further expand the capabilities of our ERP environment. We currently anticipate full-year capital spending to
be in the range of $18 to $21 million.</P>

<P style="font-size:10pt"><B>FINANCING ACTIVITIES</B> &#151; In the first quarter of 2004, $2.5 million in assumed Walter Broadley
debt was retired. During the first nine months of 2003, significant uses of cash included a $5.0 million scheduled debt repayment
and the pay down of short-term borrowings in Europe using the proceeds from the sale of office property in the UK.</P>

<P style="font-size:10pt;font-weight:bold">Quantitative and Qualitative Disclosures About Market Risk and Other Matters</P>
<P style="font-size:10pt"></P>

<P style="font-size:10pt"><I>Foreign Currency Risk</I></P>

<P style="font-size:10pt">Our market risk includes the risk of adverse changes in foreign currency exchange rates. Direct foreign
currency exchange fluctuations from a weak U.S. dollar increased earnings per diluted share by approximately $0.19 for the nine
months ended September&nbsp;30,&nbsp;2004 compared with the year-ago period. We could experience favorable or unfavorable foreign
exchange effects for the remainder of 2004, compared with prior year results.</P>

<P style="font-size:10pt"><I>Commodity Risk</I></P>

<P style="font-size:10pt">We are subject to exposures resulting from potential cost increases related to our purchases of raw
materials or other product components. We do not use derivative commodity instruments to manage our exposures to changes in
commodity prices such as steel or oil and gas.</P>

<P style="font-size:10pt">The recent increase in worldwide demand and other factors have caused prices for steel and related
products to increase. Given the worldwide steel market conditions, we have experienced significant cost increases in our
steel-based raw materials and component parts in 2004. We purchase approximately $55 million of raw and fabricated steel and
steel-based component parts annually. We do not maintain an inventory of raw or fabricated steel in excess of our near-term
production requirements. We continue to focus on mitigating the impact of the anticipated steel cost increases through product
pricing and negotiations with our vendors. Successful mitigation of the impact will depend upon our ability to increase our
selling prices in a competitive market.</P>

<P style="font-size:10pt">Various factors beyond our control affect the price of oil and gas, including but not limited to
worldwide and domestic supplies of oil and gas, political instability or armed conflict in oil-producing regions, the price and
level of foreign imports, the level of consumer demand, the price and availability of alternative fuels, domestic and foreign
governmental regulation and the overall economic environment. We purchase petroleum-related component parts for use in our
manufacturing operations. In addition, our freight costs associated with shipping and receiving product and sales and service
vehicle fuel costs are impacted by fluctuations in the cost of oil and gas. During the third quarter of 2004, our purchased
material and other costs were impacted by higher oil and gas prices. If the price of oil and gas remain at their current levels or
continue to increase, our results could be unfavorably impacted for the remainder of 2004 and beyond.</P>

<BR>
<BR>
<P style="font-size:10pt;text-align:center">17</P>
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<P style="font-size:10pt">TENNANT COMPANY<BR>Quarterly Report &#150; Form 10-Q</P>

<P style="font-size:10pt"><I>Other Matters</I></P>

<P style="font-size:10pt">Management regularly reviews our business operations with the objective of improving financial
performance and maximizing our return on investment. In this regard, we continue to consider actions to improve financial
performance which, if taken, could result in material nonrecurring charges.</P>

<P style="font-size:10pt">Additional information on market risk is included in the Management&#146;s Discussion and Analysis
section of our Form 10-K filing for the year ended December&nbsp;31,&nbsp;2003.</P>

<P style="font-size:10pt;font-weight:bold">Cautionary Statement Relevant to Forward-Looking Information</P>

<P style="font-size:10pt">Certain statements contained in this document as well as other written and oral statements made by us
from time to time are considered &#147;forward-looking statements&#148; within the meaning of the Private Securities Litigation
Reform Act. These statements do not relate to strictly historical or current facts and provide current expectations or forecasts
of future events. Any such expectations or forecasts of future events are subject to a variety of factors. These include factors
that affect all businesses operating in a global market as well as matters specific to us and the markets we serve. Particular
risks and uncertainties presently facing us include:</P>


