Champion Parts, Inc. Reports Third Quarter Results

Continues Profitability on Higher Sales
HOPE, Ark., Nov. 27 -- Champion Parts, Inc. (OTC Bulletin Board: CREB - news) today reported third quarter net income for the period ended Sept. 30, 2001 of $9,000, or $0.00 per share, compared to $14,000, or $00.00 per share for the same period in 2000. Net sales increased to $5,731,000, versus $4,597,000 for the comparable period in 2000.

For the nine months of 2001, the company reported net sales of $17,097,000, compared to $17,618,000 last year. Net income was $251,000, or $0.07 per share for the nine months, compared to $745,000, or $0.20 per share for the same period in 2000.

Jerry A. Bragiel, president and chief executive officer, said, ``While the third quarter operating results are disappointing, management is confident that its plant consolidation and product marketing plans will better position Champion Parts for growth and profitability.'' The company's plans for consolidation of its existing manufacturing facilities have been delayed due to increased product demand.

``The 24.7% increase in third quarter sales,'' Bragiel continued, ``was in large measure attributable to the recent acquisition of the air-conditioning compressor product lines. However, we also experienced nearly an 11% increase in carburetor sales and achieved a 30% increase in agricultural heavy-duty products, while automotive and light truck products slipped about 3%.''

The executive noted that the company's recent acquisition, B&T Rebuilders, Inc., which manufactures air-conditioning compressors for passenger car, light truck and agriculture aftermarket, ``continues to increase its market share and operate profitably.'' He further noted that Champion expects to see this segment expand, while it continues to seek other new product lines and additional acquisitions.

Champion Parts remanufactures fuel system components, front wheel drive assemblies, and underhood electrical and mechanical products for the passenger car and light truck, agricultural, heavy-duty truck and marine parts aftermarket.

Certain forward-looking statements in this press release involve various risks and uncertainties, including, without limitation, those statements relating to the impact of plant consolidation and product marketing and those statements relating to market expansion and acquisitions. These statements are forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. Although the Company believes that its forward-looking statements are reasonable, there are no assurances that such statements will prove to be correct. Attention is directed to the discussion of risks and uncertainties contained in the Factors Which May Affect Future Results section of the Company's most recent Form 10-Q and other reports filed with the Securities and Exchange Commission. 


                               CHAMPION PARTS, INC.
                               CONSOLIDATED RESULTS
                                   (Unaudited)

                           Third Quarter Ended         Nine Months Ended
                          Sept. 30,     Oct. 1,      Sept. 30,     Oct. 1,
                            2001         2000           2001        2000

    Net Sales           $5,731,000    $4,597,000   $17,097,000  $17,618,000
     Costs and Expenses:
       Cost of products
        sold             5,278,000     3,883,000    14,984,000   14,611,000
       Selling, distribution
        & administrative   593,000       557,000     1,817,000    1,830,000
     Total costs and
      expenses           5,871,000     4,440,000    16,801,000   16,441,000

    Operating income      (140,000)      157,000       296,000    1,177,000
     Non-operating (income)/expense:
       Interest expense    125,000       132,000       355,000      404,000
       Other non-operating
        (income)          (274,000)       10,000      (434,000)     (17,000)
     Total non-operating
      (income)/expense    (149,000)      142,000       (79,000)     387,000

    Earnings before income
     taxes and extraordinary
     loss                    9,000        15,000       375,000      790,000

      Income taxes               0         1,000             0       45,000

    Earnings before
     extraordinary loss      9,000        14,000       375,000      745,000

      Extraordinary loss         0             0       124,000            0

    Net Income          $    9,000    $   14,000   $   251,000  $   745,000

     Weighted Average Common Shares
     Outstanding at September 30, 2001:
        Basic            3,655,266     3,655,266     3,655,266    3,655,266
        Diluted          3,674,621     3,697,471     3,674,621    3,697,471

    Earnings Per Common Share - Basic:
     Earnings before extraordinary
      loss per common
      share             $     0.00    $     0.00   $      0.10  $      0.20
     Extraordinary loss per
      common share            0.00          0.00          0.03         0.00
     Net income per
      common share      $     0.00    $     0.00   $      0.07  $      0.20

    Earnings Per Common Share - Diluted:
     Earnings before extraordinary
      loss per common
      share             $     0.00    $     0.00   $      0.10  $      0.20
     Extraordinary loss per
      common share            0.00          0.00          0.03         0.00
     Net income per common
      share             $     0.00    $     0.00   $      0.07  $      0.20