Clarion Technologies Announces 2001 First-Quarter Financial Results

    HOLLAND, Mich., May 16 Clarion Technologies, Inc.
today announced financial results for its first quarter ended
March 31, 2001.

    For 2001's first quarter, Clarion's sales increased 15 percent to $28.8
million from $25.1 million for 2000's first quarter.  The higher sales were
the result of new heavy truck business as well as the acquisition of Drake
Products Corp. during 2000's first quarter.  For the quarter, Clarion reported
a net loss after preferred dividends (loss attributable to common
shareholders) of $5.7 million, or $0.24 per diluted share, compared with a
loss of $468,000, or $0.02 per diluted share, reported for the year-ago
quarter.  During 2001's first quarter, the Company recorded a charge of $1.5
million before tax for the planned consolidation of Clarion's facilities in
Greenville, Mich.

    Clarion Technologies' President Bill Beckman commented, "Our first-quarter
financial results reflect the weaker automotive market that we began to see in
last year's fourth quarter.  The downturn has continued into 2001's second
quarter, but we are hopeful and expectant of an initial recovery in the second
half of this year.  In the meantime, we are focusing on offering customers
industry-leading service, attracting new customers and controlling our costs."

    "We remain confident in our business strategy of capitalizing on our high-
quality design and engineering services and ISO/TS 16949-certified
manufacturing -- two of our key competitive advantages.  In addition, since we
participate in an industry with $24 billion in annual revenues, opportunities
to grow and to capture market share continue to abound for Clarion."
    
                          Clarion Technologies, Inc.
                             Financial Highlights
                                 (Unaudited)
                     In Thousands, Except Per Share Data

                                                    First Quarter Ended
                                             March 31, 2001     April 1, 2000

    Net sales                                   $28,801           $25,085
    Cost of sales                                27,109            21,371

    Gross profit                                  1,692             3,714
    Selling, general and administrative expenses  2,810             2,334
    Impairment charge                             1,500                --

    Operating income (loss)                      (2,618)            1,380

    Interest expense                             (2,237)           (1,230)
    Other income (expenses), net                    (93)               48

    Income (loss) before income taxes            (4,948)              198
    Provision for income taxes                      212               118

    Net income (loss)                            (5,160)               80
    Preferred stock dividends declared             (554)             (548)
    Loss designated to common shareholders
        for computing per share results         $(5,714)            $(468)

    Loss per share (basic and diluted)           $(0.24)           $(0.02)
    Weighted average shares
        outstanding (basic and diluted)          23,531            19,876

    EBITDA                                         $500            $2,841