<TABLE WIDTH="100%" CELLPADDING="2" CELLSPACING="2">
<TR style="font-size:10pt" VALIGN="TOP">
<TD WIDTH="30">&#149;</TD>
<TD>
<P style="font-size:10pt">The potential for soft markets in certain regions, including North America, Asia, Latin America and
Europe.</P>
</TD>
</TR>
<TR style="font-size:10pt" VALIGN="TOP">
<TD>&#149;</TD>
<TD>
<P style="font-size:10pt">Geo-political and economic uncertainty throughout the world.</P>
</TD>
</TR>
<TR style="font-size:10pt" VALIGN="TOP">
<TD>&#149;</TD>
<TD>
<P style="font-size:10pt">Changes in tax laws and regulations including changes in accounting standards, taxation changes, and the
repeal of the foreign export tax benefit.</P>
</TD>
</TR>
<TR style="font-size:10pt" VALIGN="TOP">
<TD>&#149;</TD>
<TD>
<P style="font-size:10pt">Inflationary pressures.</P>
</TD>
</TR>
<TR style="font-size:10pt" VALIGN="TOP">
<TD>&#149;</TD>
<TD>
<P style="font-size:10pt">The potential for increased competition in our business.</P>
</TD>
</TR>
<TR style="font-size:10pt" VALIGN="TOP">
<TD>&#149;</TD>
<TD>
<P style="font-size:10pt">The relative strength of the U.S. dollar, which affects the cost of our products sold internationally.</P>
</TD>
</TR>
<TR style="font-size:10pt" VALIGN="TOP">
<TD>&#149;</TD>
<TD>
<P style="font-size:10pt">Fluctuations in the cost or availability of raw materials.</P>
</TD>
</TR>
<TR style="font-size:10pt" VALIGN="TOP">
<TD>&#149;</TD>
<TD>
<P style="font-size:10pt">The success and timing of new products.</P>
</TD>
</TR>
<TR style="font-size:10pt" VALIGN="TOP">
<TD>&#149;</TD>
<TD>
<P style="font-size:10pt">Our ability to achieve projections of future financial and operating results.</P>
</TD>
</TR>
<TR style="font-size:10pt" VALIGN="TOP">
<TD>&#149;</TD>
<TD>
<P style="font-size:10pt">Successful integration of acquisitions.</P>
</TD>
</TR>
<TR style="font-size:10pt" VALIGN="TOP">
<TD>&#149;</TD>
<TD>
<P style="font-size:10pt">The ability to achieve operational efficiencies, including synergistic and other benefits of acquisitions.</P>
</TD>
</TR>
<TR style="font-size:10pt" VALIGN="TOP">
<TD>&#149;</TD>
<TD>
<P style="font-size:10pt">Unforeseen product quality problems.</P>
</TD>
</TR>
<TR style="font-size:10pt" VALIGN="TOP">
<TD>&#149;</TD>
<TD>
<P style="font-size:10pt">The effects of litigation, including threatened or pending litigation.</P>
</TD>
</TR>
<TR style="font-size:10pt" VALIGN="TOP">
<TD>&#149;</TD>
<TD>
<P style="font-size:10pt">Our plans for growth.</P>
</TD>
</TR>
</TABLE>
<P style="font-size:10pt">We caution that forward-looking statements must be considered carefully and that actual results may differ in material ways due to risks and uncertainties both known and unknown. Shareholders, potential investors and other readers are urged to consider these factors in evaluating forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. For additional information about factors that could materially affect our results, please see our other Securities and Exchange Commission filings.</P>

<BR>
<BR>
<P style="font-size:10pt;text-align:center">18</P>
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<P style="font-size:10pt">TENNANT COMPANY<BR>Quarterly Report &#150; Form 10-Q</P>

