The Coast Distribution System, Inc. Reports First Quarter Results

    MORGAN HILL, Calif., May 15 The Coast Distribution System,
Inc. (Amex: CRV) today reported financial results for the quarter ended
March 31, 2001.
    Revenue for the first quarter of 2001 was $37.9 million as compared to
$43.9 million for the first quarter of 2000.  Coast lost $48,000, or $.01 per
share, in the three months ended March 31, 2001 and earned  $413,000, or
$.10 per share, in the three months ended March 31, 2000.
    "Demand in both the RV and marine markets is substantially below last year
and we expect it to continue to be soft for the remainder of the year," stated
Thomas R. McGuire, Chairman and Chief Executive of Coast.  "The supply chain
strategies that we initiated during the last quarter of 2000 have begun to
show results.  As a consequence of these changes, we reduced our inventories
by $8.5 million and correspondingly, our bank borrowings by $9.5 million when
compared to March 31, 2000.  Additionally, during the quarter we reduced
general and administrative expenses by 12% when compared to the first quarter
of 2000.  However, we have yet to achieve the service levels we expect our
strategies to yield in the second half of this year.
    "We remain committed to reducing the assets and expenses required to run
our business and more importantly, to gain a comparative service advantage in
our markets going forward.  Change is always difficult and carries a cost for
everyone involved.  We expect that there will be bumps in the road ahead but
we strongly believe that we will be well positioned when our markets rebound."
    The Coast Distribution System is a leading supplier of accessories for
recreational vehicles (RVs) and pleasure boats in the U.S. and Canada.  Coast
supplies its 15,000 customers through 17 distribution centers located
throughout the U.S. and Canada.
    This release may contain forward-looking statements.  Investors are
cautioned not to place undue reliance on forward-looking statements, which are
inherently uncertain.  Actual results may differ materially, depending on the
effect of factors such as industry and market changes, competition, overall
economic impacts, and effects of interest rate changes.  For a more detailed
discussion of factors that affect the Company's operating results, interested
parties should review the Company's SEC reports, including the Company's
annual report on Form 10-K for the year ended December 31, 2000.

                     The Coast Distribution System, Inc.
                Consolidated Statements of Operations for the
                  First Quarter ended March 31, 2001 & 2000



    Quarter Ended March 31,                         2001            2000

    Net Sales                                    $37,855,000    $43,872,000

    Net Earnings (Loss)                             ($48,000)      $413,000

    Diluted Earnings (Loss) Per Share                 ($0.01)         $0.10

    Average Shares Outstanding                     4,339,823      4,314,804

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