(NYSE: TUC), the nation’s largest laundry facilities contractor to the college and university market, today announced the introduction of a new technology that’s changing the way college students do laundry.

Starting at four Massachusetts college campuses this fall, students can do their laundry without putting their own detergent into the washing machine. Using Mac-Gray’s innovative PrecisionWash(TM) system, liquid detergent is injected directly into the wash cycle –by the machine itself.

For students at Babson College, Endicott College, the Massachusetts College of Liberal Arts and Tufts University, that means no more buying, storing and lugging detergent to the dorm laundry rooms. No more figuring out just how much detergent to pour into the machine. No more clothes ruined by excess detergent. PrecisionWash(TM) also means cleaner laundry rooms, no detergent containers to buy, store and eventually throw away, and less risk of damage to floors and equipment.

“Students love the convenience. They no longer have to lug around heavy containers of detergent,” said Patricia Klos, Director of Dining and Business Services at Tufts University in Medford, Mass. “Our students often shop without the convenience of a car, so that’s important. The cost is comparable to buying detergent in the store, and PrecisionWash(TM) is a pay-per-use system so there’s no need to buy and store family-size containers that may never be totally used. You simply buy what you need when you need it, no different than buying a snack or beverage. It’s a great concept, a real innovation for universities nationwide. Mac-Gray has been partners with Tufts since 1957 and this represents another example of our teams working together to deliver leading-edge products that improve our students’ campus experience.”

Mac-Gray’s PrecisionWash(TM) is a patent-pending product that delivers accurately measured Tide(R) liquid detergent directly into each washing machine. Using their campus cards, students select a washing machine and the detergent feature. The appropriate amount of Tide is automatically pumped directly into their washer. Students choosing not to use the option can still add their own detergent.

At Endicott College, in Beverly, MA, Lynne O’Toole, Vice President of Finance likes the fact that the students use their existing student card. “Working with Mac-Gray, we successfully made the transition from coin to card- operated laundry equipment last year. Now with just the push of a button our students can also purchase detergent in a cashless transaction. It’s very efficient and it integrates seamlessly with our existing campus card system, which made this an easy decision for us. The benefits to our students and the school were obvious. We began working with Mac-Gray on this project in March of this year, and we were glad to test the first prototype of the system. They have been our laundry facilities contractor since 1979, and it has been an excellent partnership.”

Because the system uses the amount recommended by Procter & Gamble and Maytag, there are no excess chemicals that can prevent clothes from being properly cleaned, damage clothing fibers, cause allergic reactions or harm the environment.

Stewart MacDonald, Mac-Gray’s chairman and chief executive officer, said, “These colleges are committed to environmental responsibility. The ‘green’ focus at these schools will now extend to the washers and the detergent used with the PrecisionWash(TM) system.”

The washers are Maytag Commercial Neptune(R) machines, ENERGY STAR(R) rated, and currently the most energy-efficient commercial washer in the market, according to the Department of Energy. Maytag has been chosen as the Department of Energy’s Partner of the Year for 2003. For detergent, the system uses Tide(R) (high-efficiency), specifically formulated by Procter & Gamble to maximize the cleaning potential of the Maytag Neptune and other high-efficiency washers.

“At Mac-Gray, we are committed to researching and developing new technologies to improve the laundry experience,” MacDonald continued. “PrecisionWash(TM) is one of several unique components of Mac-Gray’s total package of Intelligent Laundry Solutions(TM). Mac-Gray has been integrating college laundry card-operated-systems for nearly 15 years and continues to be a leading innovator in laundry facilities management. We’ve introduced several new card technologies, including smart-card systems for resident convenience. With the PrecisionWash(TM) product, we are charting new directions. PrecisionWash(TM) is applicable to both colleges and apartment buildings. The combination of benefits to the users, the property owner, and the environment make this a logical solution for most large laundry rooms.”

About Mac-Gray Corporation
Mac-Gray derives its revenue principally through the contracting of card- and coin-operated laundry rooms in multiple housing facilities such as apartment buildings, colleges and universities, condominiums and public housing complexes. Mac-Gray contracts its laundry rooms under long-term leases with property owners, colleges and universities and government agencies. These leases typically grant Mac-Gray exclusive contract rights to laundry rooms on the lessor’s premise for a fixed term, which is generally seven to ten years, in exchange for a negotiated portion of the revenue collected. Mac-Gray’s laundry route business consists of approximately 30,000 multiple housing laundry rooms located in 27 states in the Northeastern, Midwestern and Southeastern United States and the District of Columbia. Mac- Gray also sells, services and leases commercial laundry equipment produced by Maytag and other leading manufacturers to commercial laundromats and institutions. Through its MicroFridge(R) division, Mac-Gray sells its proprietary MicroFridge(R) product, which is a combination refrigerator/freezer/microwave oven utilizing patented Safe Plug(TM) circuitry. The product is marketed throughout the United States to colleges and universities, the federal government, hotels and motels and assisted- living facilities. In addition, MicroFridge is marketing the full line of Amana and Magic Chef appliances manufactured by Maytag. Through its Copico division, Mac-Gray is a provider of card- and coin-operated reprographics equipment and services to the academic and public library markets in New England, New York and Chicago. For more information about Mac-Gray, please visit http://www.macgray.com.

PrecisionWash and Intelligent Laundry Solutions are trademarks of Mac-Gray Corporation. All other product names, service marks, and trademarks mentioned herein are trademarks of their respective owners.

For more information on Tide(R)(high-efficiency) detergent, visit http://www.tide.com.

For more information on Maytag’s energy-saving Neptune washing machine, visit http://www.maytag.com.

Contacts:
Robert J. Tuttle
Vice President, Field Technology
Mac-Gray Corporation
617-492-4040 ext. 305
Email: rtuttle@macgray.com

 Timothy D. Green<br />
 Vice President<br />
 Sharon Merrill Associates, Inc.<br />
 617-542-5300<br />
 Email: tgreen@investorrelations.com