<P style="font-size:10pt">We do not undertake to update any forward-looking statement, and investors are advised to consult any
further disclosures by us on this matter in our filings with the Securities and Exchange Commission and in other written
statements we make from time to time. It is not possible to anticipate or foresee all risk factors, and investors should not
consider that any list of such factors to be an exhaustive or complete list of all risks or uncertainties.</P>

<P style="font-size:10pt"><B>ITEM 4 &#150; <U>Controls and Procedures</U></B></P>

<P style="font-size:10pt">(a) <U>Evaluation of disclosure controls and procedures.</U> Based on their evaluation as of the end of
the period covered by this report, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure
controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the &#147;Exchange
Act&#148;)) are effective to ensure that information required to be disclosed by us in reports that we file or submit under the
Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange
Commission rules and forms. Disclosure procedures only provide reasonable assurance that the controls will meet their objectives.
There can be no assurance that the controls will be effective in all circumstances. Management believes disclosure controls and
procedures are operating and effective at the reasonable assurance level.</P>

<P style="font-size:10pt">(b) <U>Changes in internal controls.</U> There were no changes in our internal controls over financial
reporting during the most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially
affect, our internal control over financial reporting.</P>

<P style="font-size:10pt"><B>PART II - OTHER INFORMATION</B></P>

<P style="font-size:10pt"><B>ITEM 2 - <U>Changes in Securities, and Use of Proceeds and Issuer Purchases of Equity Securities</U></B></P>

<P style="font-size:10pt">(e) On May&nbsp;3,&nbsp;2001, Tennant Company announced the authorization to purchase up to 400,000
shares of our common stock. These share repurchases are made from time to time in the open market or through privately negotiated
transactions, primarily to offset the dilutive effect of shares issued through our stock-based compensation programs.</P>

<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%">
<TR VALIGN="BOTTOM" style="font-size:8pt">
<TH colspan="3" align="left">For the Quarter<BR>Ended 9/30/2004</TH>
<TH>&nbsp;</TH> <TH colspan="3">Total Number<BR>of Shares<BR>Purchased (1)</TH>
<TH>&nbsp;</TH> <TH colspan="3">Average Price<BR>Paid Per Share</TH>
<TH>&nbsp;</TH> <TH colspan="3">Total Number of<BR>Shares Purchased as<BR>Part of Publicly<BR>Announced Plans or<BR>Programs</TH>
<TH>&nbsp;</TH> <TH colspan="3">Maximum Number of<BR>Shares that May Yet<BR>Be Purchased</TH>
</TR>
<TR>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD colspan="3">
<HR noshade color="black" size="1">
</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD width="42%">July 1 &#150; 31, 2004</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD align="right" width="8%">&#151;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD align="right" width="8%">&#151;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD align="right" width="12%">&#151;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD align="right" width="12%">75,939</TD>
<TD width="1%">&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>August 1 &#150; 31, 2004</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">19,337</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">37.74</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">19,200</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">56,739</TD>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>September 1 &#150; 30, 2004</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">112</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">&#151;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">&#151;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">56,739</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="1">
</TD>
<TD></TD>
</TR>
<TR VALIGN="BOTTOM" style="font-size:10pt">
<TD>Total</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">19,449</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>$</TD>
<TD align="right">37.74</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">19,200</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="right">56,739</TD>
<TD>&nbsp;</TD>
</TR>
<TR>
<TD colspan="2"></TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
<TD></TD>
<TD colspan="2">
<HR noshade color="black" size="3">
</TD>
<TD></TD>
</TR>
</TABLE>
<HR noshade color="black" align="left" width="20%">
<TABLE WIDTH="100%" CELLPADDING="2" CELLSPACING="2">
<TR style="font-size:10pt" VALIGN="TOP">
<TD width="4%">(1)</TD>
<TD width="96%">Includes shares delivered or attested to in satisfaction of the exercise price and/or tax withholding obligations by employees who exercised stock options under employee stock compensation plans of 137 shares in August 2004 and 112 shares in September 2004.</TD>
</TR>
</TABLE>

