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The Coast Distribution System Sells its Stake in European Affiliate

29 September 1997

The Coast Distribution System Sells its Stake in European Affiliate

    SAN JOSE, Calif., Sept. 29 -- The Coast Distribution System
(Amex: CRV) today announced it has sold its stake in H. Burden Limited, its
European affiliate, to UGC Ltd. of the U.K. The investment, which is carried
on the company's books at approximately $5,100,000, was sold for gross
consideration of approximately $4,500,000, with $4,000,000 having been paid in
cash to the company at the close.
    "Coast has been pursuing three primary strategic initiatives -- returning
our core North American business to profitability, developing proprietary
products and expanding our presence internationally," said Thomas R. McGuire,
chairman and chief executive officer of Coast.  "Given the challenging
operating environment of the past several quarters, we recently have had to
make strategic choices about how to best deploy our resources going forward.
We therefore believe it is prudent for Coast to pull back from its investments
in Europe in favor of a more concentrated effort in its core North American
market.  The proceeds from this transaction will help boost our liquidity and
will provide additional funds for proprietary product development.  We will
continue to evaluate other strategic opportunities as they arise."
    The Coast Distribution System is a leading supplier of accessories for
recreational vehicles (RVs) in both the U.S. and Canada.  The company is also
a leading supplier of accessories for the pleasure-boat market in the U.S.
Coast supplies its 15,000 customers through the company's 18 distribution
centers located throughout the U.S. and Canada.  Investments in affiliates
include RV products distributors in Australia and Mexico, and a manufacturer
of RV products in the U.S.

SOURCE  The Coast Distribution System