<BR>
<BR>
<P style="font-size:10pt;text-align:center">19</P>
<HR COLOR="GRAY" SIZE="2">
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<P style="font-size:10pt">TENNANT COMPANY<BR>Quarterly Report &#150; Form 10-Q</P>

<P style="font-size:10pt"><B>ITEM 6 - Exhibits</B></P>

<P style="font-size:10pt">Exhibits</P>


<DIV align="center">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="750">
<TR VALIGN="BOTTOM" style="font-size:8pt">
<TH align="left" nowrap>Item #</TH>
<TH>&nbsp;</TH> <TH>Description</TH>
<TH>&nbsp;</TH> <TH>Method of Filing</TH>
</TR>
<TR>
<TD>
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD>
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD>
<HR noshade color="black" size="1">
</TD>
</TR>
<TR VALIGN="top" style="font-size:10pt" bgcolor="#CCEEFF">
<TD>3i</TD>
<TD width="2%">&nbsp;</TD>
<TD>Articles of Incorporation</TD>
<TD width="2%">&nbsp;</TD>
<TD>Incorporated by reference to Exhibit 4.1 to our Registration Statement No. 33-62003, Form S-8, dated August 22, 1995.</TD>
</TR>
<TR VALIGN="top" style="font-size:10pt;padding-top:6pt">
<TD>3ii</TD>
<TD>&nbsp;</TD>
<TD>By-Laws</TD>
<TD>&nbsp;</TD>
<TD>Incorporated by reference to Exhibit 3ii to our Annual Report on Form 10-K for the fiscal year ended December 31, 1999.</TD>
</TR>
<TR VALIGN="top" style="font-size:10pt;padding-top:6pt" bgcolor="#CCEEFF">
<TD>31.1</TD>
<TD>&nbsp;</TD>
<TD>Rule 13a-14(a)/15d-14(a) Certification of CEO</TD>
<TD>&nbsp;</TD>
<TD>Filed herewith electronically.</TD>
</TR>
<TR VALIGN="top" style="font-size:10pt;padding-top:6pt">
<TD>31.2</TD>
<TD>&nbsp;</TD>
<TD>Rule 13a-14(a)/15d-14(a) Certification of CFO</TD>
<TD>&nbsp;</TD>
<TD>Filed herewith electronically.</TD>
</TR>
<TR VALIGN="top" style="font-size:10pt;padding-top:6pt" bgcolor="#CCEEFF">
<TD>32</TD>
<TD>&nbsp;</TD>
<TD>Section 1350 Certifications</TD>
<TD>&nbsp;</TD>
<TD>Filed herewith electronically.</TD>
</TR>
</TABLE>
</DIV>

<BR>
<BR>
<P style="font-size:10pt;text-align:center">20</P>
<HR COLOR="GRAY" SIZE="2">
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<P align=center style="font-size:10pt"><B>SIGNATURES</B></P>

<P style="font-size:10pt">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this
report to be signed on our behalf by the undersigned thereunto duly authorized.</P>


<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="75%">
<TR VALIGN="TOP" style="font-size:10pt">
<TD width="10%"></TD>
<TD width="2%">&nbsp;</TD>
<TD width="38%"></TD>
<TD width="2%">&nbsp;</TD>
<TD width="46%">TENNANT COMPANY</TD></TR>

<TR VALIGN="TOP" style="font-size:10pt;padding-top:6pt">
<TD width="10%">Date:</TD>
<TD>&nbsp;</TD>
<TD width="38%">November 5,&nbsp;2004</TD>
<TD>&nbsp;</TD>
<TD width="46%">/s/ Janet M. Dolan</TD>
</TR>
<TR>
<TD></TD>
<TD></TD>
<TD>
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD>
<HR noshade color="black" size="1">
</TD>
</TR>
<TR VALIGN="TOP" style="font-size:10pt;padding-top:6pt">
<TD></TD>
<TD>&nbsp;</TD>
<TD></TD>
<TD>&nbsp;</TD>
<TD>Janet M. Dolan<BR>President and Chief Executive Officer</TD>
</TR>
<TR VALIGN="TOP" style="font-size:10pt;padding-top:6pt">
<TD></TD>
<TD>&nbsp;</TD>
<TD></TD>
<TD>&nbsp;</TD>
<TD></TD>
</TR>
<TR VALIGN="TOP" style="font-size:10pt;padding-top:6pt">
<TD>Date:</TD>
<TD>&nbsp;</TD>
<TD>November 5,&nbsp;2004</TD>
<TD>&nbsp;</TD>
<TD>/s/ Anthony T. Brausen</TD>
</TR>
<TR>
<TD></TD>
<TD></TD>
<TD>
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD>
<HR noshade color="black" size="1">
</TD>
</TR>
<TR VALIGN="TOP" style="font-size:10pt;padding-top:6pt">
<TD></TD>
<TD>&nbsp;</TD>
<TD></TD>
<TD>&nbsp;</TD>
<TD>Anthony T. Brausen<BR>Vice President, Chief Financial Officer,<BR>and Treasurer</TD>
</TR>
<TR VALIGN="TOP" style="font-size:10pt;padding-top:6pt">
<TD></TD>
<TD>&nbsp;</TD>
<TD></TD>
<TD>&nbsp;</TD>
<TD></TD>
</TR>
<TR VALIGN="TOP" style="font-size:10pt;padding-top:6pt">
<TD>Date:</TD>
<TD>&nbsp;</TD>
<TD>November 5,&nbsp;2004</TD>
<TD>&nbsp;</TD>
<TD>/s/ Gregory M. Siedschlag</TD>
</TR>
<TR>
<TD></TD>
<TD></TD>
<TD>
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD>
<HR noshade color="black" size="1">
</TD>
</TR>
<TR VALIGN="TOP" style="font-size:10pt;padding-top:6pt">
<TD></TD>
<TD>&nbsp;</TD>
<TD></TD>
<TD>&nbsp;</TD>
<TD>Gregory M. Siedschlag<BR>Corporate Controller and<BR>Principal Accounting Officer</TD>
</TR>
</TABLE>

<BR>
<BR>
<P style="font-size:10pt;text-align:center">21</P>
<HR COLOR="GRAY" SIZE="2">

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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>2
<FILENAME>tennant045225_ex31-1.htm
<TEXT>
<HTML>
<HEAD>
<title>Exhibit 31.1 to Tennant Company Form 10-Q dated September 30, 2004</title>
</HEAD>
<BODY>


<BR>
<BR>


<P style="font-size:10pt;font-weight:bold;text-align:right">Exhibit 31.1</P>

<P style="font-size:10pt;font-weight:bold;text-align:center">CERTIFICATIONS</P>

<P style="font-size:10pt">I, Janet M. Dolan, certify that:</P>


<TABLE WIDTH="100%" CELLPADDING="2" CELLSPACING="2">
<TR style="font-size:10pt" VALIGN="TOP">
<TD WIDTH="30">&nbsp;</TD>
<TD WIDTH="30">1.</TD>
<TD>
<P style="font-size:10pt">I have reviewed this quarterly report on Form 10-Q of Tennant Company;</P>
</TD>
</TR>
<TR style="font-size:10pt" VALIGN="TOP">
<TD>&nbsp;</TD>
<TD>2.</TD>
<TD>
<P style="font-size:10pt">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;</P>
</TD>
</TR>
<TR style="font-size:10pt" VALIGN="TOP">
<TD>&nbsp;</TD>
<TD>3.</TD>
<TD>
<P style="font-size:10pt">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;</P>
</TD>
</TR>
<TR style="font-size:10pt" VALIGN="TOP">
<TD>&nbsp;</TD>
<TD>4.</TD>
<TD>
<P style="font-size:10pt">The registrant&#146;s other certifying officer 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:</P>
</TD>
</TR>
</TABLE>

<TABLE WIDTH="100%" CELLPADDING="2" CELLSPACING="2">
<TR style="font-size:10pt" VALIGN="TOP">
<TD WIDTH="30">&nbsp;</TD>
<TD WIDTH="30">&nbsp;</TD>
<TD WIDTH="30">a)</TD>
<TD>
<P style="font-size:10pt">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;</P>
</TD>
</TR>
<TR style="font-size:10pt" VALIGN="TOP">
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>b)</TD>
<TD>
<P style="font-size:10pt">Evaluated the effectiveness of the registrant&#146;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</P>
</TD>
</TR>
<TR style="font-size:10pt" VALIGN="TOP">
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>c)</TD>
<TD>
<P style="font-size:10pt">Disclosed in this report any change in the registrant&#146;s internal control over financial reporting
(as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) that occurred during the registrant&#146;s most recent fiscal quarter
(the registrant&#146;s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably
likely to materially affect, the registrant&#146;s internal control over financial reporting.</P>
</TD>
</TR>
</TABLE>


<TABLE WIDTH="100%" CELLPADDING="2" CELLSPACING="2">
<TR style="font-size:10pt" VALIGN="TOP">
<TD WIDTH="30">&nbsp;</TD>
<TD WIDTH="30">5.</TD>
<TD>
<P style="font-size:10pt">The registrant&#146;s other certifying officer and I have disclosed, based on our most recent evaluation
of internal control over financial reporting, to the registrant&#146;s auditors and the audit committee of the registrant&#146;s
board of directors (or persons performing the equivalent functions):</P>
</TD>
</TR>
</TABLE>


<TABLE WIDTH="100%" CELLPADDING="2" CELLSPACING="2">
<TR style="font-size:10pt" VALIGN="TOP">
<TD WIDTH="30">&nbsp;</TD>
<TD WIDTH="30">&nbsp;</TD>
<TD WIDTH="30">a)</TD>
<TD>
<P style="font-size:10pt">All significant deficiencies and material weaknesses in the design or operation of internal controls
over financial reporting which are reasonably likely to adversely affect the registrant&#146;s ability to record, process,
summarize and report financial information; and</P>
</TD>
</TR>
<TR style="font-size:10pt" VALIGN="TOP">
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>b)</TD>
<TD>
<P style="font-size:10pt">Any fraud, whether or not material, that involves management or other employees who have a significant
role in the registrant&#146;s internal control over financial reporting.</P>
</TD>
</TR>
</TABLE>


<DIV align="center">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="600">
<TR VALIGN="TOP" style="font-size:10pt;padding-top:12pt">
<TD>Date:</TD>
<TD width="2%">&nbsp;</TD>
<TD>November 5, 2004</TD>
<TD width="2%">&nbsp;</TD>
<TD>/s/ Janet Dolan</TD>
</TR>
<TR>
<TD></TD>
<TD></TD>
<TD>
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD>
<HR noshade color="black" size="1">
</TD>
</TR>
<TR VALIGN="TOP" style="font-size:10pt;padding-top:6pt">
<TD></TD>
<TD>&nbsp;</TD>
<TD></TD>
<TD>&nbsp;</TD>
<TD>Janet M. Dolan</TD>
</TR>
<TR VALIGN="TOP" style="font-size:10pt;padding-top:6pt">
<TD></TD>
<TD>&nbsp;</TD>
<TD></TD>
<TD>&nbsp;</TD>
<TD>President and Chief Executive Officer</TD>
</TR>
</TABLE>
</DIV>

<BR>
<BR>
<P style="font-size:10pt;text-align:center">22</P>
<HR COLOR="GRAY" SIZE="2">


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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>3
<FILENAME>tennant045225_ex31-2.htm
<TEXT>
<HTML>
<HEAD>
<title>Exhibit 31.2 to Tennant Company Form 10-Q dated September 30, 2004</title>
</HEAD>
<BODY>


<BR><BR>


<P style="font-size:10pt;font-weight:bold;text-align:right">Exhibit 31.2</P>
<P style="font-size:10pt;font-weight:bold;text-align:center">CERTIFICATIONS</P>
<P style="font-size:10pt">I, Anthony T. Brausen, certify that:</P>
<TABLE WIDTH="100%" CELLPADDING="2" CELLSPACING="2">
<TR style="font-size:10pt" VALIGN="TOP">
<TD WIDTH="30">&nbsp;</TD>
<TD WIDTH="30">1.</TD>
<TD>
<P style="font-size:10pt">I have reviewed this quarterly report on Form 10-Q of Tennant Company;</P>
</TD>
</TR>
<TR style="font-size:10pt" VALIGN="TOP">
<TD>&nbsp;</TD>
<TD>2.</TD>
<TD>
<P style="font-size:10pt">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;</P>
</TD>
</TR>
<TR style="font-size:10pt" VALIGN="TOP">
<TD>&nbsp;</TD>
<TD>3.</TD>
<TD>
<P style="font-size:10pt">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;</P>
</TD>
</TR>
<TR style="font-size:10pt" VALIGN="TOP">
<TD>&nbsp;</TD>
<TD>4.</TD>
<TD>
<P style="font-size:10pt">The registrant&#146;s other certifying officer 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:</P>
</TD>
</TR>
</TABLE>
<TABLE WIDTH="100%" CELLPADDING="2" CELLSPACING="2">
<TR style="font-size:10pt" VALIGN="TOP">
<TD WIDTH="30">&nbsp;</TD>
<TD WIDTH="30">&nbsp;</TD>
<TD WIDTH="30">a)</TD>
<TD>
<P style="font-size:10pt">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;</P>
</TD>
</TR>
<TR style="font-size:10pt" VALIGN="TOP">
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>b)</TD>
<TD>
<P style="font-size:10pt">Evaluated the effectiveness of the registrant&#146;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</P>
</TD>
</TR>
<TR style="font-size:10pt" VALIGN="TOP">
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>c)</TD>
<TD>
<P style="font-size:10pt">Disclosed in this report any change in the registrant&#146;s internal control over financial reporting
(as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) that occurred during the registrant&#146;s most recent fiscal quarter
(the registrant&#146;s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably
likely to materially affect, the registrant&#146;s internal control over financial reporting.</P>
</TD>
</TR>
</TABLE>
<TABLE WIDTH="100%" CELLPADDING="2" CELLSPACING="2">
<TR style="font-size:10pt" VALIGN="TOP">
<TD WIDTH="30">&nbsp;</TD>
<TD WIDTH="30">5.</TD>
<TD>
<P style="font-size:10pt">The registrant&#146;s other certifying officer and I have disclosed, based on our most recent evaluation
of internal control over financial reporting, to the registrant&#146;s auditors and the audit committee of the registrant&#146;s
board of directors (or persons performing the equivalent functions):</P>
</TD>
</TR>
</TABLE>
<TABLE WIDTH="100%" CELLPADDING="2" CELLSPACING="2">
<TR style="font-size:10pt" VALIGN="TOP">
<TD WIDTH="30">&nbsp;</TD>
<TD WIDTH="30">&nbsp;</TD>
<TD WIDTH="30">a)</TD>
<TD>
<P style="font-size:10pt">All significant deficiencies and material weaknesses in the design or operation of internal controls
over financial reporting which are reasonably likely to adversely affect the registrant&#146;s ability to record, process,
summarize and report financial information; and</P>
</TD>
</TR>
<TR style="font-size:10pt" VALIGN="TOP">
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>b)</TD>
<TD>
<P style="font-size:10pt">Any fraud, whether or not material, that involves management or other employees who have a significant
role in the registrant&#146;s internal control over financial reporting.</P>
</TD>
</TR>
</TABLE>
<DIV align="center">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="600">
<TR VALIGN="TOP" style="font-size:10pt;padding-top:12pt">
<TD>Date:</TD>
<TD width="2%">&nbsp;</TD>
<TD>November 5, 2004</TD>
<TD width="2%">&nbsp;</TD>
<TD>/s/ Anthony T. Brausen</TD>
</TR>
<TR>
<TD></TD>
<TD></TD>
<TD>
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD>
<HR noshade color="black" size="1">
</TD>
</TR>
<TR VALIGN="TOP" style="font-size:10pt;padding-top:6pt">
<TD></TD>
<TD>&nbsp;</TD>
<TD></TD>
<TD>&nbsp;</TD>
<TD>Anthony T. Brausen</TD>
</TR>
<TR VALIGN="TOP" style="font-size:10pt;padding-top:6pt">
<TD></TD>
<TD>&nbsp;</TD>
<TD></TD>
<TD>&nbsp;</TD>
<TD>Vice President, Chief Financial Officer, and Treasurer</TD>
</TR>
</TABLE>
</DIV>

<BR>
<BR>
<P style="font-size:10pt;text-align:center">23</P>
<HR COLOR="GRAY" SIZE="2">


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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>4
<FILENAME>tennant045225_ex32.htm
<TEXT>
<HTML>
<HEAD>
<title>Exhibit 32 to Tennant Company Form 10-Q dated September 30, 2004</title>
</HEAD>
<BODY>


<BR><BR>

<P style="font-size:10pt;font-weight:bold;text-align:right">Exhibit 32</P>

<P style="font-size:10pt;font-weight:bold;text-align:center">CERTIFICATION UNDER SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</P>

<P style="font-size:10pt">Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned certifies that this
periodic report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that
information contained in this periodic report fairly presents, in all material respects, the financial condition and results of
operations of Tennant Company.</P>


<DIV align="center">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="600">
<TR VALIGN="TOP" style="font-size:10pt;padding-top:12pt">
<TD>Date:</TD>
<TD width="2%">&nbsp;</TD>
<TD>November 5, 2004</TD>
<TD width="2%">&nbsp;</TD>
<TD>/s/ Janet M. Dolan</TD>
</TR>
<TR>
<TD></TD>
<TD></TD>
<TD>
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD>
<HR noshade color="black" size="1">
</TD>
</TR>
<TR VALIGN="TOP" style="font-size:10pt;padding-top:6pt">
<TD></TD>
<TD>&nbsp;</TD>
<TD></TD>
<TD>&nbsp;</TD>
<TD>Janet M. Dolan</TD>
</TR>
<TR VALIGN="TOP" style="font-size:10pt;padding-top:6pt">
<TD></TD>
<TD>&nbsp;</TD>
<TD></TD>
<TD>&nbsp;</TD>
<TD>President and Chief Executive Officer</TD>
</TR>
<TR VALIGN="TOP" style="font-size:10pt;padding-top:6pt">
<TD></TD>
<TD>&nbsp;</TD>
<TD></TD>
<TD>&nbsp;</TD>
<TD></TD>
</TR>
<TR VALIGN="TOP" style="font-size:10pt;padding-top:6pt">
<TD>Date:</TD>
<TD>&nbsp;</TD>
<TD>November 5, 2004</TD>
<TD>&nbsp;</TD>
<TD>/s/ Anthony T. Brausen</TD>
</TR>
<TR>
<TD></TD>
<TD></TD>
<TD>
<HR noshade color="black" size="1">
</TD>
<TD></TD>
<TD>
<HR noshade color="black" size="1">
</TD>
</TR>
<TR VALIGN="TOP" style="font-size:10pt;padding-top:6pt">
<TD></TD>
<TD>&nbsp;</TD>
<TD></TD>
<TD>&nbsp;</TD>
<TD>Anthony T. Brausen</TD>
</TR>
<TR VALIGN="TOP" style="font-size:10pt;padding-top:6pt">
<TD></TD>
<TD>&nbsp;</TD>
<TD></TD>
<TD>&nbsp;</TD>
<TD>Vice President, Chief Financial Officer and Treasurer</TD>
</TR>
</TABLE>
</DIV>

<BR>
<BR>
<P style="font-size:10pt;text-align:center">24</P>
<HR COLOR="GRAY" SIZE="2